Origin Bancorp (OBK) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Current uncertain economic conditions pose challenges, and could adversely affect our business, financial condition and results of operations
2. 02Changes in interest rates could have an adverse impact on our results of operations and financial condition
3. 03Inflationary pressures and rising prices may affect our results of operations and financial condition
4. 04Changes to monetary policy by the Federal Reserve could adversely impact our results of operations
5. 05Unstable global economic conditions may have serious adverse consequences on our business, financial condition, and operations
6. 06We may not be able to adequately measure and limit our credit risk, which could lead to unexpected losses
7. 07Our allowance for loan credit losses may prove to be insufficient to absorb losses inherent in our loan portfolio and our earnings could decrease
8. 08Because a significant portion of our loan portfolio is comprised of real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing certain of our loans and result in loan and other losses
9. 09The geographic concentration of our markets in Texas, Louisiana, Mississippi, and most recently into Alabama and Florida makes us more sensitive than our more geographically diversified competitors to adverse changes in the local economy
10. 10Our commercial real estate loan portfolio exposes us to risks that may be greater than the risks related to our other mortgage loans
11. 11A large portion of our loan portfolio is comprised of commercial loans secured by receivables, inventory, equipment or other commercial collateral, the deterioration in value of which could expose us to credit losses
12. 12Our loan portfolio contains a number of large loans to certain borrowers, and deterioration in the financial condition of these borrowers could have a significant adverse impact on our asset quality
13. 13If we fail to establish and maintain effective internal controls over financial reporting, our financial statements could contain a material misstatement, which could adversely affect our business and financial condition
14. 14We rely heavily on our executive management team and other key employees, and the loss of any of these individuals could adversely impact our business or reputation
15. 15Unauthorized access, cyber-crime and other threats to data security may require significant resources, harm our reputation, and otherwise cause harm to our business
16. 16Our business is susceptible to fraud
17. 17Our ability to attract and retain profitable bankers is critical to the success of our business strategy
18. 18We will be subject to heightened regulatory requirements if our total assets exceed $10 billion as of December 31 of any calendar year
19. 19We will become subject to reduced debit interchange income and overdraft income and could face related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year
20. 20We may have exposure to tax liabilities that are larger than we anticipate
21. 21The small to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans
22. 22We face significant competition to attract and retain customers, which could impair our growth, decrease our profitability or result in loss of market share
23. 23Our ability to maintain our reputation is critical to the success of our business
24. 24Our business has grown rapidly, and we may not be able to maintain our historical rate of growth, which could have an adverse effect on our ability to successfully implement our business strategy
25. 25We may not be able to manage the risks associated with our anticipated growth and expansion through de novo branching
26. 26Our financial condition and results of operations may be adversely affected by changes in accounting policies, standards and interpretations
27. 27We may pursue acquisitions in the future, which could expose us to financial, execution and operational risks
28. 28The markets in which we operate are susceptible to hurricanes and other natural disasters, adverse weather and climate change effects, which could result in a disruption of our operations and increases in loan losses
29. 29We have a continuing need for technological change, and we may not have the resources to effectively implement new technology, or we may experience operational challenges when implementing new technology
30. 30New lines of business, products, product enhancements or services may subject us to additional risks
31. 31We are dependent on the use of data and modeling in our management’s decision-making and faulty data, or modeling approaches could negatively impact our decision-making ability or possibly subject us to regulatory scrutiny in the future
32. 32We may be required to repurchase mortgage loans in some circumstances, which could diminish our liquidity
33. 33A lack of liquidity could impair our ability to fund operations
34. 34We may need to raise additional capital in the future, and if we fail to maintain sufficient capital, we may not be able to maintain regulatory compliance
35. 35By engaging in derivative transactions, we are exposed to additional credit and market risk
36. 36The fair value of our investment securities can fluctuate due to factors outside of our control
37. 37We rely on third parties to provide key components of our business infrastructure, and a failure of these parties to perform for any reason could disrupt our operations
38. 38We are subject to environmental liability risk associated with our lending activities
39. 39We may be subject to claims and litigation pertaining to intellectual property
40. 40We 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
41. 41We may be adversely affected by the soundness of other financial institutions

Risks Related to the Regulation of Our Industry

1. 42We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or changes in them, or our failure to comply with them, could subject us to regulatory action or penalties
2. 43We are subject to stringent capital requirements, which may result in lower returns on equity, require us to raise additional capital, limit growth opportunities or result in regulatory restrictions
3. 44We face a risk of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations
4. 45Failure by Origin Bank to perform satisfactorily on its Community Reinvestment Act (“CRA”) evaluations could make it more difficult for our business to grow
5. 46Increases in Federal Deposit Insurance Corporation insurance premiums could adversely affect our earnings and results of operations

Risks Related to Investing in Our Common Stock

1. 47The market price of our common stock may be subject to substantial fluctuations, which may make it difficult for you to sell your shares at the volume, prices and times desired
2. 48Our dividend policy may change without notice, our future ability to pay dividends is subject to restrictions, and we may not pay dividends in the future. We are dependent on dividends from the Bank to meet our financial obligations and pay dividends to our stockholders
3. 49An investment in our common stock is not an insured deposit and is subject to risk of loss