Risk Factors Update Summary
- The Federal Reserve increased interest rates by 25, 50, 75, and 25 basis points in 2022 and 25 basis points in February, March, May, and July 2023, resulting in a target rate range of 4.25% to 5.50%.
- Several banks with elevated levels of uninsured deposits failed, leading to market volatility and questions about depositor confidence.
- A net unrealized loss of $403.30 million was realized on the available-for-sale investment securities portfolio due to rising interest rates.
- Operational challenges may arise from the adoption or failure to adopt new technology, potentially leading to unintended expenses.
- Inflationary pressures continued into 2023, potentially requiring sustained higher interest rates by the Federal Reserve to combat inflation.
- The Company's interchange income per transaction reduced in 2022 and going forward due to the Durbin Amendment.
- The FDIC imposed a $1.75 million special assessment on the Bank in response to financial institutions that failed in March 2023.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=36029&owner=exclude
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