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business and economic conditions, particularly those affecting the financial services industry and our primary market areas; |
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factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our borrowers and the success of various projects that we finance; |
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concentration of our loan portfolio in real estate loans changes in the prices, values and sales volumes of commercial and residential real estate; |
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credit and lending risks associated with our construction and development, commercial real estate, commercial and industrial, residential real estate and SBA loan portfolios; |
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negative impact in our mortgage banking services, including declines in our mortgage originations or profitability due to rising interest rates and increased competition and regulation, the Bank’s or third party’s failure to satisfy mortgage servicing obligations, and the possibility of the Bank being required to repurchase mortgage loans or indemnify buyers; |
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our ability to attract sufficient loans that meet prudent credit standards, including in our construction and development, commercial and industrial and owner-occupied commercial real estate loan categories; |
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our ability to attract and maintain business banking relationships with well-qualified businesses, real estate developers and investors with proven track records in our market areas; |
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changes in interest rate environment, including changes to the federal funds rate, and competition in our markets may result in increased funding costs or reduced earning assets yields, thus reducing our margins and net interest income; |
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our ability to successfully manage our credit risk and the sufficiency of our allowance for loan losses (“ALL”); |
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the adequacy of our reserves (including ALL) and the appropriateness of our methodology for calculating such reserves; |
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our ability to successfully execute our business strategy to achieve profitable growth; |
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the concentration of our business within our geographic areas of operation and to the general Asian-American population within our primary market areas; |
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our focus on small and mid-sized businesses; |
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our ability to manage our growth; |
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our ability to increase our operating efficiency; |
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liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; |
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failure to maintain adequate liquidity and regulatory capital and comply with evolving federal and state banking regulations; |
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risks that our cost of funding could increase, in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits; |
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a large percentage of our deposits are attributable to a relatively small number of customers; |
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inability of our risk management framework to effectively mitigate credit risk, interest rate risk, liquidity risk, price risk, compliance risk, operational risk, strategic risk and reputational risk; |
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the makeup of our asset mix and investments; |
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external economic, political and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; |
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continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; |
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challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; |
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restraints on the ability of the Bank to pay dividends to us, which could limit our liquidity; |
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increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; |
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a failure in the internal controls we have implemented to address the risks inherent to the business of banking; |
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inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; |
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changes in our management personnel or our inability to retain motivate and hire qualified management personnel; |
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the dependence of our operating model on our ability to attract and retain experienced and talented bankers in each of our markets; |
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our ability to identify and address cyber-security risks, fraud and systems errors; |