HBIA Hills Bancorporation

Risks

• We may be adversely affected by economic conditions in the local economies in which we conduct our operations, and in the United States in general.
• Changes in U.S. trade policies, such as the implementation of tariffs, and other factors beyond the Company’s control may adversely impact our business, financial condition and results of operations.
• We may be adversely impacted by recent legislation and potential additional legislation and rulemaking.
• Our profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money or other assets.
• Changing interest rates may adversely affect our profits.
• We experience intense competition for loans and deposits.
• If we do not continue to meet or exceed regulatory capital requirements and maintain our “well-capitalized” status, there could be an adverse effect on the manner in which we do business and on the confidence of our customers in us.
• Our growth may require us to raise additional capital in the future, but that capital may not be available.
• Our allowance for loan losses may not be adequate to cover actual losses.
• Our loan portfolio has a large concentration of real estate loans, which involve risks specific to real estate value.
• Commercial loans make up a significant portion of our loan portfolio.
• There may be issues with environmental law compliance if we take possession of real property that secures a loan.
• Our agricultural loans may involve a greater degree of risk than other loans, and the ability of the borrower to repay may be affected by many factors outside of the borrower’s control.
• We may be required to repurchase mortgage loans or reimburse investors and others as a result of breaches in contractual representations and warranties.
• We depend on the accuracy and completeness of information about customers and counterparties.
• Growth levels in local and national real estate markets may impact our operations and/or financial condition.
• If we are unable to continuously attract deposits and other short-term funding, our financial condition and our business prospects could be adversely affected.
• Conditions in the financial markets may limit our access to funding to meet our liquidity needs.
• Reduction in the value, or impairment of our investment securities, may impact our earnings and stockholders' equity.
• Our growth strategy relies heavily on our management team, and the unexpected loss of key managers and/or officers may adversely affect our operations.
• We are subject to risks associated with technological changes and the resources needed to implement the changes.
• We rely heavily on our network security and any system failure or data breach could subject us to increased costs as well as reputational risk.
• Loss of key third-party vendor relationships or failure of a vendor to protect information of our customers or employees could adversely affect our business or result in losses.
• The potential for business interruption exists throughout our organization.
• Our risk management framework may not be effective in mitigating risk and loss.
• Our internal controls may be ineffective.
• We are subject to a variety of litigation or other proceedings, which could adversely affect our business.
• New products and services are essential to remain competitive but may subject us to additional risks.
• Our customers may decide to use non-bank competitors for financial transactions, which could result in loss of business.
• We are subject to risks associated with negative publicity.
• We may be adversely affected by changes in U.S. tax laws and regulations.
• Our stock is thinly traded.
• The stock market can be volatile, and fluctuations in our operating results and other factors could cause our stock price to decline.
• There can be no assurances concerning continuing dividend payments.