Folsom Lake Bank, www.folsomlakebank.com – the California-based and community-focused bank with two locations, one in Folsom’s historic district at 905 Sutter Street (opened April 3, 2007 with 406 local investors), and their branch at an optimum location in Roseville, announced six-month period (ending June 30) unaudited financials yesterday.
President and CEO, Robert J. Flautt, sees the 111% increase in reported net income of $61,038 (compared to a loss of $543,084 in 09) as validation for FOLB’s vision of a classic community bank which emphasizes customer satisfaction and a conservative, highly localized framework.
The Roseville branch has seen a solid draw with clients who enjoy the personal touch for which FOLB has become known, rapidly establishing itself at a heavily-trafficked intersection.
Flautt noted the steady, manageable growth profile, as well as profits for these first six months of the year, attributing them in no small part to precisely this community-based philosophy of a classic bank structure with a strong, highly-liquid balance sheet and sustained profitability.
Flautt pointed out the robustness of asset distribution between “a conservative lending portfolio and safe investments”, anticipating that the growth curve evident from inception (despite a weak economy) will continue to produce new customers who love the local knowledge, community involvement, and ultimately attitude as a business for which FOLB has developed a reputation.
Flautt affirmed the principle of long-term profitability over short term results, and said that FOLB would redouble its efforts to capitalize on its sound strategy in the coming quarters.
Chairman of the Board, David J. West, cited the excellent markets in which FOLB’s two attractive franchises are located, reaffirming Flautt’s analysis that the Folsom and Roseville markets showed great promise.
Heavily involved and excellently networked throughout the local community, FOLB massively supports everything from the Mercy Hospital Foundation to the Folsom Lake College Foundation and the new Performing Arts Center, to name but a few.
Having strategically isolated itself from the TARP program is a huge advantage for FOLB in this market, and the Bank has no preferred stock, sub-prime loans or toxic assets to deal with, and does not do sub-prime or any sort of predatory lending. FOLB also participates in the FDIC Transaction Account Guarantee Program (unlimited coverage on transaction accounts through Dec 31, 2010).
By end of quarter, FOLB’s tier-1 capital ratio was 10.07%, with a 15.25% total capital to risk-weighted assets ratio; this is the portrait of a well-capitalized and liquid system, clearly evincing the Bank’s increased investment and lowering of the loan-to-deposit ratio by 6.2% (to 73.7%).
The Bank has a solid investment portfolio comprised exclusively of full faith and credit U.S. Government agency and mortgage-backed bonds or fully insured certificates of deposits at other banks.
Here’s a look at the rest of the report profile in summary form:
• Liquidity up 149% to $40.8M ($27.4M in 09)
• Net Interest Income up 42% to $1.94M ($572k in 09), solid growth of earning assets coupled with low cost of deposits
• Expense Growth up only 6% despite opening a second branch
• Total Assets up 46.9% to $113.9M
• Total Deposits up 60.3% to $98.5M
• Total Loans up 47.9% to $72.6M
• Investment Securities up 204% to $39M
• Allowance for Loan and Lease Losses of 2.22% or $1.61M total for all outstanding loans, huge cushion for any problem loans