730708--3/23/2010--SEACOAST_BANKING_CORP_OF

related topics

{condition, economic, financial}

{loan, real, estate}

{acquisition, growth, future}

{stock, price, share}

{capital, credit, financial}

{competitive, industry, competition}

{loss, insurance, financial}

{regulation, government, change}

{provision, law, control}

{control, financial, internal}

{tax, income, asset}

{product, market, service}

{regulation, change, law}

{operation, natural, condition}

Difficult market conditions have adversely affected and may continue to affect our industry. We are not paying dividends on our preferred stock or common stock and are deferring distribution on our trust preferred securities, and we are restricted in otherwise paying cash dividends on our common stock. The failure to resume paying dividends on our preferred stock and trust preferred securities may adversely affect us. Nonperforming assets take significant time and adversely affect our results of operations and financial condition. Our allowance for loan losses may prove inadequate or we may be adversely affected by credit risk exposures. All of our loan portfolios have been affected by the sustained economic weakness of our markets and the effects of higher unemployment rates. Our commercial and residential real estate and real estate-related portfolios have been especially affected by adverse market conditions, including reduced real estate prices and sales levels. Weaknesses in the real estate markets, including the secondary market for residential mortgage loans, have adversely affected us and may continue to adversely affect us. Our real estate portfolios are exposed to weakness in the Florida housing market and the overall state of the economy. Our concentration of commercial real estate loans could result in further increased loan losses. Higher FDIC deposit insurance premiums and assessments could adversely affect our financial condition. Current levels of market volatility are unprecedented. Liquidity risks could affect operations and jeopardize our financial condition. We could encounter difficulties as a result of our growth. We are required to maintain capital to meet regulatory requirements, and if we fail to maintain sufficient capital, whether due to losses, an inability to raise additional capital or otherwise, our financial condition, liquidity and results of operations, as well as our regulatory requirements, would be adversely affected. Our ability to realize our deferred tax assets may be further reduced in the future if our estimates of future taxable income from our operations and tax planning strategies do not support this amount, and the amount of net operating loss carry-forwards realizable for income tax purposes may be reduced under Section 382 of the Internal Revenue Code by sales of our capital securities. Our cost of funds may increase as a result of general economic conditions, FDIC insurance assessments, interest rates and competitive pressures. Our profitability and liquidity may be affected by changes in interest rates and economic conditions. The TARP CPP and the ARRA impose, and other proposed rules may impose additional, executive compensation and corporate governance requirements that may adversely affect us and our business, including our ability to recruit and retain qualified employees. Changes in accounting and tax rules applicable to banks could adversely affect our financial conditions and results of operations TARP lending goals may not be attainable. Changes of TARP program and future rules applicable to banks generally or to TARP recipients could adversely affect our operations, financial condition, and results of operations. Our future success is dependent on our ability to compete effectively in highly competitive markets. The soundness of other financial institutions could adversely affect us. We operate in a heavily regulated environment. We are subject to internal control reporting requirements that increase compliance costs and failure to comply timely could adversely affect our reputation and the value of our securities. Technological changes affect our business, and we may have fewer resources than many competitors to invest in technological improvements. The anti-takeover provisions in our Articles of Incorporation and under Florida law may make it more difficult for takeover attempts that have not been approved by our board of directors. Hurricanes or other adverse weather events would negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations. Future acquisitions and expansion activities may disrupt our business, dilute existing shareholders and adversely affect our operating results. We may engage in FDIC-assisted transactions, which could present additional risks to our business. Attractive acquisition opportunities may not be available to us in the future. Risks Related to our Common Stock We may issue additional shares of common or preferred stock securities, which may dilute the interests of our shareholders and may adversely affect the market price of our common stock. The Series A Preferred Stock diminishes the net income available to our common shareholders and earnings per common share, and the Warrant we issued to Treasury may be dilutive to holders of our common stock.

Full 10-K form ▸

730708--3/23/2010--SEACOAST_BANKING_CORP_OF_FLORIDA