1331520--3/6/2009--HOME_BANCSHARES

related topics

{stock, price, share}

{regulation, change, law}

{condition, economic, financial}

{stock, price, operating}

{acquisition, growth, future}

{loan, real, estate}

{loss, insurance, financial}

{product, market, service}

{operation, natural, condition}

{personnel, key, retain}

{control, financial, internal}

{competitive, industry, competition}

{tax, income, asset}

{provision, law, control}

Recent legislative and regulatory initiatives to address difficult market and economic conditions may not stabilize the U.S. banking system. Current levels of market volatility are unprecedented. Our profitability is vulnerable to interest rate fluctuations and monetary policy. We are subject to extensive regulation that could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business, which limitations or restrictions could adversely affect our profitability. Risks Related to Our Business Our decisions regarding credit risk could be inaccurate and our allowance for loan losses may be inadequate, which would materially and adversely affect our business, financial condition, results of operations and future prospects. Because we have a high concentration of loans secured by real estate, a further downturn in the real estate market could result in losses and materially and adversely affect our business, financial condition, results of operations and future prospects. Because we have a concentration of exposure to a number of individual borrowers, a significant loss on any of those loans could materially and adversely affect our business, financial condition, results of operations, and future prospects. The unexpected loss of key officers may materially and adversely affect our business, financial condition, results of operations and future prospects. Our growth and expansion strategy may not be successful and our market value and profitability may suffer. There may be undiscovered risks or losses associated with our acquisitions of bank subsidiaries which would have a negative impact upon our future income. Competition from other financial institutions may adversely affect our profitability. We continually encounter technological change, and we may have fewer resources than many of our competitors to continue to invest in technological improvements. Our recent results do not indicate our future results, and may not provide guidance to assess the risk of an investment in our common stock. We may not be able to raise the additional capital we need to grow and, as a result, our ability to expand our operations could be materially impaired. Our directors and executive officers own a significant portion of our common stock and can exert significant control over our business and corporate affairs. Our accounting policies and methods impact how we report our financial condition and results of operations. Application of these policies and methods may require management to make estimates about matters that are uncertain. Changes in accounting standards could materially impact our consolidated financial statements. Our internal controls may be ineffective. A natural disaster or act of terrorism, especially one affecting our market areas, could adversely affect our business, financial condition, results of operations and future prospects. Risk Related to Owning Our Stock Regulatory and contractual restrictions may limit or prevent us from paying dividends on the Series A Preferred Shares and our common stock. The holders of our subordinated debentures have rights that are senior to those of our shareholders. If we defer payments of interest on our outstanding subordinated debentures or if certain defaults relating to those debentures occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation payments with respect to, the Series A Preferred Shares and our common stock. The prices of our common stock may fluctuate significantly, and this may make it difficult for you to resell common stock when you want or at prices you find attractive. There may be future sales of additional common stock or preferred stock or other dilution of our equity, which may adversely affect the market price of our common stock or the Series A Preferred Shares. Anti-takeover provisions could negatively impact our stockholders. If we are unable to redeem the Series A Preferred Shares after five years, the cost of this capital to us will increase substantially. The securities purchase agreement between us and the Treasury limits our ability to pay dividends on and repurchase our common stock. We may be unable to, or choose not to, pay dividends on our common stock.

Full 10-K form ▸

1331520--3/6/2009--HOME_BANCSHARES_INC