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.
Wednesday, September 22, 2010
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
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