FBNC First Bancorp Dashboard

Risks

• The COVID-19 pandemic has impacted the local economies in the communities we serve and our business, and the extent and severity of the impact on our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted.
• Unfavorable economic conditions could adversely affect our business.
• Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations.
• Our allowance for loan losses may not be adequate to cover actual losses; under CECL we may need to materially increase our allowance for loan losses and our provisions for credit losses may increase significantly and the provisions for credit losses may be more volatile than in the past.
• We are subject to extensive regulation, which could have an adverse effect on our operations.
• We face a risk of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations and related enforcement actions.
• Consumers may decide not to use banks to complete their financial transactions.
• Negative public opinion regarding our Company and the financial services industry in general, could damage our reputation and adversely impact our earnings.
• We may make future acquisitions, which could dilute current shareholders’ stock ownership and expose us to additional risks.
• The soundness of other financial institutions could adversely affect us.
• We are subject to interest rate risk, which could negatively impact earnings.
• In the normal course of business, we process large volumes of transactions involving millions of dollars. If our internal controls fail to work as expected, if our systems are used in an unauthorized manner, or if our employees subvert our internal controls, we could experience significant losses.
• Liquidity risk could impair our ability to fund operations and jeopardize our financial condition.
• If our goodwill becomes impaired, we may be required to record a significant charge to earnings.
• We might be required to raise additional capital in the future, but that capital may not be available or may not be available on terms acceptable to us when it is needed.
• We may issue additional shares of stock or equity derivative securities that will dilute the percentage ownership interest of existing shareholders and may dilute the book value per share of our common stock and adversely affect the terms on which we may obtain additional capital.
• We may be adversely impacted by the transition from LIBOR as a reference rate.
• Future acquisitions may be delayed, impeded, or prohibited due to regulatory issues.
• We may be exposed to difficulties in combining the operations of acquired businesses into our own operations, which may prevent us from achieving the expected benefits from our acquisition activities.
• We are subject to federal and state fair lending laws, and failure to comply with these laws could lead to material penalties.
• We could experience losses due to competition with other financial institutions.
• Failure to keep pace with technological change could adversely affect our business.
• New lines of business or new products and services may subject us to additional risk.
• Our reported financial results are impacted by management’s selection of accounting methods and certain assumptions and estimates.
• Changes in accounting standards could materially impact our financial statements.
• Our business continuity plans or data security systems could prove to be inadequate, resulting in a material interruption in, or disruption to, our business and a negative impact on our results of operations.
• We rely on certain external vendors.
• We are subject to losses due to errors, omissions or fraudulent behavior by our employees, clients, counterparties or other third parties.
• Future sales of our stock by our shareholders or the perception that those sales could occur may cause our stock price to decline.
• Our stock price can be volatile.
• An investment in the Company’s common stock is not an insured deposit.