356801--3/31/2010--NATIONAL_CONSUMER_COOPERATIVE_BANK

related topics

{loan, real, estate}

{loss, insurance, financial}

{condition, economic, financial}

{financial, litigation, operation}

{capital, credit, financial}

{product, market, service}

{tax, income, asset}

{regulation, government, change}

{regulation, change, law}

{debt, indebtedness, cash}

{system, service, information}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

The Company s decisions regarding credit risk could be inaccurate and its allowance for loan losses may be inadequate, which could materially and adversely affect the Company s business, financial condition, results of operations and future prospects. Additional loan losses will likely occur in the future and may occur at a rate greater than the Company has experienced to date. The Company may be called upon to fund letters of credit related to municipal bonds. Continued adverse developments in the financial markets and deterioration in U.S. economic conditions could have a material adverse effect on the Company s results of operations and financial condition. The Company may not be able to attract and retain banking customers at current levels. NCB, FSB s deposit customers may pursue alternatives to deposits at its bank or seek higher yielding deposits causing NCB, FSB to incur increased funding costs. The Company s lines of business may be less diversified than its competitors. Financial services companies depend on the accuracy and completeness of information about customers and counterparties. The failure of other financial institutions could adversely affect the Company. Weakness in the real estate market, particularly in New York City, could negatively impact the Company s banking business. The Company s business is subject to interest rate risk and fluctuations in interest rates may adversely affect its earnings. Increases in interest rates may reduce demand for mortgage and other loans The Company engages in derivative transactions, which expose it to credit and market risk. The Company may be subject to a continuation of lower gains recorded from the sale of loans. The Company is subject to other-than-temporary impairment risk. Adverse credit market conditions may affect the Company s ability to meet liquidity needs. Concentration in deposit relationships may affect the Company s ability to meet liquidity needs. Prepayments of loans may negatively impact the Company s business. Inability of customers to refinance loans may negatively impact the Company s liquidity The Company s cost of funds for banking operations may increase as a result of general economic conditions, interest rates and competitive pressures. The Company is subject to increased regulatory scrutiny and is subject to certain business limitations imposed by its principal banking regulator. Further, the Company may be subject to more severe future regulatory actions, beyond the extent of the enforcement actions issued on March 15, 2010, if its financial condition or performance weakens. NCB, FSB is subject to regulatory capital adequacy guidelines, and if it fails to meet these guidelines, its financial condition would be adversely affected. The financial services industry is undergoing rapid technological changes. If the Company is unable to adequately invest in and implement new technology-driven products and services, it may not be able to compete effectively, may be subject to interruption and instability or the cost to provide products and services may increase significantly. The Company s business continuity plans or data security systems could prove to be inadequate, resulting in a material interruption in, or disruption to, the Company s business and a negative impact on its results of operations. The Company s controls and procedures may fail or be circumvented which could have a material adverse effect on its business, results of operations and financial condition. Environmental liability associated with commercial real estate lending could result in losses. New accounting pronouncements or interpretations may be issued by the accounting profession, regulators or other government bodies which could change existing accounting methods. Changes in accounting methods could negatively impact the Company s results of operations and financial condition. The Company is exposed to reputation, legal, compliance and other risks.

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356801--3/31/2010--NATIONAL_CONSUMER_COOPERATIVE_BANK_/DC/