Item 1A. Risk Factors
Item 1A. Risk Factors
The risks and uncertainties to which our financial condition and operations are subject are discussed in detail in Item 1A of Part I of First United Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022. Management does not believe that any material changes in our risk factors have occurred since they were last disclosed except as follows:
Risks Related to First United Corporation and its Affiliates
We could be materially and adversely impacted by recent negative developments affecting the banking industry, including recent bank failures and concerns regarding liquidity, which have eroded customer confidence in the banking system.
Recent events impacting the banking industry, including the high-profile failures or instability of certain banking institutions, have resulted in general uncertainty and eroded confidence in the safety, soundness, and financial strength of the financial services industry. In particular, the bank failures highlighted the potential serious impact of a financial institution unable to meet withdrawal requests by depositors. These developments have resulted in a growing concern about liquidity in the banking industry, access to and volatile capital markets and reduced stock valuations for certain financial institutions. Similar future events, including additional bank failures or bank instability, could directly or indirectly adversely impact the Corporation’s own liquidity, access to capital markets, stock price, financial condition and/or results of operations. Further, these recent events may also result in greater regulatory scrutiny and enforcement, additional and more stringent laws and regulations for the financial services industry, increased FDIC deposit insurance premiums or special FDIC assessments, and/or higher capital ratio requirements, any of which could have a material adverse effect on the Corporation’s business, financial condition and results of operation.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
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