737210--3/12/2010--LNB_BANCORP

related topics

{condition, economic, financial}

{competitive, industry, competition}

{capital, credit, financial}

{regulation, change, law}

{system, service, information}

{stock, price, share}

{loss, insurance, financial}

{personnel, key, retain}

{acquisition, growth, future}

Current market developments may adversely affect the Corporation s industry, business and results of operations. Recent developments in the financial services industry and the U.S. and global capital markets may adversely impact the Corporation s operations and results. It is unclear what impact EESA, ARRA, and other initiatives undertaken by the United States government to restore liquidity and stability to the U.S. financial system have had and there can be no assurance that they will continue to help stabilize the U.S. financial system. Current levels of market volatility may have a material adverse effect on the Corporation. The soundness of other financial institutions could adversely affect the Corporation. Certain industries, including the financial services industry, are disproportionately affected by certain economic indicators such as unemployment and real estate asset values. Should the improvement of these economic indicators lag the improvement of the overall economy, the Corporation could be adversely affected. Strong competition may reduce the Corporation s ability to generate loans and deposits in its market. Changes in interest rates could adversely affect the Corporation s earnings and financial condition. The Corporation s business may be adversely affected by changes in government policies. The Corporation competes in a highly regulated environment. The Corporation is subject to additional uncertainties, and potential additional regulatory or compliance burdens, as a result of the Corporation s participation in the CPP. The Corporation may be adversely impacted by weakness in the local economies it serves. The Corporation s earnings and reputation may be adversely affected if credit risk is not properly managed. Originating and underwriting loans is critical to the success of the Corporation. The Corporation is subject to liquidity risk. If the Corporation s technology and systems are damaged, its ability to service customers, comply with regulation and grow assets and liabilities may be adversely impacted. The Corporation is subject to risk from the failure of third party vendors. Changes in accounting standards could materially impact the Corporation s financial statements. The Corporation may not be able to attract and retain skilled people. TARP and ARRA impose certain executive compensation and corporate governance requirements that may adversely affect the Corporation, including the Corporation s ability to recruit and retain qualified employees. The Corporation s issuance of securities to the U.S. Treasury may limit the Corporation s ability to return capital to its shareholders and is dilutive to the Corporation s common shares. If the Corporation is unable to redeem such preferred shares, the dividend rate increases substantially after five years. The Corporation s ability to pay dividends is subject to limitations. Additional capital may not be available to the Corporation if and when it is needed.

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737210--3/12/2010--LNB_BANCORP_INC