Each depositor insured to at least $250,000 per insured bank

SARC- 96-01 (February 29, 1996)

The Supervision Appeals Review Committee (Committee”) of the Federal Deposit Insurance Corporation (“FDIC”) on February 21, 1996, considered your appeal and concludes that in view of the asset quality problems cited in the August 14, 1995, FDIC Report of Examination and the noted lack of an established positive earnings trend (only six months of nominal earnings as of the date of examination), the Composite “4” rating assigned to the [Bank] (“Bank”) is appropriate.  The Committee recognizes that Bank management has made a number of significant improvements; however, there all still a number of negatives that warrant close supervisory attention.

Pursuant to FDIC guidelines, the scope of the Committee’s review was limited to the facts and circumstances that existed at the time of the examination.