SAN LUIS OBISPO, Calif., Aug. 6, 2009 (GLOBE NEWSWIRE) -- San Luis Trust Bank (OTCBB:SNLS) has announced 2nd quarter earnings of $607,000, exceeding 2008 2nd quarter earnings by $105,000 or 20%. However, the Bank booked a $5.55 million loan loss provision to strengthen its reserves against problem credits and charged off $4.9 million in loans. As a result, the Bank restated its March 31, 2009 financial statements to reflect both transactions. The transactions brought the March 31, 2009 year-to-date totals for loan loss provisions and loan charge-offs to $6.3 million and $5.5 million, respectively. No additional loans were charged off and no additional loan loss provisions were made during the 2nd quarter.
The Bank's capital levels remain strong, exceeding $28.3 million at June 30, 2009. Contributing to the capital base were earnings totaling $21 million from 2001 through 2008. The loan loss provisions resulted in a year-to-date net loss of $2.7 million. Management projects that 2009 will be the first year since the Bank opened in 1999 that a loss will be incurred. However, the Bank's current budget reflects year-end Tier One Capital and Risk-Based Capital levels exceeding 8.00% and 13.00%, respectively.
Asset quality will continue to drive the Bank's performance. Management is aggressively addressing the real estate-related issues within the Bank's portfolio.
Fortunately, the current low-rate environment has been beneficial to the Bank's margins and continues to enable management the opportunity to extend its deposit maturities in order to protect its balance sheet from the pending FOMC rate hikes projected to occur later this year and into 2010.
For more information on San Luis Trust Bank, visit www.sanluistrustbank.com, or you may contact Brad Lyon, CEO at bjl@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.