What changed in this filing

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Item 1A. Risk Factors

2021-02-16 compared with 2020-11-16 · 40 added, 0 removed, 59 unchanged (40% of the section changed)

58 unchanged sentences

remedy damages caused by such disruptions, which could adversely affect our financial condition and results of operations.

We have granted payment deferrals to

borrowers that have experienced financial hardship due to COVID-19, and if those borrowers are unable to resume making payments

we will experience an increase in non-accrual loans, which could adversely affect our earnings and financial condition.

In keeping with regulatory guidance to

work with borrowers during this unprecedented situation and as outlined in the CARES Act, we offered payment deferral programs

for our business and individual customers who are adversely affected by the pandemic.

Depending on the demonstrated need of the

client, we deferred either the full loan payment or the principal component of the loan payment for three months.

Through December

31, 2020, we had granted accommodations with respect to loans with a total value of approximately $18.4 million, which represented

6.2% of gross portfolio loans, and as of December 31, 2020, $1.2 million loans remained subject to a payment accommodation, which

represented 0.4% of gross portfolio loans.

Upon the expiration of the deferral period, borrowers are required to resume making

previously scheduled loan payments.

While interest and fees will still accrue to income, should eventual credit losses on these

deferred payments emerge or if a loan is placed on nonaccrual status, interest income and fees accrued would need to be reversed.

While management continues to consider the potential impact of COVID-19 on asset quality, to date, no adjustment to the allowance

for credit losses has been made to address the potential impact of COVID-19 on our loan portfolio.

An increase in non-performing

loans and charge-offs would cause us to increase our allowance for credit losses.

Any increase in the allowance for loan losses,

or expenses incurred to determine the appropriate level of the allowance for loan losses, may have a material adverse effect on

the Company’s financial condition and results of operations.

Customary means to collect non-performing

assets may be prohibited or impractical during the COVID-19 pandemic, and there is a risk that collateral securing a non-performing

asset may deteriorate if we choose not to, or are unable to, foreclose on collateral on a timely basis.

Due to temporary closure of courts and

other government actions, there have been some slight delays in the ability to take certain actions with respect to delinquent

borrowers that we would otherwise take in the ordinary course, such as customary collection and foreclosure procedures.

there has been no material impact on the Banks’

ability to collect, but if such delays recur and if the real estate market

deteriorates, such delays may delay timely collection of loans.

We may experience losses, additional

expense and reputational harm arising out of our origination of PPP loans.

We originated $1.5 million of PPP loans

to 45 borrowers.

We may incur losses on some of our PPP loans if the loans are not forgiven, the borrowers default and the SBA

does not honor its guarantee due to an error made by us in making the loan, the ineligibility of the borrower or otherwise.

addition, we may experience reputational harm arising out of our origination of PPP loans as a result of reports of borrower fraud

and government administration of the loan forgiveness process.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors