The principal reason for the decreased earnings in the fourth quarter 2007 was the addition of $463,000 to the loan loss reserve which represented a $338,000 increase over the fourth quarter 2006 loan loss provision of $125,000. For the full year of 2007, Greater Sacramento’s net income was $3.01 million or $1.16 per share diluted, a 7% decline as against $3.23 million or $1.26 per share diluted reported for the full year of 2006.
Greater Sacramento’s total deposits of the company at December 31, 2007 stood at $307.5 million or 15% over the December 31, 2006 figure of $267.2 million. Likewise, net loans increased 12% to $237.1 million at December 31, 2007 from $211.9 million at December 31, 2006.
William Martin, CEO of Greater Sacramento Bancorp, stated: While we have been tasked with resolving a significant non performing loan I am encouraged for several reasons: First and foremost our loan quality problem is isolated in one borrowing relationship.
The balance of our portfolio has held up extremely well and several new early warning procedures have been added to our credit administration in order to quickly address any deteriorating loan situation. Also, we have continued to expand both our loans and deposits; our core business remains sound.
