908311--3/16/2009--PMC_COMMERCIAL_TRUST

related topics

{capital, credit, financial}

{condition, economic, financial}

{tax, income, asset}

{loan, real, estate}

{investment, property, distribution}

{stock, price, operating}

{personnel, key, retain}

{cost, operation, labor}

{financial, litigation, operation}

{stock, price, share}

{loss, insurance, financial}

{competitive, industry, competition}

{acquisition, growth, future}

Competition might prevent us from originating loans at favorable yields, which would harm our results of operations and our ability to continue paying dividends at current or anticipated levels. There are significant risks in lending to small businesses. There is volatility in the valuation of our loans receivable which can require the establishment of loan loss reserves. Our operating results will depend, in part, on the effectiveness of our marketing programs. We depend on the accuracy and completeness of information about potential borrowers and guarantors. Liquidity and Capital Resources Risks Our operating results could be negatively impacted by our inability to access certain financial markets. Our operating results could be negatively impacted by our inability to extend the maturity of, or replace, our revolving credit facility on acceptable terms, if at all. Turmoil in financial markets could increase our cost of borrowing and impede access to or increase the cost of financing our operations or investments. The market demand for structured loan transactions may further decline, which would decrease the availability of, and/or increase the cost of, working capital and negatively affect earnings and the potential for growth. The market demand for secondary market sales may decline or be temporarily suspended. Continuation of the unprecedented market volatility may have an impact on our access to capital markets. We use leverage to fund our capital needs which magnifies the effect of changing interest rates on our earnings. We may not be able to successfully integrate new investments, which could decrease our profitability. There is no market for our Retained Interests and the value is volatile. We have a concentration of investments in the hospitality industry and in certain states, which may negatively impact our financial condition and results of operations. We are subject to prepayment risk on our Retained Interests and loans receivable which could result in losses or reduced earnings and negatively affect our cash available for distribution to shareholders. Changes in our business strategy or restructuring of our business may increase our costs or otherwise affect the profitability of our business. Our Board of Trust Managers may change operating policies and strategies without shareholder approval or prior notice and such change could harm our business and results of operations and the value of our common shares. The occurrence of recent adverse developments in the mortgage finance and credit markets may affect our business. Economic slowdowns, negative political events and changes in the competitive environment could adversely affect operating results. There may be significant fluctuations in our quarterly results which may adversely affect our share price. If we lower our dividend, the market value of our common shares may decline. We depend on our key personnel, and the loss of any of our key personnel could adversely affect our operations. We operate in a highly regulated environment and subsequent changes could adversely affect our financial condition or results of operations. Failure to qualify as a REIT would subject PMC Commercial to U.S. Federal income tax. Ownership limitations associated with our REIT status may restrict change of control or business combination opportunities. Failure to make required distributions to our shareholders would subject us to tax.

Full 10-K form ▸

908311--3/16/2009--PMC_COMMERCIAL_TRUST_/TX