702513--3/5/2010--Bank_of_Commerce

related topics

{stock, price, share}

{regulation, change, law}

{system, service, information}

{loss, insurance, financial}

{loan, real, estate}

{capital, credit, financial}

{condition, economic, financial}

{operation, natural, condition}

{tax, income, asset}

{provision, law, control}

{gas, price, oil}

{acquisition, growth, future}

{personnel, key, retain}

{control, financial, internal}

{stock, price, operating}

{financial, litigation, operation}

We have a concentration risk in real estate related loans. Monitoring and servicing our Individual Tax Identification Number ( ITIN ) residential mortgage loans could prove more costly and time consuming than previously modeled. Future loan losses may exceed the allowance for loan losses. Defaults may negatively impact us. Interest rate fluctuations, which are out of our control, could harm profitability. Changes in the fair value of our securities may reduce our shareholders equity and net income. Conditions in the financial markets may limit our access to additional funding to meet our liquidity needs. The condition of other financial institutions could negatively affect us. Changes in laws, government regulation and monetary policy may have a material effect on our results of operations. Because of our participation in the Troubled Asset Relief Program we are subject to several restrictions including, without limitation, restrictions on our ability to declare or pay dividends and repurchase our shares as well as restrictions on compensation paid to our executives. Our Series A Preferred Stock diminishes the net income available to our common shareholders and earnings per common share. Our holders of the Series A Preferred Stock have certain voting rights that may adversely affect our common shareholders, and the holders of the Series A Preferred Stock may have interests different from our common shareholders. We rely heavily on our management team and the loss of key officers may adversely affect operations. Internal control systems could fail to detect certain events. Our operations could be interrupted if third party service providers experience difficulty, terminate their services or fail to comply with banking regulations. Confidential customer information transmitted through the Bank s online banking service is vulnerable to security breaches and computer viruses, which could expose the Bank to litigation and adversely affect its reputation and ability to generate deposits. Potential acquisitions may disrupt our business and dilute shareholder value. We are subject to extensive regulation which could adversely affect our business. Higher FDIC deposit insurance premiums and assessments could adversely affect our financial condition. Shares eligible for future sale could have a dilutive effect. Changes in accounting standards may impact how we report our financial condition and results of operations. A natural disaster or recurring energy shortage, especially in California, could harm our business. The price of our common stock may fluctuate significantly, and this may make it difficult for you to resell shares of common stock owned by you at times or at prices you find attractive. Our profitability measures could be adversely affected if we are unable to effectively deploy the capital raised in our latest offering. Only a limited trading market exists for our common stock, which could lead to significant price volatility. Anti-takeover provisions in our articles of incorporation could make a third party acquisition of us difficult. There may be future sales or other dilutions of our equity which may adversely affect the market price of our common stock. The holders of our preferred stock and trust preferred securities have rights that are senior to those of our holders of common stock and that may impact our ability to pay dividends on our common stock to our common shareholders and reduce net income available to our common shareholders. Our future ability to pay dividends and repurchase stock is subject to restrictions. Negative Publicity could Damage our Reputation Mortgage banking interest rate and market risk Mortgage banking revenue can be volatile from quarter to quarter

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702513--3/5/2010--Bank_of_Commerce_Holdings