FOLSOM, Calif., April 21, 2011 /PRNewswire/ -- Folsom Lake Bank (OTC Bulletin Board: FOLB), announced unaudited financial results for the first quarter period ending March 31, 2011. The Bank reported its fifth profitable quarter with net income of $45,064 compared to $44,727 for the first quarter of 2010. "We are pleased to see a continued profitable operation along with steady and manageable growth, just what you would expect to see in a classic community bank," said Robert J. Flautt, President and Chief Executive Officer.
Net Interest Income for the quarter was $1,072,035, up $79,759, or 8.4% compared to the first quarter of 2010, reflecting continued growth in earning assets as well as a low cost of deposits. Non-interest income also improved from $116,614 in the first quarter 2010 to $204,710 for the first quarter of 2011, an increase of 75.5%. General and administrative expenses for the quarter increased by $167,519 which was primarily caused by a write down of other real estate in the amount of $186,000. Excluding the write-down of other real estate, overall expenses had a slight decline over the same quarter of 2010.
For the quarter ended March 31, 2011, total assets grew to $114.8 million, an increase of $10.7 million or 10.3% over the first quarter of 2010. Total deposits were $99.5 million, up $10.2 million or 11.5% from one year ago. Total loans ended the quarter at $73.8 million, an increase of $7.6 million or 11.6% from the prior year. Investments were $36.6 million, up $3.8 million compared to the year earlier total of $32.7 million. The Allowance for Loan and Lease Losses (ALLL) now totals $1,549,687, or 2.1% of loans outstanding which provides an adequate reserve for problem loans.
"The Bank's focus continues to be on sustained profitability with a strong balance sheet as well as a high level of liquidity. The Bank's assets are diversified between the lending portfolio and safe investments. Our growth has been remarkably steady over the last four years in spite of a weak economy. I expect we will continue to attract new customer relationships based on our classic community bank values of customer service, local knowledge of our communities and a focus on delivering what the customer needs and wants," concluded Flautt.