1 unchanged sentence
Risk Factors Relating to the Financial Services Industry
−Removed: Pressures from various global and national macroeconomic events, including recessionary concerns, heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, recent adverse weather conditions, escalating tensions in the Middle East, the continuation of the Russia-Ukraine war, and potential governmental responses to these events have created, and continue to create, significant economic uncertainty and could materially and adversely impact our financial condition and performance.
+Added: Pressures from various global and national macroeconomic events, including heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, recent adverse weather conditions and natural disasters, ongoing conflict in the Middle East, the continuation of the Russia-Ukraine war, and potential governmental responses to these events have created, and continue to create, significant economic uncertainty and
+Added: could materially and adversely impact our financial condition and performance.
+Added: In addition, pursuit of various initiatives announced by the new Trump administration may create some degree of volatility in our customers’ businesses, regulation of the financial services industry, and the markets in which we operate.
The extent to which these macroeconomic pressures may impact our business, results of operations, asset valuations, financial condition, and customers will depend on future developments, which continue to be highly uncertain and difficult to predict.
13 unchanged sentences
Adverse developments affecting the financial services industry, including bank failures and the resulting liquidity concerns, may have a material effect on our business, financial condition, results of operations, or cash flows.
−Removed: Recent developments and events within the financial services industry, including the closures of several banks in 2023 due to large-scale deposit withdrawals over a short period of time, created liquidity risks and concerns within the industry, as well as decreased confidence in banks among depositors, investors, and other counterparties.
−Removed: In general, these events have caused volatility and disruption in the capital markets, as well as reduced valuations of equity and other securities of banks, which may increase the risk of a potential recession.
+Added: Events within the financial services industry within recent years, including the closures of several banks in 2023 due to large-scale deposit withdrawals over a short period of time, created liquidity risks and concerns within the industry, as well as decreased confidence in banks among depositors, investors, and other counterparties.
+Added: In general, these events caused some degree of volatility and disruption in the capital markets, as well as reduced valuations of equity and other securities of banks.
These failures also highlighted the importance of maintaining diversified funding sources.
These market conditions and related factors may impact the competitive landscape for deposits in the financial services industry in an unpredictable manner.
−Removed: Specifically, these developments and events may materially adversely impact our business, financial condition, results of operations, and/or cash flows, including through potential liquidity pressures, reduced net interest margins, and potential increased credit losses.
+Added: Specifically, these events may materially adversely impact our business, financial condition, results of operations, and/or cash flows, including through potential liquidity pressures, reduced net interest margins, and potential increased credit losses.
They may also adversely impact the market price and volatility of our common stock.
6 unchanged sentences
Financial services institutions are interrelated as a result of trading, clearing, counterparty and other relationships.
−Removed: We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial industry.
+Added: We have exposure to many different industries and counterparties, and we routinely execute
+Added: transactions with counterparties in the financial industry.
As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, can lead to market-wide liquidity problems and losses or defaults by us or by other institutions.
8 unchanged sentences
Additional regulatory focus on the financial services industry is common in connection with an economic downturn, as the industry experienced following the most recent financial crisis.
−Removed: As a result, the adverse effects on our business relating to a future economic downturn could be exacerbated by additional regulations and regulatory scrutiny that accompanied or followed any such downturn.
+Added: As a result, the adverse effects on our business relating to any future economic downturn could be exacerbated by additional regulations and regulatory scrutiny that accompanied or followed any such downturn.
We can neither predict when or whether future regulatory or legislative reforms will be enacted nor what their contents will be.
The impact of any future legislation or regulatory actions on our businesses or operations cannot be determined at this time, and such impact may adversely affect us.
+Added: It is difficult to predict what impact the new Trump administration will have on these risks.
+Added: Any actions by the new administration to scale back regulations or regulatory oversight may become subject to judicial or other challenges, which may increase the degree of uncertainty associated with this risk factor.
We are subject to liquidity risk in our operations, which could adversely impact our ability to fund various obligations.
11 unchanged sentences
Operational difficulties, including failure of technology infrastructure, could adversely affect our business and operations.
−Removed: We are exposed to many types of operational risk, including reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, failure of our controls and procedures and unauthorized transactions by employees or operational errors, including clerical or recordkeeping errors or those resulting from computer or telecommunications systems malfunctions.
+Added: We are exposed to many types of operational risk, including reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, failure of our controls and procedures and unauthorized transactions by employees or
+Added: operational errors, including clerical or recordkeeping errors or those resulting from computer or telecommunications systems malfunctions.
Given the high volume of transactions we process, certain errors may be repeated or compounded before they are identified and resolved.
10 unchanged sentences
Prevailing economic conditions;
−Removed: the trade, fiscal and monetary policies of the federal government;
+Added: the trade, fiscal and monetary policies of the federal government, which have the potential to change significantly with the new Trump administration;
and the policies of various regulatory agencies all affect market rates of interest and the availability and cost of credit, which in turn significantly affect financial institutions' net interest income.
58 unchanged sentences
The financial services industry experiences rapid technological change with regular introductions of new technology-driven products and services.
−Removed: The efficient and effective utilization of technology enables financial institutions to better serve
−Removed: customers and to reduce costs.
+Added: The efficient and effective utilization of technology enables financial institutions to better serve customers and to reduce costs.
Our future success depends, in part, upon our ability to address the needs of our customers by using technology to market and deliver products and services that will satisfy customer demands, meet regulatory requirements, and create additional efficiencies in our operations.
37 unchanged sentences
In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner.
−Removed: Because of the uncertainty surrounding management's judgments and the estimates pertaining to these matters, we cannot guarantee that we will not be required to adjust accounting policies or restate prior period financial statements.
+Added: Because of the uncertainty surrounding management's judgments and the estimates pertaining to these matters, we cannot guarantee that we will not be required to adjust accounting policies or restate prior
+Added: period financial statements.
See note #1, "Accounting Policies" in the Notes to Consolidated Financial Statements in our annual report, to be delivered to shareholders in connection with the April 22, 2025 Annual Meeting of Shareholders (filed as exhibit 13 to this report on Form 10-K).
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.