▸ All of these inflationary risks for our commercial customer base can be financially detrimental, leading to increased likelihood that the customer may default on a loan.· · · · ● 1 ▸ First Bank, National Association, concluded that the Company’s audited consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, and the unaudited interim consolidated financial statements for the quarters ended· · · · ● 1 ▸ If the additional controls and procedures that we have implemented to remediate the material weaknesses prove to be insufficient or we identify other· · · · ● 1 ▸ If we were to lose CDFI certification at the Bank level or fail to obtain CDFI certification at the holding company level, our ability· · · · ● 1 ▸ March 31, 2024, June 30, 2024, September 30, 2024, and March 31, 2025 (collectively, the “Affected Financials”), each as previously filed with the Securities and Exchange Commission (“SEC”), should no longer be relied upon because of an error· · · · ● 1 ▸ September 2019, the purpose of which was to protect our stockholders against the possibility of attempts to acquire control of or influence over the Company through open market or privately negotiated purchases of our common stock without· · · · ● 1 ▸ The Bank is currently certified as a CDFI by the United States Department of the Treasury and is undergoing its periodic recertification, and CDFI· · · · ● 1 ▸ If we fail to satisfy the continued listing requirements of Nasdaq, such as the $1.00 minimum closing bid price or timely periodic financial reporting· · · ● ● 2 rw ▸ Ineffective internal control over financial reporting could affect our ability to record, process, and report financial information· · · ● ● 2 rw ▸ Our failure to meet the continued listing requirements of Nasdaq could result in a delisting of our common stock, which would negatively impact the market· · · ● ● 2 rw ▸ Effective internal controls are necessary for the Company to provide reliable and accurate financial reporting and financial statements for· · ● ● ● 3 rw ▸ Our provision for credit losses is based on estimates of expected lifetime credit losses for loans at the time of origination which may not cover actual future credit losses. Management utilizes a variety of· · ● ● ● 3 rw ▸ The markets in which we operate are susceptible to natural disasters, including earthquakes, fires, drought, flooding, extreme heat,· · ● ● ● 3 rw ▸ Following the filing of the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023 and Annual Report on From 10-K for the year ended December 31, 2023, we received a letter from Nasdaq on May 20, 2024,· · · ● · 1 ▸ In the event of a conflict between the interests of our stockholders and the specific public benefit purposes, we have a commitment to consider the interests of other stakeholder constituencies, and therefore, our directors are obligated to· · · ● · 1 ▸ The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations. Because our information technology and telecommunications systems· · ● · · 1 ▸ The failure of three regional banks in March 2023 and the resultant negative outlook on the banking sector has created concern regarding the exposure of banks to interest rate risk, and the exposure of banks to unrecognized investment· · ● · · 1 ▸ We identified a material weakness in our internal control over financial reporting which, if not remediated appropriately or timely, could affect our ability to record, process, and report· · ● · · 1 ▸ A significant portion of our business is generated from markets that have been, and will continue to be, susceptible to· ● · · · 1 ▸ Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. On November 15, 2019, FASB issued a new accounting· ● · · · 1 ▸ Company, which could depress our stock price.· ● · · · 1 ▸ Credit (“NMTC”) program or such program may not receive Congressional support in the future.· ● · · · 1 ▸ Inflation poses risk to the economy overall and could indirectly pose challenges· ● · · · 1 ▸ group The macroeconomic environment could pose significant· ● · · · 1 ▸ We have not paid cash dividends on our common stock since 2010 and we may not pay any cash dividends on our common stock for the foreseeable future.· ● · · · 1 ▸ While we intend our status a public benefit corporation to provide an overall net benefit to the Company, our customers, employees, community, and stockholders, it could instead cause us to make decisions and take actions that may not maximize the· ● · · · 1 ▸ Evaluation of many of the factors that are relevant to the determination of the appropriate levels of loss provisions and allowances is an inherently subjective process, and our conclusions are subject to review by our regulators in the course of● · · · · 1 ▸ Federal, state and local governments have enacted various restrictions in an attempt to limit the spread of COVID-19. Such measures have disrupted economic activity and contributed to job● · · · · 1 ▸ If the Bank’s actual loan losses exceed the amount that has been allocated for estimated probable losses, our net income and financial condition could be materially and adversely affected. Evaluation● ● · · · 2 rw ▸ If we were to lose our status as a CDFI, our ability to obtain grants and awards as a CDFI similar to those received in the past may be lost.● ● ● ● · 4 rw ▸ group Risks Relating to Our Business● · ● ● · 3 ▸ Since early March 2020, the spread of the COVID-19 novel coronavirus has resulted in a pandemic (the “COVID-19 pandemic”), which has impacted virtually every aspect of society. The COVID-19● · · · · 1 ▸ Substantially all of the activities of the Company are conducted through the Bank. The principal source of funds with which the Company will service its debt, pay operating expenses and pay● · · · · 1 ▸ The Bank and the Company are certified as CDFIs by the United States Department of the Treasury. CDFI status increases a financial institution’s potential for receiving grants and awards that,● ● ● ● · 4 rw ▸ The COVID-19 pandemic has impacted the economy and our businesses. The extent and severity of the impact on our business and financial results will depend on future● · · · · 1 ▸ The Company is a holding company and depends primarily on dividends from the bank for operating funds.● · · · · 1 ▸ The duration of the COVID-19 pandemic and its effects still cannot be determined with a reasonable level of certainty.● · · · · 1 ▸ The markets in which we operate are susceptible to natural disasters, including earthquakes, fires, drought, flooding, and other catastrophic events, any of which could result in a disruption of our operations and increases in loan losses.● ● · · · 2 rw ▸ We may not be able to obtain new NMTC awards due to unsuccessful applications, inability to meet program requirements, or failure of Congress to● ● · · · 2 rw ▸ We may not be successful in seeking future awards under the United States Department of the Treasury CDFI Fund’s New Markets Tax● ● · · · 2 rw ▸ A significant portion of our business is generated from markets that have been, and will continue to be, susceptible to damage by earthquakes, fires,● · ● ● ● 4 rw ▸ Inflation poses risk to the economy overall and could indirectly pose challenges to our clients and to our business. Elevated inflation can impact our● · ● ● ● 4 rw ▸ The macroeconomic environment could pose significant challenges for the Company and could adversely affect our financial condition and● · ● ● ● 4 rw ▸ A downturn in the real estate market could seriously impair our loan portfolio and operating results.● ● ● ● ● 5 ▸ Anti-takeover provisions of our certificate of incorporation and bylaws, federal and state law and our stockholder rights plan may● ● ● ● ● 5 rw ▸ As a Delaware public benefit corporation, our focus on specific public benefit purposes and producing a positive effect for society● ● ● ● ● 5 rw ▸ As a Delaware public benefit corporation, the Company’s directors have a fiduciary duty to consider not only our stockholders’● ● ● ● ● 5 rw ▸ As a Delaware public benefit corporation, we may be subject to increased derivative litigation concerning our duty to balance● ● ● ● ● 5 rw ▸ As a public benefit corporation, we are required to seek to produce a public benefit or benefits and to operate in a responsible and sustainable manner,● ● ● ● ● 5 rw ▸ Changes in governmental regulation may impair operations or restrict growth.● ● ● ● ● 5 ▸ Changes in interest rates affect profitability.● ● ● ● ● 5 ▸ Changes in prevailing interest rates adversely affect our business. We derive income mainly from the difference or “spread” between the● ● ● ● ● 5 rw ▸ Many of our larger competitors have substantially greater resources to invest in technological improvements. As a result, they may be able to offer● ● ● ● ● 5 rw ▸ Most of our loan portfolio consists of loans secured by various types of real estate located in Southern California and in Washington, D.C., and● ● ● ● ● 5 rw ▸ Negative public opinion regarding us or the failure to maintain our reputation in the communities we serve could adversely affect our● ● ● ● ● 5 rw ▸ Our allowance for credit losses may not be adequate to cover actual loan losses.● ● ● ● ● 5 rw ▸ Our business is dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems and the systems of● ● ● ● ● 5 rw ▸ Our future success will depend on our ability to compete effectively in the highly competitive financial services industry in the● ● ● ● ● 5 rw ▸ Our information technology systems and of our third-party service providers may be vulnerable to unauthorized access, computer viruses, phishing schemes● ● ● ● ● 5 rw ▸ Our reputation within the communities we serve is critical to our success. We believe we have built strong personal and professional relationships with● ● ● ● ● 5 rw ▸ Our success will depend in part on its ability to retain the talents and dedication of key employees. If key employees unexpectedly terminate their● ● ● ● ● 5 rw ▸ group Risks Relating to the Company Being a Public Benefit Corporation● ● ● ● ● 5 ▸ Stock sales by us or other dilution of our equity may adversely affect the market price of our common stock.● ● ● ● ● 5 ▸ Stockholders of a Delaware public benefit corporation (if they, individually or collectively, own at least two percent of the company’s outstanding● ● ● ● ● 5 rw ▸ Systems failures, interruptions and cybersecurity breaches in our information technology and telecommunications systems and of● ● ● ● ● 5 rw ▸ The financial services industry is undergoing rapid technological change, and we may not have the resources to effectively implement● ● ● ● ● 5 rw ▸ The financial services industry is undergoing rapid technological changes with frequent introductions of new technology-driven products and services. The● ● ● ● ● 5 rw ▸ The issuance of additional shares of our common stock, or securities that are convertible into our common stock, may be determined to be necessary or● ● ● ● ● 5 rw ▸ Unlike traditional corporations, which have a fiduciary duty to focus primarily on maximizing stockholder value, directors of the Company (as a public● ● ● ● ● 5 rw ▸ Various provisions of our certificate of incorporation and bylaws and certain other actions that we have taken could delay or prevent a third-party from● ● ● ● ● 5 rw ▸ We are exposed to a variety of risks, some of which are inherent to the financial services industry and others of which are more● ● ● ● ● 5 rw ▸ We are subject to substantial governmental supervision and regulation, which are intended primarily for the protection of depositors rather● ● ● ● ● 5 rw ▸ We cannot provide any assurance that we will achieve our public benefit purposes.● ● ● ● ● 5 ▸ We face strong competition in the Washington, D.C. metropolitan area and the Southern California Market. We compete with many different types of● ● ● ● ● 5 rw ▸ We may not be successful in retaining key employees.● ● ● ● ● 5 ▸ While directors of traditional corporations are required to make decisions they believe to be in the best interests of their stockholders, directors of a● ● ● ● ● 5 rw 
