August 2010
The pace of our growth has continued. Since year end 2008 through June 30, 2009, our total assets increased 9.3% to $134.85 million. We have experienced a substantial rise in our deposit accounts. In the first half of 2009, total deposits rose 23.0% to $92.91 milion. The bank has been modestly profitable each month from April 2009 through June 2009.
Commercial banks throughout the country have encountered difficulties in their real estate related loan portfolios. Through September 25, 2009, 95 banks failed in the United States so far this year. Eight of these banks were in the Chicago metropolitan area. Almost all of these bank failures were due directly or indirectly to losses experienced in the residential and commercial real estate lending or from unsafe securities investments.
Town Center Bank, however continues to be in strong and stable financial condition. The bank is well capitalized and is in good position to handle the economic downturn. Banks are subject to regulatory capital requirements. The regulatory capital adequacy guidelines provide for five classifications. Town Center Bank continues to be categorized in the highest classification which is "Well Capitalized".
November 2009 brought the moves of our Frankfort Branch and the Administrative Offices. We relocated the Frankfort Branch to 20181 S LaGrange Road , Frankfort IL 60423. This very visible 1800 square foot ofice is in the south end of a retail center on the corner of LaGrange Road and St Francis Road in Frankfort. Our administration offices have moved to the second floor in the Atrium Center, 1938 E Lincoln Highway, New Lenox Il 60451. Our branch is currently located on the first floor of this mixed use retail and office complex. We feel these new sites will be as convenient as our current locations. The bank will realize a substantial savings in occupancy expenses.
While we have not abandoned the goal of eventually erecting or purchasing a permanent headquarters building, we are very mindful of the current conditions in the commercial real estate market. Under these circumstances, we feel that there is merit in not overspending on premises. In the near term, we feel that our capital is better utilized on opening new locations rather than constructing a large center of operations. Our first priority is to maintain a strong equity capital position to support the profitable growth in our earning assets.
We hope that you will take advantage of all of our services and also refer us to your friends and associates. Your comments and questions are welcome. Please feel free to call me at 815-806-7016, or, better yet, come in and see us at either of our locations in Frankfort and New Lenox. We are open seven days to serve you.
Sincerely Yours
Andy Bernhardt
President
