897509--3/16/2006--FLAG_FINANCIAL

related topics

{acquisition, growth, future}

{loan, real, estate}

{stock, price, share}

{tax, income, asset}

{competitive, industry, competition}

{condition, economic, financial}

{personnel, key, retain}

{operation, international, foreign}

{loss, insurance, financial}

{debt, indebtedness, cash}

{regulation, change, law}

{control, financial, internal}

{cost, contract, operation}

Our business is subject to the success of the local economies where we operate. Changes in economic conditions, particularly an economic slowdown, could hurt our business. A downturn in the real estate market could hurt our business. We may face risks with respect to future expansion and acquisitions or mergers. We may incur substantial costs to expand and we can give no assurance that such expansion will result in the levels of profits we seek. Our recent operating results may not be indicative of our future operating results. 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. Increases in interest rates may negatively affect our earnings and the value of our assets. Changes in the level of interest rates also may negatively affect the value of our assets and our ability to realize gains from the sale of our assets, all of which will ultimately affect our earnings. Our loan portfolio includes a substantial amount of commercial and industrial loans which include risks that may be greater than the risks related to residential loans. Our loan customers may not repay their loans according to the terms of these loans and the collateral securing the payment of these loans may be insufficient to assure repayment. If our assumptions are wrong, our current allowance may not be sufficient to cover future loan losses, and adjustments may be necessary to allow for different economic conditions or adverse developments in our loan portfolio. Competition from financial institutions and other financial service providers may adversely affect our profitability. We are subject to extensive regulation that could limit or restrict our activities. Risks associated with unpredictable economic and political conditions may be amplified as a result of our limited market areas. We depend on our ability to attract and retain key personnel; we rely heavily on our management team, and the unexpected loss of key personnel may adversely affect our operations. If a significant number of borrowers, guarantors and related parties fail to perform as required by the terms of their loans, we will sustain losses. Our status as a holding company makes us dependent on dividends from Flag Bank to meet our obligations. Our ability to pay dividends is limited and we may be unable to pay future dividends. Failure to successfully execute our strategy could adversely affect our performance. Our internal operations are subject to a number of risks. The trading volume in our common stock has been low and the future sale of substantial amounts of our common stock in the public market could depress the price of our common stock. There is fluctuation in the trading market for our common stock and investors may be unable to resell shares of our common stock at or above the price paid for them.

Full 10-K form ▸

897509--3/16/2006--FLAG_FINANCIAL_CORP