With the coming of the New Year, our Board of Directors and staff wish to take this opportunity to sincerely “Thank you” for your business. With your support, we have remained steadfast in serving our local community with friendly, professional, personalized service.

The road forward is always under construction. While economic uncertainties continue to hamper the financial industry and many business sectors, National Bank of California has made great strides toward strengthening the institution and preparing for future growth and sustained profitability. We are well on our way.

It has been a very busy and productive year, thanks to the fine efforts of our hardworking staff. The Bank remained active in the marketplace, working with new and existing clients to structure credit facilities to address their unique financing needs. We accomplished several major goals, including the creation of an updated Strategic Plan which will guide us in our future activities while ensuring safe and sound practices. Throughout the year, we maintained strong liquidity and prudent reserves to provide a firm financial footing upon which to build.

There continue to be significant changes in banking law and regulation. Beginning January 1, 2013, funds deposited in noninterest-bearing transaction accounts (including Interest On Lawyer Trust Accounts) will no longer receive unlimited deposit insurance coverage from the Federal Deposit Insurance Corporation (FDIC). Each depositor’s accounts will continue to be insured by the FDIC up to the standard maximum deposit insurance limit of $250,000. We know that many of you may have questions about this change, and we are here to serve you. We are happy to answer your questions, and suggest how you can best achieve your deposit insurance goals.

On behalf of our banking team, thank you for your loyalty to National Bank of California. We truly appreciate your business and confidence in our Bank. Please accept our very best wishes for a prosperous New Year!

Sincerely,

Henry Homsher,
President and Chief Executive Officer