1368883--3/16/2009--SAN_JOAQUIN

related topics

{condition, economic, financial}

{capital, credit, financial}

{stock, price, share}

{loan, real, estate}

{competitive, industry, competition}

{regulation, change, law}

{tax, income, asset}

{stock, price, operating}

{system, service, information}

{financial, litigation, operation}

{operation, natural, condition}

{control, financial, internal}

{acquisition, growth, future}

The recent financial crisis and current uncertainty in global economic conditions could negatively affect our business, earnings and financial condition. There can be no assurance that the recently enacted legislation will help stabilize the U.S financial system. The Company's operations are geographically concentrated and a change in economic conditions may significantly adversely affect our earnings and financial condition. The markets in which we operate are subject to the risk of earthquake and other natural disasters. The Bancorp s and Bank s primary federal and state regulators may impose formal enforcement actions on the Bancorp and the Bank related to capital, assets, management, earnings, liquidity and sensitivity to market risk. The application of various banking laws and regulations may significantly adversely affect our cash flows, dividends or other distributions and we have suspended dividend distributions on our common stock. Federal and state governments could pass additional legislation responsive to current credit conditions and the FDIC has invoked authority under existing law to increase bank deposit insurance fund premiums. Change in interest rates may reduce our income and cash flows. A degradation of our loan portfolio quality or an increase in loan losses may significantly adversely affect our income and financial condition. Our concentration in real estate construction and land development loans subjects us to additional risks. The soundness of other financial institutions could adversely affect the Company. Our ability to satisfy all of our operating and liquidity requirements could be impaired if our financial condition or capital adequacy declines significantly or below prescribed regulatory levels The Company faces strong competition which may significantly adversely affect our earnings. The Company s controls and procedures may fail or be circumvented which may significantly adversely affect our operations or earnings. The Company s information systems may experience an interruption or breach in security. To bolster the Company s capital, the Bancorp may attempt to increase its equity by selling common or preferred stock, either privately or through participation in the Capital Assistance Program announced by the US Treasury on February 10, 2009, on terms which are not yet known. The Company has adopted a capital enhancement strategy but there can be no assurance it will be successful. Your ability to sell your shares of common stock at the times and in the amounts you desire may be limited. Our directors and executive officers beneficially own a significant portion of our outstanding common stock.

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1368883--3/16/2009--SAN_JOAQUIN_BANCORP