Item 1A. Risk Factors
Item 1a : Risk Factors
Except for the risk factor set forth below, there have been no material changes to the risk factors set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2022.
Recent negative events in the financial services industry, primarily involving regional banks, have caused general uncertainty and concern regarding the adequacy of liquidity of the financial services industry. While the Company relies on a number of funding sources to meet potential liquidity needs, our business strategies are largely based on access to funding from customer deposits and supplemental funding provided by wholesale or other secondary liquidity sources. Deposit levels may be affected by various industry factors, including interest rates paid by competitors, general interest rate levels, returns available to customers on alternative investments, conditions in the financial services industry specifically and general economic conditions that impact the amount of liquidity in the economy and savings levels, and also by factors that impact customers’ perception of our financial condition, capital and liquidity levels. This uncertainty may drive deposit outflows, increased borrowing and funding costs, and increased competition for liquidity, any of which could have a material adverse impact on our financial performance or financial condition. Despite the challenges, our focus remains on the fundamentals that have served us well during our 135-year history.
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