Risk factors

Acquisition activity, specifically the pending merger with Signature, dominates the risk disclosures and points to rapid corporate growth. Uninsured deposits grew to $685.1 million, representing 33% of total bank deposits.

FACT II Acquisition Corp. faces going concern doubts with cash declining to $544,791 and a working capital deficiency of $613,884. The company focuses heavily on completing its proposed business combination with PAD.

Trade policies and tariffs were added as a risk threatening local customers in agriculture, manufacturing, and retail. Cybersecurity risk disclosures were expanded to cover unknown liabilities from acquired companies.

Allowance for credit losses decreased to $14.5 million or 1.36% of total loans at December 31, 2025. Real estate-secured loans decreased from 87% to 84% of total loans.

Partnership strategies expand with Better and PHH agreements to scale reverse mortgage distribution.

AI is now identified as a risk in both operations and cybersecurity, including faulty or biased third-party AI outputs.

FS Bancorp highlights increasing credit risks from regional natural disasters like the November 2025 Pacific Northwest floods. The bank updated portfolio figures and acknowledged evolving regulatory frameworks around ESG and DEI.

The company faces heavy debt constraints under a 40.0 million dollar credit agreement and is restructuring manufacturing via Project Viking. Prior going concern doubts were dropped following debt adjustments and remediation of material control weaknesses.

Horizon Bancorp faces rising disintermediation risks from digital assets like stablecoins and alternative platforms under the GENIUS Act of 2025.

Hanover Bancorp added risks regarding inflation, New York rent regulation, municipal deposit sensitivity, and subsidiary bank dividend limits. Loan volumes for non-qualified mortgages and residential mortgages increased significantly.

HomeTrust Bancshares updated figures for its equipment and auto finance portfolios and noted further Federal Reserve rate cuts through 2025.

Isabella Bank added new risk disclosures around its Nasdaq uplisting, public company compliance, and federal privacy regulations. Liquidity and deposit stability risks were tightened to emphasize elevated interest rates and wholesale borrowing limits.