Napa-based Charter Oak Bank reported a  net income before tax of $186,000 for the third quarter of 2008. Year-to-date, Charter Oak Bank's net income before tax was $548,000, an increase of $603,000 over the same period in 2007. In addition, the bank eliminated its deferred tax asset valuation during the quarter, resulting in a one-time book tax credit and gain to net equity of $808,000.

Charter Oak Bank also reported $116.7 million in loans as of September 30 — an increase of $35.3 million, or 43 percent, in the last 12 months.

Total assets were $131.3 million, an increase of $37.7 million in the past 12 months. "As this strong financial performance demonstrates, Charter Oak Bank is a very safe and sound bank," stated Charter Oak President and CEO Brian Kelly. “We have never participated in the risky practices demonstrated by other financial institutions. Rather our focus is lending to businesses and individuals in the Napa Valley, and as a result, we remain solid.”

Charter Oak Bank also announced that Brad Morrell has come on board as assistant vice president/relationship officer. Morrell spent 19 years in the medical industry, including the past 12 years as the owner of a Napa Valley medical equipment company. He is a 1984 Vintage High School graduate with a BA in marketing from the University of San Francisco.