1026304--3/30/2009--BUCKHEAD_COMMUNITY_BANCORP

related topics

{loan, real, estate}

{tax, income, asset}

{regulation, change, law}

{loss, insurance, financial}

{stock, price, share}

{financial, litigation, operation}

{competitive, industry, competition}

{condition, economic, financial}

{capital, credit, financial}

{personnel, key, retain}

{stock, price, operating}

{interest, director, officer}

{acquisition, growth, future}

Risks Related to Our Business. Our independent registered public accounting firm s report discloses a going concern issue for the Company. We could suffer loan losses from a decline in credit quality. We make and hold in our portfolio a significant number of land acquisition and development and construction loans, which pose more credit risk than other types of loans typically made by financial institutions. Ongoing deterioration in the housing market and the homebuilding industry may lead to increased losses and further worsening of delinquencies and non-performing assets in our loan portfolios. Consequently, our results of operations may be adversely impacted. We are currently operating under heightened regulatory scrutiny and oversight. The amount of other real estate owned ( OREO ) may increase significantly, resulting in additional losses, and costs and expenses that will negatively affect our operations Future impairment losses could be required on various investment securities, which may materially reduce the Company s and the Bank s regulatory capital levels. Adverse market conditions and future losses may require us to raise additional capital to support our operations, but that capital may not be available when it is needed, which could adversely affect our financial condition and results of operations. A reduction in the fair value attributable to recently acquired units of our business may result in the Company having to recognize a non-cash goodwill impairment charge, which would negatively impact our earnings. If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease. A prolonged economic downturn, especially one affecting our market areas, could adversely affect our financial condition, results of operations or cash flows. Our net interest income could be negatively affected by the Federal Reserve s recent interest rate adjustments, as well as by competition in our market area. Our access to additional short term funding to meet our liquidity needs is limited. The FDIC Deposit Insurance assessments that we are required to pay may materially increase in the future, which would have an adverse effect on our earnings. If we fail to retain our key employees, our growth and profitability could be adversely affected. Competition from other financial institutions may adversely affect our profitability. As a community bank, we have different lending risks than larger banks. Our directors and executive officers own a significant portion of our common stock and can influence stockholder decisions. Negative publicity about financial institutions, generally, or about the Company or Bank, specifically, could damage the Company s reputation and adversely impact its business operations and financial results. Holders of our junior subordinated debentures have rights that are senior to those of our common stockholders. Our ability to pay dividends is limited and we may be unable to pay future dividends. As a result, capital appreciation, if any, of our common stock may be your sole opportunity for gains on your investment for the foreseeable future. Risks Related to our Industry Declines in real estate values have adversely affected our credit quality and profitability. Changes in monetary policies may have an adverse effect on our business, financial condition and results of operations. Environmental liability associated with lending activities could result in losses. We are subject to extensive regulation that could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business, which limitations or restrictions could adversely affect our profitability.

Full 10-K form ▸

1026304--3/30/2009--BUCKHEAD_COMMUNITY_BANCORP_INC