1081860--3/30/2009--ALASKA_PACIFIC_BANCSHARES

related topics

{condition, economic, financial}

{loss, insurance, financial}

{loan, real, estate}

{stock, price, share}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, government, change}

{cost, contract, operation}

{tax, income, asset}

{personnel, key, retain}

{system, service, information}

{control, financial, internal}

{operation, natural, condition}

Risks Related to the U.S. Financial Industry Difficult economic and market conditions have adversely affected our industry. Current levels of market volatility are unprecedented Risks Related to our Business Our business is subject to general economic risks that could adversely impact our results of operations and financial condition. We are subject to the restrictions and conditions of a Memorandum of Understanding with, and other commitments we have made to, the Office of Thrift Supervision. Failure to comply with the Memorandum of Understanding could result in additional enforcement action against us, including the imposition of monetary penalties. Our profitability depends significantly on economic conditions not only in our primary market area but also the other states where our out of market area loans are located. Weakness in the markets that our loans are located has hurt our business. We may be required to make further increases in our provisions for loan losses and to charge off additional loans in the future, which could adversely affect our results of operations Our ability to foreclose on single family home loans may be restricted We may suffer losses in our loan portfolio despite our underwriting practices. Risks specific to our participation in TARP. The securities purchase agreement between us and Treasury limits our ability to pay dividends on and repurchase our common stock. The Series A Preferred Stock impacts 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. Recent negative developments in the financial industry and credit markets may continue to adversely impact our financial condition and results of operations Liquidity risk could impair our ability to fund operations and jeopardize our financial condition We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed There are regulatory and contractual limitations that may limit or prevent us from paying dividends on the common stock and we may limit or eliminate our dividends to shareholders The maturity and repricing characteristics of our assets and liabilities are mismatched and subject us to interest rate risk which could adversely affect our net earnings and economic value. Our loan portfolio includes loans with a higher risk of loss. If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could be reduced. If external funds were not available, this could adversely impact our growth and prospects. Our deposit insurance assessments will increase substantially, which will adversely affect our profits. The loss of key members of our senior management team could adversely affect our business. We are subject to extensive government regulation which could adversely affect our business. Our business is affected from time to time by federal and state laws and regulations relating to hazardous substances. Our information systems may experience an interruption or breach in security. We rely on dividends from Alaska Pacific Bank for most of our revenue. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud, and, as a result, investors and depositors could lose confidence in our financial reporting, which could adversely affect our business, the trading price of our stock and our ability to attract additional deposits.

Full 10-K form ▸

1081860--3/30/2009--ALASKA_PACIFIC_BANCSHARES_INC