ORRF Orrstown Financial Services Dashboard

Risks

• If our allowance for loan losses is not sufficient to cover actual losses, our earnings would decrease.
• Commercial real estate lending may expose us to a greater risk of loss and impact our earnings and profitability.
• The credit risk related to commercial and industrial loans is greater than the risk related to residential loans.
• As a participating lender in the SBA Paycheck Protection Program (“PPP”), we are subject to additional risks of litigation from our clients or other parties regarding our processing of loans for the PPP and risks that the SBA may not fund some or all PPP loan guaranties.
• Changes in interest rates could adversely impact the Company’s financial condition and results of operations.
• The expected discontinuance of LIBOR presents risks to the financial instruments originated, issued or held by us that use LIBOR as a reference rate.
• Difficult economic and market conditions can adversely affect the financial services industry and may materially and adversely affect the Company.
• Because our business is concentrated in south central Pennsylvania, the greater Baltimore region, and Washington County, Maryland, our financial performance could be materially adversely affected by economic conditions and real estate values in these market areas.
• Competition from other banks and financial institutions in originating loans, attracting deposits and providing other financial services may adversely affect our profitability and liquidity.
• The Company’s business strategy includes the continuation of moderate growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
• The Company may be adversely affected by technological advances.
• We face security risks, including denial of service attacks, hacking, social engineering attacks targeting our colleagues and clients, malware intrusion or data corruption attempts, and identity theft that could result in the disclosure of confidential information, adversely affect our business or reputation, and create significant legal and financial exposure.
• Cybersecurity and data privacy are areas of heightened legislative and regulatory focus.
• We may become subject to claims and litigation pertaining to fiduciary responsibility.
• Interest rate volatility stemming from COVID-19 could negatively affect our net interest income, lending activities, deposits and profitability.
• Growing by acquisition involves risks.
• We may be unable to successfully integrate the operations of acquired entities over time.
• The market price of our common stock after acquisitions may be affected by factors different from those affecting our shares currently.
• Governmental regulation and regulatory actions against us may impair our operations or restrict our growth.
• Increases in FDIC insurance premiums may have a material adverse effect on our results of operations.
• Legislative, regulatory and legal developments involving income and other taxes could materially adversely affect the Company’s results of operations and cash flows.
• The Company is required to use judgment in applying accounting policies and different estimates and assumptions in the application of these policies could result in a decrease in capital and/or other material changes to the reports of financial condition and results of operations.
• Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition.
• Noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations could cause us material financial loss.
• Pending litigation and legal proceedings and the impact of any finding of liability or damages could adversely impact the Company and its financial condition and results of operations.
• The Parent Company is a holding company dependent for liquidity on payments from its bank subsidiary, which is subject to restrictions.
• The soundness of other financial institutions could adversely affect the Company.
• If the Company wants, or is compelled, to raise additional capital in the future, that capital may not be available when it is needed or on terms favorable to current shareholders.
• The market price of our common stock is subject to volatility.
• A reduction in our credit rating could adversely affect our access to capital and could increase our cost of funds.
• The Parent Company's primary source of income is dividends received from its bank subsidiary.
• The COVID-19 pandemic has caused a significant global and national economic downturn and unprecedented levels of unemployment, which may adversely affect our business and results of operations, and the future impact of the COVID-19 pandemic on the global, national and local economies and our business, results of operations and financial condition remain uncertain.
• The Company may not be able to attract and retain skilled people.
• Negative public opinion could damage our reputation and adversely affect our earnings.
• Acts of terrorism, natural disasters, global climate change, pandemics and global conflicts may have a negative impact on our business and operations.