1066254--3/15/2007--ECB_BANCORP

related topics

{acquisition, growth, future}

{stock, price, share}

{loan, real, estate}

{stock, price, operating}

{capital, credit, financial}

{condition, economic, financial}

{competitive, industry, competition}

{loss, insurance, financial}

{operation, natural, condition}

{personnel, key, retain}

{regulation, change, law}

Risks Related to Our Business Our business strategy includes the continuation of our growth plans, and our financial condition and operating results could be negatively affected if we fail to grow or fail to manage our growth effectively. Our business depends on the condition of the local and regional economies where we operate. A large percentage of our loans are secured by real estate. Adverse conditions in the real estate market in our banking markets might adversely affect on our loan portfolio. A large percentage of our loans are secured by real estate. Adverse conditions in the real estate market in our banking markets might adversely affect on our loan portfolio. Hurricanes or other adverse weather events could negatively affect our local economies or disrupt our operations, which could have an adverse effect on our business or operating results. Our increasing volume of loans makes loan quality more difficult to control. Increased loan losses could affect the value of our common stock. An inadequate loan loss allowance would reduce our earnings and could adversely affect the value of our common stock. Building market share through our de novo branching strategy could cause our expenses to increase faster than revenues. Our recent results may not be indicative of our future results. Our recent results may not be indicative of our future results. We may need to raise additional capital in the future in order to continue to grow, but that capital may not be available when it is needed. Our profitability is subject to interest rate risk. Changes in interest rates could have an adverse effect on our operating results. Our reliance on time deposits, including out-of-market certificates of deposit, as a source of funds for loans and our other liquidity needs could have an adverse effect on our operating results. Competition from financial institutions and other financial service providers may adversely affect our profitability. We are subject to extensive regulation that could limit or restrict our activities and adversely affect our earnings. Our management beneficially owns a substantial percentage of our common stock, so our directors and executive officers can significantly affect voting results on matters voted on by our shareholders. Our management beneficially owns a substantial percentage of our common stock, so our directors and executive officers can significantly affect voting results on matters voted on by our shareholders. We depend on the services of our current management team. We may need to invest in new technology to compete effectively, and that could have a negative effect on our operating results and the value of our common stock. Risks Related to Our Common Stock The trading volume in our common stock has been low, and the sale of a substantial number of shares in the public market could depress the price of our stock and make it difficult for you to sell your shares. Our ability to pay dividends is limited and we may be unable to pay future dividends. Holders of our junior subordinated debentures have rights that are senior to those of our common stockholders.

Full 10-K form ▸

1066254--3/15/2007--ECB_BANCORP_INC