Risk Factors Update Summary

• Geopolitical risks were added, including climate change regulation risks. This could impact operations.
• Addition of stockbrokers, mutual fund companies, and fintech firms as competitors may impact market share.
• Interest rate changes could negatively impact net interest income and margin. ($187M to $125M)
• Changes in interest rates could significantly impact the value of investment securities. ($7.05B to $5.58B)
• Increased regulatory focus on Bank Secrecy Act and Anti-Money Laundering requirements may require significant investments.
• Liquidity risks highlighted, affecting ability to meet obligations and fund growth activities.
• Operational risks due to cybersecurity threats and technology disruptions, affecting financial performance.
• Becoming subject to CFPB supervision after the consolidation of Banks in 2023 could increase regulatory scrutiny.
• Increased emphasis on climate change risks and regulatory initiatives, impacting operations and financial condition.
• Importance of attracting and retaining key personnel for strategy implementation and growth emphasized.
• Changes in laws and regulations may impact profitability and ability to compete with larger institutions.
• Potential dilutive effect on existing stockholders due to issuance of additional shares at lower prices.
• Increased reputation risk due to negative news may lead to loss of business relationships and withdrawals.
• Litigation or regulatory matters could result in additional accruals impacting financial condition and results.