Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Transition to CECL method for loan losses may increase reserve by 50%, from $189 million to $283 million.
  • The Merger may lead to uncertainties affecting key personnel, customers, and business relationships.
  • Liquidity risk increased, with a rise in deposits from $262 million to $360 million.
  • The Merger Agreement restricts business opportunities, asset sales, and significant expenditures without consent.
  • The Merger integration may incur substantial expenses and termination fees if not completed.
  • Failure to realize anticipated cost savings from the Merger could impact revenues and operating results.
  • Interest rate risk heightened, with a 3% decrease in net interest income, from $27 million to $20 million.
  • The Merger termination could negatively impact ongoing business, financial condition, and stock price.
  • The success of the Merger depends on retaining key personnel and managing expanded operations efficiently.
  • Pending merger with Orrstown faces regulatory approval risks and potential termination costs of $8.3 million.
  • Integration challenges post-Merger could lead to disruptions, loss of key employees, and increased expenses.
  • Adoption of CECL standard changes allowance for credit losses calculation, requiring increased data review.
  • LIBOR transition to SOFR may impact financial instruments, with potential adverse effects on securities and loan yields.
  • Growth through mergers or acquisitions may be more difficult and costly, potentially impacting profitability and integration.

Full Text Changes in Most Recent 10-K

Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.

To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=806279&owner=exclude

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