Sandy Spring Bancorp (SASR)

Risks

• The geographic concentration of the Company’s operations makes the Company susceptible to downturns in local economic conditions.
• Changes in interest rates may adversely affect earnings and financial condition.
• Changes to and replacement of the LIBOR Benchmark Interest Rate may adversely affect our business, financial condition, and results of operations.
• The Company is subject to liquidity risks.
• The Company’s investment securities portfolio is subject to credit risk, market risk, and liquidity risk.
• The Company’s allowance for credit losses may not be adequate to cover its actual credit losses, which could adversely affect the Company’s financial condition and results of operations.
• The Company may not be able to adequately measure and limit its credit risk, which could lead to unexpected losses.
• If non-performing assets increase, earnings will be adversely impacted.
• The Company’s commercial real estate lending activities expose it to increased lending risks and related loan losses.
• Imposition of limits by the bank regulators on commercial real estate lending activities could curtail the Company’s growth and adversely affect its earnings.
• The Company’s concentration of residential mortgage loans exposes it to increased lending risks.
• The Company may be subject to certain risks related to originating and selling mortgage loans.
• Any delays in the Company’s ability to foreclose on delinquent mortgage loans may negatively impact the Company’s business.
• The Company’s trust and wealth management fees may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease the Company’s revenues and net earnings.
• The Company’s investment management contracts are terminable without cause and on relatively short notice by the Company’s clients, which makes the Company vulnerable to short-term declines in the performance of the securities under the Company’s management.
• The wealth management business is heavily regulated, and the regulators have the ability to limit or restrict the Company’s activities and impose fines or suspensions on the conduct of the Company’s business.
• Combining acquired businesses may be more difficult, costly or time consuming than expected and the anticipated benefits and cost savings of acquisitions may not be realized.
• The Company depends on its executive officers and key personnel to continue the implementation of its long-term business strategy and could be harmed by the loss of their services.
• Restrictions on unfriendly acquisitions could prevent a takeover of the Company.
• Market competition may decrease the Company’s growth or profits.
• The high volume of transactions processed by the Company exposes the Company to significant operational risks.
• Failure to keep up with technological change in the financial services industry could have a material adverse effect on the Company’s competitive position or profitability.
• The Company’s risk management framework may not be effective in mitigating risks and/or losses to the Company.
• The Company’s information systems may experience an interruption or security breach.
• Security breaches and other disruptions could compromise the Company’s information and expose the Company to liability, which would cause its business and reputation to suffer.
• The reliance of the Company on third-party vendors could expose it to additional cyber risk and liability.
• The Company outsources certain aspects of its data processing to certain third-party providers, which may expose it to additional risk.
• The Company is dependent on its information technology and telecommunications systems; third-party service providers and systems failures, interruptions or breaches of security could have an adverse effect on its financial condition and results of operations.
• The adoption of flexible work from home arrangements poses a number of operational risks that could adversely affect the Company’s business, financial condition and results of operations.
• Changes in accounting standards or interpretation of new or existing standards may affect how the Company reports its financial condition and results of operations.
• The Current Expected Credit Loss accounting standard could require the Company to increase its allowance for credit losses and may have a material adverse effect on its financial condition and results of operations.
• The Company’s accounting estimates and risk management processes rely on analytical and forecasting models.
• The Company operates in a highly regulated industry, and compliance with, or changes to, the laws and regulations that govern its operations may adversely affect the Company.
• The Company will become subject to reduced interchange income in 2022.
• The Company’s ability to pay dividends is limited by law.
• Federal banking agencies periodically conduct examinations of the Company’s business, including compliance with laws and regulations; the failure to comply with any supervisory actions to which the Company is or becomes subject as a result of such examinations could adversely affect the Company.
• The Company is subject to numerous laws designed to protect consumers, including the Community Reinvestment Act ("CRA") fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.
• The Company faces a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
• Changes in U.S. or regional economic conditions could have an adverse effect on the Company’s business, financial condition and results of operations.
• 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.
• The market price for the Company’s stock may be volatile.
• Future sales of the Company’s common stock or other securities may dilute the value and adversely affect the market price of the Company’s common stock.
• Changes in tax laws and regulations and differences in interpretation of tax laws and regulations may negatively impact the Company’s financial performance.
• Negative public opinion regarding the Company or failure to maintain the Company’s reputation in the communities it serves could adversely affect the Company’s business and prevent the Company from growing its business.