1284077--3/31/2006--ATLANTIC_COAST_FEDERAL

related topics

{loan, real, estate}

{stock, price, share}

{stock, price, operating}

{loss, insurance, financial}

{personnel, key, retain}

{regulation, government, change}

{condition, economic, financial}

Our loan portfolio possesses increased risk due to its rapid expansion and the unseasoned nature of the portfolio. Our geographic concentration in loans secured by one- to four- family residential real estate may increase our credit losses, which could increase the level of our provision for loan losses. If our allowance for loan losses is not sufficient to cover actual losses, our income may be negatively affected. We are dependent on our management team to implement our business strategy and successful operations. Changes in interest rates may hurt our profits. Strong competition in our primary market area may reduce our ability to attract and retain deposits and obtain loans. If economic conditions deteriorate, our results of operations and financial condition could be adversely impacted as borrowers ability to repay loans declines and the value of the collateral securing our loans decreases. We operate in a highly regulated environment and we may be adversely affected by changes in laws and regulations. Risks relating to an investment in our common stock Our stock price may be volatile due to limited trading volume. Public stockholders own a minority of Atlantic Coast Federal Corporation s common stock and will not be able to exercise voting control over most matters put to a vote of stockholders. Stock issued pursuant to the exercise of stock options awarded to directors and management will dilute public stockholder ownership. Our ability to pay dividends is limited.

Full 10-K form ▸

1284077--3/31/2006--ATLANTIC_COAST_FEDERAL_CORP