Risk Factors Update Summary

• Interpretation of Dodd-Frank Act may impact revenue from overdraft products, affecting future earnings.
• The Company had $578.1 million, or 52.0%, of total loans concentrated in commercial nonresidential properties, up from $534.5 million, or 52.0%, in 2022.
• Failure to comply with privacy laws could result in fines, sanctions, penalties, and loss of consumer confidence.
• The Federal Reserve increased the federal funds interest rate by 425 basis points during 2022 and 2023 to its current range of 5.50%.
• Stock price volatility may hinder stockholders' ability to resell common stock at desired prices.
• The Company hired a new Chief Financial Officer in October 2023, which may impact operations.
• The Company faces labor shortages and competition, which could increase labor costs.
• The Company's net interest margin may be affected by changes in interest rates.
• The Company's success depends significantly on local economic conditions and changes in federal government spending.
• The Company's liquidity could be impaired by changes in deposit levels and sudden deposit outflows.