1082564--3/27/2009--FIRST_COMMUNITY_BANK_CORP_OF

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First Community Lender Services, Inc. Information About Our Primary Markets Regulation of the Holding Company Restrictions on the Acquisition of Savings Institutions Support of Subsidiary Depository Institutions. Regulation of First Community Bank Standards for Safety and Soundness. Qualified Thrift Lender Test ( QTL ). Office of Thrift Supervision Assessments. Federal Home Loan Bank System. American Recovery and Reinvestment Act of 2009 Risk Related to Our Business Recent negative developments in the financial services industry and the U.S. and global credit markets have adversely impacted our operations and results and may continue to do so Our business is subject to the success of the local economies where it operates We make and hold in our portfolio a significant number of land acquisition and development and construction loans, which pose more credit risk than other types of loans typically made by financial institutions. An inadequate allowance for loan losses would reduce our earnings. If the value of real estate in our core Florida market were to continue to decline materially, a greater portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on us. Continued deterioration in the housing market and the homebuilding industry may lead to increased loss severities and further worsening of delinquencies and non-performing assets in our loan portfolios. Consequently, our results of operations may be adversely impacted. If we are unable to increase our share of deposits in our markets, we may accept out of market and brokered deposits, the costs of which may be higher than expected. Our continued growth and current level of earnings may require us to raise additional capital in the future, but that capital may not be available when it is needed. Changes in interest rates may negatively affect our earnings and the value of our assets. 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. We face regulatory risks related to our commercial real estate loan concentrations. We are dependent upon the services of our management team. Our profitability could be adversely affected if we are unable to promptly deploy the capital raised in our recent offering Losses from loan defaults may exceed the allowance we establish for that purpose, which will have an adverse effect on our business. First Community and its subsidiaries operate in an environment highly regulated by state and federal government; changes in banking laws and regulations could have a negative impact on our business Risk Related to an Investment in Our Securities Our growth strategy may not be successful. Because of our participation in the U.S. Treasury s Capital Purchase Program, we are subject to several restrictions including restrictions on our ability to declare or pay dividends and repurchase our shares as well as restrictions on our executive compensation. Changes in the terms of the TARP-CPP are unpredictable and could adversely affect our operations. Future capital needs could result in dilution of an investment in our shares. Although publicly traded, the trading market in our common stock is less liquid and the price of our common stock due to this limited trading market may be more volatile in the future. Our ability to pay dividends is limited and we may be unable to pay future dividends. Our preferred shares impact net income available to our common shareholders and our earnings per share We may issue debt and equity securities or securities convertible into equity securities, which are senior to our common stock as to distributions and in liquidation, which could negatively affect the value of our common stock. Future sales of our common stock could depress the price of the common stock. There are substantial regulatory limitations on ownership of our common stock and changes of control.

Full 10-K form ▸

1082564--3/27/2009--FIRST_COMMUNITY_BANK_CORP_OF_AMERICA