BHB Bar Harbor Bankshares Inc.

Risks

• Deterioration in local economies or real estate market may adversely affect financial performance.
• Changes in the general economy or the financial markets could adversely affect financial performance.
• Interest rate volatility could significantly reduce the Company’s profitability.
• Loss of deposits or a change in deposit mix could increase the cost of funding.
• Wholesale funding sources may prove insufficient to replace deposits, support operations and future growth.
• The Company may be adversely affected by the soundness of other financial institutions.
• High concentrations of commercial loans may increase exposure to credit loss upon borrower default.
• Prepayments of loans may negatively impact the Company's business. Generally, customers may prepay the principal amount of their outstanding loans at any time.
• Secondary mortgage market conditions may adversely affect financial condition and earnings.
• The Bank is exposed to risk of environmental liabilities with respect to properties to which it takes title.
• Greater than anticipated credit losses in the loan portfolios may adversely affect earnings.
• A new accounting standard may require us to increase the allowance for loan losses.
• The Company may be adversely affected by continuous technological change.
• Disruptions to the Company’s information systems and security breaches may adversely affect its business and reputation.
• Strong competition within the Company's markets may significantly impact profitability.
• Market changes may adversely affect demand for services and impact revenue, costs, and earnings.
• The Company is subject to a variety of operational risks, including reputational risk, and the risk of fraud or theft by employees or outsiders, which may adversely affect the Company’s business and results of operations.
• Expansion, growth, and acquisitions could negatively impact earnings if not successful.
• Goodwill from acquisitions could become impaired.
• The Company may be unable to attract and retain key personnel.
• The Company's operations is reliant on outside vendors.
• The Company is subject to possible claims and litigation pertaining to fiduciary responsibilities.
• Severe weather, natural disasters, acts of war or terrorism, and other external events could significantly impact the Company’s business and the business of its customers.
• The Company is subject to extensive government regulation and supervision, which may interfere with the ability to conduct business and may negatively impact financial results.
• The Company’s access to funds from subsidiaries may be restricted.
• The Company may elect or be compelled to seek additional capital in the future, but capital may not be available when it is needed.
• Changes in tax laws and regulations and differences in interpretation of tax laws and regulations may adversely impact the Company's financial statements.