What changed in this filing

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Item 1A. Risk Factors

2026-08-11 compared with 2026-05-13 · 69 added, 60 removed, 10 unchanged (93% of the section changed)

5 unchanged sentences

The risks described in our annual report on

Form 10-K are not the only the risks facing our Company.

Form 10-K are not the only risks facing our Company.

The persistence of inflation above the Federal Reserve’s

term targets, and the maintenance of or further increases in,

tightened Federal Reserve monetary policy by increased target

targets, and the maintenance of or further increases in, tightened

Federal Reserve monetary policy by increased target

interest rates and/or reductions in the Federal Reserve’s

securities portfolio, have and may continue to affect the levels of

interest rates, mortgage originations and income, the market values of

our securities portfolio and loans and have resulted in

unrealized securities losses that have adversely affected our stockholders’

Although inflation has remained above

the Federal Reserve’s 2% target

rate, since December 2025, the Federal Reserve has maintained its target

federal funds

range from 3.50% to 3.75% and in October 29, 2025 announced that it would

end the roll-off of maturing securities it held

beginning December 1, 2025 as the Federal Reserve sought to meet its dual mandate

of maximum employment and 2%

inflation over the longer run.

Beginning December 11, 2025, the Federal

Reserve began increasing its holdings of

securities through purchases of Treasury

bills and, if needed, other Treasury securities with

remaining maturities of 3 years

or less to maintain an ample level of reserves, and reinvested all principal payments on Treasury

securities and reinvested

all principal payment on agency securities into Treasury

This policy was continued at the Federal Reserve’s

securities portfolio, have affected and may continue to affect

levels of interest rates, mortgage originations and income, the market values of

our securities portfolio and loans and have

resulted in unrealized securities losses that have adversely affected

our stockholders’ equity.

Although inflation has

remained above the Federal Reserve’s

2% target rate, since December 2025, the Federal Reserve has

maintained its target

federal funds range from 3.50% to 3.75% and on October 29, 2025 announced

that it would end the roll-off of maturing

securities it held beginning December 1, 2025 as the Federal Reserve sought

to meet its dual mandate of maximum

employment and 2% inflation over the longer run.

Beginning December 11, 2025, the Federal Reserve began

increasing its

holdings of securities through purchases of Treasury

bills and, if needed, other Treasury securities with remaining

maturities of 3 years or less to maintain an ample level of reserves, and reinvested all principal

payments on Treasury

securities and reinvested all principal payment on agency securities into Treasury

This policy was continued at the

Federal Reserve’s April 30,

2026 meeting.

The reductions in the target federal funds rates and Federal Reserve

purchases of additional securities may

be viewed as a more accommodative monetary policy,

which has affected and may continue to affect our deposit

mixes, and consumer savings and payment behaviors.

These may also affect our borrowers’ operating costs, expected

returns and cash flows available to service our loans.

The Federal Reserve may or may not continue this accommodative

policy, and has stated that

future monetary policy action “will take into account a wide range of information, including

readings on labor market conditions, inflation pressures and inflation

expectations, and financial and international

developments.” Such changes and other risks and uncertainties not currently

known to us or that we currently deem to be

immaterial also may materially adversely affect our business, financial

condition, and/or operating results in the future.

The United States and Israel attacked Iran on February 28, 2026 and hostilities continue

subject to various cease fire

arrangements.

As a result, shipments of oil through the Straits of Hormuz have been limited, reducing

the total volumes of

oil in the international markets and causing oil prices to rise significantly.

Supply chains where petroleum is an input have

been adversely affected, and transportation costs, prices and inflation

The reductions in the target federal funds rates and Federal Reserve purchases

of additional securities may be viewed as a more accommodative monetary policy,

which has affected and may continue to

affect our deposit costs and mixes, and consumer savings and payment

These may also affect our borrowers’

operating costs, expected returns and cash flows available to service our loans.

On July 29, 2026, the Federal Reserve

reaffirmed its commitment to price stability and its 2% inflation

target, and left the target range for the federal funds rate

unchanged at 3.50% to 3.75%.

Following this meeting, yields on longer-term U.S.

Treasury securities increased, including

the highest 30-year Treasury yields in 19 years and

higher 30-year residential mortgage rates, among increases in other

interest rates.

The timing and direction of future monetary policy actions, and the nature and

extent of the Federal

Reserve’s public communications

regarding such actions, are uncertain.

These changes and other risks and uncertainties

not currently known to us or that we currently deem to be immaterial also may

materially adversely affect our business,

financial condition, and/or operating results in the future.

Military hostilities involving the United States, Israel and Iran commenced on February

28, 2026 and continue subject to

various temporary cease fire arrangements and pauses.

As a result, shipments of

petroleum products through the Strait of

Hormuz have been limited, reducing the total volumes of oil in the international

markets and causing oil prices to rise

significantly.

More recently, attacks have

been made on petroleum shipments through the Red Sea by forces aligned with

Supply chains where petroleum is an input have been adversely

affected, and transportation costs, prices and inflation

in the United States and elsewhere have increased.

The duration of these hostilities and the long-term effects of

the blockage of oil through the Straits of Hormuz and the other

osts and effects of these hostilities cannot be predicted.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company did not make any unregistered sales of common stock or other equity securities or

any repurchases of its

common stock or other equity securities during the first quarter of 2026.

UPON SENIOR SECURITIES

Not applicable.

MINE SAFETY DISCLOSURES

Not applicable.

These pressures may increase

our and our borrowers’ operating costs

and contribute to higher or more volatile interest rates, which could adversely

affect our net interest margin, the value of

our securities portfolio, and the ability of our borrowers to repay their

The duration of these hostilities and the long-

erm effects of the blockage of petroleum shipments and the other

costs and effects of these hostilities cannot be predicted.

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.

What changed 10-Q

Item 1A. Risk Factors