OP Bancorp

We are subject to various regulatory capital requirements administered by the federal and state banking regulators, although, as a “smaller bank holding company,” we are not subject to most of these standards at the holding company level so long as our total consolidated asset size remains under $3 billion. These standards are, however, applicable to the Bank, and failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our Consolidated Financial Statements. Our Board of Directors reviews our capital position on an ongoing basis to ensure it is adequate, including but not limited to, the need for raising additional capital (whether in the form of debt and/or equity), replacing existing capital, redeeming outstanding capital, or returning capital to our shareholders whether through dividends and/or share repurchases.

Effective September 30, 2026, the Bank elected to use the CBLR framework. As of September 30, 2026, the Bank exceeded the applicable CBLR requirement and was considered "well-capitalized" under the prompt corrective action framework. See Note 12. Regulatory Capital Matters to the Consolidated Financial Statements in this Form 10-Q for additional information regarding the Bank's regulatory capital requirements.