Risk Factors Update Summary

• Loan portfolio composition changed significantly, with a decrease from 73% to 50% in CRE loans.
• Operating in an uncertain economic environment with a focus on global and financial markets.
• Deposit insurance premiums could substantially increase, impacting acquisition plans by 35%.
• Stock price volatility highlighted, emphasizing the potential impact of wide price fluctuations.
• Interest rates increased significantly, affecting net interest income, with a narrowing interest rate spread.
• Regulatory concerns increased, with a specific mention of a 33% increase in concern regarding CRE loan concentrations.
• Increased regulatory scrutiny may lead to higher costs and reduced profitability, affecting strategic objectives.
• Inflationary pressures expected to remain elevated, impacting business, profitability, and stock price.
• Recent negative industry developments led to erosion of customer confidence, impacting liquidity and operations.
• Market volatility could dilute shareholder investments, affecting ownership and disclosure obligations.
• Increase in the fair value of available for sale securities portfolio from approximately $304 million to $142 million.
• Increase in the fair value of available for sale securities portfolio from approximately $304 million to $142 million.
• Increase in the fair value of available for sale securities portfolio from approximately $304 million to $142 million.
• Changes in accounting standards could impact financial results, including the allowance for credit losses.