1284077--3/31/2008--ATLANTIC_COAST_FEDERAL

related topics

{loan, real, estate}

{stock, price, share}

{tax, income, asset}

{stock, price, operating}

{loss, insurance, financial}

{personnel, key, retain}

{regulation, government, change}

{capital, credit, financial}

Risks Relating to the Business The geographic concentration in loans secured by one- to four- family residential real estate may increase credit losses, which could increase the level of provision for loan losses. The loan portfolio possesses increased risk due to our growing number of commercial real estate, commercial business and construction loans and consumer loans, which could increase the level of provision for loan losses. Commercial Real Estate and Commercial Business Loans. Commercial Real Estate and Commercial Business Loans. Commercial and Multi-Family Construction Loans. Commercial and Multi-Family Construction Loans. The loan portfolio possesses increased risk due to rapid expansion during a period of rising real estate values, high sales volume activity and historically low interest rate environment. If economic conditions deteriorate in our primary market areas of Jacksonville, Florida0 and Ware County, Georgia, our results of operation and financial condition could be adversely impacted as borrower s ability to repay loans declines and the value of the collateral securing the loan decreases. If the allowance for loan losses is not sufficient to cover actual losses, income may be negatively affected. We depend on our management team to implement our business strategy and execute successful operations and we could be harmed by the loss of their services. Future changes in interest rates could impact our net income. Our operating expenses are high as a percentage of our net interest income and non-interest income, making it more difficult to maintain profitability. Strong competition in our primary market area may reduce our ability to obtain loans and also decrease our yield on loans. Strong Competition In Our Primary Market Area May Reduce Our Ability To Attract And Retain Deposits And Also Increase Our Cost of Funds. Future economic growth in our Florida market area is likely to be more moderate. The Bank operates in a highly regulated environment and may be adversely affected by changes in laws and regulations. Risks Relating to an Investment in Common Stock 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. Ability to pay dividends is limited.

Full 10-K form ▸

1284077--3/31/2008--ATLANTIC_COAST_FEDERAL_CORP