FNB (FNB) risk factors, FY2024 10-K

Other

1. 01Our results of operations are significantly affected by the ability of our borrowers to repay their loans
2. 02Our mortgage banking profitability could be significantly reduced if we are not able to originate and resell a high volume of mortgage loans
3. 03Our financial condition and results of operations could be adversely affected if we must further increase our provision for credit losses or if our ACL is not sufficient to absorb actual losses
4. 04Changes in interest rates could reduce the value of our AFS securities holdings which would increase our accumulated other comprehensive loss and thereby negatively impact shareholders’ equity
5. 05Liquidity risk could impair our ability to fund operations and meet our obligations as they become due
6. 06The proportion of our deposit account balances that exceed FDIC insurance limits may expose FNBPA to enhanced liquidity risk in times of financial distress
7. 07We are dependent on dividends from our subsidiaries to meet our financial obligations and pay dividends to shareholders
8. 08Regulatory authorities may restrict our ability to pay dividends on, and make repurchases of, our common stock
9. 09We have outstanding securities senior to common stock which could limit our ability to pay dividends on our common stock
10. 10Our growth may require us to raise additional capital in the future, but that capital may not be available when it is needed
11. 11Our key assets include our brand and reputation and our business may be affected by how we are perceived by the public
12. 12Increasing, complex, evolving and conflicting regulatory, stakeholder, and other third-party expectations on ESG and DEI matters could adversely affect our reputation, our access to capital and the market price of our securities
13. 13Our failure to continue to recruit and retain qualified banking professionals could adversely affect our ability to compete successfully and affect our profitability
14. 14The financial soundness of other financial institutions may adversely affect FNB, FNBPA and other affiliates
15. 15Changes and instability in economic conditions and financial markets, including a contraction of economic activity, could adversely impact our business, results of operations and financial condition
16. 16Our business could be adversely affected by difficult economic conditions in the regions in which we operate
17. 17Our day-to-day operations rely heavily on the proper functioning of products, information systems and services provided by third-party, external vendors
18. 18There may be risks resulting from the extensive use of models in our business
19. 19Hurricanes, tornadoes, excessive rainfall, droughts or other adverse weather events, and public health emergencies could negatively affect the local economies in the markets of our footprint, or disrupt our operations in those markets, which could have an adverse effect on our business or results of operations
20. 20We grow our business in part by acquiring other banks and financial services businesses from time to time. Acquisitions present a number of risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses with us after closing
21. 21We could be adversely affected by changes in the law, especially changes in the regulation of the banking industry
22. 22We are subject to supervision and examination by U.S. government authorities and may become subject to investigations, enforcement actions, fines, and other adverse effects
23. 23Fiscal challenges facing the U.S. government could negatively impact financial markets which in turn could have an adverse effect on our financial position or results of operations
24. 24Our financial condition and results of operations may be adversely affected by changes in accounting policies, standards and interpretations
25. 25Our overdraft protection programs and corresponding revenue may be impacted by new federal regulatory requirements or scrutiny or industry trends regarding such practices
26. 26Certain provisions of our Articles of Incorporation and By-laws and Pennsylvania law may discourage takeovers
27. 27Volatility in the banking sector, triggered by the failures of SIVB, SBNY and FRC, has resulted in agency rulemaking activities and changes in agency policies and priorities that could subject FNB and FNBPA to enhanced government regulation and supervision
28. 28We have experienced increases in our FDIC insurance assessments due to the bank failures that occurred in 2023
29. 29Adverse changes to our credit ratings could limit our access to funding and increase our borrowing costs
30. 30We are subject to the CRA and fair lending laws, and failure to comply with these laws could lead to material penalties
31. 31The fair lending laws prohibit discrimination in the provision of banking services on the basis of prohibited factors including, among others, race, color, national origin, gender, and religion. The enforcement of these laws has been an increasing focus for the CFPB and other regulators
32. 32We are subject to legislative tax rate changes that could increase our effective tax rates. Depending on enactment dates, these law changes may be retroactive to previous periods which could negatively affect our current and future financial performance
33. 33Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business
34. 34Significant changes to the size, structure, powers and operations of the federal government may cause economic disruptions that could adversely impact our business, results of operations and financial condition
35. 35If we are not able to continue our historical levels of growth, we may not be able to maintain our historical revenue trends