The results for 2007 were significantly affected by recognition at year-end of a deferred tax asset totaling $3.3 million. During 2007, total assets grew by 20%, led by strong growth in the loan portfolio of 36%.
Although the company’s employee headcount remained constant during 2007, noninterest expenses grew 19% to $10.6 million, reflecting one-time costs associated with the consolidation of the company’s four banking charters, and centralization of many back-room operational functions.
At December 31, 2007 the allowance for loan losses stands at $3 million, or 1.48% of total loans. At December 31, 2006, the allowance for loan losses was $1.79 million, or 0.93% of total loans.
Bruce Nolte, president and CEO, said: 2007 was a year of incredible challenges. We managed to continue to grow the company while at the same time undergoing a major restructuring; and in the last half of the year, we negotiated and announced two mergers with Community Bankers Acquisition and Bank of Essex.
