News Room 2015 Archive
Press Releases from 2015
- November 19, 2015 – Exchange Bank Declares $0.60 Quarterly Cash Dividend
- October 22, 2015 – Exchange Bank Announces Third Quarter Earnings – 10.22.15
- September 17, 2015 – Jenna Brackett Joins Exchange Bank as AVP, SBA Business Development Officer
- September 14, 2015 – Sequoia Pacific Mortgage Company
- September 14, 2015 – Exchange Bank Donates $10,000 to the American Red Cross
- August 19, 2015 – Tim O’Connor Joins Exchange Bank as a Vice President and Branch Manager
- August 19, 2015 – Exchange Bank Declares $0.55 Quarterly Cash Dividend
- July 30, 2015 – Ann Hudson to Head Exchange Bank’s Retail Banking Group
- July 22, 2015 – Exchange Bank Announces Second Quarter Earnings – 07.22.15
- June 15, 2015 – Bill Sullivan Has Joined Exchange Bank’s Trust and Investment Group
- June 1, 2015 – Craig Bainbridge Joins Exchange Bank as SVP, Product and Delivery Manger
- May 21, 2015 – Exchange Bank Declares Increase to Quarterly Cash Dividend – 05.21.15
- May 6, 2015 – Exchange Bank presents $111,193.84 check to United Way of the Wine Country
- April 29, 2015 – Exchange Bank Celebrates 125th Anniversary of the Bank’s Founding
- February 19, 2015 – Exchange Bank Declares Increase to Quarterly Cash Dividend – 02.19.15
- February 10, 2015 – Exchange Bank Announces Earnings for 2014
November 19, 2015
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares $0.60 Quarterly Cash Dividend
On November 17, 2015, Exchange Bank declared a quarterly cash dividend of $0.60 per share on common stock outstanding to shareholders of record at the close of business on November 27, 2015. The dividend is payable December 11, 2015. The cash dividend of $0.60 per share represents an increase of $.05 over the previous quarterly dividend paid on September 18, 2015. However, over the past year the dividend has increased by 33%, rising from $0.45 per share per quarter in December of 2014 to the current dividend rate of $0.60 per share per quarter.
Exchange Bank President and CEO, Gary Hartwick, stated that “the dividend payout of $0.60 per share per quarter or $2.40 annually, approved by the Board of Directors, is a strong message from the Board, indicating the Board’s confidence in the Bank and the Bank’s ability to continue the trend of delivering a strong and sustainable level of core earnings.”
51% of the Bank’s cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
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Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
October 22, 2015
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces Third Quarter Earning
Today Exchange Bank announced results for the third quarter of 2015 with a net profit after tax of $5.14 million, compared to $4.56 million in the third quarter of 2014. This represents an increase of $582 thousand or 13% over the same period a year ago. “The 2015 third quarter earnings for the most part reflect core earnings – that is earnings that are materially free of non‑recurring events. Core earnings represent the expansion of the Bank’s net interest income as well as a focus on controlling operating expenses”, said Greg Jahn, Executive Vice President and CFO. The Bank’s earnings are tied to the continued economic expansion of the communities in which we serve. The growth in net interest income is a result of loan growth of approximately $73 million over the similar period in 2014 funded by deposit growth, which is up approximately $180 million or 11% over the previous 12-months. “Growth in deposits is an indication of the confidence our customers have in Exchange Bank and we remain grateful for the support of our community”, stated Gary Hartwick, President and CEO.
The singular element of non‑recurring revenue during the quarter was a recapture of $300 thousand of provision for loan loss. “The reversal of provision for loan loss during the third quarter was the result of the continued improvement in the credit quality of the Bank’s loan portfolio and the recovery of loans that had been previously charged off” said Mr. Jahn. The Bank’s level of reserves to support future loan losses remains strong in comparison to industry standards and is supported by the continued improvement in asset quality. The recapture of provision for loan loss of $300K during the third quarter of 2015 was for the most part offset by additional expenses to more conservatively reflect the value of long‑term employee benefit plans. The decline in operating expenses of approximately $500 thousand for the quarter ending September 30, 2015, compared to the similar quarter ending 2014, was a result of lower incentive and employee benefit accruals recorded in 2015.
“The Bank is proud to be a partner in the economic growth and vitality of the communities we serve and we will continue to be responsive to the financing needs of the consumers and mall businesses necessary to continue moving economic growth forward”, stated Mr. Hartwick.
Exchange Bank paid a quarterly cash dividend of $0.55 per share on common stock outstanding to shareholders on September 18, 2015. 51% of the cash dividend goes to the Doyle Trust, which funds the Doyle Scholarships at the Santa Rosa Junior College.
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Forward-Looking Information:
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
September 17, 2015
Contact: Sally Traughber
(707) 521-5189
Jenna Brackett Joins Exchange Bank as AVP, SBA Business Development Officer
Jenna is responsible for providing SBA 504 and 7(a) loans to small-and medium-sized businesses in Roseville and the greater Sacramento area.
Jenna has over 10 years of banking experience. She was a Vice President, serving in multiple roles for Wells Fargo and JPMorgan Chase Bank, NA. Most recently, she covered 7 states as a National Account Executive in Business Development for Alliant Credit Union. Jenna is an active member of the Sacramento community and currently resides in Citrus Heights, CA.
September 14, 2015
Contact: Howard Daulton
(707) 524-3067
Sequoia Pacific Mortgage Company
Exchange Bank is pleased to announce that Dennis Harter, President and Founder of Sequoia Pacific Mortgage Company, Inc. and his team of mortgage professionals will join Exchange Bank’s Residential Mortgage group effective October 5, 2015. Mr. Harter will assume the role of VP-Residential Mortgage Manager overseeing Sales, Processing and Operations for the existing Exchange Bank Residential Mortgage department. As noted by Gary Hartwick, President and CEO, Exchange Bank, “We feel very fortunate to have Dennis join Exchange Bank. This is a wonderful opportunity for Exchange Bank to welcome Dennis and his staff to our team of professionals. Dennis is an individual of exceptional professionalism within the Sonoma County mortgage industry in addition to all of the contributions he has made to the community at large. We are looking forward to adding his expertise and solid reputation to our growing mortgage business.”
Joining Mr. Harter in the move to Exchange Bank is Lori Mauchley as Residential Real Estate Operations Manager, Tracy Kline, Mortgage Representative and Keri Simpson Janes, Administrative Assistant. Dennis and his team bring with them years of expertise in real estate lending including Government Lending programs such as FHA, VA and the Home Equity Conversion Mortgage (Reverse Mortgage). The addition of these products to the Bank’s current loan programs will meet the real estate lending needs of Exchange Bank’s customers.
“I share the values that have made Exchange Bank the number one Community Bank in Sonoma County and an industry model for excellence in consumer experience,” said Mr. Harter. “I am honored to be joining this long-standing financial institution. I hope to leverage my 29 years of experience in the local mortgage industry to further expand on the growth and success of the Residential Mortgage group at Exchange Bank.”
September 14, 2015
Contact: Sally Traughber
(707) 521-5189
Exchange Bank Donates $10,000 to the American Red Cross
Exchange Bank announced today that it will donate $10,000 to the American Red Cross to support relief efforts as wildfires sweep through Lake County. The donation will be distributed to organizations that will help make the greatest progress in stopping the fire and supporting those who are directly impacted by it.
“Many of our customers and employees have been directly affected by the fire and we extend our appreciation to the brave men and women firefighters who are fighting it.” said Gary Hartwick, President and CEO of Exchange Bank.
September 10, 2015
Contact: Sally Traughber
(707) 521-5189
Tim O’Connor Joins Exchange Bank as a Vice President and Branch Manager
In this role, Tim is responsible for the overall operations, customer service, performance and profitability of the branch, as well as community outreach activities. Tim has more than 10 years of banking experience and joins Exchange Bank most recently from Chase Bank in Petaluma, where he was Branch Manager. Tim will be based at Exchange Bank’s, Branch of the Future in Windsor. The branch is located at 8700 Lakewood Drive – Windsor, CA 95492.
August 19, 2015
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares $0.55 Quarterly Cash Dividend
On August 18, 2015, Exchange Bank declared a quarterly cash dividend of $0.55 per share on common stock outstanding to shareholders of record at the close of business on September 4, 2015. The dividend is payable September 18, 2015. The cash dividend of $0.55 per share is unchanged from the previous quarterly dividend paid on June 19, 2015. However, over the past year the dividend has increased by 38%, rising from $0.40 per share per quarter in September of 2014 to the current dividend rate of $0.55 per share per quarter.
Exchange Bank President and CEO, Gary Hartwick, stated that “the dividend payout of $0.55 per share per quarter or $2.20 annually, approved by the Board of Directors, continues to demonstrate the Board’s confidence in the operating results of the Bank and the Bank’s ability to continue the trend of delivering a strong and sustainable level of core earnings.”
51% of the Bank’s cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
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Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
July 30, 2015
Contact: Sally Traughber
(707) 521-5189
Ann Hudson to Head Exchange Bank’s Retail Banking Group
Exchange Bank, a community Bank since 1890, has named Ann Hudson to head its Retail Banking Group. Hudson was promoted to Senior Vice President and is the newest addition to the executive team.
Hudson will lead Exchange Bank’s sales and business development efforts. With 1.9 billion in assets, Exchange Bank consists of 19 retail branches, commercial lending offices and a full service Trust and Investment department. Hudson joined Exchange Bank in 2014 as Vice President and Director of our Learning and Development department.
Prior to Exchange Bank, Hudson held a variety of positions at other financial institutions, most recently at Chase and Washington Mutual Bank. Hudson has over 20 years of experience in retail banking, mortgage and consumer lending, product sales, marketing, sales leadership and talent development.
July 22, 2015
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces Second Quarter Earnings
Today Exchange Bank announced results for the second quarter of 2015 with a profit after tax of $5.63 million, compared to $4.54 million in the second quarter of 2014. This represents an increase of $1.09 million or 24% over the same period a year ago. “Our earnings for the second quarter were strong as the underlying core earnings of the Bank reflect the continued improvement in Sonoma County’s economy”, stated Gary Hartwick, President and CEO.
This quarter’s profitability was influenced by a number of nonrecurring events which impacted both revenue and expense. As a result of the significant improvement in our credit quality and the recovery of loans previously charged off, $2.5 million in provision for loan losses was reversed during the second quarter. The Bank’s level of reserves to support future loan losses remains strong in comparison to industry standards and is supported by the continued improvement in asset quality. Offsetting this unexpected revenue, the Bank recognized a number of nonrecurring expenses totaling approximately $1.3MM relating to retirement benefits and the reduction of outstanding debt, which over the longer-term should both strengthen the balance sheet and increase the Bank’s earnings potential. The difference between nonrecurring income and expense of $1.2MM is reduced by approximately $.5MM after the effect of income taxes, providing a net positive adjustment of approximately $.7MM to the Bank’s net earnings for the quarter. Normalized core earnings for the bank after removing all nonrecurring events would have been approximately $4.9MM, an increase of approximately 6% over the $4.54MM earned in the second quarter of 2014. “We are proud of the Bank’s continued level of profitability, notwithstanding the impact on the Bank’s second quarter earnings of several large nonrecurring events”, stated Mr. Hartwick.
The core earnings of the Bank, absent the non-recurring elements of income and expense, are driven primarily by continued growth in loans and investments which were funded by a ten percent growth in deposits. This asset growth led to an increase in net interest income of approximately $1.5 million during the second quarter of 2015, a 9% increase over the similar quarter in 2014. The Bank continued to witness meaningful growth in both loans and deposits during the 12 months ending June 30, 2015. Loans grew by approximately $41 million and investment securities by $69 million, funded by growth in deposits of approximately $153 million over totals reported as of June 30, 2014. “The Bank is grateful for the confidence our community has demonstrated in the Bank by its patronage and we intend to reward that confidence by continuing to invest our resources in the financing needs of consumers and small business which fuel the economic prosperity of the communities we serve”, stated Mr. Hartwick.
Exchange Bank paid a quarterly cash dividend of $0.55 per share on common stock outstanding to shareholders on June 19, 2015. 51% of the cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
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Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
June 15, 2015
Contact: Sally Traughber
(707) 521-5189
Bill Sullivan Has Joined Exchange Bank’s Trust and Investment Group
Exchange Bank is pleased to announce that Bill Sullivan has joined its Trust and Investment Group as a Vice President and Investment Officer. Bill has more than 30 years of portfolio management and fee-only fiduciary investment management experience with Bank of Marin and Charles Schwab & Co. Bill will work with the Exchange Bank’s trust and investment management agency clients to provide portfolio goal setting, risk management, and asset allocation for the accumulation, preservation, and distribution of their wealth. Bill is a long time resident of Petaluma and has a history of community involvement in Sonoma County. Bill joins a team of twenty individuals in the Trust and Investment Management Group who are responsible for over 1,200 accounts and $1 billion in assets under administration.
September 17, 2015
Contact: Sally Traughber
(707) 521-5189
Craig Bainbridge Joins Exchange Bank as SVP, Product and Delivery Manger
Bainbridge will oversee the Marketing, Product and Electronic delivery channels for the bank.
May 21, 2015
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares Increase to Quarterly Cash Dividend
On May 19, 2015 Exchange Bank declared a quarterly cash dividend of $0.55 per share on common stock outstanding to shareholders of record at the close of business on June 5, 2015. The dividend is payable June 19, 2015. The cash dividend was increased $0.05 per share or 9% since the last quarterly cash dividend.
Exchange Bank President and CEO, Gary Hartwick, stated that “the dividend increase to $.55 per share per quarter or $2.20 annually, approved by the Board of Directors, reflected the Board’s confidence in the sustainability of the Bank’s strong earnings stream.
51% of the Bank’s cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
###
Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
Wednesday, May 6, 2015
Contact: Sally Traughber
(707) 521-5189
On Wednesday, May 6, 2015, Exchange Bank was proud to present a check for $111,193.84 to the United Way of the Wine Country.
On hand for Wednesday’s check presentation was Exchange Bank’s President and CEO, Gary Hartwick, Beth Ryan, Vice President, Retail Banking, and a group of Exchange Bank employees. The check was presented to United Way representatives Mike Kallhoff, President and CEO, and Mary Bigelow, Resource Development Officer.
The monies donated were through the generosity of Exchange Bank employees coupled with a corporate gift during the Bank’s annual United Way fundraiser campaign. Exchange Bank has been donating to United Way for over 25 years.
“Giving back to our community is part of our culture,” said Gary Hartwick, President and CEO. In addition to the United Way, Exchange Bank gives well over $500,000.00 annually to local non-profits within the communities we live and serve.
April 29, 2015
Contact: Sally Traughber
(707) 521-5189
Exchange Bank Celebrates 125th Anniversary of the Bank’s Founding
Founded in 1890 as a community bank, Exchange Bank will celebrate the 125-year anniversary of the founding of the Bank on May 1, 2015.
“The 125-year anniversary of the founding of the Bank is quite a milestone,” said Bill Schrader, chairman of the board of directors for Exchange Bank. “Throughout our 125 year history, the Bank has endured and survived the great depression, numerous wars, and most recently, the economic downfall of 2008. Along the way, this Bank has truly been influential in developing this special community with its steady contribution of its time, talent and treasury. More than anything, it is a true testament to the great men and women who have been a part of this organization before us and those with us today. I believe we are proudly upholding the same core values our founders, Manville and Frank Doyle, instilled in us125 years ago. That is, keeping this Bank independent, a leader of positive economic change, and a passionate provider of support to our neighbors, and local organizations in need.”
Exchange Bank was founded 125 years ago in Santa Rosa, California. The legacy began with its founder, Manville Doyle and his son, Frank Doyle. Manville served as president until his death in 1916, upon which Frank Doyle took over the presidency until his death in 1948. Frank Doyle, a true visionary, was instrumental in procuring financing and support for the building of the Golden Gate Bridge. Known as the “Father of the Golden Bridge”, Frank Doyle was honored for his efforts by being the first person to cross the span, upon its opening in 1937, in a private vehicle.
Frank and his wife Polly Doyle placed their shares of Exchange Bank common stock, a controlling interest of 50.4%, into a perpetual trust and the dividends fund the Frank P. Doyle and Polly O’Meara Doyle Scholarship fund for assistance to worthy young men and women attending Santa Rosa Junior College. The Doyle Trust has proven to be one of the most remarkable planned gifts in the history of American community colleges and has provided over 120,000 SRJC students with scholarships, totaling $80 million dollars.
Exchange Bank is a full-service financial institution offering the same sophisticated range of products and services found in large financial institutions, including a comprehensive trust and investment services division. Since its founding in 1890, the Bank has grown from a single branch into an institution with over $1.8 billion in assets, 18 offices across Sonoma County, and commercial lending offices in Roseville, Lafayette and San Jose, CA.
“The success of Exchange Bank is rooted in our community. As we celebrate and reflect on the past 125 years, our legacy and commitment to the community resides in assisting our customers with their financial needs – whether financing a new home, planning for the future, or helping local businesses and organizations. As community bankers, we will continue this mission by offering comprehensive financial services to individuals and businesses. Our legacy of a strong commitment to the community continues to be an important part of our business philosophy. We do this with an emphasis on making this a better place to live and work,” said Gary Hartwick, President and Chief Executive Officer.
We want to celebrate this milestone with all our customers and the communities we serve. In celebration of the anniversary, Exchange Bank customers are invited to stop by any Exchange Bank branch for anniversary cake on May 1st.
Exchange Bank’s employees strive every day to fulfill the Bank’s motto, “Invested in you”.
February 19, 2015
Contact: Greg Jahn, SVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares Increase to Quarterly Cash Dividend
On February 18, 2015 Exchange Bank declared a quarterly cash dividend of $0.50 per share on common stock outstanding to shareholders of record at the close of business on March 6, 2015. The dividend is payable March 20, 2015. The cash dividend was increased $0.05 per share or 11% since the last quarterly cash dividend.
Exchange Bank President and CEO, Gary Hartwick, stated that “the dividend increase to $.50 per share per quarter or $2.00 annually, approved by the Board of Directors, reflected the Board’s confidence in the sustainability of the Bank’s strong earnings stream.
51% of the Bank’s cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
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Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
About Exchange Bank
Exchange Bank is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Exchange Bank was founded in 1890 and offers a broad range of commercial banking, retail banking and trust and investment services throughout Sonoma County. www.exchangebank.com.
February 10, 2015
Contact: Brad Hunter,
(707) 524-3392
Exchange Bank Announces Earnings for 2014
Exchange Bank reported net income of $17.7 million for the year ending December 31, 2014, which compares to $15.7 million for the year ending December 31, 2013, an increase of 12.74%. The Bank reported net income of $4.54 million for the fourth quarter of 2014, compared to $4.29 million for the same period in 2013, an increase of 5.8%. “2014 proved to be another year of significant improvement in the financial results and overall condition of the Bank,” states Gary Hartwick, President and Chief Executive Officer of Exchange Bank.
The Bank continues to have excellent growth in both loans and deposits. Total gross loans increased $91 million, or 8%, to $1.222 billion as of December 31, 2014. Deposits totaled $1.668 billion at December 31, 2014, an increase of $91 million, a 6% increase over year-end 2013.
“We are proud of the financial performance achieved by the Bank in 2014 given the continued headwind of an extraordinarily low interest rate environment. The Bank’s core earnings continue to show solid improvement as a result of an increase in net interest income driven by our loan growth”, states Hartwick.
For the year ending December 31, 2014, net interest income totaled $63.5 million, compared to $59.5 million in the prior year, an increase of 6.7%. The increase in net interest income is directly attributable to the increase in the Bank’s loan portfolio.
The Bank’s credit quality significantly improved during 2014. Non-accrual loans decreased to $12.0 million, or 1.0% of total loans at December 31, 2014, from $29.7 million, or 2.63% of total loans at December 31, 2013. As a result of the significant improvement in asset quality, and zero net loan losses, the Bank did not make any provision for loan losses in 2014, while maintaining a relatively high ratio of loan loss reserves to total loans of 3.08%.
The Bank’s margin expanded in 2014 despite the impact of a continued low interest rate environment. “Contributing to this expansion in margin has been the redeployment of very liquid and low yielding investments into higher yielding loans,” states Greg Jahn, Chief Financial Officer of Exchange Bank.
Exchange Bank paid a quarterly cash dividend of $0.45 per share on common stock outstanding to shareholders on December 12, 2014. Fifty-one percent of the cash dividend goes to the Doyle Trust, which funds the Doyle Scholarship at the Santa Rosa Junior College.
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Forward-Looking Information:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
