949228--3/31/2009--BEACH_FIRST_NATIONAL_BANCSHARES

related topics

{condition, economic, financial}

{loan, real, estate}

{capital, credit, financial}

{acquisition, growth, future}

{financial, litigation, operation}

{loss, insurance, financial}

{personnel, key, retain}

{regulation, change, law}

Lack of seasoning of a portion of the Company s loan portfolio may increase the risk of credit defaults in the future. Recent negative developments in the financial industry and the domestic and international credit markets may adversely affect our operations and results. There can be no assurance that recently enacted legislation will help stabilize the U.S. financial system. Continuation of the economic downturn could reduce our customer base, our level of deposits, and demand for financial products such as loans. Our small- to medium-sized business target markets may have fewer financial resources to weather a downturn in the economy. We depend on the accuracy and completeness of information about clients and counterparties and our financial condition could be adversely affected if it relies on misleading information. Changes in prevailing interest rates may reduce profitability. The Company is dependent on key individuals and the loss of one or more of these key individuals could curtail growth and adversely affect its prospects. The Company is subject to extensive regulation that could limit or restrict its activities. We have entered into a formal written agreement with the OCC that requires us to take certain actions. We are required to maintain high capital levels. The FDIC Deposit Insurance assessments that we are required to pay may materially increase in the future, which would have an adverse effect on our earnings and our ability to pay our liabilities as they come due. The Company may need to raise additional capital in the future, but that capital may not be available. Liquidity needs could adversely affect our financial condition and results of operation. The Company faces strong competition for customers, which could prevent it from obtaining customers and may cause it to pay higher interest rates to attract customers. The Company will face risks with respect to future expansion and acquisitions or mergers. A significant portion of the Company s loan portfolio is secured by real estate, and the recent weakening of the local real estate market could continue to adversely affect the business. A percentage of the loans in our portfolio currently include exceptions to the Company s loan policies and supervisory guidelines.

Full 10-K form ▸

949228--3/31/2009--BEACH_FIRST_NATIONAL_BANCSHARES_INC