Washington Trust Bancorp (WASH)

Risks

• RISKS RELATED TO THE COVID-19 PANDEMIC
• The COVID-19 pandemic, and the measures taken to control its spread, may continue to adversely impact our employees, customers, business operations and financial results.
• RISKS RELATED TO OUR BUSINESS AND INDUSTRY
• Changes in the business and economic conditions, particularly those of southern New England, could adversely affect our financial condition and results of operations.
• Fluctuations in interest rates may impair the Bank’s business.
• Our loan portfolio includes commercial loans, which are generally riskier than other types of loans.
• We may experience losses and expenses if security interests granted for loans are not enforceable.
• Environmental liability associated with our lending activities could result in losses.
• We 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.
• Our allowance for credit losses on loans may not be adequate to cover actual loan losses, and an increase in the allowance for credit losses on loans will adversely affect our earnings.
• We are subject to liquidity risk, which could negatively affect our funding levels.
• Our cost of funds for banking operations may increase as a result of general economic conditions, interest rates and competitive pressures.
• We are a holding company and depend on the Bank for dividends, distributions and other payments.
• We have credit and market risk inherent in our investment securities portfolio.
• Potential 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.
• The soundness of other financial institutions could adversely affect us.
• Changes to and replacement of LIBOR may adversely affect our business, financial condition, and results of operations.
• Market changes or economic downturns may adversely affect demand for our fee-based services and level of wealth management assets under administration.
• Our 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.
• We face continuing and growing security risks to our information base, including the information we maintain relating to our customers.
• We rely on other companies to provide key components of our business infrastructure.
• We may not be able to successfully implement future information technology system enhancements, which could adversely affect our business operations and profitability.
• Our business may be adversely affected if we fail to adapt our products and services to evolving industry standards and consumer preferences.
• We may incur significant losses as a result of ineffective risk management processes and strategies.
• Damage to our reputation could significantly harm our business, including our competitive position and business prospects.
• We may not be able to compete effectively in our increasingly competitive industry.
• We may be unable to attract and retain key personnel.
• Natural disasters, acts of terrorism and other external events could harm our business.
• Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.
• If we are required to write-down goodwill or other intangible assets recorded in connection with our acquisitions, our profitability would be negatively impacted.
• Changes in accounting standards can materially impact our financial statements.
• Changes in tax laws and regulations and differences in interpretation of tax laws and regulations may adversely impact our financial statements.
• The market price and trading volume of our stock can be volatile.
• We may need to raise additional capital in the future and such capital may not be available when needed.
• Certain provisions of our articles of incorporation may have an anti-takeover effect.
• RISKS RELATED TO OUR REGULATORY ENVIRONMENT
• We 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.
• We are subject to numerous laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.
• We may become subject to enforcement actions even though noncompliance was inadvertent or unintentional.
• We face significant legal risks, both from regulatory investigations and proceedings, and from private actions brought against us.