10 unchanged sentences
Though certain of these measures have been relaxed or eliminated, recent increases in reported cases could cause these measures to be re-established.
−Removed: The travel, hospitality and food and beverage industries, restaurants and auto manufacturers, and their suppliers have been severely affected.
−Removed: A significant number of layoffs, furloughs of employees, as well as mandated remote work have occurred in these and other industries, including government offices, schools and universities.
−Removed: Auburn University is holding virtual classes only from March 16, 2020 through the summer session.
−Removed: Auburn University announced its guidelines for the fall semester of 2020, which will involve both remote and in person instructions as well as social distancing measures.
+Added: The travel, hospitality and food and beverage industries, restaurants, retailers and auto manufacturers, and their suppliers have been severely affected.
+Added: A significant number of layoffs, furloughs of employees, as well as remote work have occurred in these and other industries, including government offices, schools and universities.
+Added: Auburn University held virtual classes only from March 16, 2020 through the summer session.
+Added: Auburn University’s guidelines for the fall semester of 2020 involve both remote and in person instructions as well as social distancing measures.
The economic impact of these measures is not presently known.
2 unchanged sentences
The timing and effects of the COVID-19 pandemic on our business, results of operations and financial condition may include, among various other consequences, the following.
−Removed: These effects depend on the severity, scope and duration of the pandemic, its cumulative economic effects, and the effectiveness of healthcare;
−Removed: business and governmental actions addressing to the pandemic’s effects.
+Added: These effects depend on the severity, scope and duration of the pandemic, its cumulative economic effects, and the effectiveness of healthcare, business and governmental actions addressing the pandemic’s effects.
• Employees’ health could be adversely affected, necessitating their recovery away from work;
4 unchanged sentences
• Declines in demand for loans and other banking services and products, and reduced interchange fees on payment cards;
−Removed: • Reduced consumer spending due to both job losses, health concerns and required practices, such as social distancing and shelter in place, attributable to the COVID-19 pandemic;
+Added: • Additional stimulus efforts have been agreed to by the Congress and the executive branch and the related uncertainty may increase economic and market risks and volatility;
+Added: • Reduced consumer spending and economic activity due to both job losses, health concerns and required practices, such as social distancing and shelter in place, attributable to the COVID-19 pandemic, and to the discontinuation of Federal stimulus payments on July 25, 2020;
• Reduced interchange revenue from reduced retail sales, travel and payment card usage, generally;
3 unchanged sentences
• Declines in the credit quality of our loan portfolio, owing to the effects of the COVID-19 pandemic in the markets we serve, leading to increased provisions for loan losses and increases in our allowance for possible credit losses;
−Removed: • Declines in the value of collateral for loans, including real estate collateral, especially in industries such as travel and hospitality;
+Added: • Declines in the value of collateral for loans, including real estate collateral, especially in industries such as travel, hospitality, restaurants and retailers;
• Declines in the net worth and liquidity of borrowers, impairing their ability to pay timely their loan obligations to us;
• Decreases in market interest rates that are expected to reduce our net interest income and our profitability;
−Removed: • Loan deferrals and loan modifications, including those mandated by law, or which are encouraged by our regulators, may increase our expense and risks of collectability, reduce our cash flows and liquidity and adversely affect our results of operations and financial condition;
+Added: • Loan deferrals and loan modifications, and mortgage foreclosure moratoria, including those mandated by law, or which are encouraged by our regulators, may increase our expense and risks of collectability, reduce our cash flows and liquidity and adversely affect our results of operations and financial condition;
+Added: • The end of temporary regulatory accounting and capital relief for banks regarding the effects of the COVID-19 pandemic, including loan deferrals and modifications, could increase our TDRs and require additions to our allowance for loan losses, which may adversely affect our income, financial condition and capital;
• Our waiver of various fees and service charges to support our customers and communities will adversely affect our results of operation and our liquidity and financial position;
1 unchanged sentence
Electronic banking could become more popular with less customers doing business at our offices;
−Removed: • Certain of our assets, including loans and securities, may become impaired, which would adversely affect our results of operation and financial condition;
+Added: • Certain of our assets, including loans and securities, may become impaired, which would adversely affect our results of operation and financial condition and mortgage loan foreclosure moratoria may limit our ability to timely act to protect our interests in the loan collateral;
• Reductions in income or losses will adversely affect our capital and growth of capital, including our capital for bank regulatory purposes;
• Losses or reductions in net income may adversely affect the growth or amount of dividends we can pay on our common stock;
−Removed: • The effects of government fiscal and monetary policies on the economy and financial stability, generally, and on our business, results of operations and financial condition cannot be predicted;
+Added: • The effects of government fiscal and monetary policies, including changes in such policies, or the effects of discontinuing COVID-19 relief programs, on the economy and financial stability, generally, and on our business, results of operations and financial condition cannot be predicted;
• The restoration of financial stability and economic growth may depend on the health care system developing and deploying COVID-19 testing and contact tracing, and drugs that better address COVID-19, and vaccines to prevent COVID-19, which promote consumer and employee health and confidence in the economy.
3 unchanged sentences
The spread, intensification and duration of COVID-19 pandemic, as well as the effectiveness of governmental, fiscal and monetary policies, and regulatory responses to the pandemic, further affect the financial markets and the market prices for securities generally, and the market prices for bank stocks, including our common stock.
+Added: Uncertainty and volatility in the capital markets may increase as a result of the 2020 federal and state elections.
The COVID-19 global pandemic could result in deterioration of asset quality and an increase in credit losses.
1 unchanged sentence
These could result in an inability to repay loans timely in full, reduce our asset quality and reduce our deposits.
−Removed: Loan modifications and payment deferrals may also increase our credit risks.
+Added: Loan modifications and payment deferrals may also increase our credit risks, especially if temporary regulatory relief for these actions expires.
Our business, results of operations, liquidity and financial condition could be adversely affected.
12 unchanged sentences
As clients use deposit balances to fund their businesses, this may put funding pressure on us, which may cause us to pay higher rates than normal for deposits and other funding.
−Removed: As a participating lender in the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), the Bank is subject to additional risks of litigation from the Bank’s customers or other parties regarding the Bank’s processing of loans for the PPP and risks that the SBA may not fund some or all PPP loan guaranties.
+Added: As a participating lender in the PPP, the Bank is subject to additional risks of litigation from the Bank’s customers or other parties regarding the Bank’s processing of loans for the PPP and risks that the SBA may not fund some or all PPP loan guaranties.
The CARES Act and the PPP and Healthcare Enhancement Act included an approximately $659 billion loan for the PPP administered through by the SBA and the U.S.
2 unchanged sentences
The Bank is participating as a lender in the PPP.
−Removed: As of June 30, 2020, we have secured funding of approximately 422 loans totaling approximately $36.5 million through the PPP program.
+Added: As of September 30, 2020, we have secured funding of approximately 422 loans totaling $36.5 million through the PPP program.
The PPP opened on April 3, 2020; however, because of the short timeframe between the passing of the CARES Act and the opening of the PPP, there is some ambiguity in the laws, rules and guidance regarding the operation of the PPP, which exposes the Company to risks relating to noncompliance with the PPP.
1 unchanged sentence
Congress approved approximately $310 billion of additional funding for the PPP on April 24, 2020.
−Removed: Since the opening of the PPP, several other larger banks have been subject to litigation regarding the process and procedures that such banks used in processing applications for the PPP.
+Added: The PPP closed on August 8, 2020 and the SBA no longer accepts PPP applications from participating lenders, and proposed extension of the PPP have not been approved by Congress through mid-October, 2020.
+Added: Since the opening of the PPP, various other banks have been subject to litigation regarding the process and procedures that such banks used in processing applications for the PPP.
We may be exposed to the risk of litigation, from both customers and non-customers that approached the Bank regarding PPP loans, regarding its procedures used in processing applications for the PPP.
2 unchanged sentences
Any financial liability, litigation costs or reputational damage caused by PPP related litigation could have a material adverse effect on our business, financial condition and results of operations.
−Removed: The Bank also has credit risk on PPP loans, if the SBA determines deficiencies in the manner in which PPP loans were originated, funded or serviced by the Bank, such as an issue with the eligibility of a borrower to receive a PPP loan, including those related to the ambiguity in the laws, rules and guidance regarding the PPP’s operation.
+Added: The Bank also has credit risk on PPP loans, if the SBA determines deficiencies in the manner in which PPP loans were originated, funded or serviced by the Bank, such as an issue with the eligibility of a borrower to receive a PPP loan, or obtain forgiveness of a PPP properly, including those related to the ambiguity in the laws, rules and guidance regarding the PPP’s operation.
In the event of a loss resulting from a default on a PPP loan and a determination by the SBA that there were one or more deficiencies in the manner in which the PPP loan was originated, funded, or serviced by the Company, the SBA may deny its liability under the PPP loan guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of any loss related to the deficiency from the Company.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.