In addition to factors discussed in the description of our business and elsewhere in this report, as well as other filings we make with the SEC, the following are factors that could adversely affect our future results of operations and financial condition.
−Removed: Risks Related to the COVID-19 Pandemic
−Removed: The economic impact of the COVID-19 outbreak could continue to affect our financial condition and results of operations.
−Removed: The COVID-19 pandemic has caused significant economic dislocation in the United States, resulting in an unprecedented slow-down in economic activity.
−Removed: The economic effects, including disruptions to the global supply chain, of the COVID-19 outbreak have had a destabilizing effect on financial markets, key market indices, and overall economic activity.
−Removed: Various state governments and federal agencies have required lenders to provide forbearance and other relief to borrowers (e.g., waiving late payment and other fees).
−Removed: The federal banking agencies have encouraged financial institutions to prudently work with affected borrowers and recently passed legislation has provided relief from reporting loan classifications due to modifications related to the COVID-19 outbreak.
−Removed: industries have been particularly hard-hit, including the travel and hospitality industry, the restaurant industry and the retail industry.
−Removed: Finally, the spread of the coronavirus has caused us to modify our business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences.
−Removed: We have many employees working remotely and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners.
−Removed: Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on our business.
−Removed: The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be fully controlled and abated.
−Removed: As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:
−Removed: • demand for our products and services may decline, making it difficult to grow assets and income;
−Removed: • loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;
−Removed: • collateral for loans, especially real estate, may decline in value, which could cause credit losses to increase;
−Removed: • our allowance for credit losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income;
−Removed: • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
−Removed: • a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend;
−Removed: • our wealth management revenues may decline with continuing market turmoil;
−Removed: • our cyber security risks are increased as the result of an increase in the number of employees working remotely;
−Removed: • a prolonged weakness in economic conditions resulting in a reduction of future projected earnings could result in our recording a valuation allowance against our current outstanding deferred tax assets;
−Removed: • the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause management to perform impairment testing on our goodwill or core deposit and customer relationships intangibles that could result in an impairment charge being recorded for that period, that would adversely impact our results of operations and the ability of Northwest Bank to pay dividends to us;
−Removed: • we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us;
−Removed: • FDIC premiums may increase if the agency experiences additional resolution costs.
−Removed: Moreover, our future success and profitability substantially depends on the management skills of our executive officers and directors, many of whom have held officer and director positions with us for many years.
−Removed: The unanticipated loss or unavailability of key employees due to the outbreak could harm our ability to operate our business or execute our business strategy.
−Removed: We may not be successful in finding and integrating suitable successors in the event of key employee loss or unavailability.
−Removed: Any one or a combination of the factors identified above could negatively impact our business, financial condition and results of operations and prospects.
−Removed: Risk Related to our Lending Activities
+Added: Risks Related to our Lending Activities
Our commercial loan portfolio is increasing and the inherently higher risk of loss may lead to additional provisions for credit losses or charge-offs, which would negatively impact earnings and capital.
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Further, our commercial business loans may be secured by collateral other than real estate, such as inventory and accounts receivable, the value of which may be more difficult to appraise, control or collect and may be more susceptible to fluctuation in value at the time of default.
+Added: In addition, if we foreclose on these loans, our holding period for the collateral may be longer than for a single or multi-family residential property if there are fewer potential purchasers of the collateral.
The level of our commercial real estate loan portfolio may subject us to additional regulatory scrutiny.
The FDIC and the other federal bank regulatory agencies have promulgated joint guidance on sound risk management practices for financial institutions with concentrations in commercial real estate lending.
−Removed: Under the guidance, a financial institution
−Removed: that, like us, is actively involved in commercial real estate lending should perform a risk assessment to identify concentrations.
+Added: Under the guidance, a financial institution that, like us, is actively involved in commercial real estate lending should perform a risk assessment to identify concentrations.
A financial institution may have a concentration in commercial real estate lending if, among other factors, (i) total reported loans for construction, land acquisition and development, and other land represent 100% or more of total capital, or (ii) total reported loans secured by multi-family and non-farm residential properties, loans for construction, land acquisition and development and other land, and loans otherwise sensitive to the general commercial real estate market, including loans to commercial real estate related entities, represent 300% or more of total capital.
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Bank regulators periodically review our allowance for credit losses and may require an increase to the provision for credit losses or further loan charge-offs.
−Removed: Any increase in our allowance for credit losses or loan charge-offs as required by these regulatory authorities may have a material adverse effect on our results of operations or financial condition.
−Removed: We are subject to environmental liability risk associated with lending activities.
−Removed: A significant portion of our loan portfolio is secured by real estate, and we could become subject to environmental liabilities with respect to one or more of these properties.
−Removed: During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans.
−Removed: In doing so, there is a risk that hazardous or toxic substances could be found on these properties.
−Removed: If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal injury and property damage, civil fines and criminal penalties regardless of when the hazardous conditions or toxic substances first affected any particular property.
−Removed: Environmental laws may require us to incur substantial expenses to address unknown liabilities and may materially reduce the affected property’s value or limit our ability to use or sell the affected property.
−Removed: In addition, future laws or regulations or more stringent interpretations or enforcement policies with respect to existing laws and regulations may increase our exposure to environmental liability, and heightened pressure from investors and other stakeholders may require to incur additional expenses with respect to environmental matters.
−Removed: Although we have policies and procedures to perform an environmental review before initiating any foreclosure action on nonresidential real property, these reviews may not be sufficient to detect all potential environmental hazards.
−Removed: The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.
−Removed: Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
−Removed: Concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts.
−Removed: Consumers and businesses also may change their behavior on their own as a result of these concerns.
−Removed: We and our customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns.
−Removed: We and our customers may face cost increases, asset value reductions, operating process changes and other issues.
−Removed: The impact on our customers will likely vary depending on their specific attributes, including reliance on role in carbon intensive
−Removed: among the impacts to us could be a drop in demand for our products and services, particularly in certain sectors.
−Removed: In addition, we could face reductions in creditworthiness on the part of some customers or in the value of asset securing loans.
−Removed: Our efforts to take these risks into account in making lending and other decisions, including by increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior.
+Added: Any increase in our allowance for credit losses or loan charge-offs resulting from these reviews may have a material adverse effect on our results of operations or financial condition.
The foreclosure process may adversely impact our recoveries on non-performing loans.
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The longer timelines have been the result of the economic crisis, additional consumer protection initiatives related to the foreclosure process, increased documentary requirements and judicial scrutiny, and, both voluntary and mandatory programs under which lenders may consider loan modifications or other alternatives to foreclosure.
−Removed: These reasons and the legal and regulatory responses have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders.
+Added: These reasons and the legal and
+Added: regulatory responses have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders.
This may result in a material adverse effect on collateral values and our ability to minimize its losses.
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(i) a common equity Tier 1 capital ratio of 7%, (ii) a Tier 1 to risk-based assets capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%.
−Removed: An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount.
+Added: An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its
+Added: capital level falls below the buffer amount.
These limitations will establish a maximum percentage of eligible retained income that can be utilized for such actions.
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The effects of such policies upon our business, financial condition and results of operations cannot be predicted.
−Removed: Risk Related to Market Interest Rates
+Added: Risks Related to Market Interest Rates
+Added: The reversal of the historically low interest rate environment may adversely affect our net interest income and profitability.
+Added: The Federal Reserve Board decreased benchmark interest rates significantly, to near zero, in response to the COVID-19 pandemic.
+Added: The Federal Reserve Board has reversed its policy of near zero interest rates given its concerns over inflation.
+Added: Market interest rates have risen significantly in response to the Federal Reserve Board’s recent rate increases.
+Added: As discussed below, the increase in market interest rates is expected to have an adverse effect on our net interest income and profitability.
Changes in interest rates could adversely affect our results of operations and financial condition.
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Net unrealized losses on these securities totaled $343.5 million at December 31, 2022.
+Added: During the year ended December 31, 2022, we incurred other comprehensive losses of $151.9 million related to net changes in unrealized holding losses in the available-for-sale investment securities portfolio.
Any increase in market interest rates may reduce our mortgage banking income.
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Quantitative and Qualitative Disclosures About Market Risk”.
−Removed: A continuation of the historically low interest rate environment and the possibility that we may access higher-cost funds to support our loan growth and operations may adversely affect our net interest income and profitability.
−Removed: In recent years the Federal Reserve Board’s policy has been to maintain interest rates at historically low levels through its targeted federal funds rate and the purchase of mortgage-backed securities.
−Removed: Our ability to reduce our interest expense may be limited at current interest rate levels while the average yield on our interest-earning assets may continue to decrease, and our interest expense may increase as we access non-core funding sources or increase deposit rates to fund our operations.
−Removed: A continuation of a low interest rate environment or an increase in our cost of funds may adversely affect our net interest income, which would have an adverse effect on our profitability.
−Removed: Risk Related to our Business Strategy
+Added: Risk Related to the COVID-19 Pandemic
+Added: The economic impact of the COVID-19 outbreak could continue to affect our financial condition and results of operations.
+Added: Global health concerns relating to the COVID-19 pandemic and related government actions taken to reduce the spread of the virus have continued to affect the macroeconomic environment, both nationally and in the Company’s existing geographic footprint.
+Added: Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on our business.
+Added: The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be fully controlled and abated.
+Added: The COVID-19 pandemic and the related adverse local and national economic consequences could result in a material, adverse effect on our business, financial condition, liquidity, and results of operations.
+Added: Risks Related to Economic Conditions
+Added: A worsening of economic conditions in our market area could reduce demand for our products and services and/or result in increases in our level of non-performing loans, which could adversely affect our operations, financial condition and earnings.
+Added: Our performance is significantly impacted by the general economic conditions in our primary markets in Pennsylvania, New York, Ohio, and Indiana.
+Added: At December 31, 2022, 41% of our loan portfolio was secured by properties located in Pennsylvania, and 12% of our loan portfolio was secured by properties located in New York, with a large portion of the rest of our loans secured by real estate located in Ohio and Indiana.
+Added: Local economic conditions have a significant impact on the ability of our borrowers to repay loans and the value of the collateral securing loans.
+Added: A deterioration in economic conditions, as a result of COVID-19, recession or otherwise, could result in the following consequences, any of which could have a material adverse affect on our business, financial condition, liquidity and results of operations:
+Added: • demand for our products and services may decline;
+Added: • loan delinquencies, problem assets and foreclosures may increase;
+Added: • we may increase our allowance for credit losses;
+Added: • collateral for loans, especially real estate, may decline in value, in turn reducing customers’ future borrowing power, and reducing the value of assets and collateral associated with existing loans;
+Added: • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
+Added: In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.
+Added: Inflation can have an adverse impact on our business and on our customers.
+Added: Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money.
+Added: Over the past year, in response to a pronounced rise in inflation, the Federal Reserve Board has raised certain benchmark interest rates to combat inflation.
+Added: As discussed under “Risks Related to Market Interest Rates - Changes in interest rates could adversely affect our results of operations and financial condition,” as inflation increases and market interest rates rise the value of our investment securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments.
+Added: In addition, inflation generally increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our non-interest expenses.
+Added: Furthermore, our customers are also affected by inflation and the rising costs of goods and services used in their households and businesses, which could have a negative impact on their ability to repay their loans with us.
+Added: Sustained higher interest rates by the Federal Reserve Board to tame persistent inflationary price pressures could also push down asset prices and weaken economic activity.
+Added: A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.
+Added: Risks Related to our Business Strategy
Acquisitions may disrupt our business and dilute stockholder value.
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• potential changes in banking or tax laws or regulations that may affect the target company.
+Added: Loans that were acquired as part of our acquisitions of other depository institutions were not underwritten or originated in accordance with our credit standards, including environmental matters, and we did not have long-standing relationships with many of these borrowers at the time of acquisition.
+Added: The acquired loans are re-risked at that date of acquisition based on our credit standards, which can temporarily increase loans classified as special mention and substandard for a period of time until these loans are integrated and conform to our credit standards.
+Added: Although we reviewed the loan portfolios of each institution acquired as part of the diligence process, and believe that we have established reasonable credit marks with regard to all loans acquired, we may incur losses in excess of the credit marks with regard to these acquired loans, and any such losses, if they occur, may have a material adverse effect on our business, financial condition, and results of operations.
Acquisitions may not enhance our cash flows, business, financial condition, results of operations or prospects as expected and such acquisitions may have an adverse effect on our results of operations, particularly during periods in which the acquisitions are being integrated into our operations.
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Furthermore, the burden on management and our information technology of introducing any new line of business and/or new product or service could have a significant impact on the effectiveness of our system of internal controls.
−Removed: Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services
−Removed: could have a material adverse effect on our business, financial condition and results of operations.
+Added: Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services could have a material adverse effect on our business, financial condition and results of operations.
Our business strategy includes growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
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These loans may have delinquency or charge-off levels above our recent historical experience, which could adversely affect our future performance.
−Removed: Risk Related to Economic Conditions
−Removed: A worsening of economic conditions in our market area could reduce demand for our products and services and/or result in increases in our level of non-performing loans, which could adversely affect our operations, financial condition and earnings.
−Removed: Our performance is significantly impacted by the general economic conditions in our primary markets in Pennsylvania, New York, Ohio, and Indiana.
−Removed: At December 31, 2021, 49.8% of our loan portfolio was secured by properties located in Pennsylvania, and 25.2% of our loan portfolio was secured by properties located in New York, with a large portion of the rest of our loans secured by real estate located in Ohio and Indiana.
−Removed: Local economic conditions have a significant impact on the ability of our borrowers to repay loans and the value of the collateral securing loans.
−Removed: A deterioration in economic conditions, as a result of COVID-19 or otherwise, could result in the following consequences, any of which could have a material adverse affect on our business, financial condition, liquidity and results of operations:
−Removed: • demand for our products and services may decline;
−Removed: • loan delinquencies, problem assets and foreclosures may increase;
−Removed: • collateral for loans, especially real estate, may decline in value, in turn reducing customers’ future borrowing power, and reducing the value of assets and collateral associated with existing loans;
−Removed: • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
−Removed: In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.
Risk Related to Competitive Matters
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Our profitability depends upon our ability to successfully compete in our market areas.
−Removed: Risk Related to Operational Matters
+Added: Risks Related to Operational Matters
Risks associated with system failures, interruptions, or breaches of security could negatively affect our earnings.
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Furthermore, we may not be able to ensure that all of our clients, suppliers, counterparties and other third parties have appropriate controls in place to protect the confidentiality of the information that they exchange with us, particularly where such information is transmitted by electronic means.
+Added: Our heavy reliance on information technology systems exposes us to operational risks, which include the risk of malfeasance by employees or persons outside of our organization, errors relating to transaction processing and technology, systems failures or interruptions, failures to properly implement systems upgrades, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery.
In addition, we outsource a significant amount of our data processing to certain third-party providers.
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Any losses resulting from such third parties could adversely affect our business, financial condition and results of operations.
+Added: Risks Related to Environmental and Other Global Matters
+Added: We are subject to environmental liability risk associated with lending activities.
+Added: A significant portion of our loan portfolio is secured by real estate, and we could become subject to environmental liabilities with respect to one or more of these properties.
+Added: During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans.
+Added: In doing so, there is a risk that hazardous or toxic substances could be found on these properties.
+Added: If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal injury and property damage, civil fines and criminal penalties regardless of when the hazardous conditions or toxic substances first affected any particular property.
+Added: Environmental laws may require us to incur substantial expenses to address unknown liabilities and may materially reduce the affected property’s value or limit our ability to use or sell the affected property.
+Added: In addition, future laws or regulations or more stringent interpretations or enforcement policies with respect to existing laws and regulations may increase our exposure to environmental liability, and heightened pressure from investors and other stakeholders may require to incur additional expenses with respect to environmental matters.
+Added: Although we have policies and procedures to perform an environmental review before initiating any foreclosure action on nonresidential real property, these reviews may not be sufficient to detect all potential environmental hazards.
+Added: The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.
+Added: Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
+Added: Concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts.
+Added: Consumers and businesses also may change their behavior on their own as a result of these concerns.
+Added: We and our customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns.
+Added: We and our customers may face cost increases, asset value reductions, operating process changes and other issues.
+Added: The impact on our customers will likely vary depending on their specific attributes, including reliance on role in carbon intensive activities, among the impacts to us could be a drop in demand for our products and services, particularly in certain sectors.
+Added: In addition, we could face reductions in creditworthiness on the part of some customers or in the value of asset securing loans.
+Added: Our efforts to take these risks into account in making lending and other decisions, including by increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior.
+Added: Our business, financial condition, and results of operations could be adversely affected by natural disasters, health epidemics, and other catastrophic events.
+Added: We could be adversely affected if key personnel or a significant number of employees were to become unavailable due to a pandemic, natural disaster, war, act of terrorism, accident, or other reason.
+Added: Any of these events could result in the temporary reduction of operations, employees, and customers, which could limit our ability to provide services.
+Added: Additionally, many of our borrowers may suffer property damage, experience interruption of their businesses or lose their jobs after such events.
+Added: Those borrowers might not be able to repay their loans, and the collateral for such loans may decline significantly in value.
Risks Related to Accounting Matters
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Materially different results may occur as circumstances change and additional information becomes known.
−Removed: Areas requiring significant estimates and assumptions by management include our valuation of investment securities, our determination of our income tax provision and goodwill, and our evaluation of the adequacy of our allowance for credit losses.
−Removed: Risk Related to Investment Activities
+Added: Areas requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for credit losses.
+Added: Risks Related to Investment Activities
We could record future losses on our investment securities portfolio.
2 unchanged sentences
In addition, the fair values of securities could decline if the overall economy and the financial condition of some of the issuers deteriorates and there remains limited liquidity for these securities.
+Added: During the year ended December 31, 2022, we incurred other comprehensive losses of $151.9 million related to net changes in unrealized holding losses in the available-for-sale investment securities portfolio.
Management’s Discussion and Analysis of Financial Condition and Results of Operations-Balance Sheet Analysis-Securities” for a discussion of our securities portfolio and the unrealized losses related to the portfolio, as well as the “Marketable Securities” and “Disclosures about Fair Value of Financial Instruments” footnotes to the audited financial statements.
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Given current market conditions, this sector has an enhanced level of credit risk.
−Removed: Risk Related to Our Debit and Credit Activities
+Added: Risks Related to Our Debit and Credit Activities
Changes in card network rules or standards could adversely affect our business.
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If consumer acceptance of debit financial services does not continue to develop or develops more slowly than expected or if there is a shift in the mix of payment forms, such as cash, credit cards, and debit cards, away from our products and services, it could have a material adverse effect on our financial position and results of operations.
−Removed: Other Risk Related to Our Business
+Added: Other Risks Related to Our Business
The corporate governance provisions in our articles of incorporation and bylaws, and the corporate governance provisions under Maryland law, may prevent or impede the holders of our common stock from obtaining representation on our Board of Directors and may impede takeovers of the Company that our board might conclude are not in the best interest of us or our stockholders.
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As such, we strive to conduct our business in a manner that enhances our reputation.
−Removed: This is done, in part, by recruiting, hiring and retaining employees who share our core values of being an integral part of the communities we serve, delivering superior service to our
−Removed: customers and caring about our customers and associates.
+Added: This is done, in part, by recruiting, hiring and retaining employees who share our core values of being an integral part of the communities we serve, delivering superior service to our customers and caring about our customers and associates.
If our reputation is negatively affected by the actions of our employees, by our inability to conduct our operations in a manner that is appealing to current or prospective customers, or otherwise, our business and operating results may be adversely affected.
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Dollar settings effective June 30, 2023.
−Removed: At this time, no consensus exists as to what rate or rates may become acceptable alternatives to LIBOR.
The implementation of a substitute index or indices for the calculation of interest rates under our loan agreements with our borrowers may incur significant expenses in effecting the transition, may result in reduced loan balances if borrowers do not accept the substitute index or indices, and may result in disputes or litigation with customers over the appropriateness or comparability to LIBOR of the substitute index or indices, which could have an adverse effect on our results of operations.
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A federal government shutdown could also result in reduced income for government employees or employees of companies that engage in business with the federal government, which could result in greater loan delinquencies, increases in our nonperforming, criticized and classified assets and a decline in demand for our products and services.
+Added: Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earnings.
+Added: We have expanded our market presence through acquisitions and growth.
+Added: Our branch network continues to be a very significant source of new business generation, however, consumers continue to migrate much of their routine banking to self-service channels.
+Added: In recognition of this shift in consumer patterns, we regularly review our branch network, which has resulted in branch consolidation accompanied by the enhancement of our capabilities to serve its customers through alternate delivery channels.
+Added: The benefits of this strategy will depend on our ability to realize expected expense reductions without experiencing significant customer attrition.
UNRESOLVED STAFF COMMENTS
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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.