A hallmark of Charter Oak Bank has been giving back to our community. Every employee takes an active part in following their passion in giving back. Our philosophy is rather than just giving back - we pay it forward. By being active in helping our community we are helping support the future of our community. By leveraging the talents that we have – we create value in the areas we give – and thus transfer that gift into something larger for the future of the Napa Valley.
This is the time of year we think of donations – whether it be a donation of our time, our talents or dollars – December is a month of giving. If we each help ten people, and they each help ten people – with time, talent or dollars – the multiplier effect could be phenomenal. But as we all know our community needs are year-round. Thus we need to be involved year-round. Have you considered getting affiliated with a community organization – in any form? Your involvement could be as a board member, a committee supporter, or just volunteering your time on a regular basis.
This coming year – 2011 – will still carry over 9% un-employment for most of the year. And that figure does not count the number of underemployed – those that took jobs to get food on the table, but not earning enough to pay the rent. Our non-profits here in the Napa Valley are being stretched in this recession. Utilization is up – we are seeing more domestic violence, longer lines at the food bank, greater stress and more mental health issues - - while donations are down to the very organizations trying to provide support to these areas. A double whammy!
Thus the plea for your time, talents or dollars to help just one organization – and getting ten friends to do likewise. And if they would each get ten friends, etc. etc. By giving back, we pay it forward.
Monday, December 13, 2010
Monday, October 25, 2010
The Economy – Where Are We?
The economy – where is it at? The September unemployment rate for Napa County of 9.3% is unchanged from the prior month, and California’s 12.3% and the U.S 9.6% are only 0.1% up from prior month. Essentially, all three unemployment rates have been flat for almost 12 months. The rise has stopped, but the decrease has yet to happen. These numbers still are not saying much about under-employment – where so many people may be employed, but are living below their needs or means.
The recent Napa Chamber of Commerce Economic Summit featured a speaker, Marc Johnstone, touting a double-dip – a “W” recession. There seems to be more evidence that this more a probability than a possibility. What does this mean? That we will have another form of recession before it gets better. There is much to be said of how this will happen – could be local government induced as they cut back to meet budgets or perhaps it could be the lack of retail growth. It is not likely that this next drop will be as severe as in the past few years. In any case what it does suggest – that at best case, we will at least remain in a flat economy for well into 2011.
If you missed this year’s Napa Chamber Economic summit - check out their website www.napachamber.org for the PowerPoint’s presented. On the site, under the “Napa Chamber Resources” column – click on the first item titled “E3 Conference Resources” – for Marc Johnstone’s presentation and a wealth of information about our workforce.
The recent Napa Chamber of Commerce Economic Summit featured a speaker, Marc Johnstone, touting a double-dip – a “W” recession. There seems to be more evidence that this more a probability than a possibility. What does this mean? That we will have another form of recession before it gets better. There is much to be said of how this will happen – could be local government induced as they cut back to meet budgets or perhaps it could be the lack of retail growth. It is not likely that this next drop will be as severe as in the past few years. In any case what it does suggest – that at best case, we will at least remain in a flat economy for well into 2011.
If you missed this year’s Napa Chamber Economic summit - check out their website www.napachamber.org for the PowerPoint’s presented. On the site, under the “Napa Chamber Resources” column – click on the first item titled “E3 Conference Resources” – for Marc Johnstone’s presentation and a wealth of information about our workforce.
Sunday, October 17, 2010
Harvest in the Napa Valley
We have had a long growing season for grapes– with good heat only in the last month or so. But first to the pumpkins. In case you missed it – CBS’ Sunday Morning featured Napa Valley’s Lee Hudson. Lee is a premier grower in Carneros – not only of grapes – but as on the tele this morning – of giant pumpkins. Giant means really big – 1,400 pounds – forklift size. While Lee was eclipsed by a 1,500 pounder in the Half Moon Bay contest – he brought notoriety to our Napa Valley. I understand our valley will also be featured on NBC this coming week.
Back to the other harvest – grapes – what a growing season. Cool through most of the summer – with some heat only in the last 6 weeks – saving us from a really late harvest. Hopefully the Sunday rain is just a dusting and we’ll have a windy warmer Monday to dry out.
There was some damage do to the intense heat of a few weeks ago, but overall reports are that the crop looks good – even great with the long season. At mid-October, the harvest is well underway in many parts of the valley – with the normal Cabernet coming in last – out there a week or so. If we can just stay dry with moderate warmth – the harvest should wrap up fine and produce another great vintage.
Back to the other harvest – grapes – what a growing season. Cool through most of the summer – with some heat only in the last 6 weeks – saving us from a really late harvest. Hopefully the Sunday rain is just a dusting and we’ll have a windy warmer Monday to dry out.
There was some damage do to the intense heat of a few weeks ago, but overall reports are that the crop looks good – even great with the long season. At mid-October, the harvest is well underway in many parts of the valley – with the normal Cabernet coming in last – out there a week or so. If we can just stay dry with moderate warmth – the harvest should wrap up fine and produce another great vintage.
Tuesday, October 12, 2010
Technology Today
It’s hard to dispute the value of technology – considering the increasing speed of communication and the efficiencies gained. One can hardly keep up with the number of improvements daily in both software and hardware. We at Charter Oak Bank are continuously working on the growth of our systems – both for internal bank use, and for our customers. With Innovation being one of our core values, we strive to be a technology leader with industry proven services.
This was the case with our Remote Deposit product. Our business customers have been able to use Remote Deposit for over 4 years. In the next year or so – our consumer clients will have a similar product available to them so that they too can deposit checks from anywhere in the world – through their smart phone. Our Mobile Banking product COB Mobile allows our consumer and business clients to do most everything you can do with our on-line banking product. NetTeller, our on-line banking system has always provided real-time transaction reporting so our customers can see their transactions immediately whether it’s from their computer or smart phone.
Actually, I think we would be even further ahead with new tech banking products – were it not for the need for strong security. Having products with ample and strong security features is paramount to safeguarding our client’s funds. Our technology employs cutting edge security features coupled with dedicated backend monitoring. While our security features are extensive it is imperative that our customers remain vigilant as well. Most fraud is perpetrated through the end users (our customers) computer. We encourage all of customers to invest in strong security software that is internet based so that you are current with the latest upgrades. Another key to preventing financial fraud is actively monitor your accounts, balancing your check book regularly can help keep you attune to any strange transactions. Consumers should perform an annual credit checkup to make sure their personal information has not been compromised.
How does one keep up with the latest? I would strongly suggest considering the possibility of outsourcing your computer maintenance. We do – we outsource our PC and server maintenance to a firm that specializes in IT Support for banks. For Charter Oak Bank it is conducive to utilize an outside company. We are bankers – not computer specialists. Our clients are great in their field or endeavor – but not always in computer science. Businesses need to assess their individual situation when determining whether to manage IT in house or to outsource. The best avenue for determining this is to do a cost analysis that looks at the time and costs associated with doing the work in house (salaries and hours) versus the cost of outsourcing. There are many firms here in the Napa Valley that provides computer support and services.
For more information regarding our banking technology and fraud prevention please contact us at 707-265-2000.
This was the case with our Remote Deposit product. Our business customers have been able to use Remote Deposit for over 4 years. In the next year or so – our consumer clients will have a similar product available to them so that they too can deposit checks from anywhere in the world – through their smart phone. Our Mobile Banking product COB Mobile allows our consumer and business clients to do most everything you can do with our on-line banking product. NetTeller, our on-line banking system has always provided real-time transaction reporting so our customers can see their transactions immediately whether it’s from their computer or smart phone.
Actually, I think we would be even further ahead with new tech banking products – were it not for the need for strong security. Having products with ample and strong security features is paramount to safeguarding our client’s funds. Our technology employs cutting edge security features coupled with dedicated backend monitoring. While our security features are extensive it is imperative that our customers remain vigilant as well. Most fraud is perpetrated through the end users (our customers) computer. We encourage all of customers to invest in strong security software that is internet based so that you are current with the latest upgrades. Another key to preventing financial fraud is actively monitor your accounts, balancing your check book regularly can help keep you attune to any strange transactions. Consumers should perform an annual credit checkup to make sure their personal information has not been compromised.
How does one keep up with the latest? I would strongly suggest considering the possibility of outsourcing your computer maintenance. We do – we outsource our PC and server maintenance to a firm that specializes in IT Support for banks. For Charter Oak Bank it is conducive to utilize an outside company. We are bankers – not computer specialists. Our clients are great in their field or endeavor – but not always in computer science. Businesses need to assess their individual situation when determining whether to manage IT in house or to outsource. The best avenue for determining this is to do a cost analysis that looks at the time and costs associated with doing the work in house (salaries and hours) versus the cost of outsourcing. There are many firms here in the Napa Valley that provides computer support and services.
For more information regarding our banking technology and fraud prevention please contact us at 707-265-2000.
Wednesday, September 22, 2010
Unemployment
The unemployment rate in the Napa County was 9.4 percent in August 2010, unchanged from a revised 9.4 percent in July 2010, and above the year-ago estimate of 8.8 percent. This compares with an unadjusted unemployment rate of 12.4 percent for California and 9.5 percent for the nation during the same period, both virtually unchanged from the prior month. Napa continues to be 3rd or 4th best of the 58 counties in California - with Marin & Santa Barbara besting us.
While we're read this week that the recession ended in June of 2009 - try telling that to the one-in-ten people unemployed or to the one-in-five who are either under or unemployed. This group is not spending - prolonging the recovery. We also heard this week that one-in-seven Americans are at the poverty level.
While Fall tourism is helping fill restaurants and hotels, the retail sector in Napa continues to struggle. This "L-shaped" recession continues on the bumpy straight line - without much improvement in sight for the remainder of this year. But the pundants say we will have some return to normalcy in 2012 and 2013.
While we're read this week that the recession ended in June of 2009 - try telling that to the one-in-ten people unemployed or to the one-in-five who are either under or unemployed. This group is not spending - prolonging the recovery. We also heard this week that one-in-seven Americans are at the poverty level.
While Fall tourism is helping fill restaurants and hotels, the retail sector in Napa continues to struggle. This "L-shaped" recession continues on the bumpy straight line - without much improvement in sight for the remainder of this year. But the pundants say we will have some return to normalcy in 2012 and 2013.
Saturday, September 11, 2010
COB Results
Recently, there has been media attention about Charter Oak Bank and our second-quarter financial results. I want to take this opportunity to provide you with information about our results and our strategy for the bank’s future.
In the second quarter, the management and Board of Directors of Charter Oak Bank decided to significantly increase our reserves for potential loan problems. While these loans may ultimately perform, given the economic struggles facing our community and those that we serve, we believed this was the prudent thing to do.
The consequence of this decision is a second quarter loss of $5.8 million. Even so, we believe that the ongoing operations of the bank are fundamentally sound. In fact, in the first eight months of the year, we had an operating profit before reserves of more than $1 million. August 31st assets were $145 million, with deposits at $124 million. Our deposit accounts are FDIC insured up to $250,000, with 100% coverage on non-interest bearing checking accounts.
We have agreed with regulators that it would be best for Charter Oak Bank to raise additional capital to strengthen the bank’s balance sheet and to implement a strategy for growth. We are in the process of raising that capital.
We appreciate the opportunity to serve you and provide the personal service unique to community banking. Charter Oak was founded to support the local community, helping businesses and families access the financing they need to grow their businesses and achieve their dreams. We remain committed to that mission.
If you have any questions, please do not hesitate to contact me at 707-265-2001 or bkelly@charteroakbank.com.
Brian Kelly
President & CEO
In the second quarter, the management and Board of Directors of Charter Oak Bank decided to significantly increase our reserves for potential loan problems. While these loans may ultimately perform, given the economic struggles facing our community and those that we serve, we believed this was the prudent thing to do.
The consequence of this decision is a second quarter loss of $5.8 million. Even so, we believe that the ongoing operations of the bank are fundamentally sound. In fact, in the first eight months of the year, we had an operating profit before reserves of more than $1 million. August 31st assets were $145 million, with deposits at $124 million. Our deposit accounts are FDIC insured up to $250,000, with 100% coverage on non-interest bearing checking accounts.
We have agreed with regulators that it would be best for Charter Oak Bank to raise additional capital to strengthen the bank’s balance sheet and to implement a strategy for growth. We are in the process of raising that capital.
We appreciate the opportunity to serve you and provide the personal service unique to community banking. Charter Oak was founded to support the local community, helping businesses and families access the financing they need to grow their businesses and achieve their dreams. We remain committed to that mission.
If you have any questions, please do not hesitate to contact me at 707-265-2001 or bkelly@charteroakbank.com.
Brian Kelly
President & CEO
Monday, August 2, 2010
Shop Local
This weekend’s Napa Valley Register featured a lead article on Piner's Ambulance’s bid for re-appointment covering Napa County. This is a publicized example of how government recommendations sometimes just don’t make sense. As a letter to the editor today questions – are their any “points” given for being a local firm – employing locally, and the multiples thereof – taxes and use of local services. We featured a full-page ad this past week in the Register noting our support of Piner’s. The Board of Supervisors will take up the appointment in the next month or so.
The Chamber’s “Shop Local” campaign prompted us to look at our own record at the bank. Over 75% of our vendors and over 75% of our purchase dollars are local. I wish it were 100%, but there are some products germane to our industry that can’t be purchased locally. We will continue to give the purchasing advantage to local bids.
I would encourage all businesses in Napa to perform an internal audit of your purchasing dollars. Also to consider reviewing your policies on what bidding edge you give local contractors and purchases. The City of Napa’s 3% doesn’t cut it. They aren’t considering the multiplier effect – where buying locally keeps taxes local, and furthers employment of those in our local.
Please Shop Local.
The Chamber’s “Shop Local” campaign prompted us to look at our own record at the bank. Over 75% of our vendors and over 75% of our purchase dollars are local. I wish it were 100%, but there are some products germane to our industry that can’t be purchased locally. We will continue to give the purchasing advantage to local bids.
I would encourage all businesses in Napa to perform an internal audit of your purchasing dollars. Also to consider reviewing your policies on what bidding edge you give local contractors and purchases. The City of Napa’s 3% doesn’t cut it. They aren’t considering the multiplier effect – where buying locally keeps taxes local, and furthers employment of those in our local.
Please Shop Local.
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