Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
Other than the additional risk factor referenced below, there are no material changes to the risk factors as previously disclosed under Part I, Item 1A,
“Risk Factors” in the 2022 Form 10-K.
Recent bank failures have created significant market volatility, regulatory uncertainty, and decreased confidence in the U.S. banking
system.
The recent failures of several high-profile banking institutions have caused significant market volatility, regulatory uncertainty, and
decreased confidence in the U.S. banking system. These recent bank failures occurred during a period of rapidly rising interest rates, which among other things, has resulted in unrealized losses in longer duration securities and more competition for
bank deposits, and may increase the risk of a potential economic recession in the United States. Given the current environment, we may experience more deposit volatility as customers react to adverse events or market speculation involving financial
institutions.
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In response to the bank failures, the United States government may adopt a variety of measures and new regulations designed to strengthen
capital levels, liquidity standards, and risk management practices and otherwise restore confidence in financial institutions. Any reforms, if adopted, could have a significant impact on banks and bank holding companies, including us. We may also be
subject to any special assessment that the FDIC adopts to recover the loss to the Deposit Insurance Fund, and such assessment, if significant, could have an adverse effect on our business, financial condition, and results of operations.
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