President's Message
Dear Shareholder,
For the year ending December 31, 2006 the Community
State Bancorp, Inc. and its wholly owned subsidiary, the Community State
Bank of Orbisonia is pleased to report an outstanding year of net
profits and strengthening of the overall financial condition of the
corporation.
Net income for the year ending December 31, 2006 was $1,849.484
and on a per share basis our Corporation earned $2.34.
As of December 31, 2006, total assets were $192,186,689
reflecting a $9,859,370 growth over the twelve month period.
Book value on a per share basis rose from $21.76 to $23.75.
A record cash dividend in the amount of $521,283 was paid to the
shareholders in 2006. While the recent interest rate
environment has negatively impacted our net interest margin, net income
stayed relatively constant due to the growth in earning assets.
We believe that the flat-to-inverted yield curve has resulted in
an increasingly competitive pricing environment, both locally and
globally, and may lead to a possible permanent narrowing of spreads in
the banking industry.
For the very first time in the history of Community State Bank one of our Branch offices was robbed. The amount of money stolen was miniscule compared to the mental and emotional distress caused by this act. It is very difficult to comprehend that there are predators willing to do whatever it takes to get a few bucks. What a sick feeling you get when members of your banking family are held at gunpoint and subject to these violent acts of crime. In an effort to prevent any further attempts, to keep your assets safe, and of primary importance “Protect our Employees” we are updating all of our offices with the most current state of the art security systems.
As sophisticated technologies erase the geographical barriers to communication and commerce, exciting business opportunities arise. Unfortunately, these technologies also present opportunities for those intent on committing fraud, or more sinister acts such as terrorism. These threats prompt increasingly stringent regulatory responses from government agencies, affecting financial institutions in particular. The Orbisonia Community Bancorp, Inc. is committed to helping our clients mitigate risk, combat fraud and ensure compliance.
Easing these burdens can be costly. The costs of compliance are considerable, but the cost of non-compliance – in fines and damaged reputations – can be greater. Whether we need to monitor transactions and generate reports to satisfy anti-money laundering transactions, identify and prevent account fraud, protect sensitive information or safeguard our customers’ online transactions, The Orbisonia Community Bancorp, Inc. and its wholly owned subsidiary The Community State Bank of Orbisonia has a team of experts dedicated to the safety and soundness of your corporation.
As new challenges and opportunities arise, our approach will be a proactive one, so we will have at the ready all the capabilities needed to grow and prosper.
I continue to be truly grateful for the extraordinary effort put forth by our Directors, Officers and employees, the wonderful loyalty of our customers and the confidence and support of our shareholders. God has touched and blessed all of us.
Our appreciation is extended to you, our shareholders, for your interest and ownership in the Orbisonia Community Bancorp, Inc. and its subsidiary the Community State Bank of Orbisonia.
Paul H. Yohn, Jr.
President & Chief Executive Officer
April 1, 2007
