I believe that these are achievable goals, but they will require hard work and dedication from every employee. I have made a personal commitment to achieve every one of these aspirations, and you can be assured that my energies and time will be focused on moving us forward to growth and prosperity.

My first, and most important priority during 2007 was the establishment of a culture of compliance within the company, at all levels of responsibility. We strengthened systems and compliance training, and enhanced incentive programs to avoid the consequences of lapses and inattention to this crucial aspect of operations. I have also worked hard to restore the confidence of our regulators in our institution and we have received valuable guidance from them in the past year. This was our most serious challenge during 2007, but I am confident that we are now taking all necessary measures to strengthen and sustain our compliance processes.

2007 also marked a change in the relationship we have with our majority ownership – a change for the better in all respects. We are working toward closer ties and better sharing of resources and expertise, and I believe that we’ve already made much progress. For the first time, the entire executive management team attended the semi-annual management meeting in Tokyo in November and had the opportunity to engage in frank and productive sessions with their counterparts from The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), our majority share-owner and its parent company, Mitsubishi UFJ Financial Group, Inc. (MUFG). The Japanese members of our Board of Directors constantly attend meetings in San Francisco and several have accompanied me on visits to branches to meet employees. There are plans to have some of the participants in our professional development program for senior officers spend time in Japan working with their BTMU colleagues. These and other initiatives are designed to take advantage of our mutual strengths and resources, and I am excited about the possibilities that lie ahead.

You may also have heard that we are making a significant investment in branch security measures. Throughout the industry, robberies represent a threat to the safety of both our customers and our employees, and I am determined to do everything necessary to address this situation at our bank. We will soon begin the installation of a variety of devices to make our branches safer, and I am eager to see this project to completion. People matter more than money. This is an investment I am both willing and proud to make.