Our bank has served the needs of our customers and community while weathering many challenges of the economy and the banking industry. Our industry now faces some of the utmost challenges. These problems were not caused by community banks but I believe that community banks will provide significant resources in resolving these problems. We are fortunate to be in Texas, with a strong customer base, and banking credentials that will allow us to survive and be resilient as we work through these turbulent times.

The entire staff of First National Bank has begun this year with the challenge of changing our internal software platform system. This change will allow our customers real time on funds availability through their debit card, ATM, and internet banking. More flexibility on our cut-off time and in the near future we will begin the development of our remote capture product. We were successful in this conversion as of April 13th and look forward to the additional products and services that the system will allow. As we proceed with these changes, we hope that we are able to overcome any problems that may arise. We welcome your comments as we strive to meet and exceed your banking requirements.

We will continue our efforts of evaluating our potential branch location north of Bells beside the high school this year. We are working with our engineers to further that development and hope that we will have a facility in place in the near future.