SANTA ROSA - Exchange Bank reported a profit of $3.2 million for the fourth quarter, the third-consecutive profitable period since reporting an $18.5 million loss in 2008.

Total assets for the bank are $1.53 billion, down from $1.63 billion reported at the end of 2008.

For the entire year, the bank reported a loss of $3.8 million, down from $18.5 million in 2008. The first quarter of 2009, the bank showed a loss of $10.0 million. The second and third quarters were profitable, $2.4 million and $816,000 respectively.

“We are pleased to report our third-consecutive quarterly profit as the challenging work of recovery continues,” said Bill Schrader, president and chief executive officer of the bank.

Mr. Schrader took on the role of CEO as of the first of this year. William Reinking, the chairman of the board of directors, had filled that role since Barrie Graham, previous president and CEO, left the bank in 2008. Mr. Reinking has retained his role as chairman of the board.

“It was always Reinking’s intention to return to his chairman role,” said Mr. Schrader. “I think the bank is on the road to recovery, and it is in good hands with the team we have.”

He said construction loans have dropped significantly.

“We have been working through the loan problems we have had,” he said.

Total loans were reported at $1.09 billion for the year, down slightly from $1.16 billion in 2008.

“Loan demand has declined, as business conditions are weak,” Mr. Schrader said.

Allowance for loan loss was $28.8 million, close to the $27.2 million in 2008.

For the quarter, provision for loan losses was $6.0 million, one third of the $18.0 million in the same quarter the year before.

Deposits totaled $1.31 billion, up from $1.29 billion reported in 2008.

“Much has been said about the dramatic and severe challenges facing our industry and our community this past year,” Mr. Schrader said. “As we look toward the New Year, we are ... 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.”

Dividends were suspended in 2008. Mr. Schrader said the board will have to see a combination of several conditions before it reinstates the dividend.

“Strength needs to be restored to the balance sheet. There needs to be consistent profitability, and this needs to happen in the context of an improved set of conditions in the local economy,” he said. “This is the weakest recovery I have seen in my career, but I believe we will come back as a county. I am confident in the resiliency of the local economy.”

Stock was trading at $30.50. The 52-week range was $28.00 to $75.00.