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Risks

• The COVID–19 pandemic has and will continue to impact our business and financial results, and the ultimate impact will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.
• An economic slowdown in our primary market areas could affect our business.
• We face intense competition in all phases of our business from other banks, financial institutions and non–banks.
• Changes in market interest rates could adversely affect our financial condition and results of operations.
• We may need to raise additional capital in the future, and such capital may not be available when needed or at all.
• The soundness of other financial institutions could adversely affect us.
• Our commercial, residential mortgage and consumer loans expose us to increased credit risks.
• Our holdings of construction, land and home equity loans may pose more credit risk than other types of mortgage loans.
• The allowance for credit losses on loans may prove inadequate or be negatively affected by credit risk exposures.
• Our mortgage warehouse and indirect lending operations are subject to a higher fraud risk than our other lending operations.
• Our mortgage lending profitability could be significantly reduced if we are not able to resell mortgages at a reasonable gain on sale or experience other problems with the secondary market process or we are unable to retain our mortgage loan sales force due to regulatory changes.
• Our mortgage lending profitability could be significantly reduced as changes in interest rates could affect mortgage origination volume and pricing for selling mortgages on the secondary market.
• We may be exposed to risk of environmental liabilities with respect to real property to which we take title.
• We are exposed to intangible asset risk in that our goodwill may become impaired.
• Our role as a fiduciary trustee for corporate employee stock ownership plans (“ESOPs”) may expose us to increased risk of litigation due to heightened scrutiny of this role by the U.S. Department of Labor and the plaintiffs’ bar.
• We may be adversely impacted by the discontinuance of LIBOR as a short–term interest rate utilized for loans and other financing agreements.
• The preparation of our financial statements requires the use of estimates that may vary from actual results.
• Our inability to continue to process large volumes of transactions accurately could adversely impact our business and financial results.
• Our information systems may experience cyber–attacks or an interruption or breach in security. Our cybersecurity systems could be inadequate or fail.
• We continually encounter technological changes.
• We rely on other companies to provide key components of our business infrastructure.
• Damage to our reputation could damage our business.
• The loss of key members of our senior management team and our lending teams could affect our ability to operate effectively.
• Potential acquisitions may disrupt our business and dilute stockholder value.
• Because our stock is moderately traded, it may be more difficult for you to sell your shares or buy additional shares when you desire to do so and the price may be volatile.
• Provisions in our articles of incorporation, our by–laws, and Indiana law may delay or prevent an acquisition of us by a third party.