Risk Factors Update Summary

• Increase in allowance for losses may be required, impacting financial condition and results.
• Enhanced internal controls and corporate governance procedures aim to provide reasonable assurances against failures, malfeasance, or misconduct, reducing legal and reputational risks.
• Transition from LIBOR to alternative rates could adversely affect interest rates on assets.
• The company faces unpredictable catastrophic events like natural disasters, terrorism, and climate change, potentially impacting revenue.
• Competition in Private Education Loan market intensifying, impacting market share and refinancing risk.
• Regulatory initiatives on climate change may lead to significant operational changes and increased costs.
• Increase in consolidation loans due to competition and legislative changes, affecting loan portfolios.
• Acquisitions and new business lines pose risks of integration challenges, higher costs, and diversion of management attention.
• Changes in accounting standards may adversely affect capital levels, results of operations.
• Failure of third-party vendors could adversely affect business, financial condition, and operations.
• Increased regulatory capital requirements could lead to mandatory actions affecting cost of capital.