▸ Municipal deposits are an important source of funds for us and a reduced level of such deposits may hurt our profits.· · · · ● 1 ▸ The inability to receive dividends from our subsidiary bank could impact our ability to maintain or increase the current level of cash dividends we pay to our stockholders.· · · · ● 1 ▸ The performance of our New York multifamily real estate loans could be adversely impacted by regulation.· · · · ● 1 ▸ If we are unable to adequately manage our liquidity, deposits, capital levels and interest rate risk, we may experience a material adverse effect on our financial condition and results of operations.· · · ● ● 2 ▸ Inflationary pressures and rising prices may affect our results of operations and financial condition.· · ● ● ● 3 ▸ Our deposit services for businesses in the state licensed cannabis industry could expose us to liabilities and regulatory compliance costs.· · ● ● ● 3 ▸ Changes in tax laws and regulations, or changes in the interpretation of existing tax laws and regulations, may have a material adverse effect on our business, financial condition, results of operations and growth prospects.· ● ● ● ● 4 ▸ Cyber-attacks or other security breaches could adversely affect our operations, net income or reputation.· ● ● ● ● 4 ▸ group ECONOMIC, MARKET AND INVESTMENT RISKS· ● ● ● ● 4 ▸ If our non-performing assets increase, our earnings will be adversely affected.· ● ● ● ● 4 ▸ If we do not manage our liquidity effectively, our business could suffer.· ● ● ● ● 4 ▸ Many types of operational risks can affect our earnings negatively.· ● ● ● ● 4 ▸ Our dividend policy may change without notice and our future ability to pay dividends is subject to restrictions.· ● ● ● ● 4 ▸ group REGULATORY AND COMPLIANCE RISKS· ● ● ● ● 4 ▸ The price of our common stock could be volatile.· ● ● ● ● 4 ▸ We are dependent on the use of data and modeling in our management’s decision-making, and faulty data or modeling approaches could negatively impact our decision-making ability or possibly subject us to regulatory scrutiny in the future.· ● ● ● ● 4 ▸ We have expanded the geographic scope of our SBA, and other government guaranteed lending, and this may expose us to greater and additional risks than lending in our primary trade area.· ● ● ● ● 4 rw ▸ The implementation of the Current Expected Credit Loss accounting standard could require us to increase our allowance for loan losses and may have a material adverse effect on our financial condition and results of operations.· ● ● · · 2 ▸ A continuation of the historically low interest rate environment and the possibility that we may access higher-cost funds to support our loan growth and operations may adversely● · · · · 1 ▸ A significant portion of our lending activity is related to certain niche lending products, such as loans secured by investor owned, non-owner occupied one- to four- family● · · · · 1 ▸ Acquisitions inherently have risks including misjudging key elements of an acquisition or failing to integrate it in an efficient and timely manner that could disrupt operations. We may face● · · · · 1 ▸ Adverse supervisory findings regarding an institution’s performance under the CRA, fair lending or consumer lending laws and regulations could result in a wide variety of sanctions, including● · · · · 1 ▸ After giving effect to this offering, we believe that we will have sufficient capital to meet our capital needs for our immediate growth plans. However, we will continue to need capital to support● · · · · 1 ▸ Although Savoy was an SBA Preferred Lender, we are not currently an SBA Preferred Lender. SBA Preferred Lenders are able to bind the SBA to guarantee a loan without submitting the loan to the SBA● · · · · 1 ▸ Although we believe that our growth strategy will support our long-term profitability and franchise value, the expenses associated with our growth, including compensation expense for the employees● · · · · 1 ▸ Although we employ a variety of physical, procedural and technological safeguards to protect this confidential and proprietary information from mishandling, misuse or loss, these safeguards do not● · · · · 1 ▸ As a financial services organization, we are subject to a number of risks inherent in our transactions and present in the business decisions we make. Set forth below is a summary of those risks,● · · · · 1 ▸ As a participant in the PPP, we face increased risks, particularly in terms of credit, fraud, compliance and litigation risks. The PPP opened to borrower applications shortly after the enactment of● · · · · 1 ▸ As a participating lender in the SBA’s Paycheck Protection Program, or PPP, we are subject to added risks, including credit, fraud, compliance and litigation risks.● · · · · 1 ▸ As an important part of our business strategy, we acquire businesses, some of which may be material. Please see “Management’s Discussion and Analysis of Financial● · · · · 1 ▸ As part of the bank regulatory process, the FDIC, the New York State Department of Financial Services, and the FRB periodically conduct examinations of our businesses, including compliance with● · · · · 1 ▸ At September 30, 2021, approximately $1.06 billion, or 85%, of our total loan portfolio was secured by real estate, almost all of which is located in our primary lending market.● · · · · 1 ▸ Bank can pay to the Company and the Company can pay to its shareholders, restrict the ability of institutions to guarantee our debt and impose certain specific accounting requirements on us that may be more restrictive and may result in greater or● · · · · 1 ▸ Banks are highly regulated under federal and state law. As such, we are subject to extensive regulation, supervision and legal requirements from government agencies such as the FRB, the FDIC and● · · · · 1 ▸ Certain provisions in the JOBS Act changing tax laws also included a number of provisions that have an impact on borrowers and the market for single- family residential real estate. Changes include● · · · · 1 ▸ Concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses also may change● · · · · 1 ▸ Customary means to collect non-performing assets may be prohibited or impractical during the COVID-19 pandemic, and there is a risk that collateral securing a non-performing● · · · · 1 ▸ Economic conditions that contributed to the financial crisis in 2008, particularly in the financial markets, resulted in government regulatory agencies and political bodies placing increased focus● · · · · 1 ▸ Effective October 1, 2023, we will be required to adopt the Financial Accounting Standards Board (the “FASB”) Accounting Standards Update 2016-13, Financial● · · · · 1 ▸ Federal and State banking agencies periodically conduct examinations of our business, including compliance with laws and regulations, and our failure to comply with any● · · · · 1 ▸ Federal and state banking agencies and government entities, including New York State, have adopted regulations or put in place executive orders that restricted or limited our ability to take certain actions with respect to delinquent● ● · · · 2 rw ▸ Federal and state regulatory agencies frequently adopt changes to their regulations or change the manner in which existing regulations are applied. Regulatory or legislative changes to laws● · · · · 1 ▸ Federal law requires that a holding company act as a source of financial and managerial strength to its subsidiary bank and to commit resources to support such subsidiary bank. Under the “source of● · · · · 1 ▸ Future declines in the real estate values in the New York metro area and Nassau County and surrounding markets could significantly impair the value of the particular collateral securing our loans and our ability to sell the collateral upon● · · · · 1 ▸ Future results of operations will depend in large part on our ability to successfully integrate the operations of the acquired institutions and retain the customers of those institutions. If we are● · · · · 1 ▸ If this confidential or proprietary information were to be mishandled, misused or lost, we could be exposed to significant regulatory consequences, reputational damage, civil litigation and financial loss.● ● · · · 2 rw ▸ In 2006, the Office of the Comptroller of the Currency, (the “OCC”), the FDIC, and the FRB, or collectively, the Agencies, issued joint guidance entitled “Concentrations in Commercial Real Estate● · · · · 1 ▸ In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending, or the 2015 Statement. In the 2015 Statement, the Agencies, among other● · · · · 1 ▸ In attracting deposits, we face substantial competition from other insured depository institutions such as banks, savings institutions and credit unions, as well as institutions offering uninsured● · · · · 1 ▸ In considering whether to make a loan secured by real property, we generally require an appraisal of the property. However, an appraisal is only an estimate of the value of the● · · · · 1 ▸ In order to comply with regulations, guidelines and examination procedures in this area, we have dedicated significant resources to our anti-money laundering program. If our policies, procedures● · · · · 1 ▸ In recent years the FRB’s policy has been to maintain interest rates at historically low levels through its targeted federal funds rate and the purchase of mortgage-backed securities. Our ability● · · · · 1 ▸ In recent years, several financial services firms suffered successful cyber-attacks launched both domestically and from abroad, resulting in the disruption of services to clients, loss or● · · · · 1 ▸ In the course of our business, we may foreclose on and take title to real estate or otherwise be deemed to be in control of property that serves as collateral on loans we make. As a result, we● · · · · 1 ▸ Information security risks have generally increased in recent years because of the proliferation of new technologies, the use of the Internet and telecommunications technologies to conduct● · · · · 1 ▸ Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, commonly referred to as “CECL.” CECL changes the allowance for loan losses methodology from an incurred loss concept to an expected loss concept,● · · · · 1 ▸ Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits. This risk of loss also includes the potential legal actions that could arise as a result of operational deficiencies or as a● · · · · 1 ▸ Lastly, our commercial real estate and multi-family loans are dependent on the profitable operation and management of the properties securing such loans. The longer the pandemic persists, the● · · · · 1 ▸ Lending, Sound Risk Management Practices,” or the CRE Guidance. Although the CRE Guidance did not establish specific lending limits, it provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny● · · · · 1 ▸ Liquidity is essential for the operation of our business. Market conditions, unforeseen outflows of funds or other events could have a negative effect on our level or cost of funding, affecting our● · · · · 1 ▸ Liquidity stress testing, interest rate sensitivity analysis, the identification of possible violations of anti-money laundering regulations and the estimation of credit losses are all examples of● · · · · 1 ▸ Many of our larger competitors have substantially greater resources to invest in technological improvements. Third parties upon which we rely for our technology needs may not be able to develop on● · · · · 1 ▸ Network, established by the U.S. Department of the Treasury (the “Treasury Department”), to administer the Bank Secrecy Act, is authorized to impose significant civil money penalties for violations of those requirements and has recently engaged in● · · · · 1 ▸ On May 26, 2021, we acquired Savoy because we believe the acquisition will diversify our commercial lending and provide us with a new product line, Small Business Administration (“SBA”) lending,● · · · · 1 ▸ Our SBA lending program is dependent upon the U.S. federal government. The SBA periodically reviews the lending operations of participating lenders to assess, among other things, whether the● · · · · 1 ▸ Our ability to grow revenues, earnings and cash flows at or above our historical rates depends in part upon our ability to identify, appropriately price, successfully acquire, and integrate● · · · · 1 ▸ Our acquisition of businesses could negatively impact our financial condition.● · · · · 1 ▸ Our business operations could be disrupted if significant portions of our workforce were unable to work effectively, including because of illness, quarantines, government actions, or other● · · · · 1 ▸ Our common stock is not currently traded on an established public trading market, and we are unable to predict when or if an active, liquid trading market for our common stock may develop. Without● · · · · 1 ▸ Our federal and state regulators, as an integral part of their examination process, review our methodology for calculating, and the adequacy of, our allowance for loan losses and may direct us to● · · · · 1 ▸ Our future success depends in large part on our ability to retain and motivate our existing employees and attract new employees. Competition for the best employees can be intense, and there can be● · · · · 1 ▸ Our loan portfolio includes a significant concentration of one- to four- family residential mortgage loans. As of September 30, 2021, we had $444.0 million in one- to four- family residential● · · · · 1 ▸ Our rapid growth has placed, and will continue to place, a significant strain on our management capabilities, administrative and operational infrastructure, facilities and other resources. To● · · · · 1 ▸ Our reputation is one of the most valuable assets of our business. A key component of our business strategy is to rely on our reputation for customer service and knowledge of local markets to● · · · · 1 ▸ Our success depends in large part on the performance of our key personnel at the Bank that have substantial experience and tenure with the Bank and in the markets that we serve. Our continued● · · · · 1 ▸ Our success in the competitive environment in which we operate requires consistent investment of capital and human resources in innovation, particularly in light of the current “FinTech”● · · · · 1 ▸ Over the last several years, we have grown rapidly through both organic growth and acquisitions. On August 9, 2019, we consummated the acquisition of CFSB. On May 26, 2021, we consummated the● · · · · 1 ▸ Pandemics, including the continuing COVID-19 pandemic, natural disasters, global climate change, acts of terrorism, global conflicts or other similar events have in the past, and may in the future● · · · · 1 ▸ Reform and Consumer Protection Act, or Dodd-Frank Act, stress testing and the Comprehensive Capital Analysis and Review submissions, we anticipate that model-derived testing may become more extensively implemented by regulators in the future.● · · · · 1 ▸ Shares of our common stock are equity interests and do not constitute indebtedness. In the event of any liquidation, dissolution or winding up of our business or of the Bank, our common stock would● · · · · 1 ▸ Significant errors in assumptions used to compute gains on sale of loans or servicing asset valuations could result in material revenue misstatements, which may have a material adverse effect on our business, results of operations and● · · · · 1 ▸ Since we originate loans secured by real estate, we may have to foreclose on the collateral property to protect our investment and may thereafter own and operate such property, in which case we● · · · · 1 ▸ Small Business Administration lending is an increasingly important part of our business. Our SBA lending program is dependent upon the U.S. federal government, and we face● · · · · 1 ▸ Tax rates may go up, which could negatively impact our net income and cash flow.● ● · · · 2 ▸ The Bank Secrecy Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”) and other laws and● · · · · 1 ▸ The Bank is subject to capital adequacy guidelines and other regulatory requirements specifying minimum amounts and types of capital which it must maintain. From time to time, regulators implement● · · · · 1 ▸ The COVID-19 pandemic continues to negatively impact economic and commercial activity and financial markets, both globally and within the United States. In our market area, stay-at-home orders,● · · · · 1 ▸ The COVID-19 pandemic has had a specific impact on our business, including: (1) causing some of our borrowers to be unable to meet existing payment obligations, particularly borrowers● · · · · 1 ▸ The CRA directs all insured depository institutions to help meet the credit needs of the local communities in which they are located, including low- and moderate-income neighborhoods. Each● · · · · 1 ▸ The SBA’s 7(a) Loan Program is the SBA’s primary program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. Typically, we sell● · · · · 1 ▸ The changes in the tax laws may have an adverse effect on the market for, and valuation of, residential properties, and on the demand for such loans in the future and could make it harder for● · · · · 1 ▸ The cost of removal or abatement may substantially exceed the value of the affected properties or the loans secured by those properties, we may not have adequate remedies against the prior owners● · · · · 1 ▸ The deposits of our bank are insured by the FDIC up to legal limits and, accordingly, subject it to the payment of FDIC deposit insurance assessments as determined according to the● · · · · 1 ▸ The discontinuance of LIBOR could cause or contribute to market volatility and could affect the market value and/or liquidity of our loans.● ● · · · 2 rw ▸ The extent to which the COVID-19 pandemic will ultimately affect our financial condition and results of operations is unknown and will depend, among other things, on the duration of the pandemic,● · · · · 1 ▸ The financial services industry undergoes rapid technological changes with frequent introductions of new technology-driven products and services, including developments in telecommunications, data● · · · · 1 ▸ The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future. We cannot predict the effects of these changes on our business and● · · · · 1 ▸ The majority of our banking assets are monetary in nature and subject to risk from changes in interest rates. Like most banks, our earnings and cash flows depend to a great extent upon the level of● · · · · 1 ▸ The net deferred tax asset reported on our balance sheet generally represents the tax benefit of future deductions from taxable income for items that have already been recognized for financial● · · · · 1 ▸ The ongoing global COVID-19 outbreak could harm our business and results of operations, and such effects will depend on future developments, which are highly uncertain and are difficult to predict.● ● · · · 2 rw ▸ The primary component of our business involves making loans to our clients. The business of lending is inherently risky, including risks that the principal or interest on any loan will not be● · · · · 1 ▸ The relevant regulatory announcements about the phase out of the London Inter-bank Offering Rate (“LIBOR”), the possibility of changes being made to the basis on which LIBOR is calculated and● · · · · 1 ▸ The residential mortgage loans that we originate consist primarily of non-conforming residential mortgage loans, which are typically considered to have a higher degree of risk and are less liquid than conforming residential mortgage● ● · · · 2 rw ▸ There is currently no established public market for our common stock.● · · · · 1 ▸ We also compete with non-bank providers of financial services, such as brokerage firms, consumer finance companies, insurance companies and governmental organizations, which may offer more● · · · · 1 ▸ We also obtain a significant volume of deposits from municipal customers, primarily in Nassau and Suffolk Counties in New York. Approximately 30.1% of our deposits are from municipal customers,● · · · · 1 ▸ We anticipate data-based modeling will penetrate further into bank decision-making, particularly risk management efforts, as the capacities developed to meet rigorous stress testing requirements● · · · · 1 ▸ We are not an SBA Preferred Lender, and this may adversely affect our ability to compete for and originate SBA loans.● · · · · 1 ▸ We are subject to numerous laws and regulations of certain regulatory agencies, such as the Consumer Financial Protection Bureau, including the Community Reinvestment Act and● · · · · 1 ▸ We do not intend to pay cash dividends in the foreseeable future and our future ability to pay dividends is subject to restrictions.● · · · · 1 ▸ We engage in lending secured by real estate and may be forced to foreclose on the collateral and own the underlying real estate, subjecting us to the costs and potential risks● · · · · 1 ▸ We expect that gains on the sale of U.S. government guaranteed loans will comprise a meaningful component of our revenue. The determination of these gains is based on assumptions regarding the● · · · · 1 ▸ We expect that other banking and financial service companies, many of which have significantly greater resources than we do and have a deep and liquid trading market, will compete with us in● · · · · 1 ▸ We have a continuing need for technological change, and we may not have the resources to implement new technology effectively, or we may experience operational challenges when● · · · · 1 ▸ We have additional credit risk with respect to PPP loans if a determination is made by the SBA that there is a deficiency in the manner in which the loan was originated, funded or serviced, such as● · · · · 1 ▸ We have been and may in the future become involved in legal and regulatory proceedings. We consider most of our historical proceedings to be in the normal course of our business or typical for the● · · · · 1 ▸ We have experienced rapid growth in recent periods, and our recent growth rates may not be indicative of our future growth.● ● ● · · 3 ▸ We have historically originated, primarily through Savoy, a significant number of SBA loans, and sell a significant portion of the guaranteed portions of these loans on the secondary market. We● · · · · 1 ▸ We have not historically paid cash dividends and intend to retain earnings to support our continued growth. Therefore, we do not currently anticipate paying or declaring cash● · · · · 1 ▸ We maintain an allowance for loan losses that represents management’s judgment of probable losses and risks inherent in our loan portfolio. As of September 30, 2021, our allowance for loan losses● · · · · 1 ▸ We may be challenged to successfully manage our business as a result of the strain on management and operations that may result from growth. The ability to manage growth will depend on our ability● · · · · 1 ▸ We may have operational challenges in managing Savoy’s business and staff following the acquisition.● · · · · 1 ▸ We may not fully realize the anticipated benefits of the acquisition of Savoy or realize such benefits within the timing anticipated.● · · · · 1 ▸ We operate in a highly competitive banking market and face substantial competition in originating loans. This competition currently comes principally from other banks, savings institutions,● · · · · 1 ▸ We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or● · · · · 1 ▸ We operate in an environment that imposes income taxes on our operations at both the federal and state levels to varying degrees and we try to minimize the impact of these taxes. Any change in tax● · · · · 1 ▸ We outsource some of our operational activities and accordingly depend on a number of relationships with third-party service providers. Specifically, we rely on third parties for certain services,● · · · · 1 ▸ We rely on the ability of our employees and systems to process a high number of transactions. Operational risk is the risk of loss resulting from our operations, including but not limited to, the● · · · · 1 ▸ We target our business development and marketing strategy primarily to serve the banking and financial services needs of small- to medium-sized businesses and real estate owners. These small- to● · · · · 1 ▸ When interest-bearing liabilities mature or reprice more quickly, or to a greater degree than interest-earning assets in a period, an increase in interest rates could reduce net interest income.● · · · · 1 ▸ When we sell the guaranteed portion of SBA loans in the ordinary course of business, we are required to make certain representations and warranties to the purchaser about the SBA loans and the● · · · · 1 ▸ While we have in place many controls and business continuity plans designed to address these factors and others, these plans may not operate successfully to mitigate these risks effectively. If our● · · · · 1 ▸ With the adoption of the PPP program, we began processing loan applications under the PPP as an eligible lender with the benefit of a government guarantee of loans to small business clients, many● · · · · 1 ▸ A substantial portion of our business is in the New York metro area; therefore, our business is particularly vulnerable to an economic downturn in our primary market area.● ● ● ● ● 5 rw ▸ Any failure by us to manage acquisitions and other significant transactions successfully may have a material adverse effect on our results of operations, financial condition, and cash flows.● ● ● ● ● 5 rw ▸ Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, other real estate owned and repossessed personal property may not accurately describe the net value of the asset.● ● ● ● ● 5 rw ▸ Attractive acquisition opportunities may not be available to us in the future.● ● ● ● ● 5 ▸ group COMMON STOCK AND TRADING RISKS● ● ● ● ● 5 ▸ Competition in originating loans and attracting deposits may adversely affect our profitability.● ● ● ● ● 5 ▸ Failure to comply with stringent capital requirements could result in regulatory criticism, requirements and restrictions.● ● ● ● ● 5 ▸ Financial institutions, such as the Bank, face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.● ● ● ● ● 5 ▸ If we are not able to attract, retain and motivate other key personnel, our business could be negatively affected.● ● ● ● ● 5 ▸ If we do not effectively execute our strategic plans, we will not achieve our growth objectives and our business and results of operations may be negatively affected.● ● ● ● ● 5 ▸ Imposition of limits by bank regulators on commercial real estate lending activities could curtail our growth and adversely affect our earnings.● ● ● ● ● 5 ▸ Increases in FDIC insurance premiums could adversely affect our earnings and results of operations.● ● ● ● ● 5 ▸ Interest rate shifts may reduce net interest income and otherwise negatively impact our financial condition and results of operations.● ● ● ● ● 5 ▸ Legal and regulatory proceedings and related matters could adversely affect us.● ● ● ● ● 5 ▸ Legislative and regulatory actions taken now or in the future may increase our costs and impact our business, governance structure, financial condition or results of operations.● ● ● ● ● 5 ▸ Our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance.● ● ● ● ● 5 ▸ Our allowance for credit losses may not be adequate to cover actual losses.● ● ● ● ● 5 rw ▸ Our emphasis on one- to four- family residential mortgage loans involves risks that could adversely affect our financial condition and results of operations.● ● ● ● ● 5 ▸ Our growth strategy may require us to raise additional capital in the future to fund such growth, and the unavailability of additional capital on terms acceptable to us could adversely affect us or our growth.● ● ● ● ● 5 rw ▸ Our niche lending products may expose us to greater risk than traditional lending products.● ● ● ● ● 5 ▸ Our operations could be interrupted if our third-party service providers experience difficulty, terminate their services or fail to comply with banking regulations.● ● ● ● ● 5 ▸ Pandemics, natural disasters, global climate change, acts of terrorism and global conflicts may have a negative impact on our business and operations.● ● ● ● ● 5 rw ▸ Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.● ● ● ● ● 5 ▸ The FRB may require us to commit capital resources to support the Bank, and we may not have sufficient access to such capital resources.● ● ● ● ● 5 ▸ The holders of our existing and future debt obligations will have priority over our common stock with respect to payment in the event of liquidation, dissolution or winding up and with respect to the payment of interest.● ● ● ● ● 5 rw ▸ The non-guaranteed portion of SBA loans that we retain on our balance sheet as well as the guaranteed portion of SBA loans that we sell could expose us to various credit and default risks.● ● ● ● ● 5 rw ▸ The recognition of gains on the sale of loans and servicing asset valuations reflect certain assumptions.● ● ● ● ● 5 ▸ The residential mortgage loans that we originate consist primarily of non-conforming residential mortgage loans which may be considered less liquid and riskier.● ● ● ● ● 5 rw ▸ The small- to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans.● ● ● ● ● 5 ▸ The use of statistical and quantitative models, and other quantitative and qualitative analyses, is necessary for bank decision-making, and the employment of such analyses is becoming increasingly widespread in our operations.● ● ● ● ● 5 rw ▸ We are subject to certain operational risks, including, but not limited to, customer, employee or third-party fraud and data processing system failures and errors.● ● ● ● ● 5 ▸ We have a significant number of loans secured by real estate, and a downturn in the local real estate market could negatively impact our profitability.● ● ● ● ● 5 ▸ We have grown and may continue to grow through acquisitions.● ● ● ● ● 5 ▸ We may be subject to environmental liabilities in connection with the real properties we own and the foreclosure on real estate assets securing our loan portfolio.● ● ● ● ● 5 ▸ We may not be able to measure and limit our credit risk adequately, which could lead to unexpected losses.● ● ● ● ● 5 ▸ We need to invest in innovation, and the inability or failure to do so may affect our business and earnings negatively.● ● ● ● ● 5 ▸ We rely heavily on our executive management team and other key personnel for our successful operation, and we could be adversely affected by the unexpected loss of their services.● ● ● ● ● 5 rw 
