5 unchanged sentences
This has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment.
−Removed: Since the COVID-19 outbreak, more than 50 million people have filed claims for unemployment, and stock markets have experienced significant volatility in value and, in particular, bank stocks have significantly declined in value.
+Added: Although the number of persons unemployed has improved, approximately 12.6 million Americans currently remained unemployed largely due to the COVID-19 outbreak.
+Added: In addition, stock markets have experienced significant volatility in value and, in particular, bank stocks have significantly declined in value.
Governments, businesses, and the public are taking unprecedented actions to contain the spread of COVID-19 and to mitigate its effects, including quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal stimulus, and legislation designed to deliver monetary aid and other relief.
1 unchanged sentence
These developments as a consequence of the COVID-19 pandemic are materially impacting our business and the businesses of our customers and are expected to have a material adverse effect on our financial results for 2020.
−Removed: effects continue for a prolonged period or result in sustained economic stress or recession, such effects could have a material adverse impact on us in a number of ways related to credit, collateral, customer demand, loan funding, operations, interest rate risk, and human capital, as described in more detail below.
+Added: If these effects continue for a prolonged period or result in sustained economic stress or recession, such effects could have a material adverse impact on us in a number of ways related to credit, collateral, customer demand, loan funding, operations, interest rate risk, and human capital, as described in more detail below.
• Credit Risk
7 unchanged sentences
Furthermore, in an effort to support our communities during the pandemic, we are participating in the PPP program under the CARES Act whereby loans to small businesses are made and those loans are subject to the regulatory requirements that would require forbearance of loan payments for a specified time or that would limit our ability to pursue all available remedies in the event of a loan default.
−Removed: If the borrower under the PPP loan fails to qualify for loan forgiveness, we are at the heightened risk of holding these loans at unfavorable interest rates as compared to the loans to customers that we would have otherwise extended credit.
+Added: If the borrower under the PPP loan fails to qualify for loan forgiveness, we are at the heightened risk of holding these loans at lower interest rates as compared to the loans to customers that we would have otherwise extended credit.
• Strategic Risk
−Removed: Our success may be affected by a variety of external factors that may affect the price or marketability of our products and services, changes in interest rates that may increase our funding costs, reduced demand for our financial products due to economic conditions and the various responses of governmental and nongovernmental authorities.
+Added: Our success may be affected by a variety of external factors that may affect the price or marketability of our products and services, changes in interest rates that may increase our funding costs, reduced demand for our financial products due to
+Added: economic conditions and the various responses of governmental and nongovernmental authorities.
In recent months, the COVID-19 pandemic has significantly increased economic and demand uncertainty and has led to disruption and volatility in the global capital markets.
Furthermore, many of the governmental actions have been directed toward curtailing household and business activity to contain COVID-19.
−Removed: These actions have been rapidly expanding in scope and intensity.
−Removed: For example, in our markets, state and local governments have acted to temporarily close or restrict the operations of most businesses.
+Added: For example, in our markets, state and local governments previously acted to temporarily close or restrict the operations of most businesses.
The future effects of COVID-19 on economic activity could negatively affect the future banking products we provide, including a decline in loan originations.
8 unchanged sentences
In light of the developing measures responding to the pandemic, many of these entities may limit the availability and access of their services.
−Removed: For example, loan
−Removed: origination could be delayed due to the limited availability of real estate appraisers for the collateral.
+Added: For example, loan origination could be delayed due to the limited availability of real estate appraisers for the collateral.
Loan closings could be delayed related to reductions in available staff in recording offices or the closing of courthouses in certain counties, which slows the process for title work, mortgage and UCC filings in those counties.
If the third-party service providers continue to have limited capacities for a prolonged period or if additional limitations or potential disruptions in these services materialize, it may negatively affect our operations.
+Added: • Liquidity Risk
+Added: Liquidity is essential to our business.
+Added: An inability to raise funds through deposits, borrowings and other sources could have a substantial negative effect on our liquidity and severely constrain our financial flexibility.
+Added: Our primary source of funding is deposits gathered through our network of branch offices.
+Added: Our access to funding sources in amounts adequate to finance our activities on terms that are acceptable to us could be impaired by factors that affect us specifically or the financial services industry or the economy in general.
+Added: During the COVID-19 outbreak, our deposits have increased significantly, primarily due to the Company’s PPP efforts during the second and third quarter of 2020.
+Added: As customers withdraw funds from deposit accounts that were obtained from the Company via PPP loans, the Company may need to borrow funds to meet an immediate liquidity need.
+Added: Our ability to borrow could be impaired by factors that are not specific to us or our region, such as a disruption in the financial markets, including those caused by COVID-19, or negative views and expectations about the prospects for the financial services industry and unstable credit markets.
• Interest Rate Risk
8 unchanged sentences
In addition, the effects could have a material impact on our results of operations and heighten many of our known risks described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
−Removed: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
−Removed: (a)-(b) Not applicable
−Removed: (c) There were no stock repurchases by the Company during the three-month period ending June 30, 2020 .
−Removed: DEFAULTS UPON SENIOR SECURITIES
−Removed: MINE SAFETY DISCLOSURES
−Removed: Not applicable.
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.