Making Banking
and Life Easier
2018 Annual Report
Board of Directors
1 Steven H. Rivera
DO, MBA, FACEP
Board of Trustees Ascension Southeast
Michigan Hospitals, Physician Advisor
Ascension Providence Hospitals, Medical Staff
Leadership Ascension Providence
2 Mark J. Herman
President & COO
ANYI Management Company
3 Barbara E. Allushuski
President & CEO
Blue Heron Talent, LLC
4 Victor L. Ansara
President & CEO
Ansara Restaurant Group, Inc.
5 Stefan Wanczyk
President & CEO
Utica Enterprises, Inc.
6 Patrick J. Fehring
President & CEO
Level One Bank
7 Shukri W. David
MD, MBA, FACC, Physician Chair,
Heart & Vascular Center of Excellence
St. John Providence Health System
Ascension Michigan
8 Michael A. Brillati
CEO
Salus Group
9 Thomas A. Fabbri
President & CEO
Aaro Companies
10 James Bellinson
Managing Director
Riverstone Communities
4
1
3
5
7
8
10
2
6
9
To Our Shareholders
I am pleased to report 2018 was another successful year of quality growth and
strong financial results for Level One Bancorp, Inc.
Net Income was $14.4 million in 2018, an increase from the previous year. Fully
diluted Earnings Per Share grew 28.2% from 2017 to $1.91 while assets increased
to $1.4 billion at December 31, 2018. Our Return on Average Assets for the year
was 1.1% and the Return on Average Equity increased to 10.7%. We achieved
solid loan growth of 8.9% in 2018 as both Commercial and Residential Lending
contributed to our results. We believe we continue to experience a positive
economic environment and are well positioned for success in the coming year.
Patrick J. Fehring, President & CEO
In the second quarter of 2018, Level One Bancorp, Inc. successfully launched
an Initial Public Offering and became a publicly traded company on Nasdaq.
We took this action for several reasons. First, the IPO provided our investors a
measure of liquidity as we have been a private company since our founding in 2007. Additionally, it gave us access to the
broader capital markets which we believe will facilitate our continuing growth. Finally, it allowed us to raise additional
capital, strengthening our balance sheet.
As part of our strategic plans for growth in 2018, we significantly increased the size of our residential mortgage operations
with the addition of approximately 30 mortgage bankers. We are excited to have them on our team and expect great
opportunity ahead for growth of the mortgage business.
Level One Bank was recognized for several awards in 2018. One that I am most proud of relates to the culture we have
created at Level One, which leads to our ability to attract and retain talented bankers. For the sixth consecutive year, we
were named one of Metro Detroit’s ‘101 Best & Brightest Companies to Work For’. Our people and the core values they
exhibit are an important differentiator and key to our success.
Much has changed in the banking industry since we opened our doors in 2007, and technology is at the forefront. We
continue to invest in technology and data to make banking easier and more convenient for our clients. We have developed
an enhanced IT vision that provides us a clear path forward.
As we look ahead to 2019 and beyond, we remain focused on quality growth and profitability. Thank you for your continued
support and commitment to Level One Bancorp, Inc.
Sincerely,
Patrick J. Fehring
President & CEO
Executive Team
From left to right: Lani Barrett, EVP, Chief Human Resources Officer; Gregory A. Wernette, EVP, Chief Lending Officer; David C. Walker, EVP, Chief Financial Officer;
Patrick J. Fehring, Chairman, President and Chief Executive Officer; Eva Scurlock, EVP, Risk Management Officer; Timothy R. Mackay, EVP, Consumer Banking Officer
Photography by Libby Greene/Nasdaq, Inc.
Annual Report 2018 | 1
MAKING BANKING
AND LIFE EASIER
Whether building a business, raising a family, or carrying out day-to-day
tasks, people choose to do business with the people and companies that
make their lives easier. Among the top reasons individuals choose their
primary bank is convenience - convenient locations and ATMs, easy account
opening and application processes, and access to online and mobile
banking tools to name a few. At Level One Bank, we make life easier by
making banking easier - by placing account access at your fingertips,
by offering more convenient locations, by providing free access to every
ATM in the nation, by opening accounts online, and much more.
• Level One Bancorp, Inc. filed a
registration statement with the
SEC for an Initial Public Offering
• Level One Bank was named one
of the ‘10 Best Banks in Michigan’
by GOBankingRates
• Level One Bank was selected as
a ‘Best Company to Work For’ by
Novi Chamber of Commerce
2018 Highlights
Photography by Libby Greene/Nasdaq, Inc.
• Level One Bancorp, Inc. commenced
its Initial Public Offering
• Level One Bancorp, Inc. celebrated
its first day of trading on the Nasdaq
stock exchange (LEVL)
• Level One Bank was recognized for
the sixth consecutive year as one of
Metro Detroit’s ‘101 Best & Brightest
Companies to Work For’
• Level One Bank added 30 new
mortgage team members, doubling
the size of the Mortgage Division
• Level One Bank was honored as one
of Michigan’s ‘Best For-Profits for
Non-Profits’ by MichBusiness
Annual Report 2018 | 2
Annual Report 2018 | 3
Making Banking Easier
with New Products and Technology
Making Homeownership Easier
with Expanded Mortgage Services
Our commitment to making life easier for our clients also extends into the
homebuying process. Our online mortgage application lets clients apply online
whenever and wherever it’s most convenient. Our online pre-qualification
application gives clients a quick and easy way to determine what they qualify for.
In 2018, we introduced a new mortgage program called Community One that
offers unique benefits for first responders, medical professionals, government
and non-profit employees, and teachers who serve our local communities.
We also introduced a new Unsecured Home Improvement Loan that offers
a quick and easy application process for individuals eager to get started on
home renovation projects.
In the third quarter of 2018, we doubled the size of our mortgage division with
the addition of approximately 30 new mortgage loan officers and support staff.
We also opened a new mortgage loan center at a prime location in downtown Ann
Arbor, located at 1328 S. Main Street, right across from the University of Michigan
Stadium. With the additional mortgage team members, we further strengthened
our local mortgage presence and made it easier for homebuyers to access a
mortgage banker in their community.
During a time when everything you need is at your fingertips, from
online shopping apps to grocery delivery services, people expect the
same conveniences from their bank. That’s why we offer products like
Mobile Wallet and Mobile Check Deposit, making it easy to make in-store
purchases from your phone or deposit checks on the go. In 2018,
we enhanced our online account opening platform enabling personal
checking and savings accounts to be opened and funded entirely online.
To provide added value and help our clients save money, we refund ATM
fees charged by other institutions anywhere in the nation, making domestic
travel easier for our clients. Our BaZing app conveniently notifies clients
when there’s an offer at a nearby merchant, while also providing free cell
phone protection and travel savings on hotels and car rentals. With a Level
One debit card, we even pay our clients $0.10 for every transaction in which
they choose credit.
While technology is a driving force in the industry, we also understand the
importance of personal connections and relationships. We offer a level of
personal service that is unmatched by other institutions. The combination
of personal service with sophisticated products and technology is a
significant differentiator and an important part of our client acquisition
and retention strategies.
In 2019, we will continue to enhance our product and technology offerings
with new services like Zelle®, a person-to-person payment solution that
makes it easy to pay friends and family electronically. To complement
our online account opening and online mortgage application platforms,
we will soon offer online applications for new small business loans and
Home Equity Lines of Credit.
Annual Report 2018 | 4
Annual Report 2018 | 5
Making Business Easier for Our Clients
“ It’s easy to get things done because I don’t
have all the red tape.” – Michael Campbell, Hutch Paving
Sam Slaughter - Sellers Auto Group
When Sellers Auto Group was looking for a bank, they understood the benefits of working with a local community bank like Level One Bank.
“The difference between a local bank and a national bank is key. We were looking for more of a relationship, not just an account,” explained
Sam Slaughter, Owner of Sellers Auto Group.
When looking to refinance their mortgage, Slaughter and his CFO, Andrew Haller, talked to several different banks. After meeting with Level
One’s leadership team and reviewing the product and service offerings, they knew Level One Bank was the right choice. “The level of personal
service is so refreshing. Whether it’s the commercial mortgage or treasury management people, everyone is committed to helping us and
making sure our needs are met,” he said.
Sellers Auto Group is an award-winning company operating two dealerships - Sellers Buick GMC in Farmington Hills and Sellers Subaru in
Macomb. They sell and service new and pre-owned vehicles and were recognized locally and nationally as ‘Buick Dealer of the Year’ in 2018
and 2019. Sellers Auto Group prides itself on being a trusted source for transportation in the community and centers its client experience
around transparency and simplicity. For more information, visit www.sellersautogroup.com.
Michael Campbell - Hutch Paving
Michael Campbell, President of Hutch Paving, appreciates
Level One Bank’s ability to get things done. He notes the stark
contrast between the mega-bank mentality and that of a
community bank. “It’s a different atmosphere. It’s easy to get
things done because I don’t have all the red tape,” he explains.
When asked what makes Level One Bank different from other
banks he’s worked with, Campbell describes the people and
the service, “It’s a lot more personal. When I need my banker,
he’s there for me. He answers the phone when I call. When I
go to the branch, everyone knows who I am. They smile and
greet me by name.” When Campbell was looking to refinance
a commercial loan, he found Level One Bank’s rates to be
competitive and now uses the Bank for various personal and
business banking needs, including the purchase of equipment
such as dump trucks and large excavators.
Hutch Paving specializes in the installation, repair, maintenance
and rehabilitation of asphalt and concrete pavement systems
for both the public and private sectors of Southeast Michigan.
Services include new construction, milling, pulverization, crack
repair, sealcoating, patching, resurfacing, reclamation, curbing,
removal & replacement, concrete, striping, speed bumps and
drainage systems of asphalt and concrete, and more. For more
information, visit www.hutchpaving.com.
Bryan Howard - Proos Manufacturing, Inc.
Level One Bank’s entrepreneurial roots and approach
resonated with Bryan Howard, President and CEO of
Proos Manufacturing. When Howard purchased Proos
Manufacturing from the previous owner in 2018, he wanted
a bank that understood his challenges and was willing to put
some skin in the game.
“They put their money where their mouth is. They took a
chance on me,” Howard explained. “They took the time to get
to know me and hear my story. They understood me and what
I needed more than a typical bank would.”
The deal was complex with a lot of moving parts, but
Level One Bank worked collaboratively with Howard to
come up with customized solutions. “It was not an easy deal,”
said Howard. “I really appreciated Level One’s creativity and
solutions-oriented approach.”
Proos Manufacturing is a leading provider of Engineered Products
for the material handling, automotive, industrial, and furniture
industries. For more information, visit www.proos.com.
Annual Report 2018 | 6
Annual Report 2018 | 7
Making Life Easier
for Our Communities by Giving Back
1
2
As a community bank, we remain committed to making an impact in the areas
we serve. From financial literacy and homebuyer workshops to volunteering and
mentoring children, our team members dedicated over 1000 hours of community
service and financially supported nearly 90 philanthropic organizations in 2018.
In 2018, we introduced a new grant program for small business owners in
partnership with the Federal Home Loan Bank to help businesses with expansion
efforts and investing in their workforce. We continue to offer a number of grant
programs to make affordable homeownership easier for low-to-moderate
income individuals, including help with closing costs, home repairs, and
accessibility modifications. Through these programs, we were able to leverage
$350,000 in grant money.
1. Collecting donations for Heart of
West Michigan United Way
2. Planting and harvesting vegetables on
the farm at Forgotten Harvest
3. Celebrating a Home Dedication Ceremony
for our client at Habitat for Humanity
4. Working hard to seal a leaking roof at
a Habitat for Humanity warehouse
5. Volunteering with Habitat for Humanity ReStore
6. Supporting local businesses during a
Level One Cash Mob event
7. Teaching homebuyer education classes
in the local community
8. Leading a financial literacy series with
the Chaldean Community Foundation
5
3
4
6
We remain committed to our partnership with Habitat for Humanity. In 2018, we
continued to originate mortgage loans for Habitat and provided an exclusive lower-
cost loan program for their clients. We expanded our relationship with the addition of a
custom-tailored program to help Habitat borrowers with down-payment assistance and
provide financial aid for homeowners who have fallen behind on their payments.
Our team is passionate about sharing their financial expertise to help others achieve
their goals. We facilitated over 40 financial education workshops in partnership with
several non-profit organizations in 2018. One of those organizations was the Chaldean
Community Foundation, with whom we partnered to develop and teach a series of
financial literacy classes to Chaldean immigrants, covering topics such as banking
basics, household budgeting and credit building.
7
8
Annual Report 2018 | 8
Annual Report 2018 | 9
CONSOLIDATED BALANCE SHEETS
December 31, 2018 and 2017
(Dollars in thousands)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Years ended December 31, 2018, 2017 and 2016
(Dollars in thousands)
ASSETS
Cash and cash equivalents
Securities available-for-sale
Federal Home Loan Bank stock
Mortgage loans held for sale, at fair value
Loans:
Originated loans
Acquired loans
Total loans
Less: Allowance for loan losses
Net loans
Premises and equipment
Goodwill
Other intangible assets, net
Bank-owned life insurance
Income tax benefit
Other assets
Total assets
LIABILITIES
Deposits:
Noninterest-bearing demand deposits
Interest-bearing demand deposits
Money market and savings deposits
Time deposits
Total deposits
Borrowings
Subordinated notes
Other liabilities
Total liabilities
Shareholders' equity
Common stock:
BALANCE AT JANUARY 1, 2016
Net income
Other comprehensive loss
Exercise of stock options (27,008 shares), including tax benefit
Stock based compensation, net of tax impact
BALANCE AT DECEMBER 31, 2016
Net income
Other comprehensive income
Exercise of stock options (57,506 shares), including tax benefit
Stock-based compensation expense, net of tax impact
BALANCE AT DECEMBER 31, 2017
Net income
Other comprehensive loss (excluding tax reform adjustment)
Reclass of tax reform adjustments due to early adoption of ASU 2018-02
Initial public offering of 1,150,765 shares of
common stock, net of issuance costs
Common stock dividends declared and paid of $0.12/share
Exercise of stock options (127,494 shares)
Stock-based compensation expense, net of tax impact
Common
Stock
$ 57,640
—
—
300
366
$ 58,306
—
—
605
600
$ 59,511
—
—
—
29,030
—
1,279
801
Accumulated Other
Comprehensive
Income (Loss)
Total
Shareholders’
Equity
Retained
Earnings
$ 28,345
11,046
—
—
—
$ 39,391
9,841
—
—
—
$ 49,232
14,386
—
168
—
(895)
—
—
$
(351)
—
(775)
—
—
$ (1,126)
—
343
—
—
$ (783)
—
(801)
(168)
—
—
—
—
$ 85,634
11,046
(775)
300
366
$ 96,571
9,841
343
605
600
$ 107,960
14,386
(801)
—
29,030
(895)
1,279
801
BALANCE AT DECEMBER 31, 2018
$ 90,621
$ 62,891
$ (1,752)
$ 151,760
2018
2017
$
33,296
204,258
8,325
5,595
1,041,898
84,667
1,126,565
(11,566)
1,114,999
13,242
9,387
447
11,866
2,467
12,333
$
63,661
150,969
8,303
4,548
920,895
114,028
1,034,923
(11,713)
1,023,210
13,435
9,387
667
11,542
3,102
12,467
$ 1,416,215
$ 1,301,291
$
309,384
52,804
287,575
484,872
1,134,635
99,574
14,891
15,355
$
324,923
62,644
289,363
443,452
1,120,382
47,833
14,844
10,272
1,264,455
1,193,331
Authorized—20,000,000 shares
Issued and outstanding—7,750,216 shares at 12/31/2018 and 6,435,461 shares at 12/31/2017
Retained earnings
Accumulated other comprehensive loss, net of tax
Total shareholders' equity
Total liabilities and shareholders' equity
90,621
62,891
(1,752)
151,760
59,511
49,232
(783)
107,960
$ 1,416,215
$ 1,301,291
Annual Report 2018 | 10
Annual Report 2018 | 11
5%
4%
3%
2%
1%
0%
4%
3%
2%
1%
0%
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2018, 2017 and 2016
(In thousands, except per share data)
Interest income
Originated loans, including fees
$ 49,076
$ 39,812
$ 33,771
Acquired loans, including fees
9,186
12,231
16,956
2018
2017
2016
Securities:
Taxable
Tax-exempt
Federal funds sold and other
2,939
1,657
966
1,746
1,431
955
863
441
304
Total interest income
63,824
55,607
52,903
Interest Expense
Deposits
Borrowed funds
Subordinated notes
Total interest expense
Net interest income
11,055
6,267
4,499
1,330
1,015
13,400
50,424
797
318
1,014
1,015
8,078
5,832
47,529
47,071
Provision expense for loan losses
412
1,416
3,925
Net interest income after
provision for loan losses
Noninterest income
Service charges on deposits
Net gain (loss) on sales of securities
Mortgage banking activities
Net gain on sale of commercial loans
Other charges and fees
Total noninterest income
Noninterest expense
50,012
46,113
43,146
2,556
(71)
2,330
11
2,229
7,055
2,543
1,885
208
926
146
—
1,907
1,347
6,502
6,407
1,698
2,249
($ Thousand)
Salary and employee benefits
25,781
21,555
17,978
Occupancy and equipment expense
Professional service fees
Acquisition and due diligence fees
Marketing expense
Printing and supplies expense
Data processing expense
Other expense
Total noninterest expense
Income before income taxes
Income tax provision
Net income
Earnings per common share:
Basic
Diluted
Average common shares outstanding—basic
Average common shares outstanding—diluted
Cash dividends declared per common share
4,425
1,672
—
1,033
441
2,146
4,180
4,208
3,370
2,314
1,189
—
2,684
930
477
806
468
1,912
2,023
4,655
3,889
39,678
17,389
3,003
36,051
32,407
16,564
17,146
6,723
6,100
$ 14,386
$ 9,841
$ 11,046
$ 1.95
$ 1.91
7,377
7,524
0.12
$ 1.54
$ 1.74
$ 1.49
$ 1.69
6,388
6,341
6,610
6,549
—
—
16000
14000
12000
10000
8000
6000
4000
2000
0
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Net Interest
Margin
The Company’s loans are its
main revenue engine, and
the cost of funds increased
more than the loan yield
increased, resulting in the
Company’s net interest
margin falling to 3.92%.
Noninterest Expense
/Average Assets
Offsetting net interest
revenue is noninterest
expense (e.g., salaries,
occupancy, data
processing, etc.).
In 2018, this ratio declined
despite an increase of
27 FTE employees
(a portion of which is
related to the expansion
of the mortgage team).
Net
Income
Net income was strong
at $14.4 million in 2018.
Return on
Average Assets
Finally, the Company’s
net income as percent of
assets was 1.07% in 2018.
Total Assets
Organic growth drove
an increase in assets
of 9% during 2018.
Total Loans
Loan growth contributed
to 80% of total asset
growth during 2018.
Net Charge Offs
/Average Assets
Credit quality remains
excellent with a .04%
loss rate in 2018.
1600
1400
1200
1000
800
600
400
200
0
2013
2014
2015
2016
2017
2018
($ Million)
1200
1000
800
600
400
200
0
0.40%
0.30%
0.20%
0.10%
0.00%
-0.10%
-0.20%
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2018, 2017 and 2016 (Dollars in thousands)
($ Million)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to
net cash provided by operating activities:
2018
2017
2016
$ 14,386
$
9,841
$ 11,046
Depreciation of fixed assets
Amortization of core deposit intangibles
Stock-based compensation expense
Provision expense for loan losses
Discount on acquired SBA/USDA retained loans
Net securities premium amortization
Net (gain) loss on sales of securities
Originations of loans held for sale
Proceeds from sales of loans originated for sale
Net gain on sales of loans
Accretion on acquired purchase credit impaired loans
Gain on sale of other real estate
owned and repossessed assets
Increase in cash surrender value of life insurance
Amortization of debt issuance costs
Excess tax benefits
1,332
220
815
412
—
1,327
71
(90,361)
91,091
(2,341)
(3,794)
1,369
234
613
1,416
—
871
(208)
(64,184)
69,753
(1,844)
(5,340)
(44)
(324)
47
108
(237)
(328)
58
27
1,445
233
366
3,925
133
608
(926)
(78,950)
74,995
(2,249)
(8,412)
(35)
(181)
53
—
Net (increase) decrease in accrued
interest receivable and other assets
Net increase in accrued interest
payable and other liabilities
Net cash provided by operating activities
382
(1,546)
(4,660)
4,810
18,137
1,667
12,162
2,812
203
Cash flows from investing activities
Net increase in loans
Principal payments on securities available-for-sale
Purchases of securities available-for-sale
Purchases of Bank Owned Life Insurance
Purchases of FHLB Stock
Additions to premises and equipment
Proceeds from:
(88,069)
9,368
(68,694)
—
(22)
(1,159)
Sale of securities available-for-sale
Sale of other real estate owned and repossessed assets
3,625
822
—
(144,129)
(75,780)
8,850
(74,225)
—
(2,475)
(913)
14,803
885
—
(128,855)
Net cash from acquisition
Net cash used in investing activities
Cash flows from financing activities
Net increase in deposits
Change in short-term borrowings
Repayment of long-term FHLB advances
Change in secured borrowing
Net proceeds from issuance of common stock
related to our initial public offering
Proceeds from exercised stock options
Payments related to tax-withholding
for share based compensation awards
Common stock dividends paid
Net cash provided by financing activities
Net change in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents
14,253
61,810
(10,000)
(69)
195,458
(31,820)
(4,506)
1,514
29,030
1,279
—
605
(14)
(662)
95,627
(30,365)
63,661
$ 33,296
(13)
—
161,238
44,545
19,116
$ 63,661
(89,466)
12,900
(91,041)
(7,520)
(1,536)
(3,066)
93,427
116
2,458
(83,728)
46,170
40,543
(408)
—
—
300
—
—
86,605
3,080
16,036
$ 19,116
$
5,864
1,200
—
—
258
2013
2014
2015
2016
2017
2018
Supplemental disclosure of cash flow information:
Interest paid
Income taxes paid
Transfer of loans held for sale to loans held for investment
Transfer from premises and equipment to other assets
Transfer from loans to other real estate owned
$ 12,634
2,120
544
18
108
$
7,427
4,625
1,587
1,793
385
Annual Report 2018 | 12
Annual Report 2018 | 13
Non-cash transactions:
Increase in assets and liabilities in acquisitions:
Assets acquired-Bank of Michigan
Liabilities assumed-Bank of Michigan
—
—
—
—
114,442
102,762
Corporate Office
32991 Hamilton Court
Farmington Hills, MI 48334
248-737-0300
Banking Center Locations
Birmingham
1712 West Maple Road
Birmingham, MI 48009
248-723-4800
Bloomfield
6450 Telegraph Road
Bloomfield Hills, MI 48301
248-406-8905
Bloomfield
37100 Woodward Avenue
Bloomfield Hills, MI 48304
248-530-7401
Farmington Hills
30095 Northwestern Highway
Farmington Hills, MI 48334
248-865-1300
Northville
20550 Haggerty Road
Northville, MI 48167
248-380-6590
Farmington Hills
30201 Orchard Lake Road
Farmington Hills, MI 48334
248-737-1110
Novi
44350 W. 12 Mile Road
Novi, MI 48377
248-735-1000
Ferndale
22635 Woodward Avenue
Ferndale, MI 48220
248-414-6500
Sterling Heights
43683 Schoenherr Road
Sterling Heights, MI 48313
586-412-1800
Detroit
1420 Washington Boulevard
Detroit, MI 48226
313-309-9980
Grand Rapids
2355 Burton Street SE
Grand Rapids, MI 49506
616-827-4400
COMING SOON!
195 North Maple Road
Ann Arbor, MI 48103
1880 South Rochester Road
Rochester Hills, MI 48307
Mortgage Loan Center Locations
Ann Arbor
1328 South Main Street
Ann Arbor, MI 48104
734-213-1515
Making Banking
and Life Easier
888-880-5663 | contact@levelonebank.com
www.LevelOneBank.com
Member FDIC
This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management’s current views of
future events and operations. These forward-looking statements are based on the information currently available to the Company as of the date of this release. It is important
to note that these forward-looking statements are not guarantees of future performance and involve risk and uncertainties, including, but not limited to, the ability of the
Company to implement its strategy and expand its lending operations, changes in interest rates and other general economic, business and political conditions, including
changes in the financial markets, as well as other risks described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any
obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.