July 2, 2009
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Update from the President
Dear Customers:
As the economic storm that we are in continues, one thing remains constant: negative coverage by the media. Some stories are newsworthy and informative, while others appear to be mainly fear inducing and aimed at easy targets.
The large banks have been stress tested by the government and the results indicate that all banks, regardless of size, can use additional capital. Small banks frequently appear on problem bank lists, which causes customers of small banks to migrate to larger banks assuming that because they haven’t been listed they must be safer. This concept of too big to fail or bigger is better is really unfortunate.
Community banks like First Suburban didn’t cause today’s problems and will continue to do the right thing each and every day. This approach may have negative consequences to the bottom line, but allows us to operate with a clear conscience and focus on the long- term best interests of our customers.
First Suburban has had its share of negative publicity which we expect will continue. That is one reason we feel it is important to communicate with our customers directly about the condition of the Bank.
As previously stated, we had three significant problem loans that have negatively impacted our capital. All three of these loans are being pursued through the legal system. We expect recoveries but cannot predict when or how much.
These issues have been further complicated by the downturn in the economy that affects us all. As some of our customers have experienced recent financial difficulties, so in turn, have we. We are dealing with a number of borrowers who are currently struggling but making efforts to pay back their loans. Management believes that if people are willing to cooperate with us then working with them and keeping lines of communication open is beneficial to everyone.
In addition to working diligently with our loan customers, it is important to us that our deposit customers’ money is safe through FDIC coverage. The FDIC recently extended the $250,000 coverage per depositor through 2013. Our personal bankers work extensively with customers to be sure that their funds are fully insured – some even as high as $800,000. In the 76 years since the FDIC was established, no one has lost a dollar of insured funds.
In our continued effort to offer you a safe and simplified banking process we have added and/or enhanced a few features such as Remote Deposit for business customers, online banking and bill pay, and a more robust fraud detection system which vigilantly protects your accounts from potential loss.
Lastly, we are raising capital to strengthen the bank and allow room for future growth. While our capital campaign has been affected by the current economic environment, we are making progress.
If you have any questions or comments about our bank or banking in general, please call me at (708) 450-4100 ext. 218. I would be happy to meet with you and discuss your concerns. In closing, let me say Thank You for banking with First Suburban National Bank. We truly appreciate your belief in us.
Sincerely,
Joseph D. Hogan
President and
Chief Executive Officer
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