Risk Factors Update Summary
- Changes in customer behavior due to economic conditions could materially affect our ability to meet business needs.
- Credit exposures concentrated in industries susceptible to climate change, natural disasters, or pandemics may adversely affect financial condition. This change highlights a material risk related to climate change and pandemics.
- Failure to attract and retain skilled personnel may negatively impact our business operations.
- Significant exposure to commercial real estate lending with $4.4 billion outstanding, representing 64.7% of the total loan portfolio. This exposure poses a significant concern due to the risks associated with commercial real estate loans.
- Litigation, regulatory actions, and compliance issues could result in significant fines and penalties.
- Decrease in deposits by $162 million during a period when domestic commercial banks experienced a $280 billion decrease. This change indicates a potential shift in deposit trends that could impact liquidity and funding capacity.
- Climate change risks are rapidly evolving, leading to higher regulatory, compliance, and reputational risks.
- Cybersecurity incident in February 2023 resulted in the exposure of personal information of approximately 86,000 individuals. This incident may lead to significant costs, litigation, and reputational damage.
- Self-identified compliance issues may require significant financial remediation and impact our operations.
- Increased reliance on technology-driven products and services, including AI, automation, and algorithms, introduces risks such as algorithmic bias and data breaches. These technological advancements may have unintended consequences and regulatory challenges.
- Failure to comply with anti-money laundering and anti-terrorism financing laws could result in fines, penalties, and restrictions on business operations. Non-compliance with BSA/AML requirements may lead to significant liabilities and reputational consequences.
- Ongoing risks related to cybersecurity, including persistent cyberattacks and potential breaches, could disrupt business operations and lead to financial losses. The evolving threat landscape requires continual evaluation and enhancement of security measures.
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=356171&owner=exclude
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