Ohio Valley Banc (OVBC) risk factors, FY2025 10-K

Other

1. 01Cautionary Statement Regarding Forward-Looking Information

Risks Related to Economic, Political and Market Conditions

1. 02Economic, political and market risks could adversely affect our earnings and capital through declines in loan demand, quality of investment securities, our borrowers’ ability to repay loans, the value of the collateral securing our loans, and deposits
2. 03Our earnings are significantly affected by the fiscal and monetary policies of the United States Government and its agencies, sometimes adversely
3. 04Changes in interest rates could have a material adverse effect on our financial condition and results of operations
4. 05Adverse changes in the financial markets may adversely impact our results of operations
5. 06A default by another larger financial institution could adversely affect financial markets generally

Risks Related to Our Business

1. 07We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively
2. 08Our small to medium-sized business target market may have fewer financial resources to weather a downturn in the economy32% rewritten
3. 09Our business strategy includes growth plans. Our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
4. 10the risk of loss of key employees and customers
5. 11Failure to integrate or adopt new technology may undermine our ability to meet customer demands, leading to adverse effects on our financial condition and results of operations
6. 12Periodic regulatory reviews may affect our operations and financial condition64% rewritten
7. 13Our exposure to credit risk could adversely affect our earnings and financial condition
8. 14We may be required to repurchase loans we have sold or indemnify loan purchasers under the terms of the sale agreements, which could adversely affect our liquidity, results of operations and financial condition
9. 15If our actual loan losses exceed our allowance for credit losses, our net income will decrease
10. 16Failures of, or material breaches in security of, our systems or those of third-party service providers may have a material adverse effect on our business
11. 17Our ability to pay cash dividends is limited, and we may be unable to pay cash dividends in the future even if we would like to do so
12. 18The loss of key members of our senior management team could adversely affect our business
13. 19Loss of key employees may disrupt relationships with certain customers
14. 20If we foreclose on collateral property and own the underlying real estate, we may be subject to the increased costs associated with the ownership of real property, resulting in reduced revenue
15. 21A limited trading market exists for our common shares, which could lead to price volatility
16. 22Liquidity risk could impair our ability to fund operations and have an adverse impact on our earnings and financial condition27% rewritten

Risks Related to Legal, Regulatory and Accounting Changes

1. 23New laws and increased regulatory oversight may significantly affect our business, financial condition and results of operations
2. 24Changes in accounting standards, policies, estimates or procedures could impact our reported financial condition or results of operations
3. 25We may be the subject of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows
4. 26We are at risk of increased losses from fraud