Folsom Lake Bank Reports Increased 2012 Earnings

FOLSOM, Calif., Feb. 1, 2013 (GLOBE NEWSWIRE) -- Folsom Lake Bank (OTCBB:FOLB) announced financial results for the fourth quarter and the year ending December 31, 2012. The Bank reported net income of $603,002 for the twelve months ending December 31, 2012, an increase of 22.3% compared to 2011. The Bank completed its 12 th consecutive profitable quarter with earnings of $212,213 for the three month period ending December 31, 2012.  Earnings per share increased to $0.38 for 2012 from $0.31 in 2011.

Total assets were $130.9 million at December 31, 2012, up 12.3% or $14.4 million compared to year end totals of $116.5 million for 2011. Assets also increased 2.8% during the quarter, growing $3.5 million.  Total loans were $74.9, at December 31, up $1.4 million or 1.9% from the year end 2011 totals. Total deposits were $110.1 million, up $12.6 million or 13.0% from the previous year end total of $97.1 million. Checking, savings and money market balances increased by $14.5 million or 24.5% for the year as the Bank has focused its efforts on increasing core deposit account relationships and maintaining a lower cost of funds to help support the Bank's net interest margin.

Net interest income for the fourth quarter and for the 12 months ending December 31, 2012, were $1,067,571 and $4,412,730, respectively. For the year ending 2012, net interest income was down $74,353, or 1.7% compared to 2011. Fourth quarter net interest income declined $88,467 or 7.7% compared to 2011. The Bank's net interest margin declined from 4.12% in 2011 to 3.89% in 2012. The Bank was challenged in 2012 with declining yields in both the loan and investment securities and was successful in offsetting this squeeze in margin by both growing earning assets as well as reducing interest costs.

Non-interest income for the fourth quarter and the twelve months ending December 31, 2012 were $140,264 and $389,335, respectively. For the fourth quarter, non-interest income was up $97,533 or 228.2% compared to non-interest income of $42,732 for the fourth quarter of 2011. For the year 2012, non-interest income was up $114,484 or 41.7% compared to non-interest income of $274,851 for 2011. The Bank had a substantial increase in gain on sale of investment securities, increasing from $147,653 in 2011 to $239,189 in 2012. The Bank also realized $51,725 in earnings on bank owned life insurance, and had higher fees on deposit accounts and dividend income.