First National Bank of Pasco
How Safe Are We?
The headline in the St. Petersburg Times on July 16, 2008 asked "How Safe is Your Bank?" Bauer Financial, Inc. rates First National Bank as one of the safest banks in the United States. You can confirm this at their website www.bauerfinancial.com.
In addition to what is being said about the safety and soundness of other banks, I want to give you some insight about why we are so highly rated while some other banks are experiencing problems. The main components of a safe and sound bank are adequate capital, good asset quality and strong management.
The bank regulators set capital requirements to assure that financial institutions have a 'cushion' to absorb unexpected losses and to support growth. They have established three capital ratios that all banks must meet or exceed. Below is a comparison of the regulatory requirements for adequately capitalized banks and First National Bank's capital ratios:
| Adequately Capitalized | First National | |
| Risk-based Capital | ||
| Tier I Risk-Based Capital | ||
| Leverage Ratio |
As you can see, First National's capital far exceeds the required regulatory levels.
Of course asset quality is the main problem a few banks are experiencing. Asset quality refers to how well loans perform. The problem these banks are having breaks down into two major categories, sub-prime loans/securities and acquisition/development loans. I'm glad to report that First National Bank did not make any sub-prime loans, nor did we buy any investments secured by them. Also, we did not make any acquisition and development (A & D) loans. Most of the A & D loans that were made by other banks funded the purchase of land used to develop subdivisions that never sold out.
First National is happy to report the loans it has made are performing. Our past dues are minimal and our charge-offs practically non-existent.
I suspect that a lot of this information may be difficult to understand. Therefore, I would welcome a call (my direct number is 352-521-6689) or a visit from anyone to explain further why First National is a well-managed, growing, profitable, safe and sound community bank. In fact First National Bank was the highest performing bank in the five county Tampa Bay area and the 20th highest performing bank in Florida last year.
J. Lamar Roberts
President and CEO
First National Bank of Pasco
