Risk Factors Update Summary

• Geopolitical risks were added, including climate change regulations, which could adversely affect operations and financial condition.
• Addition of stockbrokers, mutual fund companies, and fintech firms as competitors could impact profitability.
• The allowance for credit losses increased from 1.96% to 2.02% of total loans.
• Increased regulatory focus on Bank Secrecy Act and Anti-Money Laundering requirements may require modifications.
• Liquidity risk was emphasized, with a shift from 33% to 30% of goodwill to stockholders' equity.
• Becoming subject to CFPB supervision due to the consolidation of Banks in 2023.
• Potential dilutive effect on existing stockholders from issuing additional shares at lower prices.
• Increased reputation risk due to negative news leading to withdrawal of deposits.
• Potential impact on financial results from litigation or regulatory matters exceeding established accruals.
• Uncertainty regarding the extent of future regulatory burden and its impact on business strategy.