German American Bancorp (GABC) risk factors, FY2024 10-K

Risks Related to Our Business and Financial Strategies

1. 01Economic weakness in our geographic markets could negatively affect us
2. 02If our actual loan losses exceed our estimates, our earnings and financial condition will be impacted
3. 03Our allowance for credit losses may not be adequate to cover actual losses
4. 04We could be adversely affected by changes in interest rates
5. 05The Company’s business, results of operations and financial condition may be adversely affected by epidemics, pandemics or other infectious disease outbreaks
6. 06The banking and financial services business in our markets is highly competitive
7. 07The manner in which we report our financial condition and results of operations may be affected by accounting changes
8. 08We may be adversely affected by changes in tax laws
9. 09Liquidity risk could impair our ability to fund operations and jeopardize our financial condition
10. 10The value of securities in our investment securities portfolio may be negatively affected by market interest rates or disruptions in securities markets, and could affect our liquidity
11. 11The soundness of other financial institutions could adversely affect us
12. 12We are dependent on key personnel and the loss of one or more of those key personnel could harm our business
13. 13Our controls and procedures may fail or be circumvented
14. 14Our methods of reducing risk exposure may not be effective
15. 15We are exposed to risk of environmental liabilities with respect to properties to which we take title
16. 16Climate change and related legislative and regulatory initiatives may materially affect the Company’s business and results of operations
17. 17Expectations from customers, regulators, investors, and other stakeholders with respect to the Company’s environmental, social and governance practices could negatively impact our reputation, ability to do business with certain partners, access to capital, and our stock price

Risks Related to the Financial Services Industry

1. 18We operate in a highly regulated environment and changes in laws and regulations to which we are subject may adversely affect our results of operations
2. 19We are required to maintain certain minimum amounts and types of capital and may be subject to more stringent capital requirements in the future. A failure to meet applicable capital requirements could have an adverse effect on us
3. 20Our FDIC insurance premiums may increase, and special assessments could be made, which may have a materially adverse effect on our results of operations and financial condition

Risks Related to Our Operations

1. 21We face significant operational risks due to the high volume and the high dollar value nature of transactions we process
2. 22Unauthorized disclosure of sensitive or confidential client or customer information, whether through a cyber-attack, other breach of our computer systems or otherwise, could harm our business
3. 23Our information systems may experience an interruption or breach in security
4. 24We are dependent upon third parties for certain information system, data management and processing services and to provide key components of our business infrastructure
5. 25Third party vendors provide key components of our business infrastructure such as internet connections, network access and core application processing

Risks Relating to Expansion of Our Businesses by Acquisition

1. 26Any acquisitions of banks, bank branches, or loans or other financial service assets pose risks to us
2. 27We may not be successful in overcoming these risks or any other problems encountered in connection with mergers or acquisitions
3. 28We may incur substantial costs to expand by acquisition, and such acquisitions may not result in the levels of profits we seek

Risks Related to Our Common Stock

1. 29Our common stock price may fluctuate significantly, and this may make it difficult for you to resell our common stock at times or at prices acceptable to you