Item 1A. Risk Factors
Item 1A. Risk Factors
Recent negative developments affecting the banking industry, including recent bank failures or concerns regarding liquidity, have eroded customer confidence in the banking system and may have a material adverse effect on the Corporation.
During March and April 2023 three significant bank failures occurred (Silicon Valley Bank, Signature Bank, and First Republic Bank). This was and continues to be accompanied by financial instability at certain additional banks. These bank failures and bank instabilities have created and may continue to create market and other risks, for all financial institutions and banks, including the Corporation. These risks include, but are not limited to:
● Market risk and loss of confidence in the financial services sector, and/or specific banks;
● Deterioration of securities and loan portfolios;
● Deposit volatility and reductions with higher volumes and occurring over shorter periods of time;
● Increased liquidity demand and utilization of sources of liquidity; and
● Interest rate volatility and abrupt, sudden and greater than usual rate changes.
These factors individually, or in any combination, could materially and adversely affect:
● Financial condition;
● Operations and results thereof; and
● Stock price.
In addition, the previously mentioned bank failures and instabilities may result in an increase of FDIC deposit insurance premiums and/or result in special FDIC deposit insurance assessments, which also may adversely affect the Corporation’s financial condition, operations, results thereof or stock price. The Corporation cannot predict the impact, timing or duration of such events.
Other than the item listed above, there have been no material changes to the risk factors disclosed in Item 1A “Risk Factors” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022.
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