1069157--3/1/2010--EAST_WEST_BANCORP

related topics

{condition, economic, financial}

{stock, price, share}

{cost, operation, labor}

{loss, insurance, financial}

{personnel, key, retain}

{competitive, industry, competition}

{acquisition, growth, future}

{regulation, change, law}

{operation, natural, condition}

{tax, income, asset}

{investment, property, distribution}

{system, service, information}

{loan, real, estate}

{provision, law, control}

{stock, price, operating}

{debt, indebtedness, cash}

{operation, international, foreign}

Risk Factors That May Affect Future Results Difficult economic and market conditions have adversely affected our industry. Recent legislative and regulatory initiatives to address difficult market and economic conditions may not stabilize the U.S. banking system. If current levels of market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital and on our business, financial condition, results of operations, and cash flows. U.S. and international financial markets and economic conditions, particularly in California, could adversely affect our liquidity, results of operations and financial condition. We may be required to make additional provisions for loan losses and charge off additional loans in the future, which could adversely affect our results of operations. Our allowance for loan and lease losses may not be adequate to cover actual losses. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition. The actions and commercial soundness of other financial institutions could affect the Company's ability to engage in routine funding transactions. Our loan portfolio is predominantly secured by real estate and thus we have a higher degree of risk from a downturn in our real estate markets. We may experience additional goodwill impairment. Our business is subject to interest rate risk and variations in interest rates may negatively affect our financial performance. We are subject to extensive government regulation that could limit or restrict our activities, which, in turn, may hamper our ability to increase our assets and earnings. The short term and long term impact of the new Basel II capital standards and the forthcoming new capital rules to be proposed for non-Basel II U.S. banks is uncertain. Failure to manage our growth may adversely affect our performance. We face strong competition from financial services companies and other companies that offer banking services. If we cannot attract deposits, our growth may be inhibited. We rely on communications, information, operating and financial control systems technology from third-party service providers, and we may suffer an interruption in those systems. We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects. Managing reputational risk is important to attracting and maintaining customers, investors and employees. State laws may restrict our ability to pay dividends. The terms of our outstanding preferred stock limit our ability to pay dividends on and repurchase our common stock, and there can be no assurance of any future dividends on our common stock. Our outstanding preferred stock impacts net income available to our common stockholders and earnings per common share, and the TARP Warrant as well as other potential issuances of equity securities may be dilutive to holders of our common stock. Because of our participation in the Troubled Asset Relief Program, we are subject to several restrictions including restrictions on compensation paid to our executives. The price of our common stock may be volatile or may decline. Anti-takeover provisions could negatively impact our stockholders. Natural disasters and geopolitical events beyond our control could adversely affect us. Adverse conditions in Asia could adversely affect our business. We have engaged in and may continue to engage in further expansion through acquisitions, which could negatively affect our business and earnings. We may experience difficulties in integrating the operations of United Commercial Bank, which may negatively impact our business and earnings. We may have difficulty integrating and retaining the deposits of United Commercial Bank. We may experience difficulty in managing the acquired United Commercial Bank loan portfolio within the limits of the loss protection provided by the FDIC.

Full 10-K form ▸

1069157--3/1/2010--EAST_WEST_BANCORP_INC