1355607--3/30/2009--Santa_Lucia

related topics

{loan, real, estate}

{condition, economic, financial}

{stock, price, share}

{regulation, change, law}

{acquisition, growth, future}

{competitive, industry, competition}

{personnel, key, retain}

{loss, insurance, financial}

{debt, indebtedness, cash}

{capital, credit, financial}

{provision, law, control}

{stock, price, operating}

{control, financial, internal}

{regulation, government, change}

FACTORS THAT MAY AFFECT FUTURE RESULTS OF OPERATIONS Risks Associated with our Business. Recession and changes in domestic and foreign financial markets may have a material negative impact on our results of operations and financial condition. Recently enacted legislation and other measures undertaken by the Treasury, the FRB and other governmental agencies may not help stabilize the U.S. financial system or improve the housing market. Current levels of market volatility are unprecedented. The current changing economic environment poses significant challenges for us. A significant portion of our loan portfolio is secured by real estate and a downturn in the local economy and real estate market could affect our business. We also have a high concentration in commercial real estate or CRE loans. Deposit insurance assessments will increase substantially, which will adversely affect profits. Our real estate lending also exposes us to the risk of environmental liabilities. Our business is subject to interest rate risk and changes in interest rates may adversely affect our performance and financial condition. Economic conditions in the Central Coast of California area could adversely affect our operations and/or cause us to sustain losses. We face strong competition from financial service companies and other companies that offer banking services that could hurt our business. Failure to successfully execute our strategy could adversely affect our performance. We may not be able to attract and retain skilled people Our internal operations are subject to a number of risks. We depend on cash dividends from our subsidiary bank to meet our cash obligations. Risks Associated with our Industry. We are subject to government regulation that could limit or restrict our activities, which in turn could adversely impact our operations. New legislative and regulatory proposals may affect our operations and growth. Risks Associated with our Stock. 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. Our Articles of Incorporation and By-Laws, As Well As Certain Banking Laws, May Have An Anti-Takeover Effect .

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1355607--3/30/2009--Santa_Lucia_Bancorp