Hancock Whitney (HWC) risk factors, FY2024 10-K

Other

1. 01We face a number of material risks and uncertainties in connection with our operations. Our business, results of operations and financial condition could be materially adversely affected by the factors described below

Risks Related to Economic and Market Conditions

1. 02Current uncertain economic conditions pose challenges, and could adversely affect our business, financial condition and results of operations
2. 03We may be vulnerable to certain sectors of the economy and to economic conditions both generally and locally across the specific markets in which we operate
3. 04We are subject to lending concentration risk
4. 05Certain changes in interest rates, loan origination, inflation, or the financial markets could affect our results of operations, demand for our products and our ability to deliver products efficiently
5. 06An underperforming stock market could adversely affect wealth management fees associated with managed securities portfolios and could also reduce brokerage transactions, therefore reducing investment brokerage revenues
6. 07Changes in the policies of monetary authorities and other government action could adversely affect our profitability
7. 08Changes in U.S. trade policies and other factors beyond the Company's control, including the imposition of tariffs and retaliatory tariffs, may adversely impact its business, financial condition and results of operations
8. 09The financial soundness and stability of other financial institutions could adversely affect us
9. 10Tax law and regulatory changes could adversely affect our financial condition and results of operations
10. 11Congress and financial regulators have and may continue to implement measures designed to stabilize financial markets, including in reaction to inflation. The overall impact of these efforts on the financial markets may be ineffective and could adversely affect our business
11. 12We may need to rely on the financial markets to provide additional capital
12. 13Our investments in certain tax-advantaged projects may not generate returns as anticipated or at all and may have an adverse impact on our results of operations

Risks Related to the Financial Services Industry

1. 14We must maintain adequate sources of funding and liquidity
2. 15Greater loan losses than expected may adversely affect our earnings
3. 16We depend on the accuracy and completeness of information about clients and counterparties
4. 17We are subject to a variety of risks in connection with the sale of any loans

Risks Related to Our Operations

1. 18A failure in our operational systems or infrastructure, or those of third parties, could impair our liquidity, disrupt our businesses, result in the unauthorized disclosure of confidential information, damage our reputation and cause financial losses
2. 19We depend on our ability to process, record and monitor a large number of client transactions and to communicate with clients and other institutions on a continuous basis. Our clients depend on us for access to their assets and account information
3. 20We rely on other companies to provide key components of our business infrastructure
4. 21The development and use of artificial intelligence (AI) presents risks and challenges that may adversely impact our business
5. 22We, or third parties from whom we license critical information technology systems, have in the past been, and in the future may be alleged to have infringed upon intellectual property rights owned by others
6. 23Employee misconduct could expose us to significant legal liability and reputational harm
7. 24Our business may be adversely affected by fraud
8. 25The value of our goodwill and other intangible assets may decline in the future

Risks Related to Our Business Strategy

1. 26We are subject to industry competition which may have an impact upon our success
2. 27The implementation of new lines of business or new products and services may subject us to additional risk
3. 28We may not realize the expected benefits from our efficiency and growth initiatives, which could negatively impact our future profitability
4. 29Our future growth and financial performance may be negatively affected if we are unable to successfully execute our growth plans, which may include acquisitions and de novo branching
5. 30Changes in retail distribution strategies and consumer behavior may adversely impact our investments in bank premises, equipment, technology and other assets and may lead to increased expenditures to change our retail distribution channel

Risks Related to the Legal and Regulatory Environment

1. 31We are subject to regulation by various federal and state entities
2. 32For additional information regarding laws and regulations to which our business is subject, see “Supervision and Regulation.”
3. 33We and other financial institutions have been the subject of litigation, investigations and other proceedings which could result in legal liability and damage to our reputation

Risks Related to Our Common Stock

1. 34Future issuances of equity securities could dilute the interests of holders of our common stock, and our common stock ranks junior to indebtedness
2. 35We are a bank holding company that conducts substantially all of our operations through our subsidiary Bank. As a result, our ability to make dividend payments on our common stock will depend primarily upon the receipt of dividends and other distributions from the Bank
3. 36Our articles of incorporation and bylaws contain provisions that make it more difficult for a third party to acquire us (even if doing so might be beneficial to our shareholders) and for holders of our securities to receive any related takeover premium for their securities
4. 37Shares of our common stock are not insured deposits and may lose value
5. 38We must attract and retain skilled personnel
6. 39Natural and man-made disasters could affect our ability to operate
7. 40Societal, legislative and regulatory responses to environmental, social and governance (ESG) concerns, and anti ESG concerns, as well as diversity, equity, and inclusion (DEI) and anti-DEI concerns, could adversely affect our business and performance, including indirectly through impacts on our customers
8. 41We are exposed to reputational risk
9. 42Changes in accounting policies or in accounting standards could materially affect how we report our financial condition and results of operations