About Us

Message from the Vice President

August 15, 2011

Last Year

In 2010 Physicians National Bank (PNB) continued to be a source of growth and opportunity for the Bank.  PNB reported total loans in excess of $25 million at year end with strong compensating balances near $5 million, an important metric relating to underlying interest margins and profitability. 

The Bank as a whole reported a $438,000 net loss in 2010 on total assets of $234 million.  The loss was primarily driven by the need to recognize significant additions to the bank’s allowance for loan losses, which were centered on a few loan relationships with real estate exposure.  

2011

The strong asset growth that the PNB enterprise experienced in the first twenty-four months of its operations has been stalled a bit by the overall economic volatility and uncertainty in the healthcare community related to potential new reform and regulation.  In part, this is reflected in the Bank’s asset base now stabilized at just over $220 million including $160 million in loans and leases.  Total assets had been near $300mm over a year ago.  

The Bank’s allowance for losses by June 30th amounted to 3.0% of loans outstanding, a seemingly healthy position against future losses when compared to peer group comparisons. 

The buyer of the Bank’s mortgage business last year defaulted on the sales agreement in early 2011 resulting in a $300,000 charge to operations in the first quarter.  Despite this fact, Earning trends were positive through June 30th even in light of continuing uncertainty in the overall economic environment.  Overall, ENB reported a $388,000 net profit through June 30th with positive momentum heading into the second half of the year.

Communications

Grant Conway, the former President of Physicians National Bank and EVP of Eagle National Bank accepted a position with a non-banking institution in Florida. Grant and his wife have wanted to raise their four children down south for some time and this transition has afforded them that opportunity. Grant was an integral part of the formation of Physicians National Bank and we would like to thank him for his dedication to both PNB and ENB and wish him and his family the best in their new endeavor. 

During this transition, I will be actively involved with the day to day functions of PNB and I welcome any feedback from shareholders, stakeholders and customers.  I can be reached directly at 484.455.2809 or dsmith@physiciansnationalbank.com.  I thank all of you for your continued support.

Drew Smith, Vice President Physicians National Bank
Vice President, Eagle National Bank