This Form 10‑Q includes forward-looking statements that involve inherent risks and uncertainties. These forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933 (“1933 Act”), as amended and Section 21E of the Securities Exchange Act of 1934 (“1934 Act”), as amended. Those sections of the 1933 Act and 1934 Act provide a “safe harbor” for forward-looking statements in order to encourage companies to provide prospective information about their financial performance as long as important factors that could cause actual results to differ significantly from projected results are identified with meaningful cautionary statements. Words such as “expects,” “anticipates,” “believes,” “projects,” “intends,” and “estimates” or variations of such words and similar expressions, as well as future or conditional verbs preceded by “will,” “would,” “should,” “could,” or “may” are intended to identify forward-looking statements. These forward-looking statements are based on certain underlying assumptions and are not guarantees of future performance, as they could be impacted by several potential risks and developments that cannot be predicted with any degree of certainty.
These statements are based on Management’s current expectations regarding economic, legislative, regulatory, and other environmental issues that may affect earnings in future periods. Therefore, actual outcomes and results may differ materially from what is expressed, forecast in, or implied by such forward-looking statements.
A variety of factors could have a material adverse impact on the Company’s financial condition or results of operations and should be considered when evaluating the Company’s potential future financial performance. They include, but are not limited to:
| ● | risks associated with fluctuations in interest rates, including the impact on other comprehensive income, the ability for customers to repay floating or adjustable rates loans, the impact upon the availability and cost of deposits and other sources of funding, the impact on earning assets and the associated interest income, the impact on valuations of collateral which support our loans, and the impact on fair value of longer-term assets and liabilities; |
| ● | risks associated with inflation (including efforts by the Federal Open Market Committee of the Federal Reserve Bank (“FRB”) to control the same); |
| ● | the risk of unfavorable economic conditions in the Company’s market areas, or the impact on the Company’s market areas of national or international economic conditions or changes to economic policies, including tariffs and trade agreements; |
| ● | liquidity risks, including the ability to effectively manage the potential loss of or decline in deposits, the ability to maintain funding lines of credit, and the loss of value of unencumbered investment securities; |
| ● | increases in nonperforming assets and credit losses that could occur, particularly in times of weak economic conditions or rising interest rates; |
| ● | the impact of adverse developments at other banks, including bank failures, which impact general sentiment regarding the stability and liquidity of banks; |
| ● | risks associated with the multitude of, or changes to, current and prospective bank and accounting laws and regulations, and related interpretations, to which the Company is and will be subject; |
| ● | operational risks including the ability to prevent and detect financial reporting errors, operational errors, and fraud; |
| ● | the Company’s ability to diversify and grow its loan portfolio; |
| ● | the Company’s ability to attract and retain skilled employees; |
| ● | the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and the ability to achieve expected or potential benefits, such as increased productivity, profitability and cost savings; |
| ● | the risk to the Company’s operations and ability to serve customers due to cyber security risks and the inability of a vendor to meet its service level agreements; |
| ● | the outcome of any existing or future legal action for which the Company or Bank is a defendant; |
| ● | risks associated with a U.S. Government shutdown, including delays in regulatory reviews, approvals, or rulemaking from federal agencies, reduced access to government economic data and reports which could affect our ability to assess risk and make informed investment or risk management decisions, heightened volatility or reduced liquidity in financial markets, credit and counterparty risk exposure in connection with clients or counterparties that rely on government funding or contracts, and diminished investor and consumer confidence which could reduce demand for financial products; |
| ● | the effects of severe weather events, pandemics, other public health crises, geopolitical events including acts of war or terrorism, and other external events; and |
| ● | the success of acquisitions or branch expansions, closures, or consolidations. |
Risk factors that could cause actual results to differ materially from results that might be implied by forward-looking statements include the risk factors detailed in the Company’s Form 10‑K for the fiscal year ended December 31, 2025, and in Item 1A, herein. The Company does not update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.
