First Interstate Bancsystem (FIBK) risk factors, FY2024 10-K

Regulatory and Compliance Risks

1. 01New governmental regulations and/or changes in existing governmental regulations, or in the way such regulations are interpreted or enforced, could have a material adverse effect on the Company
2. 02Negative developments in the banking industry could result in increased regulatory scrutiny
3. 03Tax legislative initiatives or assessments could adversely affect our results of operations and financial condition
4. 04We may be subject to more stringent capital requirements in the future, the impact of which could have a material risk to our operations
5. 05Changes in accounting standards could materially negatively impact our financial statements
6. 06Any failure to comply with laws and regulations, including the Community Reinvestment Act (CRA) and fair lending laws, could lead to material penalties
7. 07Federal deposit insurance premiums could increase further in the future
8. 08Our loans held for investment portfolio are concentrated in commercial real estate and commercial business loans. As of December 31, 2024, we had $12.1 billion of commercial loans, including $9.3 billion of commercial real estate loans, representing approximately 68.0% of our loans held for investment portfolio
9. 09A decline in economic conditions could reduce demand for our products and services and negatively impact the credit quality of loans, which could have an adverse effect on our results of operations
10. 10Deflationary pressures, while possibly lowering our operating costs, could also have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our business, financial condition, and results of operations
11. 11If we experience loan credit losses in excess of estimated amounts, our earnings could be adversely affected
12. 12United States trade policies and other factors beyond the Company’s control, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations
13. 13The soundness of other financial institutions could adversely affect the Company
14. 14We are subject to liquidity risks which could impair our cash flows and adversely affect the Company
15. 15Loss of deposits or a change in deposit mix could increase the Company’s funding costs and negatively affect the Company’s operations
16. 16Our Liquidity could be impacted by an inability to access funding, by an unforeseen outflow of cash, or by the inability to monetize liquid assets

Market Risks

1. 17Changes in interest rates may have an adverse effect on demand for our products and services and on our profitability
2. 18Changes in interest rates may have an adverse effect on the value of our investment securities

Operational Risks

1. 19Privacy, information security, and data protection laws, rules, and regulations could affect or limit how we collect and use personal information, increase our compliance and technology costs, create litigation and regulatory enforcement risks, and adversely affect our business opportunities
2. 20Our goodwill and other intangible assets may become impaired, which may adversely impact our results of operations and financial condition
3. 21The Company relies on other companies to provide certain key components of its business infrastructure
4. 22Our reputation is very important to our ability to maintain, attract and retain client relationships and if our reputation were impaired, it could have an adverse effect on the Company
5. 23The results of mainstream media and social media contagion and speculation could impact the banking system and have an adverse effect on us
6. 24We are dependent upon the services of our management team and directors and if the services of any of them were to become unavailable, it could have an adverse effect on the Company
7. 25We may not be able to attract and retain qualified employees to operate our business effectively, which could have an adverse effect on our business
8. 26Costs associated with repossessed properties, including potential environmental remediation, may adversely impact our results of operations, cash flows, and financial condition
9. 27If we fail to maintain effective operational processes, policies and procedures, and internal control over financial reporting, our ability to accurately and timely report our financial results may be impacted, which could result in a loss of investor confidence and adversely impact our stock price and our business
10. 28We may not effectively implement technology-facilitated products and services or be successful in marketing these products and services to our clients, which could negatively impact our business
11. 29The development and use of AI by us or others, or in our inability to effectively and timely implement its use, may adversely affect the Company

Strategic Risks

1. 30Acquisitions, mergers, strategic partnerships, divestitures, and other transactions introduce a broad range of anticipated and unanticipated risks, which may prevent us from achieving the expected benefits from these transactions, investments, or relationships
2. 31The Company may experience significant competition from new or existing competitors, which may reduce its client base or cause it to adjust prices for its products and services in order to maintain market share
3. 32Investing in technology, and the inability or failure to integrate technologies into the Company’s operations may affect our business and earnings negatively
4. 33We may incur significant costs related to future acquisitions by merger and subsequent integration activities

Common Stock Risks

1. 34Volatility in the price and volume of our common stock may be unfavorable
2. 35“Anti-takeover” provisions and the regulations to which we are subject may also make it more difficult for a third party to acquire control of us, even if the change in control could be deemed beneficial to stockholders
3. 36Our dividend policy, or our ability to pay dividends, may change
4. 37An investment in our common stock is not an insured deposit
5. 38Future equity issuances could result in dilution, which could cause our common stock price to decline
6. 39The common stock is equity and is subordinate to our existing and future indebtedness
7. 40Our business is subject to the risks of certain global conditions, earthquakes, volcanoes, tsunamis, tornados, floods, fires, drought, and other natural catastrophic events
8. 41Climate change manifesting as physical or transition risks could adversely affect our operations, businesses and customers