Risk Factors Update Summary

• Increased asset size from $109.30 billion to $213.76 billion due to SVBB Acquisition.
• The company faces increased regulatory scrutiny and potential penalties related to ESG practices.
• The Federal Reserve, FDIC, and OCC are reevaluating bank merger review framework.
• The company acquired SVBB for approximately $36 billion and has access to an Advance Facility Agreement of up to $70 billion.
• The company must comply with various laws, rules, and regulations at federal and state levels, including those related to ESG practices.
• The SEC adopted final rules requiring clawback policies for excess incentive-based compensation.
• Overdraft and NSF fees decreased from $55 million in 2021 to $42 million in 2023.
• The company faces increased legislative and regulatory focus on data privacy and cybersecurity risks.
• The company's cybersecurity risk management framework includes a Three Lines of Defense model to manage material risks.
• The FOMC increased the federal funds rate target range from 0% to 5.25%-5.50%.
• The company is subject to enhanced liquidity risk management requirements due to its asset size exceeding $100 billion.
• The FDIC finalized a special assessment of $16.30 billion, with $64 million assessed to FCB.
• Increased cybersecurity risks due to evolving threats and geopolitical turmoil.
• The potential impact of climate-related financial risk management regulations on compliance costs.