813640--3/31/2006--CITIZENS_BANCSHARES_CORP

related topics

{loan, real, estate}

{acquisition, growth, future}

{condition, economic, financial}

{regulation, change, law}

{stock, price, share}

{personnel, key, retain}

{stock, price, operating}

{competitive, industry, competition}

As a community bank, we have different lending risks than larger banks. We could suffer loan losses from a decline in credit quality. Our profitability is vulnerable to interest rate fluctuations. An economic downturn, especially one affecting our market areas, could adversely affect our financial condition, results of operations or cash flows. Changes in monetary policies may have an adverse effect on our business, financial condition and results of operations. Competition from other financial institutions may adversely affect our profitability. We are subject to extensive regulation that could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business, which limitations or restrictions could adversely affect our profitability. If the value of real estate in our core market were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on our business, financial condition and results of operations. If we fail to retain our key employees, our growth and profitability could be adversely affected. Lack of seasoning of our loan portfolio may increase the risk of credit defaults in the future. Additional growth may require us to raise additional capital in the future, but that capital may not be available when it is needed, which could adversely affect our financial condition and results of operations. Our ability to pay dividends is limited and we cannot assure payment of future dividends. As a result, capital appreciation, if any, of our common stock may be your sole opportunity for gains on your investment for the foreseeable future. Our business strategy includes the continuation of growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Our plans for future expansion depend, in some instances, on factors beyond our control, and an unsuccessful attempt to achieve growth could have a material adverse effect on our business, financial condition, results of operations and future prospects. Our recent results may not be indicative of our future results, and may not provide guidance to assess the risk of an investment in our common stock. Holders of our junior subordinated debentures have rights that are senior to those of our common stockholders. Environmental liability associated with lending activities could result in losses.

Full 10-K form ▸

813640--3/31/2006--CITIZENS_BANCSHARES_CORP_/GA/