WSFS Financial (WSFS) risk factors, FY2024 10-K

Other

1. 01Difficult market conditions and unfavorable economic trends could adversely affect our industry and our business
2. 02Changes in interest rates and other factors beyond our control could have an adverse impact on our earnings
3. 03The market value of our investment securities portfolio may be impacted by the level of interest rates and the credit quality and strength of the underlying collateral
4. 04Changes in or questions about the soundness of other financial institutions could adversely affect us
5. 05The financial services industry and our market area are highly competitive
6. 06Significant increases of nonperforming assets, or greater than anticipated costs to resolve these credits, can have an adverse effect on our earnings
7. 07Our loan portfolio includes a substantial amount of commercial mortgage, commercial and industrial, and construction and land development loans. The credit risk related to these types of loans is greater than the risk related to residential loans
8. 08We are exposed to increased credit losses and credit related expenses in the event of a major natural disaster, public health crisis, other catastrophic event or significant climate change effects
9. 09Concentration of loans in our primary markets may increase our risk
10. 10If our allowance for credit losses is not sufficient to cover actual loan and lease losses, our earnings will decrease
11. 11Our inability to grow deposits in the future could adversely affect our liquidity and ability to grow our business
12. 12We could experience an unexpected inability to obtain needed liquidity
13. 13Restrictions on our subsidiaries’ ability to pay dividends to us could negatively affect our liquidity and ability to pay dividends
14. 14We are subject to extensive regulation which could have an adverse effect on our operations
15. 15We face a risk of noncompliance and enforcement action under the Bank Secrecy Act and other anti-money laundering statutes and regulations
16. 16We are subject to numerous laws designed to protect consumers and promote community investment, including fair lending laws and the Community Reinvestment Act. Failure to comply with these laws or perform satisfactorily could lead to a wide variety of sanctions
17. 17The fiscal, monetary and regulatory policies of the federal government and its agencies could have an adverse effect on our results of operations
18. 18If we fail to comply with legal standards, we could incur liability to our Clients or lose clients, which could negatively affect our earnings
19. 19Our technology-related operational processes and procedures may not be effective in accomplishing their intended purposes
20. 20Our results of operations and financial condition could be adversely affected if our Cash Connect® segment’s policies, procedures and controls are inadequate to prevent a misappropriation of funds, or if a misappropriation of funds is not insured or not fully covered through insurance
21. 21System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses
22. 22We rely on third parties for certain important functions. Any failures by those vendors and service providers could disrupt our business operations or expose us to loss of confidential information or intellectual property
23. 23Our business may be adversely impacted by litigation and regulatory enforcement, which could expose us to significant liabilities and/or damage our reputation
24. 24Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or negatively affect our earnings in other ways
25. 25Our 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 and investment in infrastructure effectively
26. 26We have in the past and may in the future pursue acquisitions, which may disrupt our business and adversely affect our results of operations, and we may fail to realize all of the anticipated benefits of any such acquisition
27. 27Key Associates may be difficult to attract and retain
28. 28Damage to our reputation could significantly harm our businesses
29. 29The quantitative models we use to manage certain accounting and risk management functions may not be effective, which may cause adverse effects on our results of operations and financial condition
30. 30Impairment of goodwill and/or intangible assets could require charges to earnings, which could negatively impact our results of operations
31. 31Changes in accounting standards or changes in how the accounting standards are interpreted or applied could adversely impact the Company’s financial statements
32. 32Changes in the value of our deferred tax assets could adversely affect our results of operations and regulatory capital ratios