▸ The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact the Company’s business.· · · · · ● 1 ▸ Weaknesses in economic or market conditions, or adverse developments in the financial services industry, could pose challenges for the Company and could adversely affect the results of operations, liquidity, and financial condition.· · · · ● ● 2 rw ▸ Inflation can have an adverse impact on the Company’s business and on its customers.· · ● ● ● ● 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 ▸ An inability to raise additional capital on acceptable terms when needed could have a material adverse impact on the Company’s business, financial condition and results of operations.· · · ● · · 1 ▸ Recent negative developments affecting the banking industry, and resulting media coverage, have eroded customer confidence in the banking system.· · · ● ● · 2 ▸ The fair value of the Company’s investment securities can fluctuate due to factors outside of its control.· · ● · · · 1 ▸ Transition away from LIBOR to another benchmark rate could adversely affect the Company’s operations.· · ● · · · 1 ▸ The ability of borrowers to repay their loans significantly affect the Company’s results of operations.· ● · · · · 1 ▸ As a participating lender in the SBA’s PPP, the Company may be subject to additional risks regarding the Bank’s processing of PPP loans and are dependent on the federal government’s continuation and support of the program.● · · · · · 1 ▸ Changes in economic conditions, especially in the areas in which the Company conducts operations, could materially and negatively affect its business.● ● ● ● · · 4 ▸ Combining the Company and Fauquier may be more difficult, costly or time-consuming than expected.● · · · · · 1 ▸ Failure of the Company’s proposed merger with Fauquier to be completed, the termination of the merger agreement, or a significant delay in completing the merger could negatively impact the Company.● · · · · · 1 ▸ Regulations issued by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance.● ● ● ● ● · 5 ▸ group Risk Factors Associated with the Company’s Business● ● · · · · 2 ▸ group Risks Related to the Proposed Merger with Fauquier● · · · · · 1 ▸ The Company may be adversely affected by changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, for variable rate loans.● ● · · · · 2 ▸ The Company may not be able to effectively integrate the operations of The Fauquier Bank and the Bank.● · · · · · 1 ▸ The Company’s common stock currently has a limited trading market and is thinly traded, and a more liquid market for its common stock may not develop, which may limit the ability of shareholders to sell their shares and may increase price volatility.● · · · · · 1 ▸ The Company’s governing documents and Virginia law contain provisions that may discourage or delay an acquisition of the Company even if such acquisition or transaction is supported by shareholders.● · · · · · 1 ▸ The ongoing COVID-19 pandemic and measures intended to prevent its spread may adversely affect the Company’s business, financial condition and operations; the extent of such impacts are highly uncertain and difficult to predict.● ● · · · · 2 ▸ The success of the Company’s strategy depends on its ability to identify and retain individuals with experience and relationships in its markets.● ● ● · · · 3 ▸ An investment in the Company’s common stock is not an insured deposit.● ● ● ● ● ● 6 ▸ Changes in accounting standards could impact reported earnings.● ● ● ● ● ● 6 ▸ Consumers may increasingly decide not to directly use banks to complete their financial transactions, which would have a material adverse impact on the Company’s financial condition and operations.● ● ● ● ● ● 6 rw ▸ Failure to maintain effective systems of internal and disclosure control could have a material adverse effect on the Company’s results of operation and financial condition.● ● ● ● ● ● 6 ▸ Future issuances of the Company’s common stock could adversely affect the market price of the common stock and could be dilutive.● ● ● ● ● ● 6 ▸ group Legal, Regulatory and Compliance Risks● ● ● ● ● ● 6 ▸ group Risks Related to the Company’s Common Stock● ● ● ● ● ● 6 ▸ Severe weather, earthquakes, other natural disasters, pandemics, endemics, acts of war or terrorism and other external events could significantly impact the Company's business.● ● ● ● ● ● 6 rw ▸ The Company depends on the accuracy and completeness of information about customers and counterparties, and the Company’s financial condition could be adversely affected if it relies on misleading or incorrect information.● ● ● ● ● ● 6 rw ▸ The Company faces strong and growing competition from financial institutions and other companies that offer banking and other financial services, which could negatively affect the Company’s business.● ● ● ● ● ● 6 rw ▸ The Company has a moderate concentration of credit exposure in commercial real estate and loans with this type of collateral are viewed as having higher risk of default.● ● ● ● ● ● 6 rw ▸ The Company is exposed to risk of environmental liabilities with respect to properties to which it takes title.● ● ● ● ● ● 6 ▸ The Company is not obligated to pay dividends and its ability to pay dividends is limited.● ● ● ● ● ● 6 ▸ The Company is subject to a variety of operational risks, including reputational risk, legal and compliance risk, and the risk of fraud or theft by employees or outsiders.● ● ● ● ● ● 6 ▸ The Company may be adversely impacted by changes in market conditions.● ● ● ● ● ● 6 ▸ The Company may need to raise additional capital in the future and may not be able to do so on acceptable terms, or at all.● ● ● ● ● ● 6 ▸ The Company may not be able to successfully manage its long-term growth, which may adversely affect its results of operations and financial condition.● ● ● ● ● ● 6 ▸ The Company qualifies as a “smaller reporting company,” and the reduced disclosure obligations applicable to smaller reporting companies may make its common stock less attractive to investors.● ● ● ● ● ● 6 ▸ The Company relies on other companies to provide key components of its business infrastructure.● ● ● ● ● ● 6 ▸ The Company’s ACL may be insufficient and any increases in the ACL may have a material adverse effect on the Company’s financial condition and results of operations.● ● ● ● ● ● 6 rw ▸ 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 business and earnings are impacted by governmental, fiscal and monetary policy over which it has no control.● ● ● ● ● ● 6 ▸ 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.● ● ● ● ● ● 6 ▸ The Company’s concentration in loans secured by real estate may increase its future credit losses, which would negatively affect the Company’s financial results.● ● ● ● ● ● 6 ▸ The Company’s credit standards and its on-going credit assessment processes might not protect it from significant credit losses.● ● ● ● ● ● 6 ▸ The Company’s focus on lending to small to mid-sized community-based businesses may increase its credit risk.● ● ● ● ● ● 6 ▸ The Company’s liquidity needs could adversely affect results of operations and financial condition.● ● ● ● ● ● 6 ▸ The Company’s operations may be adversely affected by cybersecurity risks.● ● ● ● ● ● 6 ▸ The Company’s results of operations are significantly affected by the ability of borrowers to repay their loans.● ● ● ● ● ● 6 ▸ The Company’s success depends on its management team, and the unexpected loss of any of these personnel could adversely affect operations.● ● ● ● ● ● 6 ▸ The soundness of other financial institutions could adversely affect the Company.● ● ● ● ● ● 6 
