▸ Future adjustments under CECL could materially impact our results of operations, financial condition, and reported profitability, particularly under volatile economic conditions or unexpected credit deterioration.· · · · · ● 1 ▸ Monetary policy, inflation, deflation, and other external economic factors could adversely impact our financial performance and operations.· · · · · ● 1 ▸ While we have policies and procedures designed to prevent such losses, there can be no assurance that such losses will not occur.· · · · · ● 1 ▸ As of September 30, 2025 there has not been any cybersecurity or related breach of the risk factors discussed below that would require disclosure.· · · · ● ● 2 rw ▸ Future decreases in interest rates could decrease the fair value of our loan servicing rights below their recorded amount, which would decrease our earnings.· · · · ● ● 2 ▸ If delinquencies increase and we are unable to effectively manage our non-performing assets, our losses and troubled assets could increase significantly, which could materially and adversely impact our financial condition and results of operations.· · · · ● ● 2 rw ▸ The Company’s reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates, which, if incorrect, could cause unexpected losses in the future.· · · · ● ● 2 ▸ Climate change and related legislative and regulatory initiatives may materially affect our business and results of operations.· · · ● ● ● 3 ▸ Changes in interest rates may reduce our net interest income and may result in higher defaults in a rising rate environment.· ● ● ● ● ● 5 ▸ Although as of September 30, 2023, all construction and land loans were performing according to their terms, a significant rise in non-performing construction or land loans could materially impact our financial status and operations.· · · ● · · 1 ▸ External economic factors, such as changes in monetary policy and inflation and deflation, may have an adverse effect on our business, financial condition and results of operations.· · · ● ● · 2 rw ▸ For further discussion of how changes in interest rates could impact us, see "Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk" for additional information about our interest rate risk management.· · ● · · · 1 ▸ Inflation can have an adverse impact on our business and on our customers.· · ● · · · 1 ▸ SOFR as a substitute for LIBOR in June of 2023. As of September 30, 2022, there were $2.92million of loans in our portfolio tied to LIBOR.· · ● · · · 1 ▸ The economic impact of the COVID-19 pandemic could continue to affect our financial condition and results of operations.· · ● ● · · 2 ▸ We may incur losses on our securities portfolio as a result of changes in interest rates.· · ● · · · 1 ▸ Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.· ● ● · · · 2 ▸ The sale of residential mortgage loans to Freddie Mac provides a significant portion of our non-interest income. Any future changes in their program, our eligibility to participate in such program, the criteria for loans to be accepted or laws that· ● · · · · 1 ▸ We will be required to transition from the use of the LIBOR interest rate index in the future.· ● ● · · · 2 ▸ group Fluctuating interest rates can adversely affect our profitability● · · · · · 1 ▸ Managing reputational risk is important to attracting and maintaining customers, investors and employees.● ● ● ● · · 4 ▸ Risks Related to the COVID-19 Pandemic and Associated Economic Slowdown● ● · · · · 2 ▸ The Board of Directors oversees the risk management process, including the risk of cybersecurity, and engages with management on cybersecurity issues.● ● ● · · · 3 ▸ Uncertainty relating to the London Interbank Offered Rate ("LIBOR") calculation process and potential phasing out of LIBOR may adversely affect our results of operations.● · · · · · 1 ▸ We cannot assure you that such breaches, failures or interruptions will not occur or, if they do occur, that they will be adequately addressed by us or the third parties on which we rely. We may not be insured against all types of losses as a result● · · · · · 1 ▸ We rely on other companies to provide key components of our business infrastructure.● ● ● ● ● · 5 ▸ Our securities portfolio may be negatively impacted by fluctuations in market value and interest rates.● ● · ● ● ● 5 rw ▸ An increase in interest rates, change in the programs offered by Freddie Mac or our ability to qualify for their programs may reduce our mortgage revenues, which would negatively impact our non-interest income.● ● ● ● ● ● 6 ▸ If our investments in real estate are not properly valued or sufficiently reserved to cover actual losses, or if we are required to increase our valuation allowances, our earnings could be reduced.● ● ● ● ● ● 6 ▸ If our non-performing assets increase, our earnings will be adversely affected.● ● ● ● ● ● 6 ▸ Ineffective liquidity management could adversely affect our financial results and condition.● ● ● ● ● ● 6 ▸ Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions.● ● ● ● ● ● 6 ▸ group Other Risks Related to Our Business● ● ● ● ● ● 6 ▸ Our allowance for credit losses on loans may not be sufficient to absorb losses in our loan portfolio.● ● ● ● ● ● 6 rw ▸ Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes.● ● ● ● ● ● 6 ▸ Our business may be adversely affected by credit risk associated with residential property.● ● ● ● ● ● 6 ▸ Our business may be adversely affected by downturns in the national economy and in the economies in our market areas.● ● ● ● ● ● 6 ▸ Our emphasis on commercial real estate lending may expose us to increased lending risks.● ● ● ● ● ● 6 ▸ Our framework for managing risks may not be effective in mitigating risk and loss to us.● ● ● ● ● ● 6 ▸ Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be exceedingly high.● ● ● ● ● ● 6 rw ▸ Our real estate construction and land loans expose us to significant risks.● ● ● ● ● ● 6 ▸ Repayment of our commercial business loans is often dependent on the cash flows of the borrower, which may be unpredictable, and the collateral securing these loans may fluctuate in value.● ● ● ● ● ● 6 ▸ group Risk Related to Market Interest Rates● ● ● ● ● ● 6 ▸ group Risk Related to our Business Strategy● ● ● ● ● ● 6 ▸ group Risks Related to Accounting Matters● ● ● ● ● ● 6 ▸ group Risks Related to Cybersecurity, Third Parties and Technology● ● ● ● ● ● 6 rw ▸ group Risks Related to Economic Conditions● ● ● ● ● ● 6 ▸ group Risks Related to Laws and Regulations● ● ● ● ● ● 6 ▸ group Risks Related to our Lending Activities● ● ● ● ● ● 6 ▸ The financial services market is undergoing rapid technological changes and, if we are unable to stay current with those changes, we may not be able to effectively compete.● ● ● ● ● ● 6 rw ▸ The level of our commercial real estate loan portfolio may subject us to additional regulatory scrutiny.● ● ● ● ● ● 6 ▸ We are dependent on key personnel, and the loss of one or more of those key personnel may materially and adversely affect our prospects.● ● ● ● ● ● 6 ▸ We are subject to certain risks in connection with our use of technology.● ● ● ● ● ● 6 ▸ We may be adversely affected by risks associated with completed and potential acquisitions.● ● ● ● ● ● 6 ▸ We may experience decreases in the fair value of our loan servicing rights, which could reduce our earnings.● ● ● ● ● ● 6 rw ▸ We may experience future goodwill impairment, which could reduce our earnings.● ● ● ● ● ● 6 ▸ We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations that could increase our costs of operations.● ● ● ● ● ● 6 
