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To Our Valued Clients,
In my last letter I indicated that the best way to compete in the banking industry during challenging times is to continue to maintain a strong capital position. We are pleased to inform you that our total risk based capital ratio remains well above the regulatory standards for a well-capitalized bank at 13.77% as of September 30, 2011.
Based upon our year to date 2011 performance, we continue to be very optimistic that we will meet or exceed our 2011 net operating income budget of $1,363,000. Our year to date return on equity as of September 30, 2011 is 7.78%. During 2011 we have contributed $866,000 to provision expenses to fund potential future loan losses. We have also recovered $273,639 from previously charged-off loans.
We started 2011 with 5 major financial goals and are currently performing at or above all of them. The results of our financial goals are highlighted below.
Financial Goal |
Goal |
9/30 Results |
| Total Risk Based Capital Ratio |
12% |
13.77% |
| OREO (Other Real Estate Owned) |
$4.7M |
$4.3M |
| Net Operating Profits |
$967,000 |
$1,060,000 |
| Provision Expense |
$900,000 |
$866,000 |
| Loan Loss Reserve |
2.57% |
2.86% |
We are committed to safe and sound banking practices.Your support and patience is greatly appreciated during these unprecedented and challenging times for financial institutions.
Sincerely,
Kenneth D. Brooks
President
“Exceptional Banking for Business and Professionals”
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