356708--3/16/2007--FIRST_REGIONAL

related topics

{loan, real, estate}

{regulation, change, law}

{competitive, industry, competition}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{provision, law, control}

{cost, contract, operation}

{capital, credit, financial}

{stock, price, operating}

{stock, price, share}

{customer, product, revenue}

{control, financial, internal}

{product, market, service}

We are highly dependent on real estate and events that negatively impact the real estate market could hurt our business. Economic conditions in the Southern California area could adversely affect our operations. We may not or will not sustain recent growth trends. We are dependent on the continued services of key members of management. We face strong competition from financial service companies and other companies that offer banking services that could hurt our business. The Bank is subject to certain risks associated with borrower and industry concentrations. We are subject to government regulation that could limit or restrict our activities, which in turn could adversely impact our operations. We are subject to certain risks associated with public company regulation. Our business is subject to interest rate risk and changes in interest rates may adversely affect our performance and financial condition. Risks Related to Retirement Plan Administration Business Our recent growth presents certain risks, including a decline in credit quality or capital adequacy. If a significant number of borrowers, guarantors and related parties fail to perform as required by the terms of their loans, we will sustain losses. Failure to successfully execute our strategy could adversely affect our performance. Our performance is dependent on our maintaining a high quality of service for our customers, and will be impaired by a decline in our quality of service. Our size subjects us to lower lending limits than many of our competitors are subject to. Our internal operations are subject to a number of risks. We are exposed to risk of environmental and other liabilities with respect to properties to which we take title. There is a limited trading market for the Company common stock. The interests of our controlling shareholders may differ from yours. Provisions in the Company s bylaws may delay or prevent an acquisition of the Company, which could decrease the value of its common stock, and therefore, the Shares.

Full 10-K form ▸

356708--3/16/2007--FIRST_REGIONAL_BANCORP