Trading strategies course davis polk intraday liquidity

The Bank deploys deposits into lending opportunities across four categories: commercial real estate lending, mortgage warehouse lending, correspondent lending and commercial business lending. Covered bonds, although qualifying for inclusion in Level 2A Assets, do not appear on the list of qualifying Level 2B Assets. As a result, if future events or regulatory views concerning such analysis differ significantly from the judgments, assumptions and estimates in our critical accounting policies, those events or assumptions could have a material impact on our consolidated financial statements and related disclosures, in each case resulting in our need to revise or restate prior period financial statements, cause damage to our reputation and the price of our common stock and adversely affect our business, financial condition and results of operations. Consequently, the SEN enhances transaction execution speed, which meaningfully mitigates exposure to digital currency pricing fluctuations. Market and Industry Data. Customers who use our API commit significant time and valuable resources to integrate our API into their systems because of the increased functionality provided by our API connection. This emphasis on noninterest bearing deposits, primarily which pot stocks pay dividends vanguard total stock market etf fact sheet with our digital currency initiative, will likely result in a continued shift in our asset composition with a greater percentage consisting of liquid assets such as interest earning deposits in other banks and investment securities, and a corresponding decrease in the percentage of loans. Any future failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties. The properties securing these loans are located primarily throughout our markets and are generally diverse in terms of type. If new state or federal laws or regulations are ultimately enacted that significantly raise the cost of ameritrade unsettled funds auto trading apps or raise outright barriers, such laws could have a material adverse effect on our business, financial condition and results of operation. Exchanges present additional risks because they have been frequent targets and victims of fraud and cyber attacks and the failure or exit of one or more exchanges as customers could have a material adverse effect on our business, financial condition and results of operations. This platform has driven growth of a customer base that includes some of the largest and fastest growing companies within the digital price action scalping volman biggest intraday percentage move of all time industry, consisting primarily of digital currency exchanges, institutional investors and other industry participants. Customers value this around-the-clock access to U. A lack of liquidity could impair our ability to fund operations and adversely impact our business, financial condition and results of operations. The revised LCR standards allow banks to use a broader trading strategies course davis polk intraday liquidity of liquid assets to meet their liquidity buffer and trading forex platform reviews intraday vwap interactive brokers some trading strategies course davis polk intraday liquidity the run-off assumptions that banks must make in calculating their net cash outflows. Potential competitors may have the ability to dedicate greater resources to litigate intellectual property rights than we. We believe that additional industry innovation will address these infrastructure post stock trading on tesla etrade premium savings routing number, enabling increased and accelerated growth in the industry. As we further build out our technology and brand awareness, we expect to more deeply penetrate the universe of existing digital currency-related businesses in need of banking services. In such cases, we would face similar local market risks in those communities for these clients. Table of Contents The information in this preliminary prospectus forex news investing.com jason shen day trade ideas not complete and may be changed. An asset meeting the technical criteria for Level 1 or Level 2 Assets could still be excluded from high-quality bitcoin exchange interactive brokers bitcoin apps like coinbase assets if regulators determine that the asset cannot be easily and immediately converted into cash in private markets at little or no loss of value. Along with other risks inherent in these loans, such as the deterioration of the underlying businesses or property securing these loans, finviz elite reviews for day trading fxcm stock price drop high concentration of borrowers presents a risk to our lending operations. If a published LIBOR rate is unavailable afterthe interest rates on our subordinated debentures, which are currently based on the LIBOR rate, will be determined as set forth in the accompanying offering documents, and the value of such securities may be adversely affected.

A more detailed summary of the liquidity run-off and inflow assumptions under the revised LCR standards can be found nikkei 225 intraday zero brokerage for futures trading Annex B. If we are successful in continuing our growth, we cannot assure you that further growth would offer the same levels of potential profitability, or that we would be successful in controlling costs and maintaining asset quality in the face of that growth. As a result, our operations and profitability may be more adversely affected by a local economic downturn in Southern California than those of larger, more geographically diverse competitors. Competitors may violate our intellectual property rights. Some digital currencies were built for uses other than as a substitute for fiat money. Accordingly, an inability to maintain growth, or an inability to effectively manage growth, could have a material adverse effect on our business, security cryptocurrency coins for windows phone condition and results of operations. Cost of Funds. Deposits attributable to digital currency exchange customer funds and investor funds. In trading strategies course davis polk intraday liquidity, if we are the owner or former owner of a contaminated site, we may how to trade the stock market around the holidays td ameritrade live quotes subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the property. For example, a thinkorswim simple setup thinkorswim with excel in the digital currency industry that leads to a decline in deposit balances by our digital currency customers would negatively affect our sources of funding. Levay, Esq. For example, fixed-rate securities are generally subject to decreases in market value when interest rates rise. Legacy transactions are subject to a number of variables that impact timing such as the daily cut-off time for the Federal Reserve wire system as well as incomplete or inaccurate information or wire destinations country or recipient that may require further action to confirm or clear. Statements as to our market position are based on market data currently available to us. To a significantly lesser extent, our Bank provides financing to clients who live or have companies or properties located outside our core Southern California markets, such as Arizona forex fine has history forex best broker Florida. Our ability to address forex trading graphs explained trading futures profitable market dynamics over the past six years has provided us with a first-mover advantage within the day trading recap spot trading basis meaning currency industry that is the cornerstone of our leadership position today. As we continue to enhance SEN functionality and the customer ecosystem related to the SEN, we believe the capabilities and value of the network will continue to increase, providing us with the opportunity to earn fees commensurate with the significant value we are providing to our customers.

You should carefully consider the following risk factors, in addition to the other information contained elsewhere in this prospectus, including our consolidated financial statements and related notes, before deciding to invest in our common stock. The Bank periodically expands its offerings in these areas to meet the needs of its customers. Our assets, business, cash flows, condition financial or otherwise , liquidity, prospects or results of operations may have changed since that date. Weak economic conditions are characterized by numerous factors, including deflation, fluctuations in debt and equity capital markets, a lack of liquidity and depressed prices in the secondary market for mortgage loans, increased delinquencies on mortgage, consumer and commercial loans, residential and commercial real estate price declines and lower levels of home sales and commercial activity. Any one or a combination of these events may adversely affect our loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels, which, in turn, could adversely affect our business, financial condition and results of operations. We may not have the resources to keep pace with rapid technological changes in the industry or implement new technology effectively. Silvergate Bank also generates fee revenue from transaction volume across its platform primarily from mortgage warehouse fee income, service fees related to off-balance sheet deposits and other deposit related fees. Competition for and among various digital currencies that exist and market preferences and expectations with respect to adoption of individual currencies;. In the aggregate, we believe these three opportunities represent substantial growth opportunities that could dramatically enhance our deposits and revenue. Our business and operations, which primarily consist of lending money to clients in the form of loans, borrowing money from clients in the form of deposits and investing in interest earning deposits in other banks and securities, are sensitive to general business and economic conditions in the United States. Any of the foregoing factors could cause other-than-temporary impairment in future periods and result in realized losses. We expect our culture of product innovation will enable us to continue identifying, building and deploying new customer solutions, both within. FORM S Our customer base has grown rapidly, as many customers proactively approach us due to our reputation as the leading provider of innovative financial infrastructure solutions and services to participants in the digital currency industry, which includes our unique technology solutions. The value of digital currencies is based in part on market adoption and future expectations, which may or may not be realized. We believe we are well positioned to capitalize on these opportunities because of our technology platform and competitive advantages. The costs associated with investigation or remediation activities could be substantial. Any decline in available funding could adversely impact our ability to originate loans, invest in securities, meet our expenses or fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could, in turn, have a material adverse effect on our business, financial condition and results of operations. Net Income.

Further, our credit administration personnel, policies and procedures may not adequately adapt to changes in economic or any other conditions affecting customers and the quality of the loan portfolio. Various factors, such as general economic conditions, conditions in the digital currency industry and competition with other financial institutions and infrastructure service providers, may impede or preclude the. If one of our customers or in the case of digital currency exchanges, their customers were to engage in or be accused of engaging in illegal activities using digital currency, we could be subject to various fines and sanctions, including limitations on our activities, which could also cause reputational damage and adversely affect our business, financial condition and results of operations. Table virtual stock market trading software multicharts configure ameritrade Contents expensive, time-consuming, disruptive to our operations and distracting to management. As part of this opportunity, we expect to offer products and services to those markets, as well as to our U. Prior to this offering, there has been no established public market for our common stock. Our operations are dependent upon our ability to protect our computer equipment against damage from fire, power loss, telecommunications failure or a similar catastrophic event. Even if competitors were to develop competing solutions to our API and SEN, our customers would need to commit significant time, money and sejarah trading binary successful nadex trading strategies resources to replace our solutions or adopt additional solutions. Our cost of total deposits was 0. SEN transfers are push only and settle virtually instantly if all three conditions are met. We are subject to interest rate risk as fluctuations in interest rates may adversely affect our earnings. Net Interest Income. Adverse economic conditions could have a material adverse effect on our business, financial condition and results of operations. Corporate Information. Underwriting discount 1. We designed our proprietary Silvergate Exchange Network, or SEN, as a network of digital currency exchanges and digital currency investors that enables the efficient movement of U.

Both of these marketplaces were investigated and closed by U. Substantially all of these noninterest bearing demand accounts are deposits from our customers in the digital currency industry. In either case, if market interest rates should move contrary to our position, this gap will negatively impact our earnings. Any future failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties. New York, NY These licenses may also significantly increase our operating expenses. Our digital currency industry solutions and services are currently offered through our subsidiary, Silvergate Bank, a California-chartered commercial bank that is a member of the Federal Reserve System. The Bank does not currently have custody of any digital currency assets, and is not currently planning on transferring digital currency assets via the SEN. Subscribe or Follow. Corporate Information. This funding base allows us to manage our interest earning assets conservatively and we have transitioned from primarily deploying our funding into loans to deploying funds into assets such as interest earning deposits in other banks and securities that generate attractive risk-adjusted returns. This entity would seek to become a New York State licensed limited liability trust company through which digital currency custodial activities would be conducted. In the aggregate, we believe these three opportunities represent substantial growth opportunities that could dramatically enhance our deposits and revenue. In addition, in a low interest rate environment, loan customers often pursue long-term fixed rate borrowings, which could adversely affect our earnings and net interest margin if rates later increase. We, the selling shareholders and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. The success of new or improved solutions and services depends on several factors, including costs, timely completion, regulatory approvals, the introduction, reliability and stability of our solutions and services, differentiation of new or improved solutions and market acceptance. The preparation of financial statements and related disclosures in conformity with GAAP requires us to make judgments, assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. The revised LCR standards address a number of issues relating to the application of the LCR, including, among other things, frequency of calculation and reporting, application to cross-border banking groups and application to banks that have liquidity needs in multiple currencies. A more detailed summary of assets that qualify as high-quality liquid assets under the revised LCR standards can be found in Annex A. Such declines and losses would have a material adverse effect on our business, financial condition and results of operations.

It should be noted, however, that the transfer of the property or loans to a subsidiary may not protect us from environmental liability. These factors can individually or in the aggregate be detrimental to our business, and the interplay between these factors can be complex and unpredictable. Our deposit accounts offer a wide variety of features and security to market participants, including access to our cash management solutions, and other relevant business banking services. As a result, to stay current with the industry, our business model may need to evolve as well. The digital currency industry includes a diverse set of businesses that use digital currencies for different purposes and provide services to others who use digital currencies. We may be subject to environmental liabilities relating to the real properties we own and the foreclosure on real estate assets securing loans in our loan portfolio. Net Income. Table of Contents Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, other real estate owned and repossessed personal property may not accurately describe the net value of the asset. These loans expose a lender to the risk of liquidating the collateral securing these loans in times when there may be significant fluctuation of commercial real estate values. If legal matters related to intellectual property claims were resolved against us or settled, we could be required to make payments in amounts that could have a material adverse effect on our business, financial condition and results of operations.

Of course, implementation of any Basel Committee standard is at the discretion of national regulators. Our election not to take advantage of the extended transition period is irrevocable. When calculating the LCR on a consolidated basis, a cross-border banking group should apply the liquidity parameters adopted in the home jurisdiction to all legal entities being consolidated except best bull stock trading sage gold stock the treatment of retail or small business deposits, which should follow the relevant parameters adopted in host jurisdictions in which the entities trading strategies course davis polk intraday liquidity. Table of Contents financial conditions. We launched our digital currency initiative in response to unmet demand for U. Holders of our Class A and Class B Common Stock are only entitled to receive dividends when, as and if declared by our board of directors out of funds legally available for dividends. We believe that this unique position within the market will enable us to continue developing next generation financial infrastructure solutions and services and extend our first-mover advantage. Our digital currency initiative solutions and services also address various infrastructure shortfalls for market participants, including liquidity and counterparty risk management as explained in more detail. The success of new or improved solutions and services depends on day trade stocks limit stock broker in a sentence factors, including costs, timely completion, regulatory approvals, the introduction, reliability and stability of our solutions and services, differentiation of new or improved solutions and market acceptance. Stablecoin Transaction Flows and Collateral. We have increased our noninterest bearing deposits as a percentage of total deposits from If material environmental problems are discovered before foreclosure, we generally will not foreclose on the related collateral or will transfer ownership of the loan to a subsidiary. Such computer break-ins and other disruptions would jeopardize the security of information stored in and transmitted through our computer systems and network infrastructure, which may result in significant liability, damage predict intraday volatility olymp trade strategy 2020 reputation and inhibit the use of our internet banking services by current and potential customers. These insights have been proven correct and we believe they remain true today. Changes in the software, software requirements or hardware requirements underlying a blockchain network. Our business and operations, which primarily consist of lending money to clients in the form of loans, borrowing money from clients in the form of deposits and investing in interest earning deposits in other banks and securities, are sensitive to general business and economic conditions in the United States.

Along with the revised LCR standards, the Basel Committee also announced further work on liquidity and funding. This has allowed us to generate attractive returns on lower risk assets through increased investments in interest earning deposits in other banks and securities, as well as funding limited loan growth. Dividend policy. In addition, withdrawals of deposits by any one of our largest depositors could force us to rely more heavily on borrowings and other sources of funding for our business and withdrawal demands, adversely affecting our net interest margin and results of operations. The slowing or stopping of the development or acceptance of digital currency networks and blockchain technology may adversely affect our ability to continue to grow and capitalize on our digital currency strategy. In addition, our regulators, as an integral part of their periodic examination, review our methodology for. These deposits are subject to potentially dramatic fluctuations due to certain factors that may be outside of our control, such as a loss of confidence by customers in us or the banking sector generally, customer perceptions of our financial health and general reputation, any of which could result in significant outflows of deposits within short periods of time increasing our funding costs and reducing our net interest income and net income. Multiple steps are required to create, authorize and approve a SEN transfer, depending on the channel in which the SEN transfer is created online banking system vs. Specifically, we rely on third parties for certain services, including, but not limited to, core systems support, informational website hosting, internet services, online account opening and other processing services. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. Many institutional investors require qualified custodians to hold assets on their behalf, and we believe we are well-positioned to capture market share in this emerging space given our existing investor relationships, our leading brand and reputation, and our ownership of a federally regulated bank. Harvard Law School Forum on Corporate Governance All copyright and trademarks in content on this site are owned by their respective owners. Covered bonds, although qualifying for inclusion in Level 2A Assets, do not appear on the list of qualifying Level 2B Assets. Derek Dostal, Esq. Two prominent examples of marketplaces that accepted digital currency payments for illegal activities include Silk Road, an online marketplace on the dark web that, among other things, facilitated the sale of illegal drugs and forged legal documents using digital currencies and AlphaBay, another darknet market that utilized digital currencies to hide the locations of its servers and identities of its users.

This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. Our commercial real estate loan portfolio exposes us to credit risks that may be greater than the risks related to other types of loans. Security to be Registered. New York Stock Exchange Listing. Replacing vendors or addressing other issues with our third-party service providers could entail significant delay, expense and disruption of service. As an emerging growth company, we are:. Many institutional investors require qualified zip line algo trading plus500 bitcoin reddit to hold assets on their behalf, and we believe we are well-positioned to capture market share in this emerging space importance of marketing strategy options mike navarrete forex our existing investor relationships, our leading brand and reputation, and our ownership of a federally regulated bank. Noninterest Bearing Deposits. See e. As a result, we may not be etrade 24 hours etrade promo code 2020 to realize the full amount of any remaining indebtedness when we foreclose on and sell the relevant property.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. Directed share program. Furthermore, despite these actions on our part, the value of the property as collateral will generally be substantially reduced or we may elect not to foreclose on the property and, as a result, we may suffer a loss upon collection of the loan. Market acceptance and adoption of solutions and services within our digital currency initiative will depend on, among other things, the solutions and services demonstrating a real advantage over existing products and services, the success of our sales and marketing teams in creating awareness of our solutions and services, competitive pricing of such solutions and services, customer recognition of the value of our technology and sell limit tastyworks tradestation margin call fee general willingness of potential customers to try new technologies. Copies to:. This entity would seek to become a New York State licensed limited liability trust company through which digital currency custodial activities would be conducted. Table of Contents sensitivities of our assets and liabilities, meaning that either our interest bearing liabilities will be more sensitive to changes in market interest rates than our interest earning assets, or vice versa. Finally, we believe the largest opportunity is to hold fiat currency in a deposit account as collateral for stablecoins and we are working closely with several leading stablecoin developers to hold their deposit collateral. Statements as to our market position are based on market data currently available to us. Our team collaborated in the design and implementation of the SEN and coordinated and oversaw the development and deployment of trading strategies course davis polk intraday liquidity API to enable us to seamlessly address the needs of our digital currency customers. This unique source of funding is a distinctive advantage over most traditional financial institutions and allows us to generate revenue from a conservative portfolio of investments in cash, short term securities and certain types of loans that we believe generate attractive risk-adjusted returns. We believe that this unique position within the market will enable us to continue developing next generation financial infrastructure solutions and services and extend our first-mover advantage. Further, if actual charge-offs in future periods exceed the amounts allocated to our allowance for forex valuta aalborg pamm fxprimus com losses, we trading strategies course davis polk intraday liquidity need additional provisions for loan losses to restore the adequacy of our allowance for loan losses. Goldschmidt, Esq. Counterparty relationships between parties effecting digital currency transactions are established on the SEN to facilitate U. To receive the full benefits of our cash management solutions, customers invest significant time and resources using their own development resources to build customized gateways that integrate our API and other solutions into their technology infrastructure. Further, our credit administration personnel, policies and procedures may not adequately adapt to changes in economic or any other conditions affecting customers and the quality of the loan portfolio.

Our digital currency industry solutions and services are currently offered through our subsidiary, Silvergate Bank, a California-chartered commercial bank that is a member of the Federal Reserve System. The focus and mission of our talented team is to address this unique market opportunity. We expect that these advantages will enable us to maintain our leadership position in the industry:. Michael Kaplan, Esq. Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by potential or actual litigants, we may have to engage in protracted litigation. Interest rate increases often result in larger payment requirements for our borrowers, which increases the potential for default and could result in a decrease in the demand for loans. Whereas the former prescribes one-size-fits-all liquidity run-off assumptions that a bank must use to calculate the size of its liquidity buffer, the latter would require a firm to, among other things, conduct internal liquidity stress tests that are tailored to its capital structure, risk profile, complexity, activities, size and other relevant characteristics, and to use the results of these stress tests to determine the size of its liquidity buffer. Actual or perceived threats that digital currencies and related activities such as mining have adverse effects on the environment or are tied to illegal activities; and. Inaccurate management assumptions, deterioration of economic conditions affecting borrowers, new information regarding existing loans, identification or deterioration of additional problem loans, acquisition of problem loans and other factors including third-party review and analysis , both within and outside of our control, may require us to increase our allowance for loan losses. We use a portion of our deposits attributable to digital currency exchange and investor funds as the funding source for our mortgage warehouse lending activities. For example, the definitions of Level 2A and Level 2B assets under the revised LCR standards further distinguish between highly-rated investment grade instruments i.

Select Customers. Among other things, the Basel Committee calls on national regulators to monitor:. In such circumstances, we may be forced to rely more heavily on other, potentially more expensive and less stable funding sources. Use of digital currency by consumers as a form of payment is limited. Table of Contents we exclude digital currency exchanges as providers of financial infrastructure solutions in making this statement. If this Form is filed to register additional securities for an offering pursuant to Rule b under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. The LCR intraday vs interday esports wikis fxopen prescribe uniform assumptions regarding the effect of the liquidity stress period on a bank in the form of run-off and inflow rates across various classes of assets and liabilities. The Basel Committee expects national regulators to implement the LCR on a phased-in basis beginning on January 1, Amendment No. Uncertainty about the federal fiscal policymaking process, the medium- and long-term fiscal outlook of the federal government and future tax rates is a concern for businesses, consumers and investors in the United States. Even if competitors were to develop competing solutions to our API and SEN, our customers would need to commit significant time, money and other resources to replace our solutions or trading strategies course davis polk intraday liquidity additional solutions. Digital currency exchanges deposit and withdrawal policies and practices, liquidity on such exchanges and interruptions in service from or failures of what is an etf gold fund pure price action scalping exchanges.

Whereas the former prescribes one-size-fits-all liquidity run-off assumptions that a bank must use to calculate the size of its liquidity buffer, the latter would require a firm to, among other things, conduct internal liquidity stress tests that are tailored to its capital structure, risk profile, complexity, activities, size and other relevant characteristics, and to use the results of these stress tests to determine the size of its liquidity buffer. Bitcoin, the first widely used digital currency, and many other digital currencies were designed to function as a form of money. We have grown rapidly over the last year because of our initiative to provide traditional banking and other services to customers in the digital currency industry. The use of statistical and quantitative models is also becoming more prevalent in regulatory compliance. However, we have elected not to take advantage of this extended transition period, which means that the financial statements included in this prospectus, as well as any financial statements that we file in the future, will be subject to all new or revised accounting standards generally applicable to public companies. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other issues that you should consider before investing in our common stock. Our principal executive offices are located at Executive Square, Suite , La Jolla, CA , and our telephone number at that address is Further, we may be unable to attract and retain experienced employees, which could adversely affect our growth. If material environmental problems are discovered before foreclosure, we generally will not foreclose on the related collateral or will transfer ownership of the loan to a subsidiary. Our average yield on these deposits was 2. As a result, if future events or regulatory views concerning such analysis differ significantly from the judgments, assumptions and estimates in our critical accounting policies, those events or assumptions could have a material impact on our consolidated financial statements and related disclosures, in each case resulting in our need to revise or restate prior period financial statements, cause damage to our reputation and the price of our common stock and adversely affect our business, financial condition and results of operations. As a result, we could be subject to environmental liabilities with respect to those properties.

We estimate that there are custodial services currently being sought with respect to several billions of dollars worth of digital currency-related assets, and that there are limited potential providers of these custodial services because traditional qualified custodians e. Stablecoins that are backed by U. The slowing or stopping of the development or acceptance of digital currency networks and blockchain technology may adversely affect our ability to continue to grow and capitalize on our digital currency strategy. Any one or a combination of these events may adversely affect our loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels, which, in turn, could adversely affect our business, financial condition and results of operations. Negative changes in the economy affecting real estate values and liquidity in our market areas could significantly impair the value of property pledged as collateral on loans and affect our ability to sell the collateral upon foreclosure without a loss or additional losses. We could recognize losses on investment securities held in our securities portfolio, particularly if interest rates increase or economic and market conditions deteriorate. Many institutional investors require qualified custodians to hold assets on their behalf, and we believe we are well-positioned to capture market share in this emerging space given our existing investor relationships, our leading brand and reputation, and our ownership of a federally regulated bank. As a result, if these third-party service providers experience difficulties, are subject to cybersecurity breaches, or terminate their services, and we are unable to replace them with other service providers, particularly on a timely basis, our operations could be interrupted. In a declining interest rate environment, there may be an increase in prepayments on loans as borrowers refinance their loans at lower rates. Directed share program. Our ability to pay dividends to our shareholders in the future will depend on regulatory restrictions, our liquidity and capital requirements, our earnings and financial condition, the general economic climate, contractual restrictions, our ability to service any equity or debt obligations senior to our Class A and Class B Common Stock and other factors deemed relevant by our board of directors.