4 unchanged sentences
Our businesses involve the risk that clients or others may sue us, claiming that we have failed to perform under a contract or otherwise failed to carry out a duty perceived to be owed to them.
−Removed: For example, we are currently engaged in litigation with 3|5|2 Capital related to the bankruptcy of Water Station Management and related entities, as described in more detail in Note 15 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
+Added: For example, we are currently engaged in litigation with 3|5|2 Capital and Socotra, as described in more detail in Notes 15 and 16 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
The risk of litigation may be heightened during periods when credit, equity or other financial markets are deteriorating in value or are particularly volatile, or when clients or investors are experiencing losses.
6 unchanged sentences
Actual outcomes, losses and related expenses of pending legal proceedings may differ materially from assessments and estimates, and may exceed the amount of any reserves we have established, which could adversely affect our reputation, business, financial condition and results of operations.
−Removed: The risk factor “We are dependent on key personnel and the loss of one or more of those key persons may materially and adversely affect our prospects.” appearing in the 2024 Form 10-K is restated in its entirety as follows:
−Removed: We are dependent on key personnel and the loss of one or more of those key persons, including the recent departure of our President and Chief Executive Officer and the Chief Banking Officer of First Fed, may materially and adversely affect our prospects.
+Added: We are dependent on key personnel and the loss of one or more of those key persons, including the recent departure of our President and Chief Executive Officer, the Chief Banking Officer and Chief Strategy Officer of First Fed, may materially and adversely affect our prospects.
We rely heavily on the efforts and abilities of our executive officers, and certain other key management personnel, which make up our management team.
As previously disclosed, our former President, Chief Executive Officer and member of the Board of Directors departed effective July 12, 2025.
−Removed: In addition, the former Chief Banking Officer of First Fed retired on July 2, 2025.
+Added: In addition, the former Chief Banking Officer of First Fed retired on July 2, 2025, and the former Chief Strategy Officer of First Fed departed on August 9, 2025.
The loss of the services of these individuals, and the potential loss of any of our current management team, could have a material adverse impact on our business, financial condition, and results of operations.
While we believe that our relationship with our remaining management team is good, we cannot guarantee that all members of our management team will remain with our organization.
−Removed: We have engaged a leading executive search firm to assist with the process of identifying a replacement Chief Executive Officer.
−Removed: However, no assurances can be given that we will be able to attract a qualified candidate quickly, or at all.
The ability to attract, retain, and season replacements to our management team presents risks to executing our business plan.
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.