1234383--4/15/2010--BANK

related topics

{loan, real, estate}

{condition, economic, financial}

{stock, price, share}

{loss, insurance, financial}

{regulation, change, law}

{debt, indebtedness, cash}

{competitive, industry, competition}

{acquisition, growth, future}

{product, market, service}

{product, liability, claim}

{cost, regulation, environmental}

{tax, income, asset}

{control, financial, internal}

{financial, litigation, operation}

{personnel, key, retain}

{operation, natural, condition}

{system, service, information}

{provision, law, control}

{interest, director, officer}

Risks Related to the Company s Business There is substantial doubt about our ability to continue as a going concern. The Bank is subject to certain operating restrictions under the Orders. Noncompliance with the Order at Year End 2009 and Risk of Future Noncompliance. Stroke of the Pen Risk. The Company s Business May Be More Adversely Affected by Conditions in the Financial Markets and Economic Conditions Generally. We Have A High Concentration Of Loans Secured By Real Estate And The Continued Downturn In The Real Estate Market, Could Further Hurt Our Business And Prospects. If A Significant Number Of Borrowers, Guarantors And Related Parties Fail To Perform As Required By The Terms Of Their Loans, We Will Sustain Continued Losses. The Company s Allowance For Loan Losses May Be Insufficient. The Company Is Subject To Interest Rate Risk. The Company s Profitability Depends Significantly On Economic Conditions In Northern Nevada And Northern California. Potential Loss of Certain Tax Attributes. The Company Is Subject To Continuing Lending Risk. Interest rate volatility and credit adjusted rate spreads may impact our financial assets and liabilities measured at fair value. A rapid change in interest rates could make it difficult to maintain a given interest income spread and could result in reduced earnings. The Company Is Subject To Environmental Liability Risk Associated With Lending Activities. The effects of changes to FDIC insurance coverage limits are uncertain and increased premiums adversely affect us. The Company May Be Adversely Affected By The Soundness Of Other Financial Institutions. The Company Operates In A Highly Competitive Industry and Market Area. Difficult market conditions have adversely affected and may continue to have an adverse affect on our industry. The Company Is Subject To Extensive Government Regulation and Supervision. Changes in accounting standards may impact how we report our financial condition and results of operations. The Company s Controls and Procedures May Fail or Be Circumvented. New Lines of Business or New Products and Services May Subject The Company to Additional Risks. The Bank Holdings May Require Dividends From Nevada Security Bank, Which is Currently Subject to Dividend restrictions. Potential Mergers May Disrupt the Company s Business and Dilute Stockholder Value. The Company May Not Be Able To Attract and Retain Skilled People. The Company s Information Systems May Experience An Interruption Or Breach In Security. The Company Continually Encounters Technological Change. The Company May Be Subjected To Claims and Litigation Pertaining To Fiduciary Responsibility. Severe Weather, Natural Disasters, Acts Of War Or Terrorism and Other External Events Could Significantly Impact The Company s Business. Risks Associated With The Company s Common Stock The Company s Stock Price Can Be Volatile. The Trading Volume In The Company s Common Stock Is Less Than That Of Other Larger Financial Services Companies. An Investment In The Company s Common Stock Is Not An Insured Deposit. The common stock is equity and is subordinate to our existing and future indebtedness and preferred stock and effectively subordinated to all the indebtedness. We may raise additional capital, which could have a dilutive effect on the existing holders of our Shares and common stock and adversely affect the price of our common stock. The Company s Articles Of Incorporation and By-Laws As Well As Certain Banking Laws May Have An Anti-Takeover Effect. Risks Associated With The Company s Industry The Earnings Of Financial Services Companies Are Significantly Affected By General Business And Economic Conditions. Financial Services Companies Depend On The Accuracy And Completeness Of Information About Customers And Counterparties. Consumers May Decide Not To Use Banks To Complete Their Financial Transactions.

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1234383--4/15/2010--BANK_HOLDINGS