Business Description
Our business consists mainly of making loans to salaried people or other wage
earners who generally depend on their earnings to meet their repayment obligations.
As a result, the loss of employment by such borrowers is likely to make it more
difficult for them to timely repay their obligations to the Company. Additionally,
adverse general economic conditions, including high unemployment rates, often
result in additional challenges for both the Company and potential customers,
resulting in an increased number of bankruptcy filings and a lower number of
qualified borrowers. Uncertain or worsening economic conditions could result
in the Company’s liquidity, financial condition and results of operations
being materially adversely impacted.
We establish an allowance for loan losses in our financial statements at a
level considered adequate by management to absorb probable loan losses inherent
in the loan portfolio as of the balance sheet date based on estimates and assumptions
at that date. The amount of actual future loan losses is susceptible to changes
in economic, operating and other conditions within our market, which may be
beyond our control, and such losses may exceed current estimates. Although Management
believes that the Company’s allowance for loan losses is adequate to absorb
losses on any existing loans that may become uncollectible, we cannot estimate
loan losses with certainty, and we cannot provide any assurances that our allowance
for loan losses will prove sufficient to cover actual loan losses in the future.
Loan losses in excess of our reserves may adversely affect our financial condition
and results of operations.
Offers and sales of all of our securities must comply with all applicable federal
and state securities laws, including Section 5 of the Securities Act of 1933.
If any of our offers, including those deemed made pursuant to newspaper or radio
advertisements, or sales are found not to be in compliance with any of these
laws, we could be liable to certain purchasers of the security, could be required
to offer to repurchase the security, or could be liable for damages or other
penalties. If we are required to repurchase any of our securities other than
in the ordinary course of our business as a result of any such violation, or
otherwise are found to be liable for any damages or penalties as a result of
any such violation, our financial condition could be materially adversely affected.
Any such adverse effect on our financial condition could materially impair our
ability to fund loans in the ordinary course of business or pay principal and
interest on our outstanding debt securities.
3.96% 