Lakeland Bancorp (LBAI)

Risks

• Our allowance for credit losses on loans may not be adequate to cover actual losses.
• The concentration of our commercial real estate loan portfolio may subject us to increased regulatory analysis, or otherwise adversely affect our business and operating results.
• Our mortgage banking operations expose us to risks that are different than the risks associated with our retail banking operations.
• We are subject to various lending and other economic risks that could adversely affect our results of operations and financial condition.
• We may suffer losses in our loan portfolio despite our underwriting practices.
• We are subject to interest rate risk and variations in interest rates that may negatively affect our financial performance.
• A decrease in our ability to borrow funds could adversely affect our liquidity.
• Public funds deposits are an important source of funds for us and a reduced level of those deposits may hurt our profits and liquidity.
• The transition from LIBOR as a reference rate may adversely impact our net income.
• The occurrence of any failure, breach, or interruption in service involving our systems or those of our service providers could damage our reputation, cause losses, increase our expenses, and result in a loss of customers, an increase in regulatory scrutiny, or expose us to civil litigation and possibly financial liability, any of which could adversely impact our financial condition, results of operations and the market price of our stock.
• The inability to stay current with technological change could adversely affect our business model.
• Our operations rely on certain third party vendors.
• Lakeland’s ability to pay dividends is subject to regulatory limitations which, to the extent that our holding company requires such dividends in the future, may affect our holding company’s ability to pay its obligations and pay dividends to shareholders.
• The Company is subject to heightened regulatory requirements as a result of total assets exceeding $10 billion.
• The effect of future tax reform is uncertain and may adversely affect our business.
• Severe weather, acts of terrorism, geopolitical and other external events could impact our ability to conduct business.
• The outbreak of COVID-19 could continue to materially, adversely affect our business operations, financial condition, results of operations and cash flows.
• An outbreak of any other epidemic, pandemic or outbreak of a highly contagious disease, occurring in the United States or in the geographies in which we conduct operations could materially adversely affect our business operations, financial condition, results of operations and cash flows.
• We face intense competition from other financial services and financial services technology companies, and competitive pressures could adversely affect our business or financial performance.
• The Company may incur impairment to goodwill.
• We could be adversely affected by failure in our internal controls.
• Our risk management strategies may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk.
• The inability to attract and retain key personnel could adversely affect our Company’s business.
• The accuracy of our financial statements and related disclosures could be affected if the judgments, assumptions or estimates used in our critical accounting policies are inaccurate.
• If we do not successfully integrate any banks that we have acquired and may acquire in the future, the combined company may be adversely affected.