Looking back at 2011, which was an interesting year to say the least, I'm struck by the incredible growth First Foundation experienced. We opened our La Quinta and San Diego offices, signed a definitive agreement to acquire Desert Commercial Bank, ended the year with more than 110 employees, and added Insurance Services and Institutional Asset Management to our services platform.

Now, with renewed enthusiasm, we are energized and ready to undertake the challenges that lie ahead in 2012. First Foundation has never been more stable with the strength and security of our assets. At the end of 2011, our bank assets were $548 million and our total loans were $523 million. Assets under management have grown from $1.56 billion (at December 2010), to $1.82 billion as of December 31, 2011, in spite of an extremely challenging environment.

We plan to further expand the reach of our services by opening a new 7,000 square foot branch in Westwood, in West Los Angeles. We also continue to work diligently on our acquisition of Desert Commercial Bank, which has offices in Palm Desert and El Centro. The acquisition will hopefully be completed by the end of the first quarter.

Finally, inside you'll find a recap of our 21st Economic and Market Update event, which was held on December 14 at the Hyatt Regency Huntington Beach Resort & Spa. If you weren't able to attend, you missed a remarkable event. The luncheon was moderated by Dr. Jim Doti, President of Chapman University, and the keynote speaker was the legendary T. Boone Pickens, Chairman and CEO of BP Capital. Mr. Pickens' observations were interesting and refreshing. Mr. Pickens' entertaining and engaging style provided real energy for our more than 900 guests.