SAN LUIS OBISPO, Calif., April 14, 2008 (PRIME NEWSWIRE) -- San Luis Trust Bank (OTCBB:SNLS) announced first quarter earnings of $1.03 million, compared to $1.08 million in 2007. The Bank's CEO, Brad Lyon commented that, "The real estate environment continues to present both challenges and opportunities for the Bank." The earnings figure represents a return on assets (ROA) of just under 1.40% and a return on equity (ROE) just under 14%.
The Bank remains highly capitalized, with $30.4 million in equity capital, and is considered to be "well-capitalized" by the federal regulators. Further, the Bank's loan loss reserves (ALLL) exceeds $3.4 million and represents a 1.50% reserve ratio compared to gross loans.
The Bank has positioned itself well for the continued Federal Reserve FOMC rate cuts. The net interest margins have increased during 2008 and will allow the Bank to increase its Tier-2 capital position beyond the budgeted totals. Funding strategies implemented during the first quarter should enable the Bank to keep deposit costs down and perform well into 2011. CEO Lyon stated that strong capital positions and an active senior management and Board of Directors will be vital in monitoring and analyzing potential real estate issues during 2008. The Bank remains optimistic in meeting its performance targets for the year.
For more information on San Luis Trust Bank, visit www.sanluistrustbank.com.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government and general economic conditions.