813640--3/31/2009--CITIZENS_BANCSHARES_CORP

related topics

{loan, real, estate}

{capital, credit, financial}

{loss, insurance, financial}

{acquisition, growth, future}

{stock, price, share}

{regulation, change, law}

{tax, income, asset}

{condition, economic, financial}

{system, service, information}

{stock, price, operating}

{competitive, industry, competition}

Our allowance for loan losses may not be adequate to cover actual loan losses, which may require us to take a charge to our earnings and adversely impact our financial condition and results of operations. We could suffer loan losses from a decline in credit quality. 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. The amount of "other real estate owned" ("OREO") may increase significantly, resulting in additional losses, and costs and expenses that will negatively affect our operations. Future impairment losses could be required on various investment securities, which may materially reduce the Company's and the Bank's regulatory capital levels. 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 access to additional short term funding to meet our liquidity needs is limited. Changes in monetary policies may have an adverse effect on our business, financial condition and results of operations. Our net interest income could be negatively affected by the Federal Reserve's recent interest rate adjustments, as well as by competition in our market area. 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. The FDIC Deposit Insurance assessments that we are required to pay may materially increase in the future, which would have an adverse effect on our earnings. An economic downturn, especially one affecting our market areas, could adversely affect our financial condition, results of operations or cash flows. As a community bank, we have different lending risks than larger banks. Competition from other financial institutions may adversely affect our profitability. 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. The United States Department of the Treasury, as a holder of our preferred stock, has rights that are senior to those of our common stockholders. Our agreement with the United States Department of the Treasury under the Troubled Assets Relief Program Capital Purchase Program ("TARP CPP") is subject to unilateral change by the Treasury, which could adversely affect our business, financial condition, and results of operations. Our ability to pay dividends is limited and we may be unable to pay 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. The Emergency Economic Stabilization Act of 2008 ("EESA") or other governmental actions may not stabilize the financial services industry. 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. 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.

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813640--3/31/2009--CITIZENS_BANCSHARES_CORP_/GA/