|
|
 |
 August 7, 2008
Dear Friends and Customers,
There can be no doubt that these are tough times for many in our economy. The poor decision by many banking institutions to engage in sub-prime mortgage lending has certainly contributed to financial uneasiness. During these financially challenging times, we want to take an opportunity to keep you updated about 1st Centennial and our plan to weather this storm.
First off, please let me assure you that 1st Centennial, with its nearly two decades of commitment to our customers and community, remains a strong franchise with a solid foundation.
1st Centennial, as a general rule, does not originate mortgage loans and has never engaged in the sub-prime market, purchased "bundled" sub-prime mortgages or invested in sub-prime mortgage backed financial instruments. Like many community banks, 1st Centennial has primarily loaned to local merchants, small-businesses, commercial entities and consumers.
By banking standards, 1st Centennial in the second quarter of 2008 exceeded the "well-capitalized" standard, which is a primary measure of a bank's health. And as an insured bank, our depositor's funds are protected to the level set nationally by the FDIC.
This does not mean that 1st Centennial is immune from the challenges of Inland Southern California. Indeed, we have seen losses in our construction lending portfolio as the realities have changed in the regional housing market. This has certainly had an impact on our second quarter, in which we reported losses for only the second time in 16 years.
Even in tough economic times, 1st Centennial has realized opportunities for growth. Our religious, small business, commercial, and consumer lending portfolios continue to increase in balance and profitability.
We have enacted a strategic plan built upon our sound banking practices to steer us through this unprecedented time. We remain well-positioned for the economic recovery that will surely follow this downturn.
At 1st Centennial we are always accessible to our depositors and customers, taking great pride in our personalized service and our relationship.
Sincerely,
Patrick J. Meyer
Chairman of the Board
|
 |
|
