1304366--3/16/2007--Community

related topics

{acquisition, growth, future}

{loan, real, estate}

{stock, price, share}

{operation, natural, condition}

{personnel, key, retain}

{loss, insurance, financial}

{regulation, change, law}

{condition, economic, financial}

{competitive, industry, competition}

{cost, contract, operation}

{provision, law, control}

{control, financial, internal}

{stock, price, operating}

Factors Relating to Our Markets and to Our Business Generally, a deterioration in economic conditions and a slowdown in growth in any of our market areas, and particularly a slowdown in gaming and tourism activities in Las Vegas, could adversely affect our business, financial condition, results of operations and prospects. Such deterioration could result in a variety of adverse consequences to us, including a reduction in net income and the following: Loan delinquencies may increase, which would cause us to increase provisions for loan losses; Problem assets and foreclosures may increase, which could result in higher operating expenses, as well as possible increases in our provisions for loan losses; Demand for our products and services may decline, including specifically, the demand for loans, which would cause our revenues (net interest income and non-interest income) to decline; and Collateral for loans made by us may decline in value, in turn reducing a customer s borrowing power, and thus reducing the value of assets and collateral associated with our loans, which could cause decreases in net interest income and increase the provision for loan losses. The greater Las Vegas area economy has grown dramatically during the past several years. The failure of this economy to sustain such growth in the future could seriously affect our ability to grow and to be profitable. Our Las Vegas market area is substantially dependent on gaming and tourism revenue, and a downturn in gaming or tourism could seriously hurt our business and our prospects. An expansion of permissible gaming activities in other states, particularly in California, may lead to a decline in gaming revenue in Las Vegas, which could hurt our business and our prospects. A terrorist act, or the mere threat of a terrorist act, may adversely affect the Las Vegas economy and may cause substantial harm to our business. Future growth of the greater Las Vegas area is dependent, among other things, on the availability of water, and any restrictions imposed by the government on water consumption could curtail future development, which has been a source of growth in our loan portfolio. The value of real estate in the greater Las Vegas area is influenced by the distribution policies of the Bureau of Land Management. A change in such distribution policies could affect the value of real estate, which, in turn, could negatively affect our real estate loan portfolio. We have a high concentration of loans secured by real estate and a downturn in the real estate market, for any reason, could hurt our business and our prospects. Factors Relating to Our Business Our future success involves both our ability to grow and our ability to manage such growth. Additionally, we must continue to manage the risks inherent in the banking business. We may not be able to sustain our historical growth rates, be able to grow at all, or successfully manage any growth, whether or not the greater Las Vegas, or Phoenix area economies continue to grow. This could result in a variety of adverse consequences to us, including the following: Inability to realize any benefit from our investment of resources made to support our future growth; Failure to attract or retain experienced commercial bankers or other key employees; Inability to maintain adequate controls and systems; and Failure to comply with applicable federal, state and local laws, rules and regulations. We may not be able to continue our growth at the rate we have in the past several years. A component of our business strategy is to expand into high growth markets by opening new branches or organizing new banks and/or acquiring other financial institutions. We may not be able to successfully implement this part of our business strategy, and therefore our market value and profitability may suffer. Our growth could be hindered unless we are able to recruit additional, qualified employees. We may have difficulty attracting additional necessary personnel, which may divert resources and limit our ability to successfully expand our operations. Our business would be harmed if we lost the services of any of our executive management team. There is intense competition in our market area, and we cannot assure you that we will be able to successfully compete. Our allowance for loan losses may not be adequate to cover actual losses, particularly given our relatively large individual loan size. Provisions in our articles of incorporation and bylaws may limit the ability of another party to acquire us. We Are Subject To Interest Rate Risk. We are subject to extensive government regulation. These regulations could adversely affect our business, financial condition, results of operations or cash flows. Our Stock Trades Less Frequently Than Others. Our Stock Price Is Affected by a Variety of Factors. Our Common Stock Is Not An Insured Deposit. Securities Authorized for Issuance under Equity Compensation Plans

Full 10-K form ▸

1304366--3/16/2007--Community_Bancorp