Premier Financial Bancorp (PFBI)

Risks

• Changes in interest rates could negatively impact the Company’s results of operations
• Allowance for loan losses may be insufficient
• Changes in energy and natural resource markets may increase credit risk in the loan portfolio
• Regional economic changes in the Company’s markets could adversely impact results from operations
• Concentration of commercial real estate and commercial business loans may increase credit risk in the loan portfolio
• Extensive regulation and supervision
• Dividend payments by subsidiaries to Premier and by Premier to its shareholders can be restricted.
• The Company’s expenses will increase as a result of increases in FDIC insurance premiums.
• Additional capital may not be available when needed or required by regulatory authorities
• If a subsidiary bank’s current capital ratios decline below the regulatory threshold for an “adequately capitalized” institution, the bank will be considered “undercapitalized” which may have a material and adverse effect on Premier.
• Strong competition within the Company’s market areas may limit profitability
• Loss of large checking and money market deposit customers could increase cost of funds and have a negative effect on results of operations
• Claims and litigation pertaining to fiduciary responsibility
• Integration of current and future acquisitions may be more difficult than anticipated
• Transition from London InterBank Offering Rate (“LIBOR”) as a floating rate index to a substitute could adversely affect financial markets generally.
• New or revised tax, accounting and other laws, regulations, rules and standards could significantly impact strategic initiatives, results of operations and financial condition
• Unauthorized disclosure of sensitive or confidential customer information and cyber-security breaches could severely harm the Company’s reputation and have a negative effect on results of operations.
• The extended disruption of vital infrastructure could negatively impact the Company’s results of operations and financial condition
• Defaults by another larger financial institution could adversely affect financial markets generally.
• Market volatility may adversely affect market price of common stock or investment security values
• Inability to hire and retain qualified employees
• Great Britain’s exit from the European Union (“Brexit”) could adversely affect financial markets generally.
• Issuance of preferred shares would impact net income available to common stockholders
• Future issuances of common shares or other securities may dilute the value of outstanding common shares, which may also adversely affect their market price