11 added · 19 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
The 2008 - 2009 financial crisis led to the failure or merger of a number of financial institutions.
Unfavorable or uncertain economic and market conditions can be caused by: declines in economic growth, high rates of unemployment, deflation, pandemics, declines in business activity or consumer, investor or business confidence; limitations on the availability of or increases in the cost of credit and capital; increases in inflation; natural disasters; or a combination of these or other factors.
Such business conditions could adversely affect the credit quality of the Company’s loans, the demand for loans, loan volumes and related revenue, securities valuations, amounts of deposits, availability of funding, results of operations and financial condition.
Any failure or circumvention of the Company’s controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on the Company’s business, results of operations and financial condition.
Over the intermediate and longer-term, the Company can be subject to transition risks such as market demand, and policy and law changes. -14- None of the Company’s physical locations are located near sea level, and only a limited number of branches are located in flood zones.
The unanticipated loss of the services of key personnel could have an adverse effect on the business. -15- The Company is subject to environmental liability risk associated with lending activities.
Operational Risks Climate change and the transition to renewable energy and a net zero emissions economy pose operational, commercial and regulatory risks.
The Company competes with many banks and other traditional, non-traditional, brick and mortar and online financial service providers .
Negative developments affecting the banking industry, such as bank failures, may have a material adverse effect on the Company.
Federal, state and local governments could pass tax legislation causing the Company to pay higher levels of taxes.
The FDIC insures deposits at insured financial institutions up to certain limits.
No longer disclosed
For example, during the second quarter 2023, the Company was notified that there may have been a compromise of a specific set of files processed by a third party vendor that could have affected a limited number of customers.
As of December 31, 2024, to the Company’s knowledge, there is no indication that any information has been subject to misuse as a result of the incident.
Unfavorable or uncertain economic and market conditions can be caused by: declines in economic growth, high rates of unemployment, deflation, pandemics, declines in business activity or consumer, investor or business confidence; limitations on the availability of or increases in the cost of credit and capital; increases in inflation; natural disasters; or a combination of these or other factors. -12- Such business conditions could adversely affect the credit quality of the Company’s loans, the demand for loans, loan volumes and related revenue, securities valuations, amounts of deposits, availability of funding, results of operations and financial condition.
Any failure or circumvention of the Company’s controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on the Company’s business, results of operations and financial condition. -14- Operational Risks Climate change and the transition to renewable energy and a net zero emissions economy pose operational, commercial and regulatory risks.
The Company’s business, operations and financial performance may be affected by the macroeconomic impacts resulting from pandemics, and the Company’s financial results in future periods could differ significantly from the Company’s historical results.
The extent to which the Company’s business will be affected will depend on a variety of factors, many of which are outside of the Company’s control, including the persistence of the pandemic, the actions of governmental authorities, changes in customer preferences, impacts on economic activity, and the possibility of recession or financial market instability.
Federal, state and local governments could pass tax legislation causing the Company to pay higher levels of taxes. -13- The FDIC insures deposits at insured financial institutions up to certain limits.
The effects of pandemics and their impact are highly unpredictable and could be significant, and could harm the Company ’ s business, financial condition, and operating results.
The Company has implemented data security safeguards with its third party vendors designed to quickly identify and contain improper access to sensitive information.
Over the intermediate and longer-term, the Company can be subject to transition risks such as market demand, and policy and law changes.
None of the Company’s physical locations are located near sea level, and only a limited number of branches are located in flood zones.
The level and composition of the Bank's deposit portfolio directly impacts the Bank's funding cost and net interest margin.