5 unchanged sentences
Our business is subject to periodic fluctuations based on national, regional and local economic conditions.
−Removed: These fluctuations are not predictable, cannot be controlled, and may have a material adverse impact on our operations and financial condition.
+Added: These fluctuations are not predictable, cannot be controlled, and may have a material adverse impact on our operationsand financial condition.
Our banking operations are primarily locally oriented and community-based.
4 unchanged sentences
Unfavorable changes in unemployment, real estate values, interest rates, inflation and other factors could weaken the economies of the communities we serve.
−Removed: While economic growth and business activity has been generally favorable in our market area in recent years, there can be no assurance that economic conditions will recover to pre-pandemic levels, and these conditions could worsen.
−Removed: In addition, unfavorable global economic conditions, including the lingering effects of the COVID-19 pandemic, have had a negative impact on financial markets and could adversely impact our customers, which in turn could lead to lower business activity and higher loan delinquencies.
Weakness in any of our market areas could have an adverse impact on our earnings, and consequently our financial condition and capital adequacy.
1 unchanged sentence
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.
−Removed: In recent years, there has been a pronounced rise in inflation and the Federal Reserve has raised certain benchmark interest rates in an effort to combat this trend.
+Added: In recent years, there has been a pronounced rise in inflation and, until recently, the Federal Reserve has responded by raising certain benchmark interest rates in an effort to combat this trend.
Our customers may also be 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.
64 unchanged sentences
A small number of large deposit relationships provide a significant level of funding for the Bank.
−Removed: The Bank’s five largest deposit relationships, including securities sold under agreements to repurchase, amounted to $134.5 million at December 31, 2023.
−Removed: These balances represent 9.10% of total deposits and securities sold under agreements to repurchase combined at December 31, 2023.
−Removed: Total deposits for the five largest relationships referenced above amounted to $108.4 million, or 7.79% of total deposits at December 31, 2023.
−Removed: Total securities sold under agreements to repurchase for the five largest relationships referenced above amounted to $26.2 million, or 30.17% of total securities sold under agreements to repurchase at December 31, 2023.
+Added: The Bank’s two largest deposit relationships, amounted to $117.0 million at December 31, 2024.
+Added: These balances represent 7.88% of total deposits at December 31, 2024.
Withdrawals of deposits by any one of our largest depositors could force us to rely more heavily on borrowings and other sources of funding for our business and withdrawal demands, adversely affecting our net interest margin and results of operations.
31 unchanged sentences
Any inability to prevent security breaches or computer viruses could also cause existing customers to lose confidence in the Bank’s systems and could adversely affect its reputation and its ability to generate deposits.
−Removed: Additionally, we outsource the processing of our core data system, as well as other systems such as online banking, to third party vendors.
+Added: Additionally, we outsource the processing of transactional activity, as well as other systems such as online banking, to third party vendors.
Prior to establishing an outsourcing relationship, and on an ongoing basis thereafter, management monitors key vendor controls and procedures related to information technology, which includes reviewing reports of service auditor’s examinations.
58 unchanged sentences
These unrealized losses arose due to changing interest rates and are considered to be temporary;
−Removed: however, in the event that we sell these securities while they are in an unrealized loss position, we will recognize a corresponding loss.
−Removed: In January and February 2023, we sold securities available for sale totaling $53.5 million, which resulted in gross losses of $2.7 million and gross gains of $177,000.
−Removed: In the event that we decide to sell additional securities while they are in an unrealized loss position, we will experience additional losses, which could have a material adverse effect on our earnings and financial condition.
+Added: however, in the event that we sell these securities while they are in an unrealized loss position, we will recognize a corresponding loss, which could have a material adverse effect on our earnings and financial condition.
We could experience losses due to competition with other financial institutions.
34 unchanged sentences
The success of the Bank has been and will continue to be greatly influenced by the ability to retain the services of existing senior management.
−Removed: The Bank has benefited from consistency within its senior management team, with two of its top three executives averaging 27 years of service with the Bank.
The unexpected loss of the services of any of the key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse impact on the business and financial results of the Bank.
15 unchanged sentences
Any failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on our business, results of operations, and financial condition.
−Removed: Credit losses on investment securities or deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.
+Added: Credit losses on investment securities or inability to realize deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.
In assessing the impairment of investment securities, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issues, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery of fair value in the near term.
52 unchanged sentences
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.