The results of this energized development strategy will begin to be realized during the course of the current year. We anticipate entry into four additional states and the organization of added banks in those states with existing operations. Moreover, our current financial model, as in the past, allows for this growth without bearing the full burden of early-stage operating losses generally associated with a de novo growth strategy.
As I have previously noted, our board of directors has unanimously endorsed a long-term building strategy. We recognize that our bank model works. We recognize that the opportunity to build additional banking affiliates through this model is currently unlimited from a practical point of view. We recognize that the continued development of community bank affiliates serves to deliver a greater value to our shareholders than short-term “value maximizing” efforts.
Growth, of course, creates excitement and energy. It captures the attention of industry analysts, top banking talent and investors. We’re excited about the buzz, to be sure, but we recognize that this formula of success carries with it increasing demands on existing corporate personnel and operating systems.
Responsible growth requires ever-evolving sophistication of operating and technology systems. During the course of this year we will initiate a core computer system conversion. This effort is the product of a year-long study completed by numerous corporate and banking personnel within our organization. It will cost approximately $5 million and will serve to facilitate data flow, reporting, analysis and communications.
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