860519--3/15/2007--SAVANNAH_BANCORP

related topics

{condition, economic, financial}

{stock, price, operating}

{stock, price, share}

{competitive, industry, competition}

{acquisition, growth, future}

{regulation, change, law}

{personnel, key, retain}

{loss, insurance, financial}

{regulation, government, change}

{control, financial, internal}

{operation, natural, condition}

{provision, law, control}

Our business is affected by the strength of the local economies where we operate. Our business is concentrated in the areas of Chatham and Bryan County, Georgia and southern Beaufort County, South Carolina. If our allowance for credit losses is not sufficient to cover actual credit losses, our earnings could decrease. Changes in interest rates could negatively impact our financial condition and results of operations. Monetary policies may adversely affect our business and earnings. Our use of brokered deposits, uninsured local deposits and other borrowings may impair our liquidity and constitute an unstable funding source. Our recent operating results may not be indicative of our future operating results. Future departures of our key personnel may impair our operations. Our continued pace of growth may require us to raise additional capital in the future, but that capital may not be available when it is needed. We have limited operating history for Harbourside upon which to base an estimate of our future financial performance. Our industry operates in a highly regulated environment. New laws or regulations or changes in existing laws or regulations affecting the banking industry could have a material adverse effect on our results of operations. We face substantial competition in our industry sector from banking and financial institutions that have larger and greater financial and marketing capabilities, which may hinder our ability to compete successfully. Failure to implement our business strategies may adversely affect our financial performance. An extended disruption of vital infrastructure could negatively impact our business, results of operations, and financial condition. Non-compliance with the Patriot Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions. The Fed may require the Company to commit capital resources to support the Subsidiary Banks. Our authorized preferred stock exposes holders of our common stock to certain risks. Our directors and executive officers own a significant portion of our common stock. The OCC, OTS or the GDBF may impose dividend payment and other restrictions on the Subsidiary Banks which would impact our ability to pay dividends to shareholders. Dividends from Harbourside are not anticipated for the foreseeable future. Certain provisions in our Articles of Incorporation and Bylaws may deter potential acquirers and may depress our stock price. We have certain obligations and the general ability to issue additional shares of our common stock in the future, and such future issuances may depress the price of our common stock. Sales of large quantities of our common stock could reduce the market price of our common stock. Our common stock has experienced only limited trading. The market price of our common stock has risen significantly in a relatively short period of time.

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860519--3/15/2007--SAVANNAH_BANCORP_INC