Risk Factors Update Summary

• Increased market volatility and liquidity risks due to bank failures and financial events globally.
• Increased CECL reserves by $211 million, bringing total reserves to $342 million as of December 31, 2023.
• Potential future credit rating downgrades may impact capital access and increase costs.
• Transitioned 63.5% of loan principal balance to replacement benchmark rate, with 36.5% remaining.
• Regulatory restrictions on securitization transactions may limit participation and impact derivatives use.
• Added $249.5 million in CECL reserves related to loans receivable, debt securities, and unfunded loan commitments.
• Transition from equity distribution agreements to "at the market" offerings. This change might impact stock issuance efficiency.
• Disclosed potential losses on investments due to climate change-related regulations and physical effects.
• Increase in derivative instruments held from 56 to 57. This may affect financial results.
• Counterparty risk increased with outstanding derivative agreements now at $3 billion.
• Change from sales of $699.1 million to dividends. This could impact shareholder returns.
• Uncertainty regarding non-competition agreements and potential impact of FTC proposed rule.
• Highlighted risks associated with transitional loans and construction lending activities.
• Management agreement extended to December 19, 2024, with potential renewal for additional years.
• Mentioned the impact of interest rate swaps, caps, collars, and floors on managing interest rate risks.
• Cybersecurity risks highlighted with potential disruptions, data loss, and regulatory actions.
• Discussed the uncertainty and risks associated with ESG practices and disclosures, including potential regulatory impacts.