January 21, 2009

 

To All Hancock County Savings Bank Members:

In a tumultuous year in the financial industry, I am happy to report that Hancock County Savings Bank has turned in another outstanding financial performance in 2008. We have continued our history of maintaining conservative underwriting guidelines for our lending products and paying a fair rate of return on your deposits. These practices have resulted in an active year for mortgage lending in our local area for Hancock County Savings Bank, which translated to a net income of $1,714,481.89 and a capital position of 15.44% of total assets of $277,333,236.78 as of December 31, 2008.

Hancock County Savings Bank continued our outreach efforts in our surrounding market area this year, which, along with the good performance in our local market, resulted in the Mortgage Department’s closing 497 loans totaling $51,617,078.00. Our Consumer Lending activities added to this total; and, after Loss Reserves were deducted, we ended the year with $242,114,778.66 in total net loans.

A software upgrade for our ATM product resulted in deposit balances being available in an “on-line, real-time” basis. This improvement has been well received by our customers and has eliminated any confusion on account balances viewed at the ATM machine. This upgrade continues our commitment to conservatively improve our technology offerings to our customers.

Changes in the Federal Deposit Insurance (FDIC) program have temporarily increased the insurance on many deposit products from $100,000.00 to $250,000.00 through December 31, 2009. We are participating in those parts of the program that will protect our depositors at the maximum dollar amount available. Our customer service employees are available to help you to take full advantage of these programs.

The Hancock County Savings Bank Charitable Foundation continued its commitment to the local service organizations in our lending area in 2008. The Foundation distributed $38,469.00 to seventeen of the forty-one deserving applications that were received. The total dollars contributed since 2000 amounts to $368,208.00, and these contributions have been given to 58 different organizations in our local area. The outstanding work being done everyday by all of these organizations is very gratifying to observe. The Foundation’s contributions allow the Bank to fulfill its Mission Statement in helping to improve the communities in which we serve.

We anticipate a challenging year in 2009, but one in which we will continue to operate in a safe and sound manner that benefits our customers and the communities we serve.

Sincerely,

Harry A. Comm

President and CEO