2009 Message to Shareholders
March 17, 2010
This Annual Report reflects the consolidated financial statements of Rich Land Bancorp, Inc. (RLB) and its wholly owned subsidiary, TrustBank™ as of December 31, 2009 and 2008.
The Corporation realized a $2,894,000 net loss in 2009. This equates to a book loss per share of $3.61, based on shares outstanding at December 31, 2009. The primary factors contributing to the negative earnings for 2009 were:
- Loan losses and provisions to the allowance for loan loss reserve;
- The unexpected closing of Independent Bankers’ Bank in Springfield, Illinois; and
- An increase in FDIC insurance premiums.
While an operating loss is unfortunate, it is important to recognize the following:
- TrustBank maintains a strong capital position that provides a cushion from the temporary impact of negative earnings.
- TrustBank's historic performance over the last 97 years has demonstrated the ability of the bank to provide positive earnings into the future.
- As a shareholder in a Subchapter S Corporation, the income tax benefits of an operating loss are realized directly by you, the shareholder.
During 2009 total assets increased by 3.32% to end the year at $160,462,000. Total stockholder equity at December 31, 2009 was $15,145,000. This level of capital represents a capital to asset ratio of 9.44%. Income distributions during 2009 totaled $0.45 per share. The book value of one share of stock at year end was $18.87. TrustBank remains a stable and strong entity.
Although 2009 was a difficult year for TrustBank, we are optimistic regarding the prospect of improved performance for 2010.
New initiatives TrustBank has planned for 2010 include:
- Expansion of the Wealth Management Division, including the addition of a Certified Financial Planner;
- Projected month-over-month profitability of Arizona operations;
- Expanded online offerings, including automated online account opening;
- New iChecking and iSavings accounts that provide financial benefits to both TrustBank and the consumer; and
- Green initiatives to reduce costs associated with document production and expand the delivery of optional eStatements to consumers.
We are excited about these new initiatives, and we look forward to efficiently delivering these industry-leading products in the new year.
It is important to point out that while innovation is critical, it would not exist without a key component of TrustBank’s historic success: the consistent excellence of the members of the TrustBank family and the responsibility we have to our communities. From board members to management and employees, each individual at TrustBank has been selected based on professionalism, value of business ethics and demonstrated excellence in his or her field. The 2010 plan is targeted at reducing operating expenses and expanding offerings while maintaining our most valuable resource – our people.
The Board of Directors and management are optimistic that 2010 holds the promise of a better year for TrustBank. TrustBank has earned the reputation of providing outstanding financial services to our customer base for nearly a century, and that is a legacy we are dedicated to upholding for many, many years to come.
Thank you for your continuing support. I personally invite you to contact me with any questions or concerns. I can be reached by calling (618) 395-4311.
Bruce A. Runyon
President and Chief Executive Officer