701347--3/15/2006--CENTRAL_PACIFIC_FINANCIAL

related topics

{loan, real, estate}

{condition, economic, financial}

{capital, credit, financial}

{acquisition, growth, future}

{control, financial, internal}

{product, market, service}

{product, liability, claim}

{operation, natural, condition}

{personnel, key, retain}

{system, service, information}

{competitive, industry, competition}

{financial, litigation, operation}

{debt, indebtedness, cash}

{cost, contract, operation}

{regulation, government, change}

Factors That May Affect Our Business Changes in economic conditions, in particular an economic slowdown in Hawaii, California or Washington, could hurt our business materially. A large percentage of our loans are collateralized by real estate, and an adverse change in the real estate market may result in losses and adversely affect our profitability. We are subject to environmental liability risk associated with lending activities. Our business is subject to interest rate risk, and fluctuations in interest rates may adversely affect our earnings. A deterioration in the credit quality of our loan portfolio could adversely affect our results of operations. We operate in a highly competitive industry and market area. We may not be able to generate sufficient deposit growth to support our funding needs. Operations in our mainland loan production offices have positively affected our results of operations, and sustaining these operations and growing loans may be more difficult than we expect, which could adversely affect our results of operations. Because we have a limited operating history with respect to our California and Washington loan production offices, it is more difficult to predict our future prospects and financial performance, which may impair our ability to manage our business. The loans made by our mainland loan production offices in California and Washington are generally unseasoned, and defaults on such loans would adversely affect our financial condition, results of operations and prospects. The loans made by our mainland loan production offices in California and Washington are concentrated among a limited number of customers in California and Washington, and difficulty with a customer or loss of a customer could affect our results of operations and our ability to grow loans and deposits in the mainland. Loan growth from our mainland operations is dependent on relationships between certain key customers and our current mainland loan staff who in turn have forged relationships with certain key members of our management team, and the departure of these individuals could adversely affect our business. Governmental regulation may impair our operations or restrict our growth. Our controls and procedures may fail or be circumvented. We are required to assess our internal control over financial reporting on an annual basis, and any future adverse results from such assessment could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. We face risks associated with future acquisitions. Our growth and expansion may strain our ability to manage our operations and our financial resources . New lines of business or new products and services may subject us to additional risks. We rely on dividends from our subsidiaries for most of our revenue. We may not be able to attract and retain skilled people. Our information systems may experience an interruption or breach in security. We continually encounter technological change. We are subject to claims and litigation pertaining to fiduciary responsibility. Severe weather, natural disasters, acts of war or terrorism and other external events could significantly impact our business. The earnings of financial services companies are significantly affected by general business and economic conditions. Financial services companies depend on the accuracy and completeness of information about customers and counterparties.

Full 10-K form ▸

701347--3/15/2006--CENTRAL_PACIFIC_FINANCIAL_CORP