SANTA ROSA -- Exchange Bank today announced a profit of $816,000 for the third quarter, the second consecutive profitable period since its loss of $11.5 million in the third quarter last year.
When combined with earnings of $2.4 million in the second quarter, the bank’s year-to-date loss totals $7.1 million. That includes a charge of $20 million taken as an additional provision for loan losses in the first quarter of this year.
"We are pleased to report a modest profit this quarter as the challenging work of recovery continues," said Chairman and Chief Executive Officer C. William Reinking. "Encouraging signs in the broad economy, the dedication, resiliency and hard work of the Exchange Bank team, and the unwavering support of our community are combining to form the foundation of an early recovery. Much is left to do, and the economic recovery remains fragile, but we believe the worst is, indeed, behind us."
Total deposits were reported at $1.322 billion, down $39 million from the third quarter of last year and up $34 million from year end.
Total loans of $1.123 billion were down from $1.162 billion at year end and $1.197 billion in the prior year reflecting reduced loan demand related to the wider economic environment.
"Much has been said about the dramatic and severe challenges facing our industry and our community this past year,” said President William Schrader. “We, like many, have been confronted with some of the most difficult conditions seen in our lifetimes. While it would be premature to declare victory, we are proud of our progress and it serves to encourage us as we move forward along a difficult road. As we look toward the final quarter of a trying year, we are also genuinely grateful for the support and encouragement of our community, the dedication and commitment of our employees and the confidence and trust of our customers. The hard work of recovery continues, and we will be unwavering in our resolve to restore increased and sustained profitability."
Exchange Bank is the North Bay's third largest independent financial institution.