LETTER FROM THE PRESIDENT
Dear Friends of Canyon National Bank:
Considering the current economic environment, the Board of Directors and I felt it prudent to recap the safety and soundness of Canyon National Bank. Our Bank has been built on solid principles and conservative policies. We are positioned to withstand today’s market challenges and are prepared for future opportunities.
Canyon National Bank remains a “Well Capitalized” financial institution. The “Well Capitalized” designation is afforded to institutions that exceed base capital ratios as defined by the Office of the Comptroller of the Currency. Our Bank has also earned an “Outstanding” rating, the highest level of distinction, in all Community Reinvestment Act (“CRA”) exams conducted since opening. We are proud that we have maintained the highest regulatory rating in both categories since our Bank’s inception July 1998.
Our Bank holds NO derivative investments and NO sub-prime loans. However, as a community bank invested in its community, Canyon National Bank has felt the affects of the slowdown in real estate sales and new home construction. Significant increases in loan loss provisions have been recorded to mark impaired loans to market values and build reserves. We have responded aggressively to changes in the economy and real estate markets to mitigate risk.
There will continue to be challenging times ahead. However, we are confident we have the will, depth of experience, and strong capital base to safeguard our assets and position the bank for the future. Canyon National Bank remains on solid ground.
We deeply appreciate your continued support. Please feel free to call me at (760) 325-4442 if you have any questions.
Sincerely,
Stephen G. Hoffmann
President and CEO
