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New words:
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Financial report summary
?Competition
Luther BurbankRisks
- The economic environment could pose significant challenges for the Company and could adversely affect our financial condition and results of operations.
- Adverse economic conditions in California, Washington, Oregon, Arizona, and/or Nevada, may cause us to suffer higher default rates on our loans and reduce the value of the assets we hold as collateral.
- While customer confidence in the banking system has improved considerably since the first half of 2023, risk related to disintermediation and uninsured deposits remain, and could continue to have a material effect on the Company’s operations and/or stock price.
- Health crises have in the past, and could in the future, materially and adversely affect our business and our customers, counterparties, employees, and third-party service providers.
- Interest rate changes, which are beyond our control, could harm our profitability.
- Changes in the fair value of our investment securities may reduce our stockholders’ equity and net income.
- We may suffer losses in our loan portfolio, and those losses may exceed our allowance for credit losses.
- Concentrations within our loan portfolio could result in increased credit risk in a challenging economy. For example, our focus on commercial lending and the concentration on small- and middle-market business customers, who can have heightened vulnerability to economic conditions.
- We are subject to liquidity risk, which could adversely affect our financial condition and results of operations.
- We may need to raise additional capital in the future and such capital may not be available when needed or at all.
- We are subject to capital adequacy standards and liquidity rules, and a failure to meet these standards could adversely affect our financial condition.
- We are exposed to risks related to cybersecurity, data privacy, and fraud.
- We rely on other companies to provide key components of our business infrastructure.
- A natural or man-made disaster or recurring energy shortage, especially in California, could harm our business.
- Climate change could have a material negative impact on the Company and clients.
- We are subject to extensive regulation, which could adversely affect our business.
- Regulations relating to privacy, information security, and data protection could increase our costs, affect or limit how we collect and use personal information, and adversely affect our business opportunities.
- We face strong competition from financial services companies and other companies that offer banking services, which could materially and adversely affect our business.
- Acquisitions may disrupt our business.
- Acquisitions may dilute stockholder value.
- Changes in the value of goodwill and intangible assets could reduce our earnings.
- The Company's consolidated financial statements are based in part on assumptions and estimates which, if incorrect, could cause unexpected losses in the future.
- There are risks resulting from the extensive use of models in our business, and we rely on third parties for the provision of economic forecasts and other key inputs used in our models.
- Dividends from the Bank are a primary source of the Corporation’s liquidity from which, among other things, dividends to stockholders may be paid.
- We may reduce or discontinue the payment of dividends by the Corporation on, or repurchases of, our common stock.
Management Discussion
- (1) Reconciliations of the non-GAAP measures are set forth in the Non-GAAP measures section of Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q.
- (2) Dividend payout ratio is defined as common equity dividends declared per share divided by basic earnings per share.
- (3) Ratio is annualized.