▸ We are subject to the potential adverse effects of a U.S. federal government shutdown.· · · ● 1 ▸ Scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to the Company’s environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.· · ● ● 2 ▸ The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact the Company’s business.· · ● ● 2 ▸ Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.· ● ● ● 3 ▸ External and internal risk has proliferated in recent years.· ● ● ● 3 ▸ The Company’s business continuity plans or data security systems could prove to be inadequate, resulting in a material interruption in, or disruption to, its business and a negative impact on results of operations.· ● ● ● 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 ▸ Unrealized losses in our securities portfolio could affect liquidity.· ● ● ● 3 ▸ We currently intend to pay dividends on our common stock; however, our future ability to pay dividends is subject to restrictions.· ● ● ● 3 ▸ Liquidity is essential to our business and we monitor our liquidity and manage our liquidity risk at the holding company and bank level. We require sufficient liquidity to fund asset growth, meet customer loan requests, customer deposit· · ● · 1 ▸ Applicable laws, regulations, interpretations, enforcement policies and accounting principles have been subject to significant changes in recent years, and may be subject to significant future changes. Additionally, federal and state· ● ● · 2 ▸ These provisions may discourage potential acquisition proposals and could delay or prevent a change in control, including under circumstances in which our shareholders might otherwise receive a premium over the market price of our shares.· ● ● · 2 ▸ We believe that our growth and future success will depend on the retention of our management team and key employees. Our management team and other key employees, including those who conduct our loan origination and other business· ● ● · 2 rw ▸ We rely on third parties to provide key components for our business operations, such as data processing and storage, recording and monitoring transactions, online banking interfaces and services, internet connections, and network access.· ● · · 1 ▸ Fiscal challenges facing the U.S. government could negatively impact financial markets which in turn could have an adverse effect on our financial position or results of operations.● · · · 1 ▸ Our business and results of operations may be adversely affected by the financial markets, fiscal, monetary, and regulatory policies, and economic conditions generally.● · · · 1 ▸ Our financial condition and results of operations may be adversely affected by changes in federal, state or local tax rules and regulations, or interpretations.● · · · 1 ▸ The market price for our common stock may be volatile.● · · · 1 ▸ The requirements of being a public company may strain our resources and divert management’s attention.● · · · 1 ▸ Transition away from LIBOR to another benchmark rate could adversely affect our operations.● · · · 1 ▸ We are subject to laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.● · · · 1 ▸ We currently have no plans to pay recurring cash dividends.● · · · 1 ▸ We face a risk of noncompliance and enforcement action with the BSA and other anti-money laundering statutes and regulations.● · · · 1 ▸ A significant percentage of our loans are attributable to a relatively small number of borrowers.● ● ● ● 4 ▸ An investment in our common stock is not an insured deposit and is not guaranteed by the FDIC, so you could lose some or all of your investment.● ● ● ● 4 ▸ Changes in accounting standards could materially impact our financial statements.● ● ● ● 4 ▸ Failure to keep up with the rapid technological changes in the financial services industry could have an adverse effect on our competitive position and profitability.● ● ● ● 4 ▸ Federal regulations establish minimum capital requirements for insured depository institutions, including minimum risk-based capital and leverage ratios, and defines “capital” for calculating these ratios.● ● ● ● 4 ▸ If our non-performing assets increase, our earnings will be adversely affected.● ● ● ● 4 ▸ If our reputation is negatively affected by the actions of our employees or otherwise, our business and operating results may be materially adversely affected.● ● ● ● 4 ▸ If we are not able to continue our historical levels of growth, we may not be able to maintain our historical revenue trends.● ● ● ● 4 ▸ Inflation can have an adverse impact on our business and on our customers.● ● ● ● 4 ▸ Interest rate shifts may reduce net interest income and otherwise negatively impact our financial condition and results of operations.● ● ● ● 4 ▸ Lack of seasoning of our loan portfolio could increase risk of credit defaults in the future.● ● ● ● 4 ▸ Limits on our ability to use brokered deposits as part of our funding strategy may adversely affect our ability to grow.● ● ● ● 4 ▸ Liquidity risk could impair our ability to fund operations and meet our obligations as they become due.● ● ● ● 4 ▸ Monetary policies and regulations of the Federal Reserve could have an adverse effect on our business, financial condition and results of operations.● ● ● ● 4 ▸ Our allowance for loan credit losses may be inadequate to absorb expected losses inherent in the loan portfolio.● ● ● ● 4 rw ▸ Our common stock is subordinate to our existing and future indebtedness.● ● ● ● 4 ▸ Our corporate governance documents, and corporate and banking laws applicable to us, could make a takeover more difficult and adversely affect the market price of our common stock.● ● ● ● 4 ▸ Our deposit portfolio includes significant concentrations and a large percentage of our deposits are attributable to a relatively small number of customers.● ● ● ● 4 ▸ Our focus on lending to small to medium-sized businesses may increase our credit risk.● ● ● ● 4 ▸ Our industry is highly regulated, and the regulatory framework, together with any future legislative or regulatory changes, may have a materially adverse effect on our operations.● ● ● ● 4 ▸ Our risk management framework may not be effective in mitigating risks and/or losses to us.● ● ● ● 4 ▸ Our use of third party vendors and our other ongoing third party business relationships are subject to increasing regulatory requirements and attention.● ● ● ● 4 ▸ Regulatory requirements affecting our loans secured by commercial real estate could limit our ability to leverage our capital and adversely affect our growth and profitability.● ● ● ● 4 ▸ group Risks Related to Funding and Liquidity● ● ● ● 4 ▸ group Risks Related to Our Business, Industry and Markets● ● ● ● 4 ▸ group Risks Related to Our Lending Activities● ● ● ● 4 ▸ group Risks Related to Our Operations● ● ● ● 4 ▸ group Risks Related to an Investment in Our Common Stock● ● ● ● 4 ▸ group Risks Related to our Regulatory Environment● ● ● ● 4 ▸ System failure or breaches of our network security, including as a result of cyber-attacks or data security breaches, could subject us to increased operating costs as well as litigation and other liabilities.● ● ● ● 4 ▸ The appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property and other real estate owned may not accurately reflect the net value of the asset.● ● ● ● 4 ▸ The fair value of our investment securities can fluctuate due to factors outside of our control.● ● ● ● 4 ▸ We are dependent on our management team and key employees.● ● ● ● 4 ▸ We are dependent on the use of data and modeling in both our management’s decision-making generally and in meeting regulatory expectations in particular.● ● ● ● 4 ▸ We are exposed to higher credit risk by commercial real estate, commercial and industrial and construction and development-based lending as well as relationship exposure with a number of large borrowers.● ● ● ● 4 ▸ We are exposed to risk of environmental liabilities with respect to properties to which we obtain title.● ● ● ● 4 ▸ We are subject to certain operational risks, including, but not limited to, customer or employee fraud and data processing system failures and errors.● ● ● ● 4 ▸ We are subject to stringent capital requirements, which could have an adverse effect on our operations.● ● ● ● 4 ▸ We follow a relationship-based operating model and 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.● ● ● ● 4 ▸ We may be adversely affected by the lack of soundness of other financial institutions or market utilities.● ● ● ● 4 ▸ We may issue additional equity securities, or engage in other transactions, which could affect the priority of our common stock, which may adversely affect the market price of our common stock.● ● ● ● 4 ▸ We may not be able to measure and limit our credit risk adequately, which could adversely affect our profitability.● ● ● ● 4 ▸ We operate in a highly competitive market and face increasing competition from a variety of traditional and new financial services providers.● ● ● ● 4 ▸ We rely on third parties to provide key components of our business infrastructure.● ● ● ● 4 ▸ While the Company’s common stock is currently listed on the Nasdaq Capital Market, it has less liquidity than stocks for larger companies listed on national securities exchanges.● ● ● ● 4 
