1344970--9/28/2006--United_Community

related topics

{provision, law, control}

{stock, price, share}

{competitive, industry, competition}

{cost, operation, labor}

{loan, real, estate}

{cost, regulation, environmental}

{control, financial, internal}

{interest, director, officer}

{capital, credit, financial}

{regulation, government, change}

{tax, income, asset}

{cost, contract, operation}

Our primary market area depends substantially on the gaming industry, and a downturn in that industry could hurt our business and our prospects. An expansion of permissible gaming activities in other states, particularly in Kentucky and/or Ohio, may lead to a decline in gaming revenue in Lawrenceburg, Indiana, which could hurt our business and our prospects. We rely heavily on municipal deposits as a source of funds and a reduced level of those deposits may hurt our profits. Rising interest rates may hurt our earnings and asset value. Our increased emphasis on multi-family residential and nonresidential real estate and land lending may expose us to increased lending risks. If we do not achieve profitability on new branches, the new branches may hurt our earnings. Strong competition within our market areas could hurt our profits and slow growth. We operate in a highly regulated environment and we may be adversely affected by changes in laws and regulations. Additional expenses from operating as a public company and from new stock-based benefit plans will adversely affect our profitability. We will need to implement additional finance and accounting systems, procedures and controls in order to satisfy our new public company reporting requirements. A decline in our return on equity as a result of the capital we raised in our March 2006 stock offering may negatively impact the value of our common stock. We have broad discretion in allocating the proceeds of our March 2006 public stock offering. Our failure to utilize effectively such proceeds would reduce our profitability. Issuance of shares for benefit programs may dilute your ownership interest. United Community MHC s majority control of United Community Bancorp s common stock enables it to exercise voting control over most matters put to a vote of stockholders including preventing sale or merger transactions or a second-step conversion transaction you may find advantageous. Office of Thrift Supervision policy on remutualization transactions could prohibit acquisition of United Community Bancorp, which may adversely affect our stock price. Office of Thrift Supervision regulations and anti-takeover provisions in our charter restrict the accumulation of United Community Bancorp s common stock, which may adversely affect our stock price.

Full 10-K form ▸

1344970--9/28/2006--United_Community_Bancorp