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Wiki Wiki Summary
Fear, uncertainty, and doubt Fear, uncertainty, and doubt (often shortened to FUD) is a propaganda tactic used in sales, marketing, public relations, politics, polling and cults. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.
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Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
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Financial statement Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.\nRelevant financial information is presented in a structured manner and in a form which is easy to understand.
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Ameris Bancorp Ameris Bancorp is a bank holding company headquartered in Atlanta. Through its bank subsidiary, Ameris Bank, the company operates full-service branches in Georgia, Alabama, Florida, North Carolina and South Carolina, and mortgage-only locations in Georgia, Alabama, Florida, North Carolina, South Carolina, Virginia, Maryland, and Tennessee.
Risk Factors
CAPITAL BANK CORP Item 1A Risk Factors
10 Item 1A Risk Factors
In addition to the other information provided in this Annual Report of Form 10-K, you should consider the following material risk factors carefully before deciding to invest in the Companyapstas securities
Additional risks and uncertainties not presently known to the Company, that the Company currently deems not material or that are similar to those faced by other companies in the Companyapstas industry or business in general, such as competitive conditions, may also impact the Companyapstas business operations
If any of the events described below occur, the Companyapstas business, financial condition, or results of operations could be materially adversely affected
In that event, the trading price of the Companyapstas common stock may decline, in which case the value of your investment may decline as well
References herein to &quote we, &quote &quote us &quote and &quote our &quote refer to Capital Bank Corporation, a company incorporated in North Carolina, and its consolidated subsidiaries, unless the context otherwise requires
Our Results Are Impacted by the Economic Conditions of Our Principal Operating Regions Our operations are concentrated throughout Central and Western North Carolina
As a result of this geographic concentration, our results may correlate to the economic conditions in these areas
Deterioration in economic conditions in any of these market areas, particularly in the industries on which these geographic areas depend, may adversely affect the quality of our loan portfolio and the demand for our products and services, and accordingly, our results of operations
- 10 - We Are Exposed to Risks in Connection with the Loans We Make A significant source of risk for us arises from the possibility that losses will be sustained because borrowers, guarantors and related parties may fail to perform in accordance with the terms of their loans
We have underwriting and credit monitoring procedures and credit policies, including the establishment and review of the allowance for loan losses, that we believe are appropriate to minimize this risk by assessing the likelihood of nonperformance, tracking loan performance and diversifying our loan portfolio
Such policies and procedures, however, may not prevent unexpected losses that could adversely affect our results of operations
We Compete With Larger Companies for Business The banking and financial services business in our market areas continues to be a competitive field and is becoming more competitive as a result of: o Changes in regulations; o Changes in technology and product delivery systems; and o The accelerating pace of consolidation among financial services providers
We may not be able to compete effectively in our markets, and our results of operations could be adversely affected by the nature or pace of change in competition
We compete for loans, deposits and customers with various bank and nonbank financial services providers, many of which have substantially greater resources including higher total assets and capitalization, greater access to capital markets and a broader offering of financial services
Our Trading Volume Has Been Low Compared With Larger Banks The trading volume in the Companyapstas common stock on the NASDAQ National Market has been comparable to other similarly-sized banks
Nevertheless, this trading is relatively low when compared with more seasoned companies listed on the NASDAQ National Market or other consolidated reporting systems or stock exchanges
Thus, the market in the Companyapstas common stock may be limited in scope relative to other companies
We Depend Heavily on Our Key Management Personnel The Companyapstas success depends in part on its ability to retain key executives and to attract and retain additional qualified management personnel who have experience both in sophisticated banking matters and in operating a small to mid-size bank
Competition for such personnel is strong in the banking industry and we may not be successful in attracting or retaining the personnel we require
We expect to effectively compete in this area by offering financial packages that include incentive-based compensation and the opportunity to join in the rewarding work of building a growing bank
Technological Advances Impact Our Business The banking industry is undergoing technological changes with frequent introductions of new technology-driven products and services
In addition to improving customer services, the effective use of technology increases efficiency and enables financial institutions to reduce costs
Our future success will depend, in part, on our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands for convenience as well as to create additional efficiencies in our operations
Many of our competitors have substantially greater resources than we do to invest in technological improvements
We may not be able to effectively implement new technology-driven products and services or successfully market such products and services to our customers
Government Regulations May Prevent or Impair Our Ability to Pay Dividends, Engage in Acquisitions or Operate in Other Ways Current and future legislation and the policies established by federal and state regulatory authorities will affect our operations
We are subject to supervision and periodic examination by the Federal Deposit Insurance Corporation and the North Carolina State Banking Commission
Banking regulations, designed primarily for the protection of depositors, may limit our growth and the return to you, our investors, by restricting certain of our activities, such as: - 11 - o The payment of dividends to our shareholders; o Possible mergers with or acquisitions of or by other institutions; o Our desired investments; o Loans and interest rates on loans; o Interest rates paid on our deposits; o The possible expansion of our branch offices; and/or o Our ability to provide securities or trust services
We also are subject to capitalization guidelines set forth in federal legislation, and could be subject to enforcement actions to the extent that we are found by regulatory examiners to be undercapitalized
We cannot predict what changes, if any, will be made to existing federal and state legislation and regulations or the effect that such changes may have on our future business and earnings prospects
The cost of compliance with regulatory requirements including those imposed by the Securities and Exchange Commission may adversely affect our ability to operate profitably
There Are Potential Risks Associated With Future Acquisitions and Expansions We intend to continue to explore expanding our branch system through selective acquisitions of existing banks or bank branches in the Research Triangle area and other North Carolina markets
We cannot say with any certainty that we will be able to consummate, or if consummated, successfully integrate, future acquisitions, or that we will not incur disruptions or unexpected expenses in integrating such acquisitions
In the ordinary course of business, we evaluate potential acquisitions that would bolster our ability to cater to the small business, individual and residential lending markets in North Carolina
In attempting to make such acquisitions, we anticipate competing with other financial institutions, many of which have greater financial and operational resources
In addition, since the consideration for an acquired bank or branch may involve cash, notes or the issuance of shares of common stock, existing shareholders could experience dilution in the value of their shares of our common stock in connection with such acquisitions
Any given acquisition, if and when consummated, may adversely affect our results of operations or overall financial condition
In addition, we may expand our branch network through de novo branches in existing or new markets
Compliance with Changing Regulation of Corporate Governance and Public Disclosure May Result in Additional Risks and Expenses Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 and new SEC regulations, are creating uncertainty for companies such as ours
These laws, regulations and standards are subject to varying interpretations in many cases, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices
We are committed to maintaining high standards of corporate governance and public disclosure
As a result, our efforts to comply with evolving laws, regulations and standards have resulted in, and are likely to continue to result in, increased expenses and a diversion of management time and attention
In particular, our efforts to comply with Section 404 of the Sarbanes-Oxley Act of 2002 and the related regulations regarding managementapstas required assessment of our internal control over financial reporting and our external auditors &apos audit of that assessment has required the commitment of significant financial and managerial resources
We expect these efforts to require the continued commitment of significant resources
Further, the members of our Board of Directors, members of the Audit or Compensation committees, our chief executive officer, our chief financial officer and certain other of our executive officers could face an increased risk of personal liability in connection with the performance of their duties
As a result, our ability to attract and retain executive officers and qualified Board and committee members could be more difficult
In addition, it may become more difficult and more expensive to obtain director and officer liability insurance
- 12 - We May Not Be Able to Successfully Integrate 1st State Bancorp or to Realize the Anticipated Benefits of our Recently Completed Merger Our recently completed merger with 1st State Bancorp involves the combination of two bank holding companies that previously have operated independently
A successful combination of the operations of the two entities will depend substantially on our ability to consolidate operations, systems and procedures and to eliminate redundancies and costs
We may not be able to combine the operations of 1st State Bancorp with our operations without encountering difficulties, such as: o The loss of key employees and customers; o The disruption of operations and business; o Inability to maintain and increase competitive presence; o Deposit attrition, customer loss and revenue loss; o Possible inconsistencies in standards, control procedures and policies; o Unexpected problems with costs, operations, personnel, technology and credit; and/or o Problems with the assimilation of new operations, sites or personnel, which could divert resources from regular banking operations
Further, although meaningful cost savings are anticipated as a result of the merger, such expected cost savings may not be realized