Park National (PRK) risk factors, FY2025 10-K

Other

1. 01Inflation may have an adverse impact on our business and on our customers46% rewritten
2. 02Changes in economic and political conditions could adversely affect our earnings and capital through declines in deposits, quality of investment securities, loan demand, our borrowers’ ability to repay loans, and the value of the collateral securing our loans
3. 03Changes in interest rates could have a material adverse effect on our financial condition, results of operations and cash flows
4. 04Changes in the general economic conditions and real estate valuations in our primary market areas could adversely impact results of operations, financial condition and cash flows

Business Operations Risks

1. 05We are exposed to operational risk
2. 06Our business could be adversely affected by third-party service providers, data breaches and cyber-attacks
3. 07Regulatory guidance adopted by federal bank regulatory agencies addressing how banks select, engage and manage their third-party relationships could affect the circumstances and conditions under which we work with third-party service providers and the costs of managing such relationships
4. 08Failures or material breaches in security of our systems, or those of third-party service providers, may have a material adverse effect on our results of operations and financial condition and the price of our common shares
5. 09We extend credit to a variety of customers based on certain internal standards and the judgment of our loan officers. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses
6. 10Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties
7. 11Our credit risk may be exacerbated when collateral held by us to secure obligations to us cannot be realized upon by us or is liquidated at prices that are not sufficient to recover the full amount of the loan77% rewritten
8. 12Our allowance for credit losses may prove to be insufficient to absorb the expected, lifetime losses in our loan portfolio34% rewritten
9. 13We depend upon the accuracy and completeness of information about customers and counterparties
10. 14We may be required to repurchase loans we have sold or to indemnify loan purchasers under the terms of the sale agreements, which could adversely affect our liquidity, results of operations and financial condition
11. 15We are subject to environmental liability risk associated with lending activities
12. 16Noncompliance with the BSA and other anti-money laundering statutes and regulations could cause us to experience a material financial loss
13. 17For a more complete discussion of the BSA, the Patriot Act and the AMLA as well as OFAC, see the section captioned "Supervision and Regulation of Park and Park's Subsidiaries" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K
14. 18Another increasingly competitive factor in the financial services industry is the competition to attract and retain talented associates across many of our business and support areas. This competition leads to increased expenses in many business areas and can also cause us to not pursue certain business opportunities
15. 19We may not be able to adapt to technological change
16. 20We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed
17. 21Our ability to pay dividends on our common shares is limited
18. 22Derivative transactions may expose us to unexpected risk and potential losses
19. 23Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged39% rewritten
20. 24Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks
21. 25Deposit insurance premiums assessed on Park National Bank may increase and have a negative effect on Park’s results of operations29% rewritten
22. 26Changes in accounting standards, policies, estimates or procedures could impact our reported financial condition or results of operations
23. 27Our accounting estimates and risk management processes rely on analytical and forecasting models

Strategic Risks

1. 28Future expansion may adversely affect our financial condition and results of operations as well as dilute the interests of our shareholders and negatively affect the price of our common shares
2. 29Combining Park and First Citizens may be more difficult, costly or time-consuming than expected, we may fail to realize the anticipated benefits and cost savings of the mergerNew
3. 30Changes in retail distribution strategies and consumer behavior may adversely impact our investments in our financial service office premises and equipment and other assets and may lead to increased expenditures to change our retail distribution channel
4. 31If our total consolidated assets exceed $10.0 billion, we will become subject to additional regulations27% rewritten
5. 32We may be a defendant from time to time in a variety of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows
6. 33A default by another larger financial institution could adversely affect financial markets generally
7. 34We are at risk of increased losses from fraud
8. 35Changes in tax laws could adversely affect our performance
9. 36Adverse changes in the financial markets may adversely impact our results of operations77% rewritten