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The COVID-19 pandemic could adversely affect our business, financial condition and results of operations.

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The election and any resulting adverse changes in the ability or willingness of our customers to meet their repayment obligations to the Company could adversely impact our liquidity, financial condition and results of operations.

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We maintain an allowance for loan losses in our financial statements at a level considered adequate by Management to absorb probable loan losses inherent in the loan portfolio as of the balance sheet date, based on estimates and assumptions at that date. However, the amount of actual future loan losses we may incur is susceptible to changes in economic, operating and other conditions within our various local markets, which may be beyond our control, and such losses may exceed current estimates. Although Management believes that the Company's allowance for loan losses is adequate to absorb losses on any existing loans that may become uncollectible, we cannot estimate loan losses with certainty, and we cannot provide any assurances that our allowance for loan losses will prove sufficient to cover actual loan losses in the future. Loan losses in excess of our reserves may adversely affect our financial condition and results of operations.

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Changes in interest rates could adversely affect our income and financial condition.

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Defaults by another larger financial institution could adversely affect financial markets generally.

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We have significant exposure to risks associated with commercial real estate and residential real estate in our primary markets.

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Our indirect lending exposes us to increased credit risks.

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Commercial and industrial loans may expose us to greater financial and credit risk than other loans.

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Our allowance for loan loss may not be adequate to cover actual future losses.

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We are subject to certain risks with respect to liquidity.

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Our business strategy includes continuing our growth plans. Our business, financial condition or results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.

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We may experience difficulties in integrating acquired businesses, or acquisitions may not perform as expected.

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We may fail to realize all of the anticipated benefits of acquisitions, which could reduce our anticipated profitability.

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We may not be able to attract and retain skilled people.

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Strong competition within our markets could reduce our ability to attract and retain business.

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Consumers may decide not to use banks to complete their financial transactions.

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We are exposed to operational risk.

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Unauthorized disclosure of sensitive or confidential customer information, whether through a data breach of our computer systems by cyber-attack or otherwise, could severely harm our business.

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We depend on our subsidiaries for dividends, distributions and other payments.

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We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.

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Increases in FDIC insurance premiums may have a material adverse effect on our earnings.

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Legislative or regulatory changes or actions, or significant litigation, could adversely impact us or the businesses in which we are engaged.

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Our results of operations, financial condition or liquidity may be adversely impacted by issues arising in foreclosure practices, including delays in the foreclosure process, related to certain industry deficiencies, as well as potential losses in connection with actual or projected repurchases and indemnification payments related to mortgages sold into the secondary market.

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Impairment of investment securities, goodwill, other intangible assets, or deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.

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Changes and uncertainty in tax laws could adversely affect our performance.

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We may be a defendant from time to time in the future in a variety of litigation and other actions, which could have a material adverse effect on our business, financial condition or results of operations.

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Average short-term borrowings decreased $75.4 million or 78.4% since December 31, 2019 as a result of using brokered time deposits in place of more expensive FHLB borrowings. Additional organic deposits, as discussed above, helped reduced the need for the short-term borrowings. Average long-term borrowings increased $59.1 million as maturing short-term FHLB advances were refinanced to capitalize on the favorable long-term interest rates. See Note 12 and 13 within Item 8 of this Annual report on Form 10-K for additional detail.

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