▸ An active public trading market may not be sustained.· · · · · ● 1 ▸ An investment in our common stock is not an insured deposit and is subject to risk of loss.· · · · · ● 1 ▸ Future equity issuances, including through our current or any future equity compensation plans, could result in dilution, which could cause the price of our shares of common stock to decline.· · · · · ● 1 ▸ Many of our new activities and expansion plans require regulatory approvals, and failure to obtain them may restrict our growth.· · · · · ● 1 ▸ Regulations relating to privacy, information security, and data protection could increase our costs, affect or limit how we collect and use personal information, and adversely affect our business opportunities.· · · · · ● 1 ▸ The FRB may require the Corporation to commit capital resources to support the Bank.· · · · · ● 1 ▸ The market price of our common stock could be volatile and may fluctuate significantly, which could cause the value ofan investment in our common stock to decline, result in losses to our shareholders and litigation against us.· · · · · ● 1 ▸ The obligations associated with being a public company require significant resources and management attention.· · · · · ● 1 ▸ We continually monitor key economic indicators to anticipate the possible effects of downturns in the local, regional, and national economies.· · · · · ● 1 ▸ Changes in accounting policies or in accounting standards could materially affect our results of operations, and financial condition.· · · · ● ● 2 ▸ Changes in interest rates may reduce our net interest income.· · · · ● ● 2 ▸ Concentrations within the loan portfolio may increase exposure to credit losses.· · · · ● ● 2 ▸ Credit losses could increase, and the allowance may not be adequate to cover actual credit losses.· · · · ● ● 2 rw ▸ Deterioration in credit quality may adversely affect our earnings.· · · · ● ● 2 ▸ Deterioration in national, state, and local economic conditions may adversely affect our financial performance.· · · · ● ● 2 rw ▸ Earnings may not grow if we are unable to successfully attract core deposits and lending opportunities and execute opportunities to generate fee-based income.· · · · ● ● 2 ▸ Expansion, growth, and acquisitions could negatively impact earnings if not successful.· · · · ● ● 2 ▸ group INTEREST RATE AND LIQUIDITY RISKS· · · · ● ● 2 ▸ Impairment of goodwill could result in a negative impact on our results of operations.· · · · ● ● 2 ▸ Internal controls may become ineffective in preventing or detecting material errors.· · · · ● ● 2 ▸ group LEGAL, REGULATORY, AND COMPLIANCE RISKS· · · · ● ● 2 rw ▸ Legal and regulatory proceedings could adversely affect us or the financial services industry in general.· · · · ● ● 2 ▸ Loss of deposits or a change in deposit mix could increase our cost of funding.· · · · ● ● 2 ▸ Market changes may adversely affect demand for our services and impact revenue, costs, and earnings.· · · · ● ● 2 ▸ Minimum capital requirements may adversely affect our ability to pay cash dividends, reduce our profitability, or otherwise adversely affect our business, financial condition or results of operations.· · · · ● ● 2 ▸ Monetary policy and economic environment could impact our financial performance.· · · · ● ● 2 ▸ group OPERATIONAL AND REPUTATIONAL RISKS· · · · ● ● 2 ▸ Operational risks could lead to financial loss, litigation, and reputation risk.· · · · ● ● 2 ▸ Our access to funds from subsidiaries may be restricted.· · · · ● ● 2 ▸ Our operations rely on external vendors.· · · · ● ● 2 ▸ Pandemics, severe weather, natural disasters, acts of war or terrorism, and other external events could significantly impact our business and the business of our customers.· · · · ● ● 2 ▸ Prepayments of loans may negatively impact our business as customers may prepay the principal amount of their outstanding loans at any time.· · · · ● ● 2 ▸ group STRATEGY AND EXTERNAL RISKS· · · · ● ● 2 ▸ Secondary mortgage market conditions may adversely affect our financial condition and earnings.· · · · ● ● 2 ▸ Societal responses to climate change could adversely affect the Bank’s business and performance, including indirectly through impacts on the Bank’s customers.· · · · ● ● 2 ▸ Strong competition within our markets may significantly impact profitability.· · · · ● ● 2 ▸ The Bank may experience losses related to fraud or theft.· · · · ● ● 2 ▸ The Bank’s framework for managing risk may not be effective in mitigating its risk and loss.· · · · ● ● 2 ▸ The soundness of other financial institutions could adversely affect us.· · · · ● ● 2 ▸ The value of our investment securities portfolio may be negatively impacted by fluctuations in the market, including credit deterioration of the issuers of individual securities.· · · · ● ● 2 ▸ We are subject to extensive government regulation and supervision, and any regulatory changes may adversely affect us.· · · · ● ● 2 ▸ We are subject to liquidity risk in our operations, which could adversely impact our ability to fund various obligations.· · · · ● ● 2 ▸ We may be adversely affected by continuous technological change.· · · · ● ● 2 ▸ We may be unable to attract and retain key personnel.· · · · ● ● 2 ▸ Wealth management business line could create risks associated with the industry.· · · · ● ● 2 ▸ Wholesale funding sources may prove insufficient to replace deposits, support operations, and future growth.· · · · ● ● 2 rw ▸ See Item 1C. Cybersecurity.· · · ● · ● 2 ▸ Although publicly traded, our common stock has substantially less liquidity than stocks listed on NYSE, NYSE American and NASDAQ exchanges.· · · · ● · 1 ▸ We may grow organically both by geographic expansion and through business line expansion, as well as through acquisitions. Success of these activities depends on our ability to continue to maintain and develop an infrastructure appropriate to support· · · · ● · 1 ▸ Our compliance department annually assesses the adequacy and effectiveness of our processes for controlling and managing our principal compliance risks.· ● ● ● · · 3 ▸ An economic downturn within our local markets, as well as downturns in the state, national, or global markets, could negatively impact household and corporate incomes. This could lead to decreased demand for both loan and deposit products and lead to● · · · · · 1 ▸ group Changes in credit quality and required allowance for credit losses● ● ● ● · · 4 rw ▸ group Changes in economic conditions● ● ● ● · · 4 ▸ Changes to the financial services industry as a result of regulatory changes or actions, or significant litigation● ● ● ● · · 4 ▸ Consumers may decide not to use banks to complete their financial transactions● ● ● ● · · 4 ▸ Our enterprise risk process covers each of the following areas.● ● ● ● · · 4 ▸ group Our estimates and assumptions may be incorrect● ● ● ● · · 4 ▸ group The COVID-19 pandemic may adversely affect our business● ● ● · · · 3 ▸ The adoption of, violations of, or nonconformance with laws, rules, regulations, or prescribed practices● ● ● ● · · 4 ▸ The value of investment securities may be negatively impacted by fluctuations in the market● ● ● ● · · 4 ▸ group We may be required to recognize an impairment of goodwill● ● ● ● · · 4 ▸ We may face pressure from purchasers of our residential mortgage loans to repurchase loans sold or reimburse purchasers for losses related to such loans● ● ● ● · · 4 ▸ group We may not adjust to changes in the financial services industry● ● ● ● · · 4 ▸ Unauthorized disclosure of sensitive or confidential client or customer information, whether through cyber attacks, breach of computer systems or other means could severely harm the Corporation’s business.● ● ● ● · ● 5 rw 
