1066254--3/18/2010--ECB_BANCORP

related topics

{stock, price, share}

{condition, economic, financial}

{acquisition, growth, future}

{loan, real, estate}

{stock, price, operating}

{loss, insurance, financial}

{competitive, industry, competition}

{regulation, change, law}

{personnel, key, retain}

{financial, litigation, operation}

{debt, indebtedness, cash}

Risks Relating to our Business Difficult market conditions and economic trends have adversely affected our industry and our business. Recent legislative and regulatory initiatives to address difficult market and economic conditions may not stabilize the U.S. banking system or the economy. Current levels of market volatility are unprecedented. Our allowance for loan losses may prove to be insufficient to absorb probable losses in 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 have adversely affected 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 have adversely affected our loan portfolio. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition. 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. If we are unable to redeem our Series A Preferred Stock after five years, the cost of this capital to us will increase substantially. Our profitability is subject to interest rate risk. Changes in interest rates could have an adverse effect on our operating results. Our long-range 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. New or changes in existing tax, accounting, and regulatory rules and interpretations could have an adverse effect on our strategic initiatives, results of operations, cash flows, and financial condition. Significant legal actions could subject us to substantial liabilities. Competition from financial institutions and other financial service providers may adversely affect our profitability. We rely on dividends from the Bank for substantially all of our revenue. We depend on the services of our current management team. Risks Relating to Our Common Stock The price of our common stock may fluctuate significantly, and this may make it difficult for you to resell our common stock when you want or at prices you find attractive. 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 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. The securities purchase agreement between us and Treasury limits our ability to pay dividends on and repurchase our common stock. Our outstanding Series A Preferred Stock affects net income available to our common shareholders and earnings per common share, and the warrant we issued to Treasury may be dilutive to holders of our common stock.

Full 10-K form ▸

1066254--3/18/2010--ECB_BANCORP_INC