Red Flags Detected

• ⚠ The Loss or Material Curtailment of This Relationship With Bhg Financial Would Have a Material Adverse Effect On Our Consumer Loan Portfolio (new) — The bank depends on a single third-party supplier for nearly all consumer loan purchases and lacks infrastructure to originate comparable volume.
• ⚠ Our Consumer Loan Portfolio Has Increased From $2.6 Million, or 3.4% of Total Loans, At December 31, 2024 to $17.5 Million, or 18.7% of Total Loans, At December 31, 2025 (new) — Rapid growth in unseasoned, unsecured consumer loans creates elevated credit risk.
• ⚠ At December 31, 2025, $17.7 Million, or 19.0% of Our Total Loans, Were Unsecured Loans (new) — Nearly one-fifth of total loans are unsecured, exposing the bank to full principal loss on default.
• ⚠ Stockholders Would Experience a 9.09% Dilution In Ownership Interest If Newly Issued Shares of Our Common Stock Are Used to Fund Stock Options (new) — Post-offering stock benefit plans could significantly dilute new investors.
• ⚠ We Have Broad Discretion In Using the Net Proceeds of the Stock Offering (new) — Management has not allocated specific amounts for most uses, increasing execution risk.