1349593--3/26/2010--FLORIDIAN_FINANCIAL_GROUP

related topics

{loss, insurance, financial}

{regulation, change, law}

{condition, economic, financial}

{stock, price, share}

{loan, real, estate}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, government, change}

{stock, price, operating}

{provision, law, control}

{system, service, information}

{personnel, key, retain}

{control, financial, internal}

{product, market, service}

Risks Related to our Business . Recent legislation and administrative actions authorizing the U.S. government to take direct actions within the financial services industry may not stabilize the U.S. financial system. Difficult market conditions and economic trends have adversely affected our industry and our business and may lead to new and increased government regulation. We may be required to pay significantly higher FDIC deposit insurance premiums and assessments in the future. We incurred net losses for 2009 and may incur further losses. The loss of key personnel may adversely affect us. Customers may not repay their loans which could have a material negative impact on earnings and our capital levels. An inadequate allowance for loan losses would reduce our earnings. If our non-performing assets increase, our earnings will suffer. Our loan portfolio includes loans with a higher risk of loss, particularly because our loan portfolio is heavily concentrated in commercial and residential mortgage loans secured by properties in Central Florida. Operating as a multi-bank holding company can be inefficient and more costly to operate. We may need additional capital resources in the future and these capital resources may not be available on acceptable terms or at all. We may face risks with respect to future expansion. Since we engage in lending secured by real estate and may be forced to foreclose on the collateral property and own the underlying real estate, we may be subject to the increased costs associated with the ownership of real property, which could result in reduced net income. We may incur losses if we are unable to successfully manage interest rate risk. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition. Concerns of customers over deposit insurance may cause a decrease in our deposits. Future economic growth in our Florida market area is likely to be slower compared to previous years. The soundness of other financial institutions could adversely affect us. The fair value of our investments could decline. The Banks and we are subject to extensive governmental regulation. Changes in our accounting policies or in the accounting standards could materially affect how we report our financial results and condition. The banking industry is very competitive. Florida financial institutions, such as the Banks, face a higher risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations. Confidential customer information transmitted through the Banks online banking service is vulnerable to security breaches and computer viruses, which could expose the Banks to litigation and adversely affect their reputation and ability to generate deposits. We cannot predict how changes in technology will impact our business. Risks Related to an Investment in our Common Stock. There is no established trading market for our common stock and you may not be able to resell your shares. Our management holds a large portion of our common stock. Our Articles of Incorporation, Bylaws, and certain laws and regulations may prevent or delay transactions you might favor, including our sale or merger. We are subject to evolving and expensive corporate governance regulations and requirements. Our failure to adequately adhere to these requirements or the failure or circumvention of our controls and procedures could seriously harm our business. We have not paid cash dividends to our common shareholders and have no plans to pay future cash dividends to our common shareholders. Your shares of common stock will not be an insured deposit.

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1349593--3/26/2010--FLORIDIAN_FINANCIAL_GROUP_INC