883948--3/16/2010--UNION_FIRST_MARKET_BANKSHARES

related topics

{acquisition, growth, future}

{financial, litigation, operation}

{capital, credit, financial}

{stock, price, share}

{cost, operation, labor}

{competitive, industry, competition}

{loan, real, estate}

{loss, insurance, financial}

{condition, economic, financial}

{regulation, change, law}

{operation, international, foreign}

{personnel, key, retain}

{provision, law, control}

{debt, indebtedness, cash}

{tax, income, asset}

Recent negative developments in the financial services industry and U.S. credit markets may adversely impact the Company s operations and results. The Company s allowance for loan losses may prove to be insufficient to absorb losses in its loan portfolio. Nonperforming assets take significant time to resolve and adversely affect the Company s results of operations and financial condition. Changes in interest rates could adversely affect the Company s income and cash flows. The Company faces substantial competition that could adversely affect the Company s growth and/or operating results. The inability of the Company to successfully manage its growth or implement its growth strategy may adversely affect the results of operations and financial conditions. Difficulties in combining the operations of acquired entities with the Company s own operations may prevent the Company from achieving the expected benefits from acquisitions. The Company s exposure to operational, technological and organizational risk may adversely affect the Company. The Company s dependency on its management team and the unexpected loss of any of those personnel could adversely affect operations. The Company s concentration in loans secured by real estate may adversely impact earnings due to changes in the real estate markets. Legislative or regulatory changes or actions, or significant litigation, could adversely impact the Company or the businesses in which the Company is engaged. Changes in accounting standards could impact reported earnings. Limited availability of financing or inability to raise capital could adversely impact the Company. The FDIC has increased deposit insurance premiums to restore and maintain the federal deposit insurance fund, which has increased the Company s costs and could adversely affect its business. The Company cannot predict the effect of recently enacted and possible future federal legislation on the U. S. economy and the banking industry; there can be no assurance that these measures will improve market conditions. The Company s ability to pay dividends depends upon the results of operations of its subsidiaries. The Company s governing documents and Virginia law contain anti-takeover provisions that could negatively impact its shareholders. If the Company is unable to redeem the Preferred Stock after five years, the cost of this capital will increase substantially. The agreement between the Company and Treasury limits the Company s ability to pay dividends on and repurchase its common stock. If the Company and First Market Bank do not successfully integrate, the Company may not realize the expected benefits from the acquisition. Combining the Company and First Market Bank may be more difficult, costly or time-consuming than the Company expects. The future operating performance of the Company will depend, in part, on the success of the merger of its two largest subsidiary banks, First Market Bank and Union Bank. A significant majority of First Market Bank branches are located in Ukrop s Super Markets grocery stores and the recent sale of Ukrop s Super Markets could aversely affect the business of those branches. The Company has been sued in a class action lawsuit under the Maryland Secondary Mortgage Loan Law, and it is possible that it will suffer losses as a result of this lawsuit.

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883948--3/16/2010--UNION_FIRST_MARKET_BANKSHARES_CORP