SONOMA, Calif., Oct. 21 /PRNewswire-FirstCall/ -- Sonoma Valley Bancorp
(OTC Bulletin Board: SBNK), the holding company for Sonoma Valley Bank, posted
record total assets of $317 million at September 30, 2008, up 6.4% from $298
million as of September 30, 2007. Loans reached $260 million, up 5.9% from
$245 million in 2007 while deposits grew 8.0%, to $247 million, up from $229
million a year ago. The Bank remains above well capitalized regulatory
requirements with total risk-based capital standing at 11.4% up from 10.5% one
year ago.
Sonoma Valley Bank President, Sean Cutting also reported holding company
earnings of $2,889,989 for the nine months ended September 30, 2008, compared
to the record earnings of $3,181,560 a year ago, a decline of 9.2%. Earnings
per share were $1.28 versus $1.42 during the same period in 2007. The
annualized Return on Assets was 1.30% and the annualized Return on Average
Equity was 12.99%. The Book Value for the stock at period end was $13.36. Net
income for the third quarter of 2008 was $916,075 compared to $1,092,504 for
the third quarter of 2007, a decline of 16.2%. On a per share basis, net
income for the three months ended September 30, 2008 is $.41 per share
compared with $.49 per share for the same period in 2007.
Mr. Cutting stated the existing loan portfolio is performing well with
less than one percent in non-performing assets at September 30, 2008. The Bank
added $830,000 to the allowance for loan losses during the first nine months
of 2008. This represented an increase of 47% over the same period last year,
leaving the reserve at 1.58% of gross loans, well above its peer group
average.
Sonoma Valley Bank was not a lender in the sub-prime mortgage market or an
investor in mortgage backed securities or Fannie Mae and Freddie Mac preferred
stock, however, its residential home equity lines and construction loans are
not immune to problems caused by the current drop in residential property
values. Over the past 24 months, residential real estate values in the Bank's
primary lending area have experienced price erosion, thus increasing the
potential risks associated with the overall loan portfolio. However, the
largest percentage of the loan portfolio is secured by commercial properties
which have continued to perform very well. The Bank continues to closely
monitor the performance of the loan portfolio and the adequacy of the reserve
account, and is prepared to make adjustments as deemed necessary.
The remainder of 2008 through the first half of 2009 will remain a
uniquely challenging environment for the financial service and banking
sectors. Given the Bank's knowledge of its local market, and plans for
deploying more sophisticated internet banking technology, it is
well-positioned to gain market share and provide continued long-term
profitability to the holding Company.
For the fifteenth year, Findley Reports, Inc. named Sonoma Valley Bank to
its list of SUPER PREMIER PERFORMING BANKS in 2007, based upon the company's
strong capital position and consistent earnings. Only 4 community banks in
California have achieved this top rated status for at least 15 years. Sonoma
Valley Bank was also recognized by the Community Bankers of California as one
of the top 10 "Performance All-Stars" for the first quarter of 2008 based upon
Return on Assets, Return on Equity, Net Interest Margin and Efficiency Ratio
for all California community banking institutions.
Sonoma Valley Bancorp shares are listed on the OTC Bulletin Board (OTCBB)
and the stock symbol is SBNK.
This press release may contain forward-looking statements, which are not
historical facts, but which management believes are a benefit to shareholders.
These forward looking statements may include management's expectations
regarding future events and performance of its subsidiary, Sonoma Valley Bank,
including such items as operating efficiencies, projected growth in loans and
deposits, future operating results and forecasts, net interest margin,
strength of the local economy where Sonoma Valley Bank principally operates,
and federal fiscal policies. Future events are difficult to predict and such
forward-looking statements contained in this press release which are not
historical facts are subject to risks and uncertainties that could cause
actual results to differ materially and adversely from those expressed,
including, but not limited to, certain changes in the local economy, changes
in interest rates and federal fiscal policies, and changes in competition. In
addition, the Company discusses certain other risks and uncertainties related
to its operations in its reports filed with the Securities and Exchange
Commission, which risks and discussion should be read in conjunction with this
press release. The Company assumes no obligation to publicly revise
forward-looking statements to reflect subsequent events or changed
circumstances.
SOURCE Sonoma Valley Bancorp