Content analysis
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Financial report summary
?Risks
- Future changes in interest rates may reduce any future profits.
- Because we intend to increase our commercial real estate and commercial loan originations, our lending risk will increase.
- If our allowance for credit losses on loans is not sufficient to cover actual loan losses, our earnings and capital could decrease.
- If our non-performing assets increase, our earnings will be adversely affected.
- The geographic concentration of our loan portfolio and lending activities makes us vulnerable to a downturn in our local market area.
- A worsening of economic conditions in our market area could reduce demand for our products and services and/or result in increases in our level of non-performing loans, which could adversely affect our operations, financial condition and earnings
- A lack of liquidity could adversely affect the Company’s financial condition and results of operations.
- The failure to address the Federal debt ceiling in a timely manner, downgrades of the U.S. credit rating and uncertain credit and financial market conditions may affect the stability of securities issued or guaranteed by the Federal government, which may affect the valuation or liquidity of our investment securities portfolio and increase future borrowing costs.
- A lack of liquidity could adversely affect our financial condition and results of operations.
- Our business strategy includes growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
- Building market share through de novo branching may cause our expenses to increase faster than revenues.
- New lines of business or new products and services may subject us to additional risks.
- Severe weather, acts of terrorism, geopolitical and other external events could impact our ability to conduct business.
- Strong competition within our market area may limit our growth and profitability.
- We face significant operational risks because the nature of the financial services business involves a high volume of transactions.
- Cyber-attacks or other security breaches could adversely affect our operations, net income or reputation.
- Risks associated with system failures, interruptions, or breaches of security could negatively affect our earnings.
- The inability to stay current with technological change could adversely affect our business model.
- Our operations rely on certain third party vendors.
- We depend on our management team, many of whom are new to the Bank, to implement our business strategy and execute successful operations and we could be harmed by the loss of their services.
- While our Board of Directors takes an active role in cybersecurity risk tolerance, we rely to a large degree on management and outside consultants in overseeing cybersecurity risk management.
- Our cost of operations is high relative to our revenues.
- The cost of additional finance and accounting systems, procedures and controls in order to satisfy our new public company reporting requirements will increase our expenses.
- We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance.
- Our risk management framework may not be effective in mitigating risk and reducing the potential for significant losses.
- Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.
- We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or restrict us from paying dividends or repurchasing shares.
- Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
- Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
- Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.
- Various factors may make takeover attempts more difficult to achieve.
- Our New York State multifamily loan portfolio could be adversely impacted by changes in legislation or regulation.