1000234--3/16/2006--ITLA_CAPITAL

related topics

{loan, real, estate}

{loss, insurance, financial}

{operation, natural, condition}

{interest, director, officer}

{system, service, information}

{personnel, key, retain}

{acquisition, growth, future}

{competitive, industry, competition}

{stock, price, operating}

{regulation, change, law}

{tax, income, asset}

An investment in our common stock is subject to risks inherent in our business. Before making an investment decision, you should carefully consider the risks and uncertainties described below together with all of the other information included in this report. In addition to the risks and uncertainties described below, other risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and results of operations. The value or market price of our common stock could decline due to any of these identified or other risks, and you could lose all or part of your investment. Fluctuations in interest rates could reduce our profitability and affect the value of our assets. An increase in loan prepayments may adversely affect our profitability. An inadequate allowance for loan losses would reduce our earnings. Our income producing property loans involve higher principal amounts and expose us to a greater risk of loss than one-to-four family residential loans. The unseasoned nature of many of the loans we originated as part of our small balance multi-family real estate loan platform, along with our limited experience in originating these loans nationwide, may lead to additional provisions for loan losses or charge-offs, which would hurt our profits. Our construction loans are based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Our real estate lending also exposes us to the risk of environmental liabilities. Repayment of our entertainment finance loans is primarily dependent on revenues from distribution contracts. Negative events in certain geographic areas, particularly California, could adversely affect us. Our wholesale funding sources may prove insufficient to replace deposits and support our future growth. Competition with other financial institutions could adversely affect our profitability. We rely heavily on the proper functioning of our technology. We are dependent upon the services of our management team. Terrorist activities could cause reductions in investor confidence and substantial volatility in real estate and securities markets. We are subject to extensive regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business.

Full 10-K form ▸

1000234--3/16/2006--ITLA_CAPITAL_CORP