HBT HBT Financial Dashboard

Risks

• We may not be able to adequately measure and limit our credit risk, which could lead to unexpected losses.
• Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio.
• The small to midsized businesses to which we lend may have fewer resources to weather adverse business developments, which may impair a borrower’s ability to repay a loan, and such impairment could adversely affect our results of operations and financial condition.
• We depend on the accuracy and completeness of information about customers and counterparties.
• The appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, other real estate owned ("OREO") and other repossessed assets may not accurately describe the fair value of the asset.
• We are subject to environmental liability risk associated with lending activities.
• The majority of our loan portfolio consists of commercial and regulatory CRE loans, which have a higher degree of risk than other types of loans.
• Real estate construction loans are based upon estimates of costs and values associated with the complete project. These estimates may be inaccurate, and we may be exposed to significant losses on loans for these projects.
• Fluctuations in interest rates may reduce net interest income and otherwise negatively impact our financial condition and results of operations.
• The value of the financial instruments we own may decline in the future.
• We may be adversely impacted by the transition from LIBOR as a reference rate.
• Liquidity risks could affect operations and jeopardize our business, financial condition and results of operations.
• We may need to raise additional capital in the future, and such capital may not be available when needed or at all.
• Loss of customer deposits could increase our funding costs.
• The occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents could have a material adverse effect on our business, financial condition or results of operations.
• We depend on information technology and telecommunications systems of third parties, and any systems failures, interruptions or data breaches involving these systems could adversely affect our operations and financial condition.
• Our use of third-party vendors and our other ongoing third-party business relationships is subject to increasing regulatory requirements and attention.
• We continually encounter technological change and may have fewer resources than many of our larger competitors to continue to invest in technological improvements.
• The banking industry is highly regulated, and the regulatory framework, together with any future legislative or regulatory changes, may have a significant adverse effect on our business, financial condition, results of operations and future prospects.
• Prior to October 11, 2019, we were treated as an S Corp, and claims of taxing authorities related to our prior status as an S Corp could harm us.
• We could become obligated to make payments to the pre-IPO stockholders for any additional federal, state or local income taxes assessed against such pre-IPO stockholder for tax periods prior to the completion of the IPO.
• We are subject to capital adequacy requirements and may be subject to more stringent capital requirements and, if we fail to meet these requirements, we will be subject to restrictions on our ability to make capital distributions and other restrictions.
• The Federal Reserve may require us to commit capital resources to support the Bank.
• Our risk management framework may not be effective in mitigating risks and/or losses to us.
• Federal and state regulators periodically examine our business, and we may be required to remediate adverse examination findings.
• Future consumer legislation or regulation could harm our performance and competitive position.
• We are subject to numerous laws and regulations 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.
• The expanding body of federal, state and local regulations and/or the licensing of loan servicing, collections or other aspects of our business and our sales of loans to third parties may increase the cost of compliance and the risks of noncompliance and subject us to litigation.
• Non-compliance with the USA PATRIOT Act, the Bank Secrecy Act (the "BSA"), or other laws and regulations could result in fines or sanctions.
• Regulation in the areas of privacy and data security could increase our costs.
• FDIC deposit insurance assessments may materially increase in the future, which would have an adverse effect on earnings.
• Litigation and regulatory actions, including possible enforcement actions, could subject us to significant fines, penalties, judgments or other requirements resulting in increased expenses or restrictions on our business activities.
• We may not be able to continue growing our business, particularly if we cannot make acquisitions or increase loans through organic loan growth, either because of an inability to find suitable acquisition candidates, constrained capital resources or otherwise.
• Our strategy of pursuing growth via acquisitions exposes us to financial, execution and operational risks that could have a material adverse effect on our business, financial position, results of operations and growth prospects.
• Attractive acquisition opportunities may not be available to us in the future.
• Our principal stockholder, Heartland Bancorp, Inc. Voting Trust U/A/D 5/4/2016, has significant influence over us, and its interests could conflict with those of our other stockholders.
• We are classified as a "controlled company" for purposes of the Nasdaq Listing Rules and, as a result, we qualify for certain exemptions from certain corporate governance requirements. You do not have the same protections afforded to stockholders of companies that are subject to such requirements.
• Our ability to continue to pay dividends to our stockholders is restricted by applicable laws and regulations and by the ability of our subsidiaries to pay dividends to us.
• Future sales of our common stock, or the perception in the public markets that these sales may occur, may depress our stock price.
• We are an “emerging growth company” and may elect to comply with reduced public company reporting requirements which could make our common stock less attractive to investors.
• Anti-takeover provisions in our charter documents and Delaware law, and the banking laws and regulations to which we are subject, might discourage or delay acquisition attempts for us that you might consider favorable.
• Our restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
• Adverse changes in local economic conditions and adverse conditions in an industry on which a local market in which we do business depends could hurt our business in a material way.
• The State of Illinois has experienced significant financial difficulties, and this could adversely impact certain borrowers and our business.
• Our business is significantly dependent on the real estate markets in which we operate, as a significant percentage of our loan portfolio is secured by real estate.
• Our future growth and success will depend on our ability to compete effectively in a highly competitive environment.
• Our ability to maintain our reputation is critical to the success of our business, and the failure to do so may materially adversely affect our business and the value of our stock.