United Bankshares (UBSI) risk factors, FY2024 10-K

REGULATORY AND LITIGATION RISKS

1. 01United is subject to extensive government regulation and supervision
2. 02United is subject to regulatory capital requirements and failure to comply with these standards may impact dividend payments, equity repurchases and executive compensation
3. 03United’s earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies
4. 04United 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
5. 05There are no assurances as to adequacy of the allowance for credit losses
6. 06United is subject to credit risk in its loan portfolio

OPERATIONAL RISKS

1. 07United’s information systems may experience an interruption or breach in security
2. 08Unauthorized disclosure of sensitive or confidential client or customer information, whether through a cyber-attack, other breach of our computer systems or otherwise, could severely harm our business
3. 09United’s business continuity plans or data security systems could prove to be inadequate, resulting in a material interruption in, or disruption to, its business and a negative impact on results of operations
4. 10Our growth-oriented business strategy could be adversely affected if we are not able to attract and retain skilled employees or if we lose the services of our senior management team
5. 11United’s vendors could fail to fulfill their contractual obligations, resulting in a material interruption in, or disruption to, its business and a negative impact on results of operations
6. 12Agreements United may negotiate in the future may commit it to certain minimum spending obligations. It is possible United will not be able to create the market demand to meet such obligations
7. 13United may not be able to control or adequately monitor the quality of services it receives from its vendors. Poor quality services could damage United’s reputation with its customers

MARKET, LIQUIDITY AND INTEREST RATE RISKS

1. 14Changes in economic and political conditions could adversely affect our earnings, as our borrowers’ ability to repay loans and the value of the collateral securing our loans decline
2. 15The value of certain investment securities is volatile and future declines in value could have a materially adverse effect on future earnings and regulatory capital
3. 16United operates in a highly competitive market
4. 17United is subject to liquidity risk
5. 18United may be adversely affected by the soundness of other financial institutions
6. 19Changes in interest rates may adversely affect United’s business

RISKS RELATED TO ACQUISITION ACTIVITY

1. 20Potential acquisitions may disrupt our business and dilute shareholder value
2. 21Acquisitions may be delayed, impeded, or prohibited due to regulatory issues
3. 22United’s stock price can be volatile
4. 23Geopolitical conditions such as acts or threats of terrorism or military conflicts
5. 24Dividend payments by United’s subsidiaries to United and by United to its shareholders can be restricted
6. 25An investment in United common stock is not an insured deposit
7. 26Failure to maintain effective internal controls over financial reporting in the future could impair United’s ability to accurately and timely report its financial results or prevent fraud, resulting in loss of investor confidence and adversely affecting United’s business and stock price
8. 27Certain banking laws may have an anti-takeover effect

GENERAL RISKS

1. 28United may elect or be compelled to seek additional capital in the future, but capital may not be available when it is needed
2. 29New accounting or tax pronouncements or interpretations may be issued by the accounting profession, regulators or other government bodies which could change existing accounting methods. Changes in accounting methods could negatively impact United’s results of operations and financial condition
3. 30Severe weather, natural disasters, public health issues, acts of war or terrorism, and other external events could significantly impact United’s ability to conduct business
4. 31We may be subject to physical and transition risks from climate change. Both physical and transition risks from climate change may have negative impacts on the financial condition or creditworthiness of our customers and may negatively affect our business and result of operations