1070680--3/29/2010--CENTRAL_FEDERAL_CORP

related topics
{stock, price, share}
{capital, credit, financial}
{debt, indebtedness, cash}
{competitive, industry, competition}
{acquisition, growth, future}
{cost, regulation, environmental}
{regulation, change, law}
We face strong competition from other financial institutions, financial service companies and other organizations offering services similar to those offered by us, which could result in our not being able to sustain or grow our loan and deposit businesses. We rely, in part, on external financing to fund our operations, and any lack of availability of such funds in the future could adversely impact our business strategies and future prospects. We are subject to extensive regulation that could have adverse effects. CFBank s ability to pay dividends is subject to regulatory limitations which, to the extent the Holding Company requires such dividends in the future, may affect the Holding Company s ability to service its debt, pay its obligations as they become due, and pay dividends. Our participation in the U.S. Treasury s TARP Capital Purchase Program, which includes restrictions on the ability to pay dividends or repurchase outstanding common stock, as well as restrictions on executive compensation, may act to depress the market value of the Company s common stock and hinder our ability to attract and retain well-qualified executives. The Company s participation in the U.S. Treasury s TARP Capital Purchase Program could adversely affect the Company s financial condition and results of operations. If we are unable to redeem the Preferred Stock after five years, the cost of this capital will increase substantially. The Preferred Stock reduces net income available to holders of the Company s common stock and earnings per share of common stock, and the Warrant issued to the U.S. Treasury may be dilutive to holders of the Company s common stock. If we fail to continue to meet all applicable continued listing requirements of the Nasdaq Capital Market and Nasdaq determines to delist our common stock, the market liquidity and market price of our common stock could decline, and our ability to access the capital markets could be negatively affected.

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