Risk Factors Update Summary

• The company could be adversely affected by weakness in residential and commercial real estate markets.
• Risks related to operation as a financial holding company were significantly expanded, including regulatory violations and loss of pass-through tax treatment.
• Increased use of mobile and cloud technologies heightens operational risks due to remote work.
• The Federal Reserve raised interest rates in 2022 and 2023, impacting future monetary policy.
• SEC rules now require disclosure of material cybersecurity incidents within four business days.
• The company issued various notes, including $115.0 million in 2026 Notes and $50.0 million in 2025 8.125% Notes.
• The company may redeem outstanding notes, impacting the market value and interest rates.
• Increased competition in the lending market may require lowering loan terms, affecting financial results.
• The company funded approximately 10,570 PPP loans totaling $1.19 billion during the PPP duration.
• Risks related to the economy were detailed, including impacts of global conditions, inflation, and terrorist attacks.
• Risks related to regulation, supervision, and compliance structure were emphasized, highlighting dependence on key personnel.
• Changes to the SBA Section 7(a) Program may negatively impact loan origination volume.
• The Notes issued are unsecured and subordinated to any secured indebtedness, affecting financial obligations.
• The termination of activities by NTS may negatively impact revenue and income.
• Climate change poses physical and financial risks, affecting energy use and financial conditions.
• Failure to comply with SBA regulations could lead to liability transfer and impact financial results.
• The company's CEO beneficially owns approximately 5.3% of the common stock.
• Loss of SBA lending licenses or PLP status could negatively impact loan origination volume.
• Changes in government-guaranteed loan programs could adversely affect loan origination and financial results.