740942--3/16/2010--TOWER_BANCORP

related topics

{stock, price, share}

{acquisition, growth, future}

{condition, economic, financial}

{loan, real, estate}

{competitive, industry, competition}

{stock, price, operating}

{control, financial, internal}

{regulation, change, law}

{product, market, service}

{financial, litigation, operation}

{loss, insurance, financial}

{personnel, key, retain}

{regulation, government, change}

{provision, law, control}

Risks Related to Our Business Growing By Acquisition Entails Certain Risks. Legislative and regulatory actions taken now or in the future to address the current liquidity and credit crisis in the financial industry may significantly affect our financial condition, results of operations, liquidity or stock price. A continuation of recent turmoil in the financial markets, particularly if economic conditions worsen more than expected, could have an adverse effect on our financial position or results of operations. A substantial decline in the value of our Federal Home Loan Bank of Pittsburgh common stock may adversely affect our financial condition. Increases in FDIC insurance premiums may have a material adverse effect on our results of operations. The soundness of other financial services institutions may adversely affect our credit risk. Changes in interest rates could adversely impact our financial condition and results of operations. Our loan portfolio includes a large number and amount of commercial and industrial loans, and commercial real estate related loans, which have a higher degree of risk than other types of loans. The severity and duration of the current recession and the composition of our loan portfolio could impact the level of loan charge-offs and the provision for loan losses and may affect our net income or loss. We are required to make a number of judgments in applying accounting policies and different estimates and assumptions in the application of these policies could result in a decrease in capital and/or other material changes to our reports of financial condition and results of operations. Difficulties in integrating past or future acquisitions could adversely affect our business. We plan to pursue a growth strategy and there are risks associated with rapid growth. We may elect or need to seek additional capital in the future, but that capital may not be available when needed. Future acquisitions could dilute your ownership of our common stock and may cause us to become more susceptible to adverse economic events. Our controls and procedures may fail or could be circumvented. Loss of our senior executive officers or other key employees could impair our relationship with our customers and adversely affect our business. An interruption or breach in security with respect to our information systems, as well as information systems of our outsourced service providers, could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation, any of which could have a material adverse effect on our financial condition and results of operations. We continually encounter technological change. Strong competition within our market area may limit our growth and profitability. We operate in a highly regulated environment and may be adversely affected by changes in laws and regulations. Risks Related to Our Common Stock 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. The trading volume in our common stock is less than that of other financial services companies. We may issue additional common stock or other equity securities in the future which could dilute the ownership interest of existing shareholders. Offerings of debt, which would be senior to our common stock upon liquidation, and/or preferred equity securities which may be senior to our common stock for purposes of dividend distributions or upon liquidation, may adversely affect the market price of our common stock. Our ability to pay dividends is subject to limitations. Our management controls a substantial percentage of our stock and therefore have the ability to exercise significant control over our affairs. Anti-takeover provisions and restrictions on ownership could negatively impact our shareholders.

Full 10-K form ▸

740942--3/16/2010--TOWER_BANCORP_INC