Banner (BANR) risk factors, FY2024 10-K

Risks Related to Macroeconomic Conditions

1. 01Our business may be adversely affected by downturns in the national economy and the regional economies on which we depend
2. 02Monetary policy, inflation, deflation, and other external economic factors could adversely impact our financial performance and operations

Risks Related to Credit and Lending

1. 03Our loan portfolio includes loans with a higher risk of loss
2. 04Our business may be adversely affected by credit risk associated with residential property and declining property values
3. 05Our allowance for credit losses on loans may not be sufficient to absorb losses in our loan portfolio, which would cause our results of operations, liquidity and financial condition to be adversely affected

Risks Related to Merger and Acquisition Strategy

1. 06We pursue a strategy of supplementing internal growth by acquiring other financial companies or their assets and liabilities, which we believe will help us fulfill our strategic objectives and enhance our earnings. We may be adversely affected by risks associated with growth through acquisitions
2. 07We may incur impairment to goodwill

Risks Related to Market and Interest Rate Changes

1. 08Our results of operations, liquidity and cash flows are subject to interest rate risk
2. 09We principally manage interest rate risk by managing our volume and mix of our earning assets and funding liabilities. If we are unable to manage this risk effectively, our business, financial condition and results of operations could be materially affected
3. 10Our securities portfolio may be negatively impacted by fluctuations in market value and interest rates
4. 11An increase in interest rates, change in the programs offered by secondary market purchasers or our ability to qualify for their programs may reduce our mortgage banking revenues, which would negatively impact our non-interest income
5. 12Certain hedging strategies that we use to manage investment in mortgage loans held for sale and interest rate lock commitments may be ineffective to offset any adverse changes in the fair value of these assets due to changes in interest rates and market liquidity

Risks Related to Regulatory, Legal and Compliance

1. 13New or proposed FDIC guidelines on corporate governance and risk management standards may affect our profitability, capital adequacy, and reputation
2. 14New or changing tax, accounting, and regulatory rules and interpretations could significantly impact strategic initiatives, results of operations, cash flows, and financial condition
3. 15Climate change and related legislative and regulatory initiatives may materially affect the Company’s business and results of operations
4. 16Non-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 obtain regulatory approval of acquisitions
5. 17If 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
6. 18Our business and financial results could be impacted materially by adverse results in legal proceedings

Risks Related to Cybersecurity, Data and Fraud

1. 19We are subject to certain risks in connection with our use of technology
2. 20Our current and future uses of Artificial Intelligence (AI) and other emerging technologies may create additional risks
3. 21We are subject to certain risks in connection with our data management or aggregation
4. 22Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes

Risks Related to Our Business and Industry Generally

1. 23Ineffective liquidity management could adversely affect our financial results and condition
2. 24Benefits of strategic initiatives may not be realized
3. 25Development of new products and services may impose additional costs on us and may expose us to increased operational risk
4. 26We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects
5. 27We rely on other companies to provide key components of our business infrastructure
6. 28Any inaccurate assumptions in our analytical and forecasting models could cause us to miscalculate our projected revenue or losses, which could adversely affect us
7. 29Regulatory changes to Diversity, Equity and Inclusion (“DEI”) and Environmental, Social and Governance (“ESG”) practices may adversely impact our reputation, compliance costs, and business operations

Risks Related to Holding Our Common Stock

1. 30Our 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 exceedingly high
2. 31We rely on dividends from the Bank for substantially all our revenue at the holding company level
3. 32Our articles of incorporation contain a provision which could limit the voting rights of a holder of our common stock
4. 33Anti-takeover provisions could negatively affect our shareholders