1156953--3/14/2008--GATEWAY_FINANCIAL_HOLDINGS

related topics

{acquisition, growth, future}

{stock, price, share}

{capital, credit, financial}

{loan, real, estate}

{competitive, industry, competition}

{stock, price, operating}

{loss, insurance, financial}

{operation, natural, condition}

{condition, economic, financial}

{provision, law, control}

{personnel, key, retain}

{regulation, change, law}

Our business strategy includes the continuation of significant growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Our business is subject to the success of the local economies where we operate. We may face risks with respect to future expansion. If the value of real estate in our core market areas were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on us. An inadequate allowance for loan losses would reduce our earnings and capital. A significant part of our loan portfolio is unseasoned. Our reliance on time deposits, including out-of-market certificates of deposit, as a source of funds for loans and our other liquidity needs could have an adverse effect on our operating results. The building of market share through our de novo financial center strategy could cause our expenses to increase faster than our revenues. Our recent results may not be indicative of our future results. We may be adversely affected by interest rate changes. Our operations and customers might be affected by the occurrence of a natural disaster or other catastrophic event in our market area. 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. Our directors and executive officers own a significant portion of our common stock Our continued success is dependent upon the services of our management team. Our continued pace of growth may require us to raise additional capital in the future, but that capital may not be available when it is needed. Our future capital needs could result in dilution of your investment. The trading volume in our common stock is low and the sale of substantial amounts of our common stock in the public market could depress the price of our common stock. Our ability to pay dividends is limited and we may be unable to pay future dividends. Holders of our junior subordinated debentures have rights that are senior to those of our common shareholders. Certain provisions under our Articles of Incorporation and applicable law may make it difficult for others to obtain control of our corporation even if such a change in control may be favored by some shareholders.

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1156953--3/14/2008--GATEWAY_FINANCIAL_HOLDINGS_INC