1356628--3/4/2010--ViewPoint_Financial

related topics

{loan, real, estate}

{condition, economic, financial}

{loss, insurance, financial}

{gas, price, oil}

{regulation, change, law}

{acquisition, growth, future}

The United States economy remains weak and unemployment levels are high. A prolonged economic downturn, especially one affecting our geographic market area, will adversely affect our business and financial results. If economic conditions deteriorate in the State of Texas, our results of operations and financial condition could be adversely impacted as borrowers ability to repay loans declines and the value of the collateral securing loans decreases. Our loan portfolio possesses increased risk due to our percentage of commercial real estate and commercial non-mortgage loans. Our consumer loan portfolio possesses increased risk. Our business may be adversely affected by credit risk associated with residential property. We are subject to credit risks in connection with the concentration of adjustable rate loans in our portfolio. If our non-performing assets increase, our earnings will suffer. If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease. Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and our income. A legislative proposal has been introduced that would eliminate the Office of Thrift Supervision, ViewPoint Bank s and ViewPoint Financial Group s primary federal regulator, which would require ViewPoint Financial Group to become a bank holding company. Changes in interest rates could adversely affect our results of operations and financial condition. Our strategies to modify our interest rate risk profile may be difficult to implement. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition. Our securities portfolio may be negatively impacted by fluctuations in market value and interest rates, which may have an adverse effect on our financial condition. Higher Federal Deposit Insurance Corporation insurance premiums and special assessments will adversely affect our earnings.

Full 10-K form ▸

1356628--3/4/2010--ViewPoint_Financial_Group