−Removed: An investment in our common shares is subject to risks inherent to our business.
+Added: An investment in our common or depositary stock is subject to risks inherent to our business.
Before making an investment decision, you should carefully consider the risks and uncertainties described below together with all of the other information included or incorporated by reference in this report.
−Removed: The value of our common shares could decline due to any of these risks, and you could lose all or part of your investment.
+Added: The value of our common and depositary stock could decline due to any of these risks, and you could lose all or part of your investment.
Risks Relating to General Economic and Market Conditions
7 unchanged sentences
We face potential risk from changes in governmental monetary policies.
−Removed: The Company’s earnings are affected by domestic economic conditions and the monetary and fiscal policies of the U.S.
+Added: Our earnings are affected by domestic economic conditions and the monetary and fiscal policies of the U.S.
government and its agencies.
2 unchanged sentences
government securities, its regulation of the discount rate applicable to member banks, and its influence over reserve requirements to which member banks are subject.
−Removed: The Company cannot predict the nature or impact of future changes in monetary and fiscal policies.
+Added: We cannot predict the nature or impact of future changes in monetary and fiscal policies.
+Added: Adverse developments affecting the banking industry, and resulting media coverage, have eroded customer confidence in the banking system and could have a material effect on our operations and/or stock price.
+Added: In the first quarter of 2023, high-profile bank failures involving Silicon Valley Bank, Signature Bank and First Republic Bank generated significant market volatility among publicly traded bank holding companies and, in particular, regional banks.
+Added: In assessing the failures in 2023, the banking regulators noted that each of the failed banks had a high proportion of deposits that exceeded FDIC deposit insurance limits.
+Added: These market developments have negatively impacted customer confidence in the safety and soundness of regional banks.
+Added: As a result, some chose to maintain deposits with larger financial institutions or invest in higher yielding short-term fixed income securities, all of which impacted our liquidity, cost of funding, loan funding capacity, net interest margin, capital and results of operations.
+Added: In connection with the high-profile bank failures of early 2023, uncertainty and concern has been, and may be in the future, compounded by advances in technology that increase the speed at which deposits can be moved, as well as the speed and reach of media attention, including social media, and its ability to disseminate concerns or rumors, in each case potentially exacerbating liquidity concerns.
+Added: While the Department of the Treasury, the Federal Reserve, and the FDIC ensured that depositors of Silicon Valley Bank, Signature Bank and First Republic Bank had access to their deposits, including uninsured deposit accounts, there is no guarantee that such actions will continue to be successful in restoring customer confidence in regional banks and the banking system more broadly.
+Added: In addition, the banking operating environment and public trading prices of banking institutions can be highly correlated, in particular during times of stress, which could adversely impact the trading prices of our common stock and potentially our results of operations.
Legal, Regulatory and Tax Risks
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federal government.
−Removed: As an approved participant in the SBA Preferred Lender’s Program (a “Preferred Lender”), we enable our clients to obtain SBA loans without being subject to the potentially lengthy SBA approval process necessary for lenders that are not Preferred Lenders.
+Added: As an approved participant in the SBA Preferred Lender’s Program (a “Preferred Lender”), we enable our clients to obtain SBA loans without being
+Added: subject to the potentially lengthy SBA approval process necessary for lenders that are not Preferred Lenders.
The SBA periodically reviews the lending operations of participating lenders to assess, among other things, whether the lender exhibits prudent risk management.
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If our policies, procedures and systems are deemed deficient, we would be subject to liability, including fines and regulatory actions, which may include restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan, including any acquisition plans.
−Removed: Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us.
+Added: Failure to maintain and implement adequate programs to combat money laundering
+Added: and terrorist financing could also have serious reputational consequences for us.
Any of these results could have a material adverse effect on our business, financial condition, results of operations and future prospects.
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Our business is subject to interest rate risk and variations in interest rates may negatively affect our financial performance.
−Removed: A substantial portion of our income is derived from the differential or “spread” between the interest earned on loans, investment securities, and other interest-earning assets, and the interest paid on deposits, borrowings, and other interest-bearing liabilities.
−Removed: Because of the differences in the maturities and repricing characteristics of our interest-earning assets and interest-bearing liabilities, changes in interest rates may not produce equivalent changes in interest income earned on interest-earning assets and interest paid on interest-bearing liabilities.
+Added: A substantial portion of our income is derived from the differential or “spread” between the interest earned on loans, investment securities, and other interest-earning assets, and the interest and/or earnings credit paid on deposits, borrowings, and other interest-bearing liabilities.
+Added: Because of the differences in the maturities and repricing characteristics of our interest-earning assets and interest-bearing liabilities, changes in interest rates may not produce equivalent changes in income earned on interest-earning assets and expense paid on interest-bearing liabilities.
Our assets and liabilities may react differently to changes in overall interest rates or conditions.
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Our allowance for credit losses may not be adequate to cover actual loan losses.
−Removed: We maintain an allowance for credit losses, which is a reserve established through a provision for credit losses charged to expense, that represents management’s estimate of probable losses within the existing portfolio of loans.
+Added: We maintain an allowance for credit losses, which is a reserve established through a provision for credit losses charged to expense, that represents management’s estimate of probable losses within the existing loan portfolio.
The allowance, in the judgment of management, is sufficient to reserve for estimated credit losses and risks inherent in the loan portfolio.
−Removed: We continue to monitor the adequacy of our loan credit allowance and may need to increase it if economic conditions deteriorate.
+Added: We continue to monitor the adequacy of our loan credit allowance and may need to increase it if economic conditions or other factors deteriorate.
In addition, bank regulatory agencies periodically review our allowance for credit losses and may require an increase in the provision for credit losses or the recognition of further loan charge-offs, based on judgments that can differ somewhat from those of our own management.
1 unchanged sentence
Additional provisions to increase the allowance for credit losses, should they become necessary, would result in a decrease in net income and a reduction in capital, and may have a material adverse effect on our financial condition and results of operations.
−Removed: The transition from LIBOR may adversely affect the results of our operations.
−Removed: On December 31, 2021, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates the LIBOR, ceased issuance of 24 of the 35 LIBOR settings.
−Removed: dollar settings (overnight, 1-month, 3-month, 6-month and 1-year) will no longer be representative after June 30, 2023.
−Removed: New contracts indexed to LIBOR were prohibited after December 31, 2021.
−Removed: The Company has selected SOFR as a replacement rate to LIBOR.
−Removed: SOFR is different from LIBOR in that it is a backward looking secured rate rather than a forward looking unsecured rate.
−Removed: These differences could lead to a greater disconnect between our costs to raise funds using SOFR as compared to LIBOR.
−Removed: Replacement interest rates to LIBOR may perform differently and we may incur significant costs to transition both our borrowing arrangements and the loan agreements with our customers from LIBOR, which may have an adverse effect on our results of operations.
We may not be able to maintain our historical rate of growth or profitability, which could have a material adverse effect on our ability to successfully implement our business strategy.
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We evaluate our goodwill for impairment at least annually.
−Removed: Significant negative industry or economic trends, including the lack of recovery in the market price of our common stock, or reduced future cash flows or disruptions to our business, could result in impairments to goodwill.
+Added: Significant negative industry or economic trends, including a sustained decrease in the market price of our common stock, or reduced future cash flows or disruptions to our business, could result in impairments to goodwill.
Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on experience and to rely on projections of future operating performance.
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Declines in asset values may result in impairment charges and adversely impact the value of our investments and our financial performance and capital.
−Removed: We hold an investment portfolio that includes, but is not limited to, municipal bonds, government securities and agency mortgage-backed securities.
+Added: We hold an investment portfolio that includes, but is not limited to, municipal bonds, corporate debt securities, government securities and agency mortgage-backed securities.
Factors beyond our control can significantly influence the fair value of securities in our portfolio and can cause potential adverse changes to the fair value of these securities.
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Our investment portfolio includes mortgage-backed obligations primarily secured by pools of mortgages on single-family residences.
−Removed: The value of mortgage-backed obligations in our investment portfolio may fluctuate for several reasons, including (i) delinquencies and defaults on the mortgages underlying such obligations, due in part to high unemployment rates, (ii) falling home prices, (iii) lack of a liquid market for such obligations, and (iv) uncertainties in respect of government-sponsored enterprises such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), which guarantee such obligations.
+Added: The value of mortgage-backed obligations in our investment portfolio may fluctuate for several reasons, including (i) delinquencies and defaults on the mortgages underlying such obligations, due in part to high unemployment rates, (ii) falling home prices, (iii) lack of a liquid market for such obligations, and (iv) uncertainties in respect of government-sponsored enterprises such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, which guarantee such obligations.
If the value of homes were to materially decline, the fair value of the mortgage-backed obligations in which we invest may also decline.
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Prepayment rates generally increase as interest rates fall and decrease when rates rise, but changes in prepayment rates are difficult to predict.
−Removed: At the time of purchase, many of our mortgage-backed securities had a higher interest rate than prevailing market rates, resulting in a premium purchase price.
+Added: At the time of purchase, some of our mortgage-backed securities had a higher interest rate than prevailing market rates, resulting in a premium purchase price.
In accordance with applicable accounting standards, we amortize the premium over the expected life of the mortgage-backed security.
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A majority of our loans are to businesses and individuals in the St.
−Removed: Louis, Kansas City, Phoenix, Los Alamos, Albuquerque, Santa Fe, Los Angeles, San Diego, and Las Vegas metropolitan areas.
+Added: Louis, Kansas City, Phoenix, Los Alamos, Albuquerque, Santa Fe, Los Angeles, San Diego, Dallas, and Las Vegas metropolitan areas.
These loans are funded by deposits in the same metropolitan areas.
−Removed: The regional economic conditions in areas where we conduct our business
−Removed: have an impact on the demand for our products and services as well as the ability of our clients to repay loans, the value of the collateral securing loans, and the stability of our deposit funding sources.
+Added: The regional economic conditions in areas where we conduct our business have an impact on the demand for our products and services as well as the ability of our clients to repay
+Added: loans, the value of the collateral securing loans, and the stability of our deposit funding sources.
Consequently, a decline in local economic conditions may adversely affect our earnings.
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These increased credit losses, where the Bank has retained credit exposure, could decrease our assets, net income and available cash.
−Removed: The loans we make to our borrowers may bear interest at a variable interest rate.
+Added: The loans we make to our borrowers often bear interest at a variable interest rate.
When market interest rates increase, the amount of revenue borrowers need to service their debt also increases.
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In the case of our senior cash flow loans, we generally take a lien on substantially all of a client’s assets, but the value of those assets is typically substantially less than the amount of money we advance to the client under a cash flow transaction.
−Removed: In addition, some of our cash flow loans may be viewed as stretch loans, meaning they may be at leverage multiples that exceed traditional accepted bank
−Removed: lending standards for senior cash flow loans.
−Removed: Thus, if a cash flow transaction becomes non-performing, our primary recourse to recover some or all of the principal of our loan or other debt product would be to force the sale of all or part of the company as a going concern.
+Added: In addition, some of our cash flow loans may be viewed as stretch loans, meaning they may be at leverage multiples that exceed traditional accepted bank lending standards for senior cash flow loans.
+Added: Thus, if a cash flow transaction becomes non-performing, our primary
+Added: recourse to recover some or all of the principal of our loan or other debt product would be to force the sale of all or part of the company as a going concern.
Additionally, we may obtain equity ownership in a borrower as a means to recover some or all of the principal of our loan.
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We are subject to environmental risks associated with owning real estate or collateral.
−Removed: When a borrower defaults on a loan secured by real property, the Company may purchase the property in foreclosure or accept a deed to the property surrendered by the borrower.
+Added: When a borrower defaults on a loan secured by real property, we may purchase the property in foreclosure or accept a deed to the property surrendered by the borrower.
We may also take over the management of commercial properties whose owners have defaulted on loans.
We may also own and lease premises where branches and other facilities are located.
−Removed: While we have lending, foreclosure and facilities guidelines intended to exclude properties with an unreasonable risk of contamination, hazardous substances could exist on some of the properties the Company may own, manage or occupy.
−Removed: We face the risk that environmental laws could force us to clean up the properties at the Company’s expense.
+Added: While we have lending, foreclosure and facilities guidelines intended to exclude properties with an unreasonable risk of contamination, hazardous substances could exist on some of the properties we may own, manage or occupy.
+Added: We face the risk that environmental laws could force us to clean up the properties at our expense.
The cost of cleaning up or paying damages and penalties associated with environmental problems could increase our operating expenses.
It may cost more to clean a property than the property is worth.
−Removed: We could also be liable for pollution generated by a borrower’s operations if the Company takes a role in managing those operations after a default.
+Added: We could also be liable for pollution generated by a borrower’s operations if we take a role in managing those operations after a default.
The Company may also find it difficult or impossible to sell these properties.
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Community development entities must use this capital to make loans to, or other investments in, qualified businesses in low-income communities in accordance with New Markets Tax Credit Program criteria.
−Removed: Investors receive an overall tax credit equal to 39% of their total equity investment, credited at a rate of five percent in each of the first three years and six percent in each of the final four years.
+Added: Investors receive an overall tax credit equal to 39% of their qualified equity investment, credited at a rate of five percent in each of the first three years and six percent in each of the final four years.
However, after the exhaustion of all cure periods and remedies, the entire credit is subject to recapture if the certified community development entity fails to maintain its certified status, or if substantially all of the equity investment proceeds associated with the tax credits we allocate are no longer continuously invested in a qualified business that meets the New Markets Tax Credit Program criteria, or if the equity investment is redeemed prior to the end of the minimum seven-year term.
27 unchanged sentences
We also have derivatives that result from a service we provide to certain qualifying clients approved through our credit process and therefore, these derivatives are not used to manage interest rate risk in our assets or liabilities.
−Removed: The Company does not enter into derivative financial instruments for trading purposes.
+Added: We do not enter into derivative financial instruments for trading purposes.
Hedging interest rate risk is a complex process, requiring sophisticated models and routine monitoring.
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The loss of any of our executive officers or other key employees, or the inability to recruit highly skilled and other key employees, may adversely affect our operations.
−Removed: The Company believes its growth and continued success will depend in large part on its executive team and other key employees.
+Added: We believe our growth and continued success will depend in large part on our executive team and other key employees.
The loss of any of our executive officers or other key employees, the failure to successfully transition key roles, or the inability to hire, train, retain, and manage qualified personnel, could have a material adverse effect on our business strategy, financial condition, results of operations and cash flows.
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We have engaged in and may continue to engage in expansion through acquisitions, and these acquisitions present a number of risks related both to the acquisition transactions and to the integration of the acquired businesses.
−Removed: The acquisition of other financial services companies or assets present risks to the Company in addition to those presented by the nature of the business acquired.
+Added: The acquisition of other financial services companies or assets present risks to us in addition to those presented by the nature of the business acquired.
Our earnings, financial condition, and prospects after a merger or acquisition depend in part on our ability to successfully integrate the operations of the acquired company.
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As we expand outside our current markets, we may encounter additional risks that may adversely affect us.
−Removed: We are headquartered in Missouri, but have branch locations in the Kansas City, Phoenix, Los Angeles, and San Diego metropolitan areas, as well as Northern New Mexico and Nevada.
+Added: We are headquartered in Missouri, but have branch locations in the Kansas City, Phoenix, Los Angeles, and San Diego metropolitan areas, as well as Northern New Mexico, Florida and Nevada.
Over time, we may acquire or open locations in other parts of the United States as well.
2 unchanged sentences
Technology and Cybersecurity Risks
−Removed: A failure in or breach, or the inability to recognize a potential breach of our operational or security systems, or those of our third party service providers, including as a result of cyber-attacks, could disrupt our business, result in unintentional disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and adversely impact our earnings.
−Removed: Information security, including cybersecurity, is a high priority for the Company.
−Removed: Recent highly publicized events have highlighted the importance of cybersecurity, including cyberattacks against other financial institutions, governmental agencies, and other organizations that resulted in the compromise of personal and/or confidential information, the theft or destruction of corporate information, and demands for ransom payments to release corporate information encrypted by “ransomware.” A successful cyberattack could harm the Bank’s reputation and/or impair its ability to provide services to its clients.
−Removed: The Company has bolstered, and may in the future bolster, significant resources to implement technologies and various response and recovery plans and procedures as part of its information security program.
+Added: A failure in or breach, or the inability to recognize a potential breach of our operational or security systems, or those of our third party service providers, including as a result of cyber-attacks, may cause industry-wide operational disruptions that could materially affect our business, result in unintentional disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and adversely impact our earnings.
+Added: Information security, including cybersecurity, is a high priority for us.
+Added: Recent highly publicized material events have highlighted the importance of cybersecurity, including cyberattacks against other financial institutions, governmental agencies, and other organizations that resulted in the compromise of personal and/or confidential information, the theft or destruction of corporate information, and demands for ransom payments to release corporate information encrypted by “ransomware.” A successful cyberattack could materially and adversely affect the Bank’s reputation and/or impair its ability to provide services to its clients.
+Added: We have expended, and may in the future expend, significant resources to implement technologies and various response and recovery plans and procedures as part of our information security program.
Additionally, we face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate our business activities, including exchanges, clearing agents, clearing houses or other financial intermediaries.
Such parties could also be the source of an attack on, or breach of, our operational systems.
−Removed: Any failures, interruptions or security breaches in our information systems could damage our reputation, result in a loss of client business, result in a violation of privacy or other laws, or expose us to civil litigation, regulatory fines or losses not covered by insurance.
+Added: Any material failures, interruptions or security breaches in our information systems could damage our reputation, result in a loss of client business, result in a violation of privacy or other laws, or expose us to civil litigation, regulatory fines or losses not covered by insurance.
We rely on third-party vendors to provide key components of our business infrastructure.
1 unchanged sentence
While we have selected these third-party vendors carefully and perform ongoing monitoring, we do not control their actions.
−Removed: Any problems caused by these third parties, including as a result of inadequate or interrupted service, could adversely affect our ability to deliver products and services to our clients and otherwise conduct our business.
+Added: Any problems caused by these third parties, including as a result of inadequate or interrupted service, could materially affect our ability to successfully deliver products and services to our clients and otherwise conduct our business.
Financial or operational difficulties of a third-party vendor could also hurt our operations if those difficulties interfere with the vendor’s ability to serve us, and replacing these third-party vendors could result in significant delay and expense.
Accordingly, use of such third parties creates an unavoidable inherent risk to our business operations as well as reputational risk.
+Added: Our core operating system conversion may result in business interruptions or other adverse developments.
+Added: We plan to replace our core operating systems, including those for loans, deposits, financials and other ancillary systems (collectively referred to as “core system”).
+Added: The conversion to the new core system is expected to be completed in 2024.
+Added: We use the core system to track client relationships and accounts and report financial information.
+Added: The core system is integrated with various other applications that are used to service client requests by bank personnel or directly by clients (such as online and mobile banking).
+Added: Changing the core system will subject us to operational risks during and after the conversion, including disruptions to its technology systems, which may adversely impact our clients.
+Added: We have documented plans, policies and procedures designed to prevent or limit the risks of a failure during or after the conversion of our core system.
+Added: However, there can be no assurance that any such adverse developments will not occur or, if they do occur, that they will be timely and adequately remediated.
+Added: The ultimate impact of any adverse development could damage our reputation, result in a loss of client business, subject us to regulatory scrutiny, or expose it to civil litigation and possibly financial liability, any of which could have a material effect on our business, financial condition, and results of operations.
Risks Relating to Our Common Stock and Depositary Shares
19 unchanged sentences
In addition, the trading volume in our common stock and depositary shares may fluctuate more than usual and cause significant price variations to occur.
−Removed: The trading price of the shares of our common stock and our depositary shares and the value of our other securities will depend on many factors, which may change from time to time, including, without limitation, our financial condition, performance, creditworthiness and prospects, future sales of our equity or equity related securities, and other factors identified in this annual report and other reports by the Company.
+Added: The trading price of the shares of our common stock and our depositary shares and the value of our other securities will depend on many factors, which may change from time to time, including, without limitation, our financial condition, performance, creditworthiness and prospects, future sales of our equity or equity related securities, and other factors identified in this annual report and our other reports.
In some cases, the markets have produced downward pressure on stock prices and credit availability for certain issuers without regard to those issuers’ underlying financial strength or operating results.
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Our ability to pay dividends is limited by various statutes and regulations and depends primarily on the Bank’s ability to distribute funds to us and is also limited by various statutes and regulations.
−Removed: The Company depends on payments from the Bank, including dividends, management fees and payments under tax sharing agreements, for substantially all of the Company’s liquidity requirements.
−Removed: Federal and state regulations limit the amount of dividends and the amount of payments the Bank may make to the Company under tax sharing agreements.
+Added: We depend on payments from the Bank, including dividends, management fees and payments under tax sharing agreements, for substantially all of our liquidity requirements.
+Added: Federal and state regulations limit the amount of dividends and the amount of payments the Bank may make to us under tax sharing agreements.
In certain circumstances, the Missouri Division of Finance, FDIC, or Federal Reserve Board could restrict or prohibit the Bank from distributing dividends or making other payments to us.
−Removed: In the event the Bank was restricted from paying dividends to the Company or making payments under the tax sharing agreement, the Company may not be able to service its debt, pay its other obligations or pay dividends on its common stock or preferred stock.
+Added: In the event the Bank was restricted from paying
+Added: dividends to us or making payments under the tax sharing agreement, we may not be able to service our debt, pay our other obligations or pay dividends on our common stock or preferred stock.
If we are unable or determine not to pay dividends on our outstanding equity securities, the market price of such securities could be materially adversely affected.
−Removed: There can be no assurance of any future dividends on our common stock or our outstanding preferred stock.
+Added: There can be no assurance of any future dividends on our common stock or our depositary shares.
Holders of our common stock and depositary shares are entitled to receive dividends only when, as and if declared by the Board of Directors.
16 unchanged sentences
General Risk Factors
−Removed: The global coronavirus (“COVID-19”) pandemic may continue to lead to periods of significant volatility in financial, commodities and other markets and could harm our business and results of operations.
−Removed: Given the ongoing and dynamic nature of the COVID-19 pandemic, it is difficult to predict the impact of the pandemic on our business, and there is no guarantee that our efforts to address or mitigate the adverse impacts of the COVID-19 pandemic will be effective in the future.
−Removed: We do not yet know the full extent of the COVID-19 pandemic’s effect on our business, operations, or the global economy as a whole.
−Removed: Any future development will be highly uncertain and cannot be predicted, including continued rise in inflation or interest rates, labor shortages or supply chain disruptions.
−Removed: The full impact of the COVID-19 pandemic could have a material adverse effect on our business, financial condition and results of operations, growth strategy, cash flows as well as our regulatory capital and liquidity ratios, and will depend on highly uncertain and unpredictable future developments, including:
−Removed: • The duration, extent, and severity of the pandemic.
−Removed: A spread of COVID-19 and the rise of new variants could cause severe disruptions in the U.S.
−Removed: economy, to our clients’ business or their willingness to conduct banking and other financial transactions.
−Removed: We may continue to see the economic effects of the COVID-19 pandemic that could affect our business, financial condition, and results of operations.
−Removed: • The ongoing effect on our customers, counterparties, employees and third-party providers.
−Removed: The COVID-19 pandemic and its associated consequences and uncertainties are affecting individuals, households, and businesses differently and unevenly.
−Removed: Negative impacts to our customers could result in increased risk of delinquencies, defaults, foreclosures and losses on our loans, and their willingness and ability to conduct banking and other financial transactions.
−Removed: • The effect on economies and markets.
−Removed: The continuation of the COVID-19 pandemic may also negatively impact regional economic conditions for a period of time, resulting in declines in local loan demand, liquidity of loan guarantors, loan collateral (particularly in real estate), loan originations and deposit availability, which could adversely affect our business, financial condition, results of operations and cash flows.
−Removed: In addition, actions by U.S.
−Removed: federal, state and local governments to address the pandemic could had a significant adverse effect on the markets in which we conduct our business.
Climate change may materially adversely affect our business and results of operations.
−Removed: Political and social attention to the issue of climate change has increased.
+Added: Political and social attention to the issue of climate change has continued.
Federal and state legislatures and regulatory agencies continue to propose and advance numerous legislative and regulatory initiatives seeking to mitigate the effects of climate change.
4 unchanged sentences
With the increased importance and focus on climate change, we are making efforts to enhance our governance of climate change-related risks and integrate climate considerations into our risk governance framework.
−Removed: Nonetheless, the risks associated with climate change are rapidly changing and evolving in an escalating fashion, making them difficult to assess due to limited data and other uncertainties.
+Added: the risks associated with climate change are rapidly changing and evolving in an escalating fashion, making them difficult to assess due to limited data and other uncertainties.
We could experience increased expenses resulting from strategic planning, litigation, and technology and market changes, and reputational harm as a result of negative public sentiment, regulatory scrutiny, and reduced investor and stakeholder confidence due to our response to climate change and our climate change strategy, which, in turn, could have a material negative impact on our business, results of operations, and financial condition.
−Removed: UNRESOLVED STAFF COMMENTS
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.