Landmark Bancorp (LARK) risk factors, 2025 10-K

Other

1. 01We must effectively manage our credit risk
2. 02Our business is subject to domestic and, to a lesser extent, international economic conditions and other factors, many of which are beyond our control and could materially and adversely affect us
3. 03Continued elevated levels of inflation could adversely impact our business and results of operations
4. 04Our allowance for credit losses may prove to be insufficient to absorb losses in our loan portfolio
5. 05Our concentration of one-to-four family residential mortgage loans may result in lower yields and profitability
6. 06Our loan portfolio has a large concentration of real estate loans, which involve risks specific to real estate value
7. 07The Company’s loan portfolio has a large concentration of CRE loans, which involve risks specific to real estate values and the health of the real estate market generally
8. 08Commercial loans make up a significant portion of our loan portfolio
9. 09The success of our SBA lending program is dependent upon the continued availability of SBA loan programs, our status as a Preferred Lender under the SBA loan programs and our ability to comply with applicable SBA lending requirements
10. 10Our agriculture loans involve a greater degree of risk than other loans, and the ability of the borrower to repay may be affected by many factors outside of the borrower’s control
11. 11Our business is concentrated in and dependent upon the continued growth and welfare of the markets in which we operate, including eastern, central, southeast and southwest Kansas
12. 12Non-performing assets take significant time to resolve and adversely affect our results of operations and financial condition, and could result in further losses in the future
13. 13Monetary policies and regulations of the Federal Reserve could adversely affect our business, financial condition and results of operations
14. 14The monetary policies and regulations of the Federal Reserve have had a significant effect on the operating results of commercial banks in the past and are expected to continue to do so in the future. The effects of such policies upon our business, financial condition and results of operations cannot be predicted
15. 15Interest rates and other conditions impact our results of operations
16. 16Declines in value may adversely impact the carrying amount of our investment portfolio and result in other-than-temporary impairment charges
17. 17The value of the financial instruments we own may decline in the future
18. 18Downgrades in the credit rating of one or more insurers that provide credit enhancement for our state and municipal securities portfolio may have an adverse impact on the market for and valuation of these types of securities

Legal, Accounting and Compliance Risks

1. 19Legislative and regulatory reforms applicable to the financial services industry may have a significant impact on our business, financial condition and results of operations
2. 20The Company and the Bank are subject to stringent capital and liquidity requirements
3. 21We may be required to pay higher FDIC insurance premiums in the future
4. 22There is uncertainty surrounding potential legal, regulatory and policy changes by new presidential administrations in the United States that may directly affect financial institutions and the global economy
5. 23We are subject to changes in accounting principles, policies or guidelines
6. 24Our business is affected from time to time by federal and state laws and regulations relating to hazardous substances

Operational, Strategic and Reputational Risks

1. 25We may experience difficulties in managing our growth, and our growth strategy involves risks that may negatively impact our net income
2. 26We face intense competition in all phases of our business from other banks and financial institutions
3. 27Issues with the use of artificial intelligence in our marketplace may result in reputational harm or liability, or could otherwise adversely affect the Company’s business
4. 28Attractive acquisition opportunities may not be available to us in the future
5. 29Our community banking strategy relies heavily on our management team, and the unexpected loss of key managers may adversely affect our operations
6. 30Labor shortages and failure to attract and retain qualified employees could negatively impact our business, results of operations and financial condition
7. 31The occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents could have a material adverse effect on our business, financial condition, results of operations and growth prospects
8. 32We depend on information technology and telecommunications systems of third parties, and any systems failures, interruptions or data breaches involving these systems could adversely affect our operations and financial condition
9. 33We are subject to certain operational risks, including, but not limited to, customer or employee fraud, losses related to our depositors and data processing system failures and errors
10. 34Our framework for managing risks may not be effective in mitigating risk and loss to us
11. 35Financial services companies depend on the accuracy and completeness of information about customers and counterparties
12. 36Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed

Risks Related to our Common Stock

1. 37There can be no assurances concerning continuing dividend payments
2. 38Debt covenants and other lender requirements may adversely impact our ability to borrow funds
3. 39Failure to pay interest on our debt may adversely impact our ability to pay dividends
4. 40There is a limited trading market for our common shares, and you may not be able to resell your shares at or above the price you paid for them
5. 41The stock market can be volatile, and fluctuations in our operating results and other factors could cause our stock price to decline