Fulton Financial (FULT) risk factors, FY2024 10-K

GENERAL ECONOMIC AND MARKET CONDITIONS RISKS

1. 01Difficult conditions in the economy and the financial markets may materially adversely affect our business, financial condition and results of operations
2. 02We cannot predict or control changes in interest rates. We are affected by fiscal and monetary policies of the federal government, including those of the Federal Reserve Board, many of which affect interest rates charged on loans and paid on deposits
3. 03Changes in interest rates can affect demand for our products and services
4. 04Price fluctuations in securities markets, as well as other market events, such as a disruption in credit and other markets and the abnormal functioning of markets for securities, could have an impact on our results of operations
5. 05Our loan portfolio composition subjects us to credit risk
6. 06A significant proportion of our loan portfolio consists of commercial mortgage loans that may pose increased credit risk
7. 07Changes in interest rates or disruption in liquidity markets may adversely affect our sources of funding
8. 08We may need to raise additional capital in the future and such capital may not be available when needed or at all
9. 09We are subject to capital adequacy standards, and a failure to meet these standards could adversely affect our financial condition

RISKS RELATED TO RISK MANAGEMENT

1. 10We are exposed to many types of operational and other risks, and our framework for managing risks may not be effective in mitigating risk
2. 11disruption of service to customers and to financial loss or liability. We are also exposed to the risk that our business continuity and data security systems prove to be inadequate
3. 12Loss of, or failure to adequately safeguard, confidential or proprietary information may adversely affect our operations, net income or reputation
4. 13to policy terms and conditions, cover certain aspects of cyber risks, our insurance coverage may be inapplicable or otherwise insufficient to cover any or all losses
5. 14We are subject to a variety of risks in connection with the origination and sale of loans
6. 15Our operational risks include risks associated with third-party vendors and other financial institutions
7. 16Climate change may materially adversely affect our business and results of operations
8. 17Our consolidated financial statements are based in part on assumptions and estimates which, if incorrect, could cause unexpected losses in the future
9. 18There are risks resulting from the extensive use of models in our business

LEGAL AND REGULATORY COMPLIANCE RISKS

1. 19We are subject to extensive regulation and supervision and may be adversely affected by changes in, or any failure to comply with laws and regulations
2. 20From time to time we may be the subject of litigation and governmental or administrative proceedings. Adverse outcomes of any such litigation or proceedings may have a material adverse impact on our business, financial condition and results of operations as well as our reputation
3. 21Changes in U.S. federal, state or local tax laws may negatively impact our financial performance
4. 22Regulations relating to privacy, information security, and data protection could increase our costs, affect or limit how we collect and use personal information, and adversely affect our business opportunities

RISKS RELATED TO STRATEGIC GROWTH

1. 23We face a variety of risks in connection with completed and potential acquisitions
2. 24On September 17, 2024, the FDIC, the OCC and the DOJ, each announced new rules and policy statements impacting their bank merger review processes
3. 25In addition, the DOJ withdrew from its 1995 Bank Merger Guidelines and announced that it would consider bank mergers under its 2023 Merger Guidelines, which includes a brief bank merger addendum
4. 26Acquisitions may dilute shareholder value
5. 27If the goodwill that we have recorded or will record in the future in connection with our acquisitions becomes impaired, it could have a negative impact on our results of operations
6. 28We may not be able to achieve our growth plans

RISKS RELATED TO COMPETITION

1. 29Our ability to attract and retain qualified employees is critical to our success
2. 30We face strong competition from financial services companies and other companies that offer banking services, which could materially and adversely affect our business
3. 31Failure to keep pace with technological change could adversely affect our business

RISKS RELATED TO AN INVESTMENT IN OUR SECURITIES

1. 32We are a bank holding company and rely on dividends and other payments from our subsidiaries for substantially all of our revenue and our ability to make dividend payments, distributions and other payments
2. 33We may reduce or discontinue the payment of dividends on, or repurchases of, our common stock