854399--3/16/2007--PREMIER_COMMUNITY_BANKSHARES

related topics

{acquisition, growth, future}

{competitive, industry, competition}

{personnel, key, retain}

{condition, economic, financial}

{product, candidate, development}

{financial, litigation, operation}

{investment, property, distribution}

Our profitability depends significantly on economic conditions in our market area. The inability to operate Premier Bank successfully may adversely affect our results of operations and financial condition. Our organizational structure of subsidiary banks that operate independently limits cost savings that would otherwise enhance our profitability. A loss of our senior officers could impair our relationship with our customers and adversely affect our business. We may not be able to maintain and manage our growth, which may adversely affect our results of operations and financial condition. In addition to new branch offices, our growth may be enhanced through acquisitions of other financial institutions, but we may not be able successfully to identify and attract suitable acquisition candidates and complete acquisitions. If we need additional capital in the future, we may not be able to obtain it on terms that are favorable and that may limit our growth. Risks Associated with the Merger We will be subject to business uncertainties and contractual restrictions while the Merger is pending. The failure to obtain required approvals and satisfy closing conditions in a timely manner may delay completion of the Merger. The merger agreement limits our ability to pursue alternatives to the Merger. Failure to complete the Merger could negatively impact our stock price and our future business and financial results.

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854399--3/16/2007--PREMIER_COMMUNITY_BANKSHARES_INC