SAN LUIS OBISPO, Calif., Oct. 3, 2008 (GLOBE NEWSWIRE) -- San Luis Trust Bank (OTCBB:SNLS) announced that earnings during the 3rd quarter were $230,000 increasing the year-to-date net income to $1.76 million. CEO Brad Lyon commented that, "although year-to-date earnings are down compared to last year, given the current financial environment, we are very pleased with our performance. San Luis Obispo should be fairly insulated from the national financial crisis being felt by the investment companies and large financial institutions." Mr. Lyon went on to say that, "San Luis Trust Bank is well capitalized and has sufficient reserves to weather the current downward trend in the real estate market."
The Bank has been able to accumulate high levels of capital while maintaining a modest level of earnings due to its Business Plan of not making sub-prime mortgages and not purchasing Fannie Mae or Freddie Mac Trust Preferred equity investments.
The Bank set aside an additional $1.65 million in loan reserves, a 47% increase over 2nd Quarter 2008. The loan loss reserve balance increased to $4.85 million, or 1.93% of gross loans. Mr. Lyon said that these ratios reflect the concern with the current real estate market. However, having these funds set aside also highlights the opportunities available to those institutions that have sufficient core earnings to take advantage of future prospects.
Total assets as of September 30, 2008 were $329 million with equity capital being $31.1 million or 9.45%. The Board of Directors continues to maintain its current policy on temporarily postponing cash dividends. Mr. Lyon stated, "The future of community banking will be led by banks that have both the capital and flexibility to respond and adapt to the rapidly changing marketplace. While we, along with the other local banks, have felt the impact of the current real estate market, we see ourselves in an excellent position to adapt and take advantage of future opportunities."
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.