UCBI United Community Banks Dashboard

Risks

• ITEM 1A. RISK FACTORS.
• CREDIT AND COUNTERPARTY RISK
• We are exposed to higher credit and concentration risk from our commercial real estate, commercial and industrial and commercial construction lending.
• If our allowance for credit losses was required to be increased because it is not large enough to cover actual losses in our loan portfolio, our results of operations and financial condition could be materially and adversely affected.
• The soundness of other financial institutions could adversely affect us.
• The inability to maintain or raise funds in amounts adequate to meet our needs could impair our ability to fund our operations and jeopardize our financial condition.
• We may need to raise additional capital in the future to support our operations and business plan and our ability to raise capital and maintain required capital levels could be adversely affected by changes in the capital markets and deteriorating economic and market conditions.
• The inability of our subsidiaries to declare and pay dividends or other distributions to the Holding Company could adversely affect its liquidity and ability to declare and pay dividends.
• We are dependent on our information technology and telecommunications systems and third-party servicers, and systems failures, interruptions, cyber-attacks or breaches of security could disrupt our business and have an adverse effect on our financial condition and results of operations.
• We rely on information technology and telecommunications systems and certain third-party service providers and certain failures could materially adversely affect our operations.
• Failure to keep pace with technological changes could adversely affect our business.
• Competition from financial institutions and other financial service providers may adversely affect our profitability.
• An ineffective risk management framework could have a material adverse effect on our strategic planning and our ability to mitigate risks and/or losses and could have adverse regulatory consequences.
• We may be subject to losses due to fraudulent and negligent conduct of our loan customers, third-party service providers and employees.
• Our inability to retain management and key employees or to attract new experienced financial services or technology professionals could impair our relationship with our customers, reduce growth and adversely affect our business.
• We are subject to certain litigation, and our expenses related to this litigation may adversely affect our results.
• Environmental liability associated with commercial lending could result in losses.
• REGULATORY COMPLIANCE RISK
• Changes to capital requirements for bank holding companies and depository institutions may restrict our ability to pay or increase dividends on or repurchase our common stock and may negatively affect our results of operations.
• Issuance of additional common stock or other equity securities required to meet regulatory requirements in the future could dilute the ownership interest of existing shareholders.
• Disruptions in the operation of government or changes in government funding may adversely affect us.
• Changes in the method pursuant to which LIBOR and other benchmark rates are determined could adversely impact our business and results of operations.
• Adverse conditions in the business or economic environment where we operate, as well as broader conditions, globally and in the United States, could have a material adverse effect on our financial condition and results of operations.
• Changes in interest rate levels could negatively affect the demand for our products, our net interest margin, and consequently our net earnings, and our ability to manage interest rate risk exposure may be ineffective.
• The COVID-19 pandemic is expected to continue to disrupt and adversely affect our business and results of operations, and the ultimate impacts of the pandemic on our business, financial condition and results of operations will depend on future developments and other factors that are highly uncertain and will be impacted by the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.
• Our acquisitions and future expansion may result in additional risks.
• SPECIFIC RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK
• United’s corporate organizational documents and the provisions of Georgia law to which we are subject contain certain provisions that could have an anti-takeover effect and may delay, make more difficult or prevent an attempted acquisition of United that you may favor.
• An investment in our common stock is not an insured deposit and is not guaranteed by the FDIC.
• If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential holders of our securities could lose confidence in our financial reporting, which would harm our business and the trading price of our securities.
• Our reported financial results incorporate significant assumptions, estimates and judgments. In addition, changes in accounting standards or interpretations could impact our reported earnings and financial condition.
• We could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision.
• Negative publicity could damage our reputation and our business.
• Although our common stock currently is traded on the Nasdaq, it has less liquidity than other stocks quoted on a national securities exchange.
• Our stock price can be volatile.