3 unchanged sentences
Risks Related to Our Lending Activities
−Removed: A large percentage of the Company’s loans are collateralized by real estate, and further disruptions in the real estate market may result in losses and reduce the Company’s earnings.
+Added: A large percentage of the Company’s loans are collateralized by real estate, and disruptions in the real estate market may result in losses and reduce the Company’s earnings.
A substantial portion of the Company’s loan portfolio consists of loans collateralized by real estate.
−Removed: Improving economic conditions have shifted to an increase in demand for real estate, which has resulted in stabilization of some real estate values in the Company’s markets.
−Removed: Further disruptions in the real estate market could significantly impair the value of the Company’s collateral and its ability to sell the collateral upon foreclosure.
+Added: Disruptions in the real estate market could significantly impair the value of the Company’s collateral and its ability to sell the collateral upon foreclosure.
The real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended.
−Removed: If real estate values decline further, it is likely that the Company would be required to increase its allowance for loan losses.
−Removed: If, during a period of lower real estate values, the Company is required to liquidate the collateral securing a loan to satisfy debts or to increase its allowance for loan losses, it could materially reduce its profitability and adversely affect its financial condition.
−Removed: Because the Company emphasizes commercial real estate and commercial loan originations, its credit risk profile is increased, and continued downturns in the local real estate market or economy could adversely affect its earnings.
+Added: If real estate values decline, it is likely that the Company would be required to increase its allowance for credit losses.
+Added: If, during a period of lower real estate values, the Company is required to liquidate the collateral securing a loan to satisfy debts or to increase its allowance for credit losses, it could materially reduce its profitability and adversely affect its financial condition.
+Added: Because the Company emphasizes commercial real estate and commercial loan originations, its credit risk profile is increased, and downturns in the local real estate market or economy could adversely affect its earnings.
Commercial real estate and commercial loans generally have more inherent risk than the residential real estate loans.
7 unchanged sentences
We do not record interest income on nonaccrual loans or real estate owned.
−Removed: We must reserve for probable losses, which results in additional provisions for loan losses.
+Added: We must reserve for probable losses, which results in additional provisions for credit losses.
As circumstances warrant, we must write down the value of properties in our other real estate owned portfolio to reflect changing market values.
Additionally, we have legal fees associated with the resolution of problem assets as well as additional costs, such as taxes, insurance and maintenance related to our other real estate owned.
−Removed: The resolution of nonperforming assets also requires the active involvement of management, which can adversely affect the amount of time we devote to the income-producing
−Removed: activities of the Bank.
−Removed: If our estimate of the allowance for loan losses is inadequate, we will have to increase the allowance accordingly.
+Added: The resolution of nonperforming assets also requires the active involvement of management, which can adversely affect the amount of time we devote to the income-producing activities of the Bank.
+Added: If our estimate of the allowance for credit losses is inadequate, we will have to increase the allowance accordingly.
If the Company’s allowance for credit losses is not sufficient to cover actual credit losses, the Company’s results of operations would be negatively affected.
We maintain an allowance for credit losses which represents management's best estimate of credit losses within the existing portfolio of loans.
−Removed: The allowance, in the judgement of management, is appropriate to reserve for estimated credit losses and risks inherent in the loan portfolio.
+Added: The allowance, in the judgment of management, is appropriate to reserve for estimated credit losses and risks inherent in the loan portfolio.
The level of the allowance for credit losses reflects management's continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic conditions and unidentified losses in the current loan portfolio.
63 unchanged sentences
Threats to information security also exist in the processing of customer information through various other vendors and their personnel.
−Removed: The occurrence of any system failures, interruption or breach of security could damage the Company’s reputation and result in a loss of customers and business thereby, subjecting it to additional regulatory scrutiny, or could expose it to litigation
−Removed: and possible financial liability.
+Added: The occurrence of any system failures, interruption or breach of security could damage the Company’s reputation and result in a loss of customers and business thereby, subjecting it to additional regulatory scrutiny, or could expose it to litigation and possible financial liability.
Although the Company has not experienced any system failures, interruption or breach of security to date, any of these events could have a material adverse effect on its financial condition and results of operations.
37 unchanged sentences
A worsening of economic conditions could significantly affect the markets in which the Company operates, the value of loans and investments, ongoing operations, costs and profitability.
−Removed: Further declines in real estate values and sales volumes and continued elevated unemployment levels may result in higher than expected loan delinquencies, increases in nonperforming and criticized classified assets, and a decline in demand for the Company’s products and services.
+Added: Declines in real estate values and sales volumes and elevated unemployment levels may result in higher than expected loan delinquencies, increases in nonperforming and criticized classified assets, and a decline in demand for the Company’s products and services.
In addition, the volatility in natural gas prices, or if prices decline, may depress natural gas exploration and drilling activities in the Marcellus Shale Formation.
3 unchanged sentences
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money.
−Removed: Recently, there have been market indicators of a pronounced rise in inflation and the FRB has raised certain benchmark interest rates in an effort to combat inflation.
As inflation increases, the value of our investment securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments.
15 unchanged sentences
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.