Meridian (MRBK) risk factors, FY2025 10-K

Risks Related to Our Business / Operations

1. 01Our business and operations may be materially adversely affected by national and local market economic conditions
2. 02The value of the financial instruments we own may decline in the future
3. 03Our small business customers may lack the resources to weather a downturn in the economy
4. 04We may be adversely affected by risks associated with completed and potential acquisitions
5. 05Liquidity risks could affect operations and jeopardize our business, financial condition and results of operations
6. 06Loss of deposits could increase our funding costs
7. 07We may need to raise additional capital in the future, and such capital may not be available when needed or at all
8. 08There can be no assurance that we will be able to continue to grow and to be profitable in future periods, or, if profitable, that our overall earnings will remain consistent or increase in the future. Our strategy is focused on organic growth, supplemented by opportunistic acquisitions
9. 09The occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents could have a material adverse effect on our business, financial condition or results of operations
10. 10We depend on information technology and telecommunications systems of third parties, and any systems failures, interruptions or data breaches involving these systems could adversely affect our operations and financial condition
11. 11We continually encounter technological change
12. 12intelligence (AI) could adversely affect our business, results of operations, and financial condition
13. 13Any of the foregoing, together with developing guidance and/or decisions in this area, may affect our use of AI and our ability to provide
14. 14We may not be able to attract and retain key personnel and other skilled employees
15. 15New lines of business, products, product enhancements or services may subject us to additional risks
16. 16We operate in a highly competitive and changing industry and market area and compete with both banks and non-banks
17. 17Our ability to maintain, attract and retain customer relationships is highly dependent on our reputation
18. 18Accounting standards periodically change and the application of our accounting policies and methods may require management to make estimates about matters that are uncertain
19. 19The Corporation’s controls and procedures may fail or be circumvented

Risks Related to Interest Rates

1. 20We must effectively manage interest rate risk73% rewritten
2. 21The impact of interest rates on our mortgage banking business can have a significant impact on revenues
3. 22Changes in interest rates could also reduce the value of our residential mortgage-related securities and MSRs, which could negatively affect our earnings

Risks Related to Lending Activities

1. 23We must effectively manage the credit risks of our loan portfolio
2. 24Nonperforming assets take significant time to resolve and adversely affect the Corporation's results of operations and financial condition
3. 25Our allowance for credit losses may be insufficient, and an increase in the allowance would reduce earnings34% rewritten
4. 26Our business, profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money, securities or other assets or whose securities or obligations we hold
5. 27Our mortgage banking business may not provide us with significant non-interest incomeNew
6. 28Our SBA lending program is dependent upon the federal government and we face specific risks associated with originating SBA loans
7. 29Our loan servicing rights could become impaired, which may require us to take non-cash charges
8. 30We may be required to repurchase mortgage loans or indemnify buyers against losses in some circumstances, which could harm liquidity, results of operations and financial condition
9. 31We are subject to environmental liability risk associated with our lending activities and with the properties we own
10. 32Our business is significantly dependent on the real estate markets in which we operate, as a large percentage of our loan portfolio is secured by real estate or mortgage loans originated for sale22% rewritten

Risks Related to our Wealth Management Business

1. 33Revenues and profitability from our wealth management business may be adversely affected by any reduction in assets under management, which could reduce fees earned
2. 34The wealth management business is subject to extensive regulation, supervision and examination by regulators, and any enforcement action or adverse changes in the laws or regulations governing our business could decrease our revenues and profitability
3. 35We may not be able to attract and retain wealth management clients

Risks Related to Regulation

1. 36Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations
2. 37We cannot predict the effect of legislative and regulatory initiatives, which could increase our costs of doing business and adversely affect our results of operations and financial condition
3. 38We are subject to capital adequacy requirements and may be subject to more stringent capital requirements
4. 39Our stock price, like many of our peers, may be volatile, and you could lose part or all of your investment as a result
5. 40Certain banking laws and certain provisions of our articles of incorporation may have an anti-takeover effect
6. 41Natural disasters, acts of war or terrorism, outbreaks or escalations of hostilities and other external events could negatively impact the Corporation