▸ Climate change may result in operational changes and expenditures that could negatively impact the Company’s business.· · · · · ● 1 ▸ Failure to maintain effective systems of internal and disclosure controls could have a material adverse effect on the Company's results of operation and financial condition.· · · · ● ● 2 ▸ The Company is subject to a variety of operational risks, including reputational, legal, and compliance risk, and the risk of fraud or theft by employees, directors, or outsiders.· · · · ● ● 2 rw ▸ The Company's business is subject to interest rate risk and variations in interest rates and inadequate management of interest rate risk may negatively affect financial performance.· · · · ● ● 2 ▸ The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact our business.· · · · ● ● 2 ▸ Liquidity could be impaired by an inability to access the capital markets or an unforeseen outflow of cash.· · · ● ● ● 3 ▸ Unrealized losses in the Company’s securities portfolio could affect liquidity.· · · ● ● ● 3 ▸ If competition increases, our business could suffer, which could result in loan losses and adversely affect the Company’s financial condition and results of operations.· ● ● ● ● ● 5 ▸ If the economy suffers a recession, our credit risk will increase and there could be greater loan losses.· ● ● ● ● ● 5 ▸ Regulatory capital standards may have an adverse effect on the Company’s profitability, lending, and ability to pay dividends.· ● ● ● ● ● 5 rw ▸ A significant delay in the completion of the merger could have a material adverse effect on the Company and Frontier as a combined company.· · · ● · · 1 ▸ Litigation against the Company or Frontier, or the members of the respective Boards of Directors of the Company or Frontier, could prevent or delay the completion of the merger.· · · ● · · 1 ▸ group RISKS RELATED TO THE PROPOSED ACQUISITION OF FRONTIER· · · ● · · 1 ▸ Recent negative developments affecting the banking industry, and resulting media coverage, have eroded customer confidence in the banking system.· · · ● · · 1 ▸ Regulatory approvals may not be received, may take longer than expected, or may impose conditions that are not presently anticipated or that could have an adverse effect on the combined company following the merger.· · · ● · · 1 ▸ The Company and Frontier will incur significant transaction and merger-related integration costs in connection with the merger.· · · ● · · 1 ▸ The Company may not be able to successfully integrate the operations of Frontier into the Bank, which integration may be more difficult, costly or time-consuming than expected.· · · ● · · 1 ▸ The merger may distract management of the Company and Frontier from their other responsibilities.· · · ● · · 1 ▸ The economic impact of the COVID-19 pandemic and measures intended to reduce the spread of the virus could adversely affect our business, financial condition, and operations.· · ● · · · 1 ▸ Transition away from the London Interbank Offered Rate ("LIBOR") to another benchmark rate could adversely affect operations.· · ● · · · 1 ▸ We are subject to risks associated with proxy contests and other actions of activist shareholders.· · ● · · · 1 ▸ Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact the Company’s business.· ● ● ● ● · 4 ▸ Global health and economic concerns relating to the COVID-19 pandemic has had a material adverse impact on the macroeconomic environment and significantly increased economic uncertainty.· ● · · · · 1 ▸ Our loan portfolio’s credit risk and the risk of loan losses may increase if economic conditions worsen due to the ongoing COVID-19 pandemic.· ● · · · · 1 ▸ The expected replacement or discontinuation of the London Interbank Offered Rate (“LIBOR”) as a benchmark interest rate and a transition to an alternative reference interest rate could present operational problems and result in market disruption.· ● · · · · 1 ▸ The expiration of federal government aid related to the COVID-19 pandemic to assist borrowers may increase credit risk.· ● · · · · 1 ▸ The ongoing COVID-19 pandemic may adversely affect the Company’s current or future impaired loans.· ● · · · · 1 ▸ Additional laws and regulations, or revisions and rescission of existing laws and regulations, could lead to a significant increase in our regulatory burden.● ● ● ● · · 4 ▸ Cybersecurity attacks are probable and may result in additional costs.● ● · · · · 2 ▸ If competition increases, our business could suffer.● · · · · · 1 ▸ Intense oversight by regulators could result in stricter requirements and higher overhead costs.● ● ● ● · · 4 ▸ Our loan portfolio’s credit risk and the risk of loan losses may increase ifthe economic conditions brought about by the pandemic extends beyond the pandemic.● · · · · · 1 ▸ Political, economic and social risks in the U.S. and the rest of the world could affect financial markets and affect fiscal policy, which could negatively affect our investment portfolio and earnings.● ● ● ● · · 4 rw ▸ Political, economic and social risks in the U.S. and the rest of the world could negatively affect the financial markets.● ● ● ● · · 4 rw ▸ The Company’s liquidity needs could adversely affect results of operations and financial condition.● ● ● · · · 3 ▸ The effects of widespread public health emergencies may negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations.● ● ● ● · · 4 ▸ The impact to local universities from measures to reduce the spread of COVID-19 could materially affect our business.● · · · · · 1 ▸ The ongoing COVID-19 pandemic may adversely affect the Company’s business, financial condition and operations; the extent of such impacts are highly uncertain and difficult to predict.● ● · · · · 2 rw ▸ The risk of loss in our investment portfolio may increase if economic conditions worsen due to the ongoing COVID-19 pandemic or if interest rates change rapidly.● ● · · · · 2 rw ▸ When market interest rates change, our net interest income can be negatively affected in the short term.● ● ● ● · · 4 ▸ A decline in the condition of the local real estate market could negatively affect our business.● ● ● ● ● ● 6 ▸ group COMPLIANCE AND REGULATORY RISK● ● ● ● ● ● 6 ▸ Changes in accounting standards could impact reported earnings.● ● ● ● ● ● 6 ▸ Changes in funding for local universities could materially affect our business.● ● ● ● ● ● 6 ▸ Consumers may increasingly decide not to use the Bank to process their financial transactions, which would have a material adverse impact on the Company’s financial condition and operations.● ● ● ● ● ● 6 rw ▸ Cybersecurity attacks may disarm and/or bypass system safeguards that are used by us and our vendors and service providers, and allow unauthorized access and misappropriation of financial data and assets.● ● ● ● ● ● 6 rw ▸ Focus on lending to small to mid-sized community-based businesses may increase our credit risk.● ● ● ● ● ● 6 ▸ Insurance may not cover losses from cybersecurity attacks.● ● ● ● ● ● 6 ▸ Natural disasters, acts of war or terrorism, geopolitical instability, the impact of public health issues and other adverse external events could detrimentally affect our financial condition and results of operations.● ● ● ● ● ● 6 rw ▸ Nonperforming assets take significant time to resolve and adversely affect the Company’s results of operations and financial condition.● ● ● ● ● ● 6 ▸ Our information systems may experience an interruption or security breach.● ● ● ● ● ● 6 ▸ The Bank has a moderate concentration of credit exposure in commercial real estate, and loans with this type of collateral are viewed as having more risk of default.● ● ● ● ● ● 6 ▸ The Company is dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect the Company’s operations and prospects.● ● ● ● ● ● 6 ▸ The Company is subject to claims and litigation pertaining to fiduciary responsibility.● ● ● ● ● ● 6 ▸ The Company relies on other companies to provide key components of the Company’s business infrastructure.● ● ● ● ● ● 6 ▸ The Company’s ability to operate profitably may be dependent on its ability to integrate or introduce various technologies into its operations.● ● ● ● ● ● 6 ▸ The Company’s ability to pay dividends depends upon the results of operations of its subsidiaries.● ● ● ● ● ● 6 ▸ The allowance for credit losses may not be adequate to cover actual losses.● ● ● ● ● ● 6 rw ▸ While the Company’s common stock is currently traded on the Nasdaq Capital Market, it has less liquidity than stocks for larger companies quoted on a national securities exchange.● ● ● ● ● ● 6 
