1123735--3/31/2010--COMMUNITY_FINANCIAL_SHARES

related topics

{condition, economic, financial}

{loan, real, estate}

{stock, price, share}

{personnel, key, retain}

{acquisition, growth, future}

{loss, insurance, financial}

{debt, indebtedness, cash}

{competitive, industry, competition}

{system, service, information}

{cost, operation, labor}

{tax, income, asset}

A continued deterioration in national and local economic conditions may negatively impact our financial condition and results of operations. The current economic recession could result in increases in our level of non-performing loans and/or reduce demand for our products and services, which would lead to lower revenue, higher loan losses and lower earnings. We may not be able to maintain and manage our growth, which may adversely affect our results of operations and financial conditions and the value of our common stock. We are subject to credit risks in connection with the concentration of adjustable rate loans in our portfolio. Fluctuations in interest rates could reduce our profitability and affect the value of our assets. Our emphasis on commercial and construction lending may expose us to increased lending risks. Our regulators may require us to increase capital levels in the future and our continued pace of growth may require us to raise additional capital to support our operations, but additional capital may not be available when needed. Special FDIC assessments and increased base assessment rates by the FDIC will decrease our earnings. We need to generate liquidity to fund our lending activities. Our profitability depends significantly on economic conditions in our market. If we experience greater loan losses than anticipated, it will have an adverse effect on our net income. The limitations on executive compensation imposed through our participation in the TARP Capital Purchase Program may restrict our ability to attract, retain and motivate key employees, which could adversely affect our operations. Future dividend payments and common stock repurchases are restricted by the terms of the U.S. Treasury s equity investment in us. The terms governing the issuance of the preferred stock to the U.S. Treasury may be changed, the effect of which may have an adverse effect on our operations. If we lose key employees with significant business contacts in our market area, our business may suffer. In order to be profitable, we must compete successfully with other financial institutions which have greater resources than we do. New or acquired branch facilities and other facilities may not be profitable. Government regulations may prevent or impair our ability to pay dividends, engage in additional acquisitions or operate in other ways. Our stock trading volume has been low compared to larger bank holding companies. Accordingly, the value of your common stock may be subject to sudden decreases due to the volatility of the price of our common stock. We rely on technology to conduct many transactions with our customers and are therefore subject to risks associated with systems failures, interruptions or breaches of security. 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.

Full 10-K form ▸

1123735--3/31/2010--COMMUNITY_FINANCIAL_SHARES_INC