SOURCE: Charter Oak Bank
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October 21, 2009 17:37 ET
Charter Oak Bank Remains Profitable in Current Economy
NAPA, CA--(Marketwire - October 21, 2009) - Charter Oak Bank (OTCBB: CHOB), headquartered in
Napa, California, reported a third quarter net income before tax of
$185,000 as compared to net income before tax of $186,000 in the third
quarter of 2008. The nine-month net income before tax was $52,000 including
a $1,131,000 increase in the loan loss provision. In comparison, the 2008
year to date net income before tax was $542,000 including a $442,000 loan
loss provision. The difference in the loan loss provisions from 2008 to
2009 was $689,000.
To ensure prudent reserves, the Allowance for Loan Losses as of September
30, 2009 was maintained at 1.94% of the total loan portfolio. That is an
increase from 1.27% from the same period in 2008. During the third quarter
the Board of Directors and Management believed it was prudent to charge off
loans in the amount of $410,000 due to non-performance. These were the only
charge-offs for the year.
"By employing our safe and sound business strategy, we have managed to
remain profitable, even in the current economy," said Brian Kelly,
President and CEO. "When bank closures are in the news, Charter Oak Bank
remains a safe and sound community bank that you can trust."
Charter Oak Bank continues to remain "well-capitalized" by regulatory
definition with total risk based capital at 12.79%. Regulatory guidelines
state banks must maintain 10% total risk based capital to be
"well-capitalized."
Loans ended September 30, 2009 at $132.7 million, an increase of $16
million or 13.7% from the same period last year. Deposits at September 30,
2009 amounted to $123.2 million, an increase of $19.4 million or 18.7% from
last year. Total assets were $154.2 million, an increase of $22.9 million
in the past twelve months. Shareholder book value at quarter-end was $9.53
per share.
Forward-Looking Statements
Statements concerning future performance, developments or events,
expectations for growth and income forecasts, and any other guidance on
future periods, constitute forward-looking statements that are subject to a
number of risks and uncertainties. Actual results are pre-fiscal year-end
audit and may differ materially from stated expectations. Specific factors
include, but are not limited to, loan production, balance sheet management,
expanded net interest margin, the ability to control costs and expenses,
interest rate changes and financial policies of the United States
government and general economic conditions. The Bank disclaims any
obligation to update any such factors.