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.

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.

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.