−Removed: 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,
−Removed: “Risk Factors” in the 2022 Form 10-K.
+Added: Other than the additional risk factors 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.
−Removed: The recent failures of several high-profile banking institutions have caused significant market volatility, regulatory uncertainty, and
−Removed: decreased confidence in the U.S.
banking system.
−Removed: 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
−Removed: bank deposits, and may increase the risk of a potential economic recession in the United States.
−Removed: Given the current environment, we may experience more deposit volatility as customers react to adverse events or market speculation involving financial
−Removed: institutions.
−Removed: In response to the bank failures, the United States government may adopt a variety of measures and new regulations designed to strengthen
−Removed: capital levels, liquidity standards, and risk management practices and otherwise restore confidence in financial institutions.
+Added: The recent failures of several high-profile banking institutions have caused significant market volatility, regulatory uncertainty, and decreased confidence in the U.S.
+Added: banking system.
+Added: 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.
+Added: Given the current environment, we may experience more deposit volatility as customers react to adverse events or market speculation involving financial institutions.
+Added: 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.
−Removed: We may also be
−Removed: 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.
+Added: 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.
+Added: Any downgrade in the credit rating of the U.S.
+Added: government or default by the U.S.
+Added: government as a result of political conflicts over legislation to raise the U.S.
+Added: government’s debt limit may have a material adverse effect on us.
+Added: Recent federal budget deficit concerns and political conflict over legislation to raise the U.S.
+Added: government’s debt limit have increased the possibility of a default by the U.S.
+Added: government on its debt obligations, related credit-rating downgrades, or an economic recession in the United States.
+Added: Many of our investment securities are issued by the U.S.
+Added: government, including certain government agencies and sponsored entities.
+Added: As a result of uncertain domestic political conditions, including the possibility of the federal government defaulting on its obligations for a period of time due to debt ceiling limitations or other unresolved political issues, investments in financial instruments issued or guaranteed by the federal government may pose liquidity risks.
+Added: In connection with prior political disputes over U.S.
+Added: fiscal and budgetary issues leading to the U.S.
+Added: government shutdown in 2011, Standard & Poor’s lowered its long-term sovereign credit rating on the U.S.
+Added: from AAA to AA+.
+Added: A downgrade, or a similar action by other rating agencies, in response to current political dynamics, as well as sovereign debt issues facing the governments of other countries, could generally have a material adverse impact on financial markets and economic conditions in the U.S.
+Added: and worldwide and, therefore, materially adversely affect our business, financial condition and results of operations.
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.