1061580--3/16/2009--UCBH_HOLDINGS

related topics

{acquisition, growth, future}

{loss, insurance, financial}

{competitive, industry, competition}

{regulation, change, law}

{stock, price, share}

{loan, real, estate}

{condition, economic, financial}

{capital, credit, financial}

{operation, natural, condition}

{personnel, key, retain}

{tax, income, asset}

Current levels of market volatility are unprecedented. Risks Relating to Use of Estimates and Valuations. Our business is subject to the success of the state, national and international economies in which we operate. Our business strategy includes the execution of growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Our continued pace of growth may require us to raise additional capital in the future, but that capital may not be available when it is needed. If we cannot attract deposits, our growth may be inhibited. Our wholesale funding sources may prove insufficient to replace deposits at their maturity and support our future growth. We may experience further writedowns on our financial instruments related to volatile and illiquid market conditions. Intense competition exists for loans and deposits. The loan portfolio may not perform as expected. Our allowance for loan losses may prove to be insufficient to absorb losses in our loan portfolio. If the value of real estate in our primary market areas were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on us. We are subject to operational risk and operational events that could adversely affect our business. If we are unable to successfully integrate the operations of future acquisitions or branch expansions, the Company s consolidated financial condition and results of operations could be negatively affected. Unanticipated costs relating to the Company s acquisitions could reduce its future earnings per share. The Company may engage in further expansion through new branch openings or acquisitions, which could adversely affect net income. UCBH may issue additional capital stock in the future. Changes in government regulation and monetary policy may have an unfavorable impact on the Company. Our outstanding preferred stock impacts net income available to our common stockholders and earnings per common share, and the TARP Warrant as well may be dilutive to holders of our common stock. We are subject to regulation in the jurisdictions in which we conduct business. Defaults by larger financial institutions could adversely affect financial markets in general. There can be no assurance that recently enacted legislation authorizing the United States government to take direct actions within the financial services industry will help strengthen the financial system. If we do not effectively manage liquidity, our business could be adversely affected.

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1061580--3/16/2009--UCBH_HOLDINGS_INC