Item 1A. Risk Factors
Item 1A.
Risk Factors
In evaluating an investment in any of our securities, investors should consider carefully, among other things, information under the heading “Cautionary Notice Regarding Forward-Looking
Statements” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of this Form 10-Q and the risk factors previously disclosed under the heading “Risk Factors” in Part I, Item 1A of our 2022
Annual Report on Form 10-K. Except as provided in the risk factor below, management believes there have been no material changes in the risk factors disclosed by the Company in the 2022 Annual Report on Form 10-K.
Recent bank failures and the related negative impact on customer confidence in the safety and soundness of the banking industry may adversely affect our
business, earnings and financial condition.
The Company is exposed to a number of risks when other financial institutions experience financial difficulties, which could result in an adverse impact on the regional banking industry,
generally, and the business environment in which the Company operates. The recent bank failures of Silicon Valley Bank, Signature Bank, and First Republic Bank during the first and second quarters of 2023 have resulted in significant market
volatility among publicly traded bank holding companies and has caused uncertainty in the investor community and bank customers, generally. While the Company does not believe that the circumstances of the recent bank failures are indicators of
broader issues within the banking industry, the recent bank failures may negatively impact customer confidence in the safety and soundness of regional banks and, as a result, customers may choose to maintain deposits with larger financial
institutions or invest in higher yielding short-term fixed income securities, all of which could materially adversely impact our liquidity, cost of funding, loan funding capacity, net interest margin, capital and results of operations. Management
continues to monitor the ongoing events concerning the recent bank failures as well as any future potential bank failures and volatility within the financial services industry generally, together with any responsive measures taken by the banking
regulators to mitigate or manage potential turmoil in the financial services industry.
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