927807--2/29/2008--INTERVEST_BANCSHARES

related topics

{loan, real, estate}

{debt, indebtedness, cash}

{competitive, industry, competition}

{operation, natural, condition}

{control, financial, internal}

{personnel, key, retain}

{acquisition, growth, future}

{regulation, government, change}

{system, service, information}

{condition, economic, financial}

We depend on a small number of executive officers and other key employees to implement our business strategy and our business may suffer if we lose their services. We face strong competition in our market areas, which may limit our growth and profitability. We depend on brokers and other sources for our mortgage lending activities and any reduction in referrals could limit our ability to grow or maintain the size of our loan portfolio. Our loans are highly concentrated in commercial real estate and multifamily mortgage loans, increasing the risk associated with our loan portfolio. Our historical levels of balance sheet growth and financial performance may not continue if our growth strategy is not successful. An economic downturn in New York or Florida could hinder our ability to operate profitably and have an adverse impact on our operations. Changes in interest rates could adversely impact our earnings and we must continually identify and invest in mortgage loans or other instruments with rates of return above our cost of funds. If the properties underlying many of our mortgage loans lose value, we may suffer loan losses. We may have higher loan losses than we have allowed for, in which case our results of operations and financial condition will be adversely affected. We are a highly leveraged company and our indebtedness could adversely affect our financial condition and prevent us from continuing to grow our balance sheet. We operate in a highly regulated industry and government regulations significantly affect our business. Since we engage in collateral-based lending and may be forced to foreclose on the collateral property and own the underlying real estate, we may be subject to the risks and increased costs associated with the ownership of real estate, which could adversely affect our operating results. Failure to maintain an effective system of internal control over financial reporting may not allow us to be able to accurately report our financial results or prevent fraud. Political issues, including armed conflicts and acts of terrorism, may adversely affect our business. A breach of information security could negatively affect our business. We rely on the dividends we receive from our subsidiaries.

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927807--2/29/2008--INTERVEST_BANCSHARES_CORP