FOLSOM, Calif., Jan. 16 /PRNewswire-FirstCall/ -- Folsom Lake Bank (OTC Bulltin Board: FOLB), announced unaudited financial results for the quarter and full year ending December 31, 2008. For the year, total assets increased 105% to $60.5 million, an increase of $31.0 million. Total deposits grew 192% over the 12 month period reaching $43.8 million, an increase of $28.8 million. Total loans outstanding as of December 31, 2008 were $38.0 million, up $22.1 million or 139% from the prior year.
According to Robert J. Flautt, President and CEO, "We are extremely pleased with our continued steady and strong growth during our de novo period. We intend to continue this conservative growth pattern which, along with a focus on keeping expenses in line, will head us quickly toward our goal of reaching a profitable operation."
The bank added $90,000 to its loan loss provision in the quarter which resulted in a loan loss reserve of $550,000 or 1.42% of gross loans. The bank continues to have no delinquent or non-performing loans. The bank has no sub-prime residential mortgage loans and has never had sub-prime lending program. In spite of the slowing economy, housing woes and the meltdown in the sub-prime residential lending area the bank continues to have a solid & conservative lending portfolio.
The bank reduced its net loss for the last three months of 2008 to $320,375, down $147,881 from the prior year's last quarter loss of $468,256. For the year the bank reported a net loss of $1,359,562, approximately equal to the initial nine months loss of $1,347,522, both in line with expectations and normal for a start-up banking operation. As Flautt commented, "We continue to receive strong growth for the bank from the community, our board and shareholders. Community banks clearly are enjoying a flight to safety. Just as we know our customers very well, likewise our customers see us a safe, secure and strong alternative to some of the large financial institutions and their myriad of continuing loan problems."
Folsom Lake Bank takes great pride in the communities it serves: our employees, officers, directors and founding organizers are committed to being involved. Folsom Lake Bank is a proud sponsor of the Folsom Professional Rodeo, Folsom Historical Society, Folsom Lake College Visual and Performing Arts Center, Placer County SPCA, Rotary International and Kiwanis, as well as numerous other local events and organizations. Folsom Lake Bank is publicly traded on the Over-the-Counter Bulletin Board. Howe Barnes Hoefer & Arnett (John Cavender 415-538-5725) is the primary market maker. For more information please call Robert Flautt at 916-235-4570.
This correspondence may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act. All of the statements contained in this correspondence, other than statements of historical fact, should be considered forward-looking statements. Although the Bank believes the expectations reflected in those forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results.
