Blue Ridge Bankshares (BRBS) risk factors, FY2024 10-K

Other

1. 01Regulatory and Operational
2. 02The Consent Order issued by the OCC requires the Bank to devote significant resources to enhance its policies, procedures, and practices, and places additional restrictions on the Bank’s operations, and the failure to comply with any provision of the Consent Order may cause the OCC to take further action against it
3. 03The Company’s fintech operations could further subject it to increased operational, compliance, and other risks that could adversely affect the Company’s business, financial condition, and results of operations
4. 04The Company operates in a highly regulated industry, and the laws and regulations that govern the Company’s operations, including changes in them or the Company’s failure to comply with them, and regulatory actions implementing such laws and regulations, may adversely affect the Company
5. 05Regulations issued by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance
6. 06Changes in accounting standards could impact reported earnings
7. 07Failure to maintain effective systems of internal and disclosure controls could have a material adverse effect on the Company’s results of operation and financial condition
8. 08The Company’s success depends on its management team and the unexpected loss of any of these personnel could adversely affect operations
9. 09The success of the Company’s strategy depends on its ability to identify and retain individuals with experience and relationships in its markets
10. 10The Company relies on other companies to provide key components of its business infrastructure
11. 11The soundness of other financial institutions could adversely affect the Company
12. 12The Company is subject to a variety of operational risks, including reputational, legal, and compliance risk, and the risk of fraud or theft by employees, directors, or outsiders
13. 13The Company’s operations may be adversely affected by cybersecurity risks
14. 14The Company’s ability to operate profitably may be dependent on its ability to integrate or introduce various technologies into its operations
15. 15Severe weather, natural disasters, acts of war or terrorism, geopolitical instability, public health issues, and other external events could significantly impact the Company's business
16. 16Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact the Company’s business
17. 17Reductions in the value of the Company’s deferred tax assets could adversely affect the Company’s results of operations
18. 18loss carryforward, may not be realizable and would require a valuation allowance. A valuation allowance against the deferred tax asset would materially increase the Company's income tax expense in the period the allowance is recognized and adversely affect the Company's financial condition and results of operation
19. 19The Company’s business is subject to interest rate risk and variations in interest rates and inadequate management of interest rate risk may negatively affect financial performance
20. 20Changes in economic conditions, especially in the areas in which the Company conducts operations, could materially and negatively affect its business
21. 21The Company may be adversely impacted by changes in market conditions
22. 22The Company’s mortgage banking revenue is cyclical and is sensitive to the level of interest rates, changes in economic conditions, decreased economic activity, and slowdowns in the housing market, any of which could adversely impact the Company’s profits
23. 23The Company’s business and earnings are impacted by governmental, fiscal, and monetary policy over which it has no control
24. 24The Company faces strong and growing competition from financial services companies and other companies that offer banking and other financial services, which could negatively affect the Company’s business
25. 25Consumers may increasingly decide not to use banks to complete their financial transactions, which would have a material adverse impact on the Company’s financial condition and operations
26. 26The Company’s common stock is thinly traded and a more liquid market for its common stock may not develop, which may limit the ability of shareholders to sell their shares and may increase price volatility
27. 27The Company’s credit standards and its on-going credit assessment processes might not protect it from significant credit losses
28. 28The Company's ACL may be insufficient and any increases in the ACL may have a material adverse effect on the Company’s financial condition and results of operations
29. 29Nonperforming assets take significant time to resolve and adversely affect the Company’s results of operations and financial condition
30. 30The Company’s concentration in loans secured by real estate may increase its future credit losses, which would negatively affect the Company’s financial results
31. 31The Company has a moderate concentration of credit exposure in commercial real estate and loans with this type of collateral are viewed as having a higher risk of default
32. 32in nonperforming loans. An increase in nonperforming loans could result in a loss of earnings from these loans, an increase in the provision for credit losses, and an increase in charge-offs, all of which could have a material adverse effect on the Company’s financial condition and results of operations
33. 33Shifts in workplace dynamics, including remote work, and a potentially smaller federal government workforce, may weaken office property and housing demand, pressure valuations, and increase credit risk for the Company
34. 34A portion of the Company’s loan portfolio consists of construction and land development loans, and a decline in real estate values and economic conditions would adversely affect the value of the collateral securing the loans and could have an adverse effect on the Company’s financial condition
35. 35The Company’s focus on lending to small to mid-sized community-based businesses may increase its credit risk
36. 36The Company’s results of operations are significantly affected by the ability of borrowers to repay their loans
37. 37Repricing risk in a higher interest rate environment may increase borrowing costs for commercial and industrial loans as well as commercial real estate loans, potentially straining borrowers' ability to repay and leading to higher credit risk for the Company
38. 38The Company depends on the accuracy and completeness of information about clients and counterparties, and the Company’s financial condition could be adversely affected if it relies on misleading or incorrect information
39. 39The Company is exposed to risk of environmental liabilities with respect to properties to which it takes title
40. 40The Company may not be able to successfully manage its long-term growth, which may adversely affect its results of operations and financial condition
41. 41The Company may not be able to generate acceptable levels of profitability in the future
42. 42The Company’s liquidity needs could adversely affect results of operations and financial condition
43. 43Regulatory capital standards require the Company and the Bank to maintain higher levels of capital, which could adversely affect the Company’s business, financial condition, and results of operations
44. 44Future issuances of the Company’s securities, including upon the exercise of the warrants issued by the Company, could adversely affect the market price of the common stock and could be dilutive
45. 45Sales of large amounts of the Company’s common stock, or the perception that sales could occur, may depress the Company’s stock price
46. 46Kenneth L. Lehman and Castle Creek are substantial holders of the Company’s securities
47. 47The Company and the Bank are subject to regulatory restrictions which limit their ability to pay dividends