First US Bancshares (FUSB) risk factors, FY2024 10-K

Risks Related to Credit and Liquidity

1. 01If loan losses are greater than anticipated, our earnings may be adversely affected
2. 02CRE lending may expose us to increased lending risks
3. 03Weakness in the residential real estate markets could adversely affect our performance
4. 04Our business is subject to liquidity risk, which could disrupt our ability to meet financial obligations
5. 05Liquidity risks could affect our operations and jeopardize our financial condition

Risks Related to Our Market and Industry

1. 06Our business and operations may be materially adversely affected by national and local market economic conditions
2. 07Significant changes to the size, structure, powers and operations of the federal government may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition
3. 08The banking industry is highly competitive, which could result in loss of market share and adversely affect our business
4. 09Rapid and significant changes in market interest rates may adversely affect our performance
5. 10The performance of our investment portfolio is subject to fluctuations due to changes in interest rates and market conditions
6. 11Fiscal 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
7. 12Any government shutdown could adversely affect the U.S. and global economy and our liquidity, financial condition and earnings
8. 13Changes in the policies of monetary authorities and other government action could adversely affect our profitability

Risks Related to Privacy and Technology

1. 14Technological changes in the banking and financial services industries may negatively impact our results of operations and our ability to compete
2. 15Our information systems may experience a failure or interruption
3. 16We depend on outside third parties for the processing and handling of our records and data, which exposes us to additional risk for cybersecurity breaches and regulatory action
4. 17The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact our business

Risks Related to Legal, Reputational and Compliance Matters

1. 18We are subject to extensive governmental regulation, and the costs of complying with such regulation could have an adverse impact on our operations
2. 19We are subject to laws regarding the privacy, information security and protection of personal information, and any violation of these laws or unauthorized disclosure of such information could damage our reputation and otherwise adversely affect our operations and financial condition
3. 20Our FDIC deposit insurance premiums and assessments may increase and thereby adversely affect our financial results
4. 21We face a risk of noncompliance and enforcement action under the Bank Secrecy Act and other anti-money laundering statutes and regulations
5. 22We are subject to numerous laws designed to protect consumers, including the CRA and fair lending laws, and a failure to comply with these laws could lead to a wide variety of sanctions
6. 23Bancshares’ liquidity is subject to various regulatory restrictions applicable to its subsidiaries
7. 24The internal controls that we have implemented to mitigate risks inherent to the business of banking might fail or be circumvented
8. 25Changes in tax laws and interpretations and tax challenges may adversely affect our financial results
9. 26modified through legislation, administration or judicial changes or interpretations. These changes or interpretations could adversely affect us, either directly or as a result of the effects on our customers
10. 27Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact the Company’s business

Risks Related to Strategic Planning

1. 28We intend to engage in acquisitions of other banking institutions from time to time. These acquisitions may not produce revenue or earnings enhancements or cost savings at levels, or within time frames, originally anticipated and may result in unforeseen integration difficulties
2. 29Depending on the condition of any institutions or assets that are acquired, any acquisition may, at least in the near term, materially adversely affect our capital and earnings and, if not successfully integrated following the acquisition, may continue to have such effects
3. 30We may not be able to maintain consistent growth, earnings or profitability

General Risks

1. 31We cannot guarantee that we will pay dividends in the future
2. 32Extreme weather could cause a disruption in our operations, which could have an adverse impact on our profitability
3. 33Securities issued by us, including our common stock, are not insured
4. 34Future issuances of additional securities by us could result in dilution of your ownership
5. 35Our common stock price could be volatile, which could result in losses for individual shareholders
6. 36Our performance and results of operations depend in part on the soundness of other financial institutions
7. 37We depend on the services of our management team and board of directors, and the unexpected loss of key officers or directors may adversely affect our operations