United Community Banks (UCB) risk factors, FY2025 10-K

STRATEGIC RISKS

1. 01We may be unable to successfully implement our strategy to grow our banking businesses
2. 02Failure to achieve one or more key elements needed for successful business acquisitions (including the integration of those businesses) could adversely affect our business and earnings
3. 03Failure to achieve one or more key elements needed for successful organic growth could adversely affect our business and earnings
4. 04We are subject to intense competition for clients and the nature of that competition is rapidly evolving
5. 05Failure to keep pace with technological changes could adversely affect our business
6. 06Our traditional approach to customer service, which is highly effective when executed in a physical branch with in-person interactions, may be less effective as customer habits and preferences evolve
7. 07The nature of technology-driven disruption to our industry is changing, in some cases seeking to displace traditional financial service providers rather than merely enhance traditional services or their delivery40% rewritten

OPERATIONAL RISKS

1. 08Fraud is a major, and increasing, operational risk for financial institutions
2. 09Our ability to conduct and grow our businesses depends in part upon our ability to create, maintain, expand, and evolve an appropriate operational and organizational infrastructure, manage expenses, and recruit and retain personnel with the ability to manage a complex business
3. 10A serious information technology security (cybersecurity) breach can cause significant damage and may be difficult to detect even after it occurs29% rewritten
4. 11Cyberattacks are increasing in number and sophistication and we may be unable to anticipate or prevent such attacksNew
5. 12We may be adversely affected by disruptions in information technology and telecommunications systems on which we rely, including those of third-party service providers where we may have limited or no control over operational functionality
6. 13Our risk management framework may not be effective in mitigating risks and/or losses38% rewritten
7. 14We may not be able to attract and retain management-level and specialized talentNew
8. 15Our inability to retain and attract experienced bankers could negatively affect our growthNew
9. 16Our accounting estimates and risk management processes rely on analytical and forecasting models
10. 17Inflationary pressures present a potential threat to our results of operations and financial condition24% rewritten
11. 18Generally, in periods of economic volatility, our realized credit losses increase, demand for our products and services declines, and the credit quality of our loan portfolio declines33% rewritten
12. 19Federal Reserve strategies can, and often are intended to, affect the domestic money supply, inflation, interest rates, and the shape of the yield curve
13. 20We are subject to interest rate risk because a significant portion of our business involves borrowing and lending money, and investing in financial instruments
14. 21High volatility in the yield curve, including sharp movements on and changes in the slope of the curve, can complicate or reduce the efficacy of our balance sheet management practices. Significant changes in the yield curve may also reduce our net interest margin and adversely affect our loan and investment portfolios27% rewritten
15. 22Our ability to conduct and grow our businesses, and to obtain and retain clients, is highly dependent upon external perceptions of our business practices and financial stability
16. 23We face the risk that our clients may not repay their loans or other obligations and that the realizable value of collateral may be insufficient to avoid a charge-off
17. 24We are exposed to higher credit and concentration risk from our CRE, commercial and industrial and commercial construction lending
18. 25If our allowance for credit losses is not large enough to cover losses in our loan portfolio, our results of operations and financial condition could be materially and adversely affected

REGULATORY, LEGISLATIVE AND LEGAL RISKS

1. 26We are subject to a challenging regulatory environment that restricts our activities37% rewritten
2. 27Failure to maintain certain regulatory capital levels and ratios could result in regulatory actions that would be materially adverse to our shareholders39% rewritten
3. 28Legal disputes are an unavoidable part of business, and the outcome of pending or threatened litigation cannot be predicted with any certainty
4. 29Data privacy is becoming a major business and political concern. The laws governing it are new, and are likely to evolve and expand
5. 30Liquidity is essential to our business model and a lack of liquidity, or an increase in the cost of liquidity, could materially impair our ability to fund our operations and jeopardize our results of operation, financial condition and cash flows
6. 31A downgrade of our credit rating could limit our access to borrowings and increase our borrowing costs
7. 32The proportion of our deposit account balances that exceed FDIC insurance limits may expose us to enhanced liquidity risk in times of financial distress
8. 33The preparation of our consolidated financial statements in conformity with GAAP requires management to make significant assumptions, estimates and judgments that affect the financial statements
9. 34In addition, changes in accounting standards or interpretations could negatively affect our reported earnings and financial condition
10. 35We could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision
11. 36Our internal controls and procedures may fail or be circumvented
12. 37We are subject to risks of operating in various jurisdictions
13. 38Natural disasters and weather-related events, exacerbated by climate change, could have a negative impact on our results of operations and financial condition40% rewritten

STOCK HOLDING AND GOVERNANCE RISKS

1. 39The inability of our subsidiaries to declare and pay dividends or other distributions to the Holding Company could adversely affect its liquidity and ability to declare and pay dividends
2. 40Holders of our indebtedness have rights that are senior to those of our common shareholders39% rewritten
3. 41Our stock price can be volatile
4. 42Our corporate organizational documents and the provisions of Georgia law to which we are subject contain certain provisions that could have an anti-takeover effect and may delay, make more difficult or prevent an attempted acquisition of United that you may favor
5. 43Our stockholders may suffer dilution if we raise capital through public or private equity financings to fund our operations, to increase our capital, or to expand

OTHER EXTERNAL RISKS

1. 44Pandemics and disease outbreaks, acts of terrorism and other adverse external events may lead to periods of significant volatility in financial and other markets, and could adversely affect our ability to conduct normal business and could harm our clients, businesses, financial condition and results of operationsNew