880116--3/16/2009--Southeastern_Bank_Financial

related topics

{loan, real, estate}

{acquisition, growth, future}

{stock, price, share}

{condition, economic, financial}

{loss, insurance, financial}

{capital, credit, financial}

{stock, price, operating}

{regulation, change, law}

{competitive, industry, competition}

{tax, income, asset}

Future impairment losses could be required on various investment securities, which may materially reduce the Company s and the Bank s regulatory capital levels. We could suffer loan losses from a decline in credit quality. As a community financial institution, we have different lending risks than larger banks. 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. We make and hold in our portfolio a significant number of land acquisition and development and construction loans, which pose more credit risk than other types of loans typically made by financial institutions. 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. Our profitability is vulnerable to interest rate fluctuations. 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. An economic downturn, especially one affecting our market areas, could adversely affect our financial condition, results of operations or cash flows. Ongoing deterioration in the housing market and the homebuilding industry may lead to increased losses and further worsening of delinquencies and non-performing assets in our loan portfolios. Consequently, our results of operations may be adversely impacted. We face intense competition in all of our current and planned markets. 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. 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 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. 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. Environmental liability associated with lending activities could result in losses. Holders of our subordinated debentures have rights that are senior to those of our common shareholders. If we are unable to increase our share of deposits in our market, we may accept out of market and brokered deposits, the costs of which may be higher than expected.

Full 10-K form ▸

880116--3/16/2009--Southeastern_Bank_Financial_CORP