Risk Factors Update Summary

• Added risks related to liquidity and dividends, including the impact of failing to maintain liquidity levels.
• Success depends on the transition to new CEO, Joseph M. Otting, on April 1, 2024.
• Increased provision for loan losses by $552 million to $992 million to address sector weaknesses.
• Reduction from 12 to 10 relationships with owners of MSRs may impact servicing income.
• Concentration in multi-family loans decreased from 55% to 44% and CRE loans from 8% to 10%.
• Change from "make" to "provide" customary representations and warranties for mortgage loan originations.
• Series A, B, and C Preferred Stocks have discretionary dividends, impacting liquidity and financial condition.
• Legal and document-related expenses may increase due to re-filing documents or foreclosure challenges.
• Enhanced focus on cybersecurity risks, potential breaches, and impact on operations and customer data.
• Increased repurchase obligations may lead to significant reduction in earnings and higher noninterest expenses.
• Strategic risks highlighted, including challenges in mergers, acquisitions, and potential impacts on financial performance.
• Challenges to foreclosure actions could harm reputation and negatively affect servicing practices.
• Regulatory capital requirements and potential need to raise additional capital to meet stringent standards.
• Exposure to various fraud risks, including misrepresentations, could result in financial loss and damage reputation.