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Financial report summary
?Risks
- Reliant Bancorp is geographically concentrated in Middle Tennessee, and changes in local economic conditions impact our profitability.
- Uncertain market conditions and economic trends could adversely affect our business, financial condition and results of operations.
- Reliant Bancorp may be adversely affected by the soundness of other financial institutions.
- Negative public opinion surrounding Reliant Bancorp or the financial institutions industry generally could damage our reputation and adversely impact our earnings.
- The Bank’s decisions regarding credit risk and provision for loan loss may materially and adversely affect its business.
- The amount of our nonperforming assets may increase significantly, resulting in additional losses and costs and expenses that will negatively affect our operations.
- Interest rate shifts could reduce net interest income and otherwise negatively impact our financial condition and results of operations.
- The Bank could incur significant costs and expenses related to RMV, and these costs and expenses could have a material adverse effect on our business, financial condition, and results of operations.
- The Bank may have higher loan losses than it has allowed for in its ALL. Additionally, certain segments of our loan portfolio are traditionally considered to carry increased credit risk.
- Our business may suffer if there are significant declines in the value of real estate.
- The Bank’s focus on lending to small to mid-sized community based businesses may increase Reliant Bancorp’s credit risk.
- If the underwriting quality supporting our mortgage loan originations is found to be deficient, our profitability could decrease and we may incur losses.
- We may be unable to implement aspects of our growth strategy, which may affect our ability to maintain historical earnings trends.
- Future growth may result in additional risks.
- We may face risks with respect to future mergers and acquisitions.
- Reliant Bancorp and the Bank are dependent on retaining and recruiting key individuals and the loss of one or more of these key individuals could curtail our growth and adversely affect our prospects.
- Reliant Bancorp’s historical operating results may not be indicative of its future operating results.
- The Bank faces strong competition for customers, which could prevent it from obtaining customers and may cause it to pay higher interest rates to attract customers.
- We may not be able to report our financial results accurately and timely as a publicly listed company if we fail to maintain an effective system of disclosure controls and procedures and internal control over financial reporting.
- We incur significant costs, and our management is required to devote significant time to compliance-related matters, as a result of being an Exchange Act-reporting company, and additional financial, managerial and other resources would be required if we lose our "smaller reporting company" and "non-accelerated filer" status.
- We are subject to certain operational risks, including but not limited to customer or employee fraud.
- A failure in or breach of Reliant Bancorp’s or the Bank’s computer or information technology systems or networks, or those of third parties, could disrupt our businesses and adversely impact our financial condition and results of operations, as well as cause us reputational harm.
- The financial services industry is undergoing rapid technological changes and we may not have the resources to implement new technology to stay current with these changes.
- A cyber-attack, information or security breach, or technology failure, on our part or that of a third party, could adversely affect our ability to conduct our business, result in the disclosure or misuse of confidential or proprietary information, or adversely impact our business, financial condition, and results of operations, as well as cause us reputational harm.
- Liquidity risk could impair our ability to fund our operations and jeopardize our financial condition.
- Economic and other circumstances may require Reliant Bancorp to raise capital at times or in amounts that are unfavorable to it. If Reliant Bancorp has to issue shares of common stock, the issuance of the shares will dilute the percentage ownership interests of existing shareholders and may dilute the book value per share of Reliant Bancorp’s common stock and adversely affect the terms on which Reliant Bancorp may obtain additional capital.
- The amount of interest payable on our subordinated notes will vary beginning on December 15, 2024.
- The spread of COVID-19, or governmental responses to the same, may disrupt banking and other financial activity in the areas in which we operate and could potentially create business continuity issues for us.
- As a participating lender in the PPP, the Bank is subject to additional risks of litigation from its customers or other parties regarding the Bank’s processing of loans for the PPP, regulatory risks, and risks that the SBA may not fund some or all PPP loan guaranties.
- The value of our goodwill and other intangible assets may decline in the future.
- We may be subject to environmental liabilities in connection with foreclosures or repossession of assets securing our loan portfolio.
- We are exposed to increased credit losses and credit-related expenses in the event of a major natural disaster, public health crisis (such as the COVID-19 pandemic), other catastrophic event or significant climate change effects.
- We are subject to extensive government regulation and supervision.
- We are subject to stringent capital requirements, which may prevent us from paying dividends or repurchasing shares or may adversely impact our operating results.
- Reliant Bank’s FDIC deposit insurance premiums and assessments may increase.
- Laws and regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and adversely affect our business opportunities.
- Anti-money laundering and anti-terrorism financing laws could have significant adverse consequences for us.
- Our financial condition and results of operations may be adversely affected by changes in accounting standards and interpretations.
- We are subject to risks related to legal proceedings.
- Reliant Bancorp’s stock price may fluctuate, which could result in losses to investors and litigation against Reliant Bancorp.
- Even though our common stock is currently traded on Nasdaq, it has less liquidity than many other stocks quoted on a national securities exchange.
- Reliant Bancorp’s ability to pay cash dividends is limited, and Reliant Bancorp may be unable to pay future dividends even if it desires to do so.
- We may issue additional common stock or other equity securities in the future which could dilute the ownership interest of our existing shareholders.
- The rights of our common shareholders would likely be subordinate to the rights of the holders of any preferred stock that we may issue in the future.
- Holders of our debt obligations have rights that are senior to those of our shareholders.
- If securities or industry analysts do not publish research or publish unfavorable research about our company, our stock price and trading volume could decline.
- Shares of Reliant Bancorp common stock are not FDIC insured.