NAPA - Charter Oak Bank showed an increase in year-to-date earnings with operating income of $708,196 for the six months ending June 30, up from $596,000 for the same period in 2008.However, the bank reported a net loss of $256,000 for the second quarter due to a $744,000 increase in its allowance for loan losses to 2 percent of its total loan portfolio. The quarter ending June 30, 2008 reported net income of $201,000, including a $145,000 loan loss provision.

"It was sensible and in the best interests of our shareholders and financial community to be fairly conservative in our approach to our loan loss provision," said Brian Kelly, president and chief executive officer.

Loans increased 33 percent over the second quarter last year to $134.9 million, and deposits were $111.5 million, up nearly 22 percent over last year. Total assets were $143.3 million, an increase of $28.3 million in the past 12 months.