SAN LUIS OBISPO, Calif., Jan. 16, 2008 (PRIME NEWSWIRE) -- San Luis Trust Bank (OTCBB:SNLS) announced year-end earnings of $4 million, compared to $4.6 million in 2006. The Bank's CEO, Brad Lyon commented that, "Given the general banking environment, the Bank's net income of $4 million is a significant achievement." The earnings figure represents a return on assets (ROA) of just over 1.50% and a return on equity (ROE) just under 15%.
The Bank was able to achieve almost 10% loan growth during the year, while maintaining a sound loan portfolio. The Bank has only one REO property, representing just 0.16% of gross loans. Also, loan charge-offs were minimal, at $20,000. The Bank's loan loss reserve (ALLL) remains strong at 1.65% of gross loans, or $3,630,000.
The Bank remains highly capitalized, with $29.4 million in equity capital, and is considered to be "well-capitalized" by the federal regulators.
The outlook for 2008 looks good for the Bank and its shareholders. The interest rate environment has turned favorable, and interest margins are projected to increase significantly during the year. The two cash dividends in 2007, totaling $0.30, represented a 30% increase over 2006. The Bank is hopeful that continued strong performance will allow further dividend growth in 2008.
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.