Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
|
Financial report summary
?Risks
- Our portfolio encompasses owner and non-owner occupied commercial real estate loans, including multifamily residential real estate loans. These loans often involve higher principal amounts compared to other loan types, and their repayment may be contingent on factors beyond our or our borrowers' control.
- Our ACL on loans may prove to be insufficient to absorb losses in our loan portfolio.
- Our strategy of pursuing acquisitions and de novo branching exposes us to financial and operational risks that could adversely affect us.
- Our financial condition and results of operations could be negatively affected if we fail to execute our growth strategy or manage our growth effectively.
- The current economic condition in the market areas we serve may adversely impact our earnings and could increase the credit risk associated with our loan portfolio.
- External economic factors, such as changes in monetary policy and inflation and deflation, may have an adverse effect on our business, financial condition and results of operations.
- Fluctuating interest rates can adversely affect our profitability.
- Changes in the valuation of our investment securities portfolio could hurt our profits and reduce capital levels.
- Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions.
- Monetary policies and regulations of the Federal Reserve could adversely affect our business, financial condition and results of operations.
- We rely on third party services and products to provide key components of our technology and banking product business infrastructure.
- We are subject to certain risks in connection with our data management or aggregation.
- Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes.
- The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we may not be able to effectively compete.
- New or changing tax, accounting, and regulatory rules and interpretations could significantly impact strategic initiatives, results of operations, cash flows, and financial condition.
- We may experience goodwill impairment, which could reduce our earnings.
- The Company’s reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates, which, if incorrect, could cause unexpected losses in the future.
- Managing reputational risk is important to attracting and maintaining customers, investors and employees.
- Ineffective liquidity management could adversely affect our financial results and condition.
- If our enterprise risk management framework is not effective at mitigating risk and loss to us, we could suffer unexpected losses and our results of operations could be materially adversely affected.
- Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
- Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high; further, the resulting dilution of our equity may adversely affect the market price of our common stock.
- We rely on dividends from the Bank for substantially all our revenue at the holding company level.
Management Discussion
- Net income was $61.8 million, or $1.75 per diluted common share, for the year ended December 31, 2023 down from $81.9 million, or $2.31 per diluted common share, for the year ended December 31, 2022. Net income decreased $20.1 million, or 24.6%, compared to December 31, 2022 due to losses on sales of investment securities of $12.2 million largely as a result of investment portfolio repositioning, an increase in noninterest expense of $15.7 million including an $8.0 million increase in compensation and employee benefits, and an increase in the provision for credit losses of $5.7 million resulting from a provision for credit losses of $4.3 million for the year ended December 31, 2023 compared to a reversal of the provision for credit losses of