I am pleased to report continued progress for the close of our first quarter ending March 31, 2011.
As reported, in February’s Shareholder Letter, 2010 was a year of significant progress for Mother Lode Bank. Your Board of Directors and management team remain focused on significant progress for 2011.
We continue to improve our net interest margin by replacing interest rate sensitive deposits with less costly savings and checking deposits. We have moved much closer to profitability. Past due loans trend downward as well, a firm indicator of asset quality improvement. Finally our capital ratio improved significantly following our private offering last year. The following details improvement over previous year’s quarter ending March 31:
March 31, 2010
March 31, 2011
Net Interest Margin
Net Loss YTD
Past Due Loans
Capital / Assets
Needless to say, this is an extraordinary economic time in banking history. Many economists expected that, by now, we would be through the recession and 2011 would be a year of more normal growth. Cleary, that expectation has not met fruition on either a national or local level. The economic downturn continues in our market since real estate values have not yet found bottom and unemployment remains at historical highs.
From a corporate governance perspective we were very pleased in March to announce the appointment of Mark Kraft to our Board of Directors. Born in Sonora, Director Kraft attended Summerville Elementary and Summerville Union High School. He received his Bachelor of Science Degree in Business Management from Mesa State College and brings over 30 years of real estate and business experience to Mother Lode Bank.
We welcome Director Kraft and look forward to integrating his vision, skill and awareness of our business environment into the bank’s planning and oversight of operations.
Please make a note of our annual shareholder’s meeting scheduled for 5:30 p.m. on Monday, August 22, 2011. Once again, we will be gathering at the Sonora Opera Hall on Washington Street. Coffee and cookies will be served. Watch your mail for our 2010 Annual Report and Proxy materials.
We sincerely thank you for your support and want to assure you Mother Lode Bank stands ready to be the only locally owned community bank you choose for your financial needs.