Bank of Napa continues trend | Napa Valley Register

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Bank of Napa continues trend

Monday, November 02, 2009

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Bank of Napa announced its third quarter 2009 financial results.

The bank’s total deposits at Sept. 30, 2009 were $61.6 million, an increase from the third quarter of 2008 of $18.0 million. Loan totals at Sept. 30, 2009 were $57.2 million, an increase of $18.6 million from the same quarter last year. The bank, which opened for business on August 14, 2006, reported a net loss of $212,000 in the third quarter of 2009, a $110,000 improvement over the third quarter of 2008. Through the first nine months of 2009, the bank’s net loss was $542,000, a $547,000 improvement over 2008.

Bank of Napa had total assets of $78.5 million at Sept. 30, 2009, representing a $17.7 million or 29.2 percent increase over the same period last year.

President and chief executive officer Tom LeMasters said, “Despite the challenging economy, we were able to improve our share of the Napa County deposit market, grow our loan portfolio, and increase our reserve for potential loan losses. Additionally, we celebrated both our third anniversary, and the successful completion of the bank’s annual safety and soundness examination by our federal regulators which affirmed our strong balance sheet and sound credit quality.”

At Sept. 30, 2009, the bank had equity capital of $16.5 million, and all capital ratios were in excess of the regulatory definition for well capitalized distinction.

For more information, call LeMasters at 257-7777.

1 comment(s)

44cadillac wrote on Nov 2, 2009 3:34 PM:

" This bank has lost money for 13 straight quarters. It claims to be growing and to be safe and sound, yet it has produced no earnings and continues to destroy shareholder equity. Obviously their business plan is flawed.

With record low interest rates, their cost of funds is rock bottom and still no profits.One can only assume their expenses are too high and that means salaries. A look at the FDIC website shows that indeed their personnel costs exceed nearly all of their peers.

It seems the board of directors needs a dose of reality. Angry local shareholders like myself were assured at the beginning that the primary goal of the bank was to become profitable, not to grow quickly and pay big salaries like Citibank or BofA.

With a share price of about $5.00 after three years, this has been a terrible investment. What's worse though is the lack of follow thru on those initial assurances to we locals. What happened? Anybody know? "

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