Business & Finance
Business and Finance
Business and Finance
Tue, January 27, 2009
Mon, January 26, 2009 Treasure State Bank Reports Fourth Quarter 2008 Results
MISSOULA, Mont.--([ BUSINESS WIRE ])--Treasure State Bank (OTCBB: TRSU) today announced its 2008 fourth quarter results.
- Total assets increased to $89.7 million as of December 31, 2008, a 3.1% increase in total assets from the end of the third quarter 2008. Growth was driven by a $2.7 million increase, to $69.9 million, in gross loans.
- Net interest income was relatively flat at $813 thousand compared to $800 thousand in the third quarter as declines in interest rates offset increased loan volume.
- Treasure State Bank experienced no loan losses for the quarter but increased its loan loss reserve to 1.79%, from 1.50%, of total loans in response to overall economic conditions and the potential impact on borrowers.
- Higher loan loss reserves resulted in a $116 thousand net loss for the quarter, compared to a $61 thousand profit in the third quarter. For the year, the Bank generated a $6 thousand profit.
- Net loss per share was $0.11 in the fourth quarter compared to earnings per share of $0.06 in the third quarter 2008. For the year, the bank generated profit of $0.01 per share.
- Ending book value was stable at $9.6 million as was book value which remained $8.70 per share.
- Tier 1 Leverage Capital Ratio was 10.8% and Total Risk Based Capital Ratio was 13.2% as of December 31, 2008 compared to 11.23% and 13.22%, respectively, as of September 30, 2008.
"Overall, the board of directors and management are pleased with the progress of Treasure State Bank during its second year of operation," said Shelley Boutelle, President and CEO of Treasure State Bank. "In spite of the overall economic environment, the Bank essentially broke even for the year while maintaining a strong capital position. During the fourth quarter the board of directors pursued its plan to moderate growth and to proactively manage risk amid concerns of continued deterioration in the national economy. Additional loan loss reserves were set aside to address potential problems that may occur as a result of the downturn. The board of directors believes the proactive approach to risk management and the current capital position is adequate to sustain the institution for the foreseeable future. However, the Bank may seek additional capital to fund future growth and to position itself to take full advantage of any positive impact the economic stimulus package may have on the economy."
About Treasure State Bank
Treasure State Bank, a state chartered bank, is headquartered in Missoula, Montana. The bank was founded in January 2007 with a capital base of $11 million, the most capital ever raised by a Montana de novo bank. Treasure State Bank currently trades on the Over the Counter Bulletin Board (OTCBB) under the ticker symbol "TRSU". Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit [ www.treasurestatebank.com ].
