Washington Trust Bancorp (WASH) risk factors, FY2024 10-K

RISKS RELATED TO OUR BUSINESS AND INDUSTRY

1. 01Inflationary pressures and increases in market interest rates may affect our results of operations and financial condition
2. 02Fluctuations in interest rates may impair the Bank’s business
3. 03We may be adversely affected by volatility in U.S. and global economic conditions and changes in fiscal, monetary, trade and regulatory policies
4. 04Changes in the business and economic conditions in southern New England could adversely affect our financial condition and results of operations
5. 05Increased market volatility and adverse changes in financial or capital market conditions may increase our market risk
6. 06If we are unable to access the capital markets, have prolonged net deposit outflows, or our borrowing costs increase, our liquidity and competitive position will be negatively affected
7. 07Our cost of funds for banking operations may increase as a result of general economic conditions, interest rates and competitive pressures
8. 08Our loan portfolio includes commercial loans, which are generally riskier than other types of loans
9. 09We may experience losses and expenses if security interests granted for loans are not enforceable
10. 10Environmental liability associated with our lending activities could result in losses
11. 11We may be required to repurchase mortgage loans or indemnify buyers against losses in some circumstances, which could adversely affect our results of operations and financial condition
12. 12Our ACL on loans may not be adequate to cover actual loan losses, and an increase in the ACL on loans will adversely affect our earnings
13. 13We are a holding company and depend on the Bank for dividends, distributions and other payments
14. 14We have credit and market risk inherent in our investment securities portfolio
15. 15Potential downgrades of U.S. government agency and government-sponsored enterprise securities by one or more of the credit ratings agencies could have a material adverse effect on our operations, earnings and financial condition
16. 16The soundness of other financial institutions could adversely affect us
17. 17Revenues from mortgage banking activities are largely dependent on mortgage origination volume and sales volume. Changes in interest rates and the condition of housing markets could adversely impact the volume of residential mortgage originations, sales and related mortgage banking activities
18. 18We face continuing and growing security risks to our information base, including the information we maintain relating to our customers
19. 19We rely on other companies to provide key components of our business infrastructure
20. 20We may not be able to successfully implement future information technology system enhancements, which could adversely affect our business operations and profitability
21. 21Our business may be adversely affected if we fail to adapt our products and services to evolving industry standards and consumer preferences
22. 22We may incur significant losses as a result of ineffective risk management processes and strategies
23. 23Damage to our reputation could significantly harm our business, including our competitive position and business prospects
24. 24We may not be able to compete effectively
25. 25We may be unable to attract and retain key personnel
26. 26Natural disasters, acts of terrorism, future pandemics and other external events could harm our business
27. 27Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business
28. 28If we are required to write-down goodwill or other intangible assets recorded in connection with our acquisitions, our profitability would be negatively impacted
29. 29Changes in accounting standards can materially impact our financial statements
30. 30Changes in tax laws and regulations, differences in interpretation of tax laws and regulations, and reductions in the value of our deferred tax assets may adversely impact our financial statements
31. 31The market price and trading volume of our stock can be volatile
32. 32We may need to raise additional capital in the future and such capital may not be available when needed
33. 33Certain provisions of our articles of incorporation may have an anti-takeover effect

RISKS RELATED TO OUR REGULATORY ENVIRONMENT

1. 34We operate in a highly regulated industry, and laws and regulations, or changes in them, could limit or restrict our activities and could have a material adverse effect on our operations
2. 35Our wealth management business is highly regulated, and the regulators have the ability to limit or restrict our activities and impose fines or suspensions on the conduct of our business
3. 36We are subject to numerous laws designed to protect consumers, including the CRA and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions
4. 37We may become subject to enforcement actions even though noncompliance was inadvertent or unintentional
5. 38We face significant legal risks, both from regulatory investigations and proceedings, and from private actions brought against us