SANTA ROSA - Exchange Bank today reported a profit of $2.4 million for the quarter ending June 30, its first profitable quarter since the bank's announcement of an $11.5 million loss late last year.
Year-to-date, the bank has a net loss of $7.9 million, which includes a charge of $20 million taken as an additional provision for loan losses in the first quarter.
"We are pleased to have a quarterly report that begins to reflect the underlying strength of our bank," said Chairman and Chief Executive Officer William Reinking. "There is still a great deal of work ahead of us as we respond to the challenges presented by the most serious economic downturn in our lifetimes. But we are committed, individually and collectively, to acting upon the confidence and trust placed in us by this community and we will work tirelessly toward the restoration of long term, sustained profitability."
At June 30, total deposits were $1.3 billion, up $57 million from year end and $4 million from the prior-year period.
Total loans of $1.1 billion were down from $1.2 billion at year end and $1.2 billion in the prior year.
Commercial loans increased 5 percent year-over-year to $306 million, up more than $12 million from year end.
After announcing the Sonoma County Loan Program in March, consumer lending in the second quarter increased. New consumer loan volume, at more than $7 million, increased 110 percent when compared to the prior quarter and 36 percent compared to the same period last year.
"We, like many of the individuals and businesses in our community, have faced a dramatic and difficult time over the last year," commented President William Schrader. "The hard work of the Exchange Bank team and the unwavering support of our community have enabled us to post a modest profit this quarter; but our work is certainly not finished," Mr. Schrader said.
"Our capital and liquidity remain strong, and we will continue to look for ways to improve our efficiency, reduce expenses and provide excellent service in meeting the broad financial services needs of our community," he said. "As an important step in that journey, we see these results as encouragement that we are, indeed, on the right path."
Exchange Bank stock was trading today at $40.05 a share. Its 52-week high was $85.50.