Risk Factors Update Summary

• Increase in attempted electronic fraudulent activity, security breaches, and cyber-attacks within the financial services industry. This could result in a compromise of technology and processes, leading to potential financial losses.
• Addition of climate change risks, including operational, credit, transition, and reputational risks. This could result in increased expenses and reputational harm.
• Failure to manage growth may adversely affect performance. Ability to manage past and future growth, including acquisitions, could have a material adverse effect on business, financial condition, and results of operations.
• Disclosure of potential systemic risks from climate change, leading to regulatory, compliance, and reputational risks.
• Increase in criminal activity levels and sophistication, advances in computer capabilities, and vulnerabilities in third-party technologies could lead to compromised technology and data breaches.
• Focus on creating governance processes around climate change risks and integrating climate considerations into risk governance framework.
• Operational risks associated with third-party vendors. Reliance on vendors for essential services exposes operations to disruptions, cybersecurity attacks, or service outages, impacting business operations and reputation.
• Risks related to legal, compliance, and regulatory changes. Changes in statutes and regulations, as well as interpretations by examining authorities, could impact the banking industry and the company's operations.
• Risks related to an investment in the company. Volatility in the market could lead to lower stock prices, impacting shareholder returns and liquidity.
• Risks related to managing reputational risk. Threats to reputation from various sources could affect customer, investor, and employee relationships, leading to potential revenue loss and increased regulatory scrutiny.