717538--3/6/2009--ARROW_FINANCIAL

related topics

{condition, economic, financial}

{loan, real, estate}

{system, service, information}

{regulation, government, change}

{regulation, change, law}

{competitive, industry, competition}

{financial, litigation, operation}

{personnel, key, retain}

{stock, price, share}

{capital, credit, financial}

{stock, price, operating}

Difficult market conditions have adversely affected the financial services industry If economic conditions continue to deteriorate and the U.S. experiences a prolonged nationwide recession, the company s allowance for loan losses may not be adequate to cover actual losses. If economic conditions worsen and the U.S. financial markets continue to experience difficulties, the company may experience limited access to credit markets. If the value of real estate in our market area were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which might have a material adverse effect on us. If securities prices continue to significantly decline, we likely will experience a continuing reduction in income from fiduciary activities. We are subject to the local economies where we operate, and unfavorable economic conditions in these areas could have a material adverse effect on our financial condition and results of operations. The domestic interest rate environment could negatively affect the company s net interest income. Current levels of market volatility are unprecedented. Changes in accounting standards may materially impact the company s financial statements. The company s business could suffer if it loses key personnel unexpectedly or fails to provide for an orderly management succession. The company relies on other companies to provide key components of the company s business infrastructure. The soundness of other financial institutions could adversely affect Arrow. Significant legal or regulatory enforcement actions could subject the company to substantial uninsured liabilities. The company faces continuing and growing security risks to its own information base and to information on its customers. The company s stock price may begin to reflect market volatility. We may be adversely affected by government regulation. There can be no assurance that recently enacted legislation will stabilize the U.S. financial markets. Arrow may be adversely affected by the recently enacted legislation and related programs.

Full 10-K form ▸

717538--3/6/2009--ARROW_FINANCIAL_CORP