Legal Proceedings
−Removed: At September 30, 2022 we were not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, the outcome of which would be material to our financial condition or results of operations.
+Added: At March 31, 2023 we were not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, the outcome of which would be material to our financial condition or results of operations.
R isk Factors
−Removed: There have been no material changes in risk factors applicable to the Company from those disclosed in “Risk Factors”
+Added: Except noted below, there have been no material changes in risk factors applicable to the Company from those disclosed in “Risk Factors”
in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
+Added: Recent bank industry events involving financial institution failures may adversely affect our business and the market price of our common stock.
+Added: Recent developments and events in the financial services industry, including the failures of Silicon Valley Bank, Signature Bank and First Republic Bank and the voluntary liquidation of Silvergate Bank, have resulted in decreased confidence in banks among depositors, other counterparties and investors, as well as significant disruption, volatility and reduced valuations of equity and other securities of banks in the capital markets.
+Added: These events have occurred against the backdrop of a rapidly rising interest rate environment which, among other things, has resulted in unrealized losses in longer duration securities and loans held by banks, more competition for bank deposits and may increase the risk of a potential recession.
+Added: These events and developments could materially and adversely impact our business or financial condition, including through potential liquidity pressures, reduced net interest margins, and potential increased credit losses.
+Added: These recent events and developments have, and could continue to, adversely impact the market price and volatility of our common stock.
+Added: These recent events may also result in changes to laws or regulations governing banks and bank holding companies or result in the impositions of restrictions through supervisory or enforcement activities, including higher capital requirements, which could have a material impact on our businesses.
+Added: The cost of resolving the recent failures may prompt the FDIC to increase its premiums above the recently increased levels or to issue additional special assessments.
+Added: Lawmakers’
+Added: failure to address the federal debt ceiling in a timely manner, downgrades of the U.S.
+Added: credit rating and uncertain credit and financial market conditions may affect the stability of securities issued or guaranteed by the federal government, which may affect the valuation or liquidity of our investment securities portfolio and increase future borrowing costs.
+Added: As a result of uncertain political, credit and financial market conditions, including the potential consequences of the federal government defaulting on its obligations for a period of time due to federal debt ceiling limitations or other unresolved political issues, investments in financial instruments issued or guaranteed by the federal government pose credit default and liquidity risks.
+Added: Given that future deterioration in the U.S.
+Added: credit and financial markets is a possibility, no assurance can be made that losses or significant deterioration in the fair value of our U.S.
+Added: government issued or guaranteed investments will not occur.
+Added: At March 31, 2023, we had approximately $15.1 million and $50.8 million invested in U.S.
+Added: government agency securities and residential mortgage-backed securities issued or guaranteed by government-sponsored enterprises, respectively, and $5.0 million in U.S.
+Added: treasury securities.
+Added: Downgrades to the U.S.
+Added: credit rating could affect the stability of securities issued or guaranteed by the federal government and the valuation or liquidity of our portfolio of such investment securities, and could result in our counterparties requiring additional collateral for our borrowings.
+Added: Further, unless and until U.S.
+Added: political, credit and financial market conditions have been sufficiently resolved or stabilized, it may increase our future borrowing costs.
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.