SANTA ROSA -- Exchange Bank today announced unaudited net income of $10.2 million for 2010, up significantly from the $3.9 million net loss for 2009.
"Even though we are optimistic about our 2010 earnings and projected earnings for 2011, we still have many issues to work through in this less than robust economic environment," said Bill Reinking, chairman.
The bank had $1.05 billion in loans at year end, down slightly from $1.09 billion at the end of 2009.
Reported deposits $1.29 billion, down slightly from $1.32 billion reported last year.
"We are pleased to report our seventh consecutive quarterly profit figures as the challenging work of recovery continues," said William Schrader, president and chief executive officer. "Our financial performance in 2010 puts us closer to our highest priority objective of reinstating a cash dividend to our shareholders. Continued improvement in problem credit resolution and overall economic stability, which is being tempered by high levels of unemployment, and weak consumer spending, will be necessary for us to obtain this key objective."
Loan chargeoffs declined by 61 percent in 2010 from those in 2009.
In addition, the bank was also able to reduce non-accrual loans and nonperforming assets by $13.2 million and $10.4 million, respectively, in 2010 as compared to 2009.
"I'm pleased that the bank's allowance for loan losses was increased during the year, providing us with solid coverage for potential problem credits in 2011," Mr. Schrader said.