820067--3/8/2006--SUMMIT_BANK

related topics

{acquisition, growth, future}

{loan, real, estate}

{condition, economic, financial}

{regulation, change, law}

{stock, price, operating}

{loss, insurance, financial}

{provision, law, control}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

{operation, international, foreign}

If we do not promptly and successfully complete our acquisition of Concord Bank and integrate it and its internal controls into our business, we may not realize the expected benefits from the acquisition. If the value of real estate in our primary market areas were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on us. We have a concentration of credit exposure to borrowers in the retail trade industry and to small to medium-sized businesses. We have a concentration of credit exposure in commercial real estate. Our international banking services involve risks presented by economic and political volatility. We are subject to a recent consent order from the OCC relating to our compliance with the Bank Secrecy Act ( BSA ). If the OCC finds that we continue to experience deficiencies in our BSA compliance, it could restrict our activities, impose civil money penalties or place limitations on the conduct of our business that could have a material adverse effect on us. We face strong competition from larger, more established competitors. Our business could be harmed if we lose the services of any of our senior management team and are unable to recruit or retain a suitable replacement. If we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately report our financial results or prevent fraud, which could adversely affect our business and the trading price of our stock. We face risks with respect to future expansion and acquisitions or mergers. 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 expansion plans may require us to raise additional capital in the future, but that capital may not be available when it is needed or may be available only on unfavorable terms that could have a material adverse effect on our financial condition and results of operations. 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. Our recent results may not be indicative of our future results. Our directors and executive officers own a significant portion of our common stock and can influence shareholder decisions. Antitakeover provisions of our articles of incorporation may increase the control by current directors in a way that shareholders do not favor. Changes in the interest rate environment could reduce our profitability. We could suffer loan losses from a decline in credit quality. If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease. 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. Changes in monetary policies may have an adverse effect on our business.

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820067--3/8/2006--SUMMIT_BANK_CORP