Univest Financial (UVSP) risk factors, FY2024 10-K

Risks Related to Market Interest Rates

1. 01Our results of operations may be adversely affected by credit losses relating to our investment portfolio
2. 02We are subject to interest rate risk
3. 03Changes in the estimated fair value of debt securities may reduce stockholders' equity

Risks Related to Our Lending Activities

1. 04We are subject to lending risk
2. 05Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants or lower lease rates needed to attract new tenants
3. 06Our allowance for credit losses on loans and leases may be insufficient, and an increase in the allowance would reduce earnings
4. 07If the evaluation we perform in connection with establishing loan and lease loss reserves is wrong, our allowance for credit losses on loans and leases may not be sufficient to cover our losses, which would have an adverse effect on our operating results
5. 08Changes in economic conditions and the composition of our loan and lease portfolio could lead to higher loan charge-offs and/or an increase in our provision for credit losses, which may reduce our net income
6. 09Concentrations of loans in certain industries could have adverse effects on credit quality
7. 10We depend on the accuracy and completeness of information about customers and counterparties
8. 11We are subject to environmental liability risk associated with lending activities

Risks Related to Our Operations

1. 12Our controls and procedures may fail or be circumvented
2. 13We may not be able to attract and retain skilled people
3. 14A lack of liquidity could adversely affect our financial condition and results of operations
4. 15If we lose a significant portion of our low-cost deposits, it would negatively impact our liquidity and profitability
5. 16Our information technology systems, and the systems of third parties upon which we rely, may experience a failure, interruption or breach in security, which could negatively affect our operations and reputation
6. 17business, financial condition and results of operations. Although the impact to date for these types of events has not had a material impact on us, we cannot be sure this will be the case in the future
7. 18The failure to maintain current technologies, and the costs to update technology, could negatively impact the Corporation's business and financial results
8. 19Our Board of Directors relies on management and outside consultants in overseeing cybersecurity risk management
9. 20We are a community bank and our ability to maintain our reputation is critical to the success of our business. The failure to do so may materially adversely affect our performance
10. 21We borrow from the Federal Home Loan Bank, the Federal Reserve and correspondent banks, and these lenders could modify or terminate their current programs, which could have an adverse effect on our liquidity and profitability
11. 22Natural disasters, acts of war or terrorism, outbreaks or escalations of hostilities and other external events could negatively impact us

Risks Related to Economic Conditions

1. 23Inflation can have an adverse impact on our business and on our customers
2. 24Our earnings are impacted by general business and economic conditions
3. 25Our profitability is affected by economic conditions in our markets
4. 26Interruption of our customers' supply chains could negatively impact their business and operations and impact their ability to repay their loans

Risks Related to Regulation

1. 27The fiscal, monetary and regulatory policies of the federal government and its agencies could have an adverse effect on our results of operations
2. 28Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations
3. 29Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions

Risks Related to the Wealth Management Industry

1. 30Revenues and profitability from our wealth management business may be adversely affected by any reduction in assets under management, which could reduce fees earned
2. 31We may not be able to attract and retain wealth management clients
3. 32The wealth management business is subject to extensive regulation, supervision and examination by regulators, and any enforcement action or adverse changes in the laws or regulations governing our business could decrease our revenues and profitability

Risks Related to the Insurance Industry

1. 33Revenues and profitability from our insurance business may be adversely affected by market conditions, which could reduce insurance commissions and fees earned

Risks Related to Competition

1. 34We operate in a highly competitive industry and market area, which could adversely impact its business and results of operations

Risks Related to Strategic Activities

1. 35The anticipated benefits of our digital initiatives may not be fully realized
2. 36Our business strategy includes significant investment in growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
3. 37We may need to raise additional capital in the future and such capital may not be available when needed or at all
4. 38Potential acquisitions may disrupt our business and dilute shareholder value

Risks Related to Our Common Stock

1. 39Our stock price can be volatile
2. 40While the Corporation's common stock is traded on the NASDAQ Global Select Market, the trading volume has historically been less than that of larger financial services companies. Stock price volatility may make it more difficult for investors to sell their common stock when they want and at prices they find attractive
3. 41Anti-takeover provisions could negatively impact our shareholders
4. 42There may be future sales or other dilution of the Corporation's equity, which may adversely affect the market price of our common stock
5. 43The Corporation relies on dividends from our subsidiaries for most of our revenue