1093897--3/17/2009--COASTAL_BANKING_CO

related topics

{capital, credit, financial}

{loan, real, estate}

{condition, economic, financial}

{loss, insurance, financial}

{stock, price, share}

{acquisition, growth, future}

{operation, natural, condition}

{financial, litigation, operation}

{personnel, key, retain}

{regulation, change, law}

Recent negative developments in the financial industry, and the domestic and international credit markets, may adversely affect our operations and results. The current economic environment may present significant challenges for us and could adversely affect our financial condition and results of operations. Weakness in residential property values and mortgage loan markets could adversely affect us. 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. Our allowance for loan losses may not be adequate to cover actual loan losses, which may require us to take a charge to our earnings and adversely impact our financial condition and results of operations. Our decisions regarding credit risk and reserves for loan losses may materially and adversely affect our business. Changes in the interest rate environment could reduce our profitability. We could suffer loan losses from a decline in credit quality. Negative publicity about financial institutions, generally, or about the company or the bank, specifically, could damage our reputation and adversely impact its business operations and financial results. We are subject to liquidity risk in our operations If we are unable to increase our share of deposits in our market, we may accept out of market brokered deposits, the costs of which may be higher than expected. The FDIC Deposit Insurance assessments that we are required to pay may materially increase in the future, which would have an adverse effect on our earnings. We may be required to raise additional capital in the future, but that capital may not be available when it is needed. We are subject to extensive regulation that could limit or restrict our activities. Our ability to pay dividends is limited and we may be unable to pay future dividends. We are dependent on key individuals and the loss of one or more of these key individuals could curtail our growth and adversely affect our prospects. Our ability to attract and retain the best key employees may be limited by the restrictions that we must place on the compensation of those employees due to our participation in the United States Department of the Treasury s Troubled Assets Relief Program Capital Purchase Program ( TARP CPP ). The United States Department of the Treasury, as a holder of our preferred stock, has rights that are senior to those of our common stockholders. Our agreement with the United States Department of the Treasury under the TARP CPP is subject to unilateral change by the Treasury, which could adversely affect our business, financial condition, and results of operations. The Emergency Economic Stabilization Act of 2008 ( EESA ) or other governmental actions may not stabilize the financial services industry. We face strong competition for customers, which could prevent us from obtaining customers and may cause us to pay higher interest rates to attract customers. We will face risks with respect to future expansion and acquisitions or mergers. Environmental liability associated with lending activities could result in losses. Hurricanes or other adverse weather events could negatively affect our local economies or disrupt our operations, which could have an adverse effect on our business or results of operations.

Full 10-K form ▸

1093897--3/17/2009--COASTAL_BANKING_CO_INC