Based on this assessment, management has concluded that, as of December 31, 2017, the Company’s system of internal control over financial reporting is effective and meets the criteria of the “Internal Control - Integrated Framework.” As permitted, management excluded from its assessment the operations of The Highlands Bank, acquired on December 1, 2017 in the acquisition of BOJ Bancshares, Inc. As described in Note 2 to the Consolidated Financial Statements, assets acquired and excluded from management’s assessment of internal control over financial reporting comprised approximately 9% of consolidated assets at December 31, 2017.