OPEN BANK

Open Bank is a commercial community banking activities are operated through Open bank, our banking subsidiary. We offer commercial banking services to small and medium-sized businesses, their owners and retail customers primarily in the Korean-American community. Our lending activities are diversified and include commercial real estate, Small Business Administration (SBA) guaranteed, commercial and industrial, home mortgage, and consumer loans. We generally lend in markets where we have a physic... al presence through our branch and loan production offices, and attract deposits throughout our market area through a wide range of deposit products for business banking and retail markets. We derive our income primarily from interest received on our loan portfolio, and fee income we receive in connection with our deposits and the sale and service of SBA loans. Our major operating expenses are the interest we pay on deposits, the salaries and related benefits we pay our management and staff and the rent we pay on our leased properties. We rely primarily on locally-generated deposits, mostly from the Korean-American market within California, to fund our loan activities. We currently operate seven branches in Los Angeles County and Orange County. We have three loan production offices in Dallas, Texas; Seattle, Washington and Atlanta, Georgia.