▸ Real estate loans, which constitute a large portion of our loan portfolio, include home equity, commercial, construction and residential loans, and such loans are concentrated in the Bank’s trade area. As of December 31, 2025, 86.39% of our loans had· · · · · ● 1 ▸ Climate change and agricultural sector risk.· · · · ● ● 2 ▸ Potential impact of artificial intelligence and quantum computing on our operations and competitiveness.· · · · ● ● 2 ▸ Inflationary pressures in the global economy continue to persist.· · · ● ● ● 3 ▸ The proportion of our deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk in times of financial distress.· · · ● ● ● 3 ▸ We are constantly at risk of increased losses from fraud.· · · ● ● ● 3 ▸ We could experience an unexpected inability to obtain needed liquidity which could adversely affect our business, profitability, and viability as a going concern.· · · ● ● ● 3 ▸ Labor shortages and a failure to attract and retain qualified employees could negatively impact our business, results of operations and financial condition.· · ● ● ● ● 4 ▸ group Capital and Liquidity Risks· ● ● ● ● ● 5 ▸ Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.· ● ● ● ● ● 5 ▸ group Competitive and Strategic Risks· ● ● ● ● ● 5 ▸ group Economic and Market Risks· ● ● ● ● ● 5 ▸ group Regulatory and Legal Risks· ● ● ● ● ● 5 ▸ Higher interest rates have decreased the value of the Company’s securities portfolio, and the Company would realize losses if it were required to sell such securities to meet liquidity needs.· · · ● ● · 2 rw ▸ Recent events impacting the financial services industry may negatively affect our financial condition and results of operation.· · · ● ● · 2 rw ▸ Our allowance for loan losses may not be adequate to cover actual losses.● · · · · · 1 ▸ Risks Related to the Banking Industry in General and Community Banking in Particular● · · · · · 1 ▸ group Risks Related to the Company's Business● · · · · · 1 ▸ The manner and impact of this transition, as well as the effect of these developments on the Bank’s funding costs, loan and investment and trading securities portfolios, asset-liability management, and business, is uncertain.● · ● · · · 2 ▸ The ongoing impact of the derecho storm could have a material adverse effect on our business, results of operations and financial condition, and such effects will depend on future developments, which are highly uncertain and are difficult to predict.● · · · · · 1 ▸ The replacement of LIBOR could adversely affect the Company’s revenue or expenses and the value of those assets or obligations.● ● ● · · · 3 ▸ We may be adversely affected by economic conditions in the local economies in which we conduct our operations, and in the United States in general, including global economic, geopolitical instability, inflationary risks and other global pandemics.● ● · ● ● · 4 rw ▸ Changes in U.S. trade policies, such as the implementation of tariffs, and other factors beyond the Company’s control may adversely impact our business, financial condition and results of operations.● ● ● ● ● ● 6 ▸ Changing interest rates may adversely affect our profits.● ● ● ● ● ● 6 ▸ Commercial loans make up a significant portion of our loan portfolio.● ● ● ● ● ● 6 ▸ Conditions in the financial markets may limit our access to funding to meet our liquidity needs.● ● ● ● ● ● 6 ▸ Growth levels in local and national real estate markets may impact our operations and/or financial condition.● ● ● ● ● ● 6 ▸ If we are unable to continuously attract deposits and other short-term funding, our financial condition and our business prospects could be adversely affected.● ● ● ● ● ● 6 ▸ If we do not continue to meet or exceed regulatory capital requirements and maintain our “well-capitalized” status, there could be an adverse effect on the manner in which we do business and on the confidence of our customers in us.● ● ● ● ● ● 6 ▸ Loss of key third-party vendor relationships or failure of a vendor to protect information of our customers or employees could adversely affect our business or result in losses.● ● ● ● ● ● 6 ▸ New products and services are essential to remain competitive but may subject us to additional risks.● ● ● ● ● ● 6 ▸ Our agricultural loans may involve a greater degree of risk than other loans, and the ability of the borrower to repay may be affected by many factors outside of the borrower’s control.● ● ● ● ● ● 6 ▸ Our customers may decide to use non-bank competitors for financial transactions, which could result in loss of business.● ● ● ● ● ● 6 ▸ Our growth may require us to raise additional capital in the future, but that capital may not be available.● ● ● ● ● ● 6 ▸ Our growth strategy relies heavily on our management team, and the unexpected loss of key managers and/or officers may adversely affect our operations.● ● ● ● ● ● 6 ▸ Our internal controls may be ineffective.● ● ● ● ● ● 6 ▸ Our loan portfolio has a large concentration of real estate loans, which involve risks specific to real estate value.● ● ● ● ● ● 6 ▸ Our profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money or other assets.● ● ● ● ● ● 6 ▸ Our risk management framework may not be effective in mitigating risk and loss.● ● ● ● ● ● 6 ▸ Our stock is thinly traded.● ● ● ● ● ● 6 ▸ Reduction in the value, or impairment of our investment securities, may impact our earnings and stockholders' equity.● ● ● ● ● ● 6 ▸ group Risks Related to the Company's Common Stock● ● ● ● ● ● 6 ▸ The potential for business interruption exists throughout our organization.● ● ● ● ● ● 6 ▸ The stock market can be volatile, and fluctuations in our operating results and other factors could cause our stock price to decline.● ● ● ● ● ● 6 ▸ There can be no assurances concerning continuing dividend payments.● ● ● ● ● ● 6 ▸ There may be issues with environmental law compliance if we take possession of real property that secures a loan.● ● ● ● ● ● 6 ▸ We are subject to a variety of litigation or other proceedings, which could adversely affect our business.● ● ● ● ● ● 6 ▸ We are subject to risks associated with negative publicity.● ● ● ● ● ● 6 ▸ We are subject to risks associated with technological changes and the resources needed to implement the changes.● ● ● ● ● ● 6 ▸ We depend on the accuracy and completeness of information about customers and counterparties.● ● ● ● ● ● 6 ▸ We experience intense competition for loans and deposits.● ● ● ● ● ● 6 ▸ We may be adversely affected by changes in U.S. tax laws and regulations.● ● ● ● ● ● 6 ▸ We may be adversely impacted by legislation and potential additional legislation and rulemaking.● ● ● ● ● ● 6 rw ▸ We may be required to repurchase mortgage loans or reimburse investors and others as a result of breaches in contractual representations and warranties.● ● ● ● ● ● 6 ▸ We rely heavily on our network security and any system failure or data breach could subject us to increased costs as well as reputational risk.● ● ● ● ● ● 6 
