News Room 2016 Archive
Press Releases from 2016
- December 22, 2016 – Exchange Bank donates $20,000.00 to the Redwood Empire Food Bank
- December 13, 2016 – Exchange Bank Welcomes Maxwell Cash as Leasing & Business Finance Officer
- December 13, 2016 – Exchange Bank Welcomes Carolyn Cole-Schweizer as Corporate Communications & Social Media Specialist
- November 16, 2016 – Exchange Bank Declares Increase to Quarterly Cash Dividend – 11.17.16
- October 19, 2016 – Exchange Bank Announces Third Quarter Earnings Increase 5%
- August 23, 2016 – Exchange Bank Declares Increase to Quarterly Cash Dividend – 8.23.16
- July 22, 2016 – Exchange Bank Announces Second Quarter Earnings – 7.22.16
- May 19, 2016 – Exchange Bank Declares Increase to Quarterly Cash Dividend – 5.19.16
- April 21, 2016 – Exchange Bank Announces First Quarter Earnings – 4.21.16
- February 22, 2016 – Exchange Bank Declares $0.65 Quarterly Cash Dividend
- January 29, 2016 – Exchange Bank Announces Fourth Quarter and Year Ending 2015 Earnings
December 22, 2016
Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
(707) 524-1250
Exchange Bank donates $20,000.00 to the Redwood Empire Food Bank in honor of its customers and business partners this holiday season
Santa Rosa, CA – (December 22, 2016) – Exchange Bank (NASDAQ: EXSR) presents a check for $20,000.00 to the Redwood Empire Food Bank.
On hand for Thursday’s check presentation were Exchange Bank President and CEO, Gary Hartwick, Bill Schrader, Exchange Bank Chairman of the Board and a group of Exchange Bank employees. The check was presented to Redwood Empire Food Bank CEO, David Goodman.
“On behalf of our loyal customers and business partners, we are proud to make this donation to the Redwood Empire Food Bank. In this season, we believe it is important to pause in gratitude for our blessings and give to the members of our community who need our help,” said Gary Hartwick, President and CEO. “Giving back to our community is an integral part of Exchange Bank’s culture.” In addition to the Redwood Empire Food Bank, Exchange Bank gives well over $600,000.00 annually to local non-profits within the communities it serves.
“Exchange Bank has a long history of serving the community. Through their generous philanthropy, it is clear that they care about the well-being of all people who call Sonoma County home. As a result of their generosity, and that of their customers, many lives are improved each and every day,” said David Goodman, CEO of the Redwood Empire Food Bank. “We are fortunate and grateful to have Exchange Bank with us in this most important work.”
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About Redwood Empire Food Bank
The Redwood Empire Food Bank (REFB) is the largest hunger-relief organization serving north coastal California, from Sonoma County to the Oregon border. Since 1987, the REFB has been helping its neighbors in need and currently operates 15 innovative programs under three strategic initiatives – Every Child, Every Day; Senior Security; and the Neighborhood Hunger Network.
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About Exchange Bank
Founded in 1890 and headquartered in Sonoma County with assets of $2.2 billion, Exchange Bank is a premier community bank providing a wide range of personal, commercial and trust and investment services. Exchange Bank has 18 branches in Sonoma County and a commercial and SBA lending office in Roseville and Marin, California. The Bank’s legacy of financial leadership and community support is grounded in its core values of Commitment, Respect, Integrity and Teamwork.
Exchange Bank is an 11-time winner of the North Bay Business Journal’s North Bay Best Places to Work survey and received the 2016 Healthiest Companies in the North Bay award. NorthBay biz magazine named Exchange Bank 2016 Best Business Bank. Exchange Bank can also be found in the North Bay Business Journal’s listing of leading SBA 7(a) Lenders, Wealth Management Advisors and Wine Industry Lenders. www.exchangebank.com.
December 13, 2016
Contact: Craig Bainbridge, SVP, Product Innovation & Delivery Manager
(707) 524-3119
Exchange Bank Welcomes Maxwell Cash as Leasing & Business Finance Officer
Santa Rosa, CA – (December 13, 2016) – Exchange Bank (OTC:EXSR) welcomes Maxwell Cash as their new Leasing & Business Finance Officer, responsible for opening Exchange Bank’s San Francisco office, located in the heart of the Financial District.
Maxwell comes to Exchange Bank from ATEL Capital Group, where he successfully built out ATEL’s origination business as the Vice President of Lease Origination. Maxwell was recognized as ATEL Leasing’s Originator of the Year, funding a total of $33 million in direct lease transactions.
Maxwell graduated from the University of Southern California with a B.A. in International Relations and a Minor in Business Administration. He currently serves on the industry advisory board of the USC Center for Global Supply Chain Management and is a member of the Center’s Ambassador Network.
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About Exchange Bank
Headquartered in Sonoma County with assets of $2.2 billion, Exchange Bank is a premier community bank providing a wide range of personal, commercial and trust and investment services with 18 branches in Sonoma County and a commercial and SBA lending office in Roseville and Marin, California. The Bank’s legacy of financial leadership and community support is grounded in its core values of Commitment, Respect, Integrity and Teamwork.
Exchange Bank is an 11-time winner of the North Bay Business Journal’s North Bay Best Places to Work survey and received the 2016 Healthiest Companies in the North Bay award. NorthBay biz magazine named Exchange Bank 2016 Best Business Bank. Exchange Bank can also be found in the North Bay Business Journal’s listing of leading SBA 7(a) Lenders, Wealth Management Advisors and Wine Industry Lenders. www.exchangebank.com.
December 13, 2016
Contact: Craig Bainbridge, SVP, Product Innovation & Delivery Manager
(707) 524-3119
Exchange Bank Welcomes Carolyn Cole-Schweizer as Corporate Communications & Social Media Specialist
Santa Rosa, CA – (December 13, 2016) – Exchange Bank (OTC:EXSR) welcomes Carolyn Cole-Schweizer as their new Corporate Communications & Social Media Specialist.
Carolyn brings more than 19 years of marketing communications experience to her role. Most recently, Carolyn was the Donor & Alumni Relations Coordinator for the Santa Rosa Junior College Foundation.
Carolyn is a graduate of San Jose State University where she earned an M.A. in Linguistics and a B.A. in German. She also studied at the University of Heidelberg in Germany. Carolyn is currently a commissioner and council member of her church and coordinates the youth volunteer program at F.I.S.H., a local food pantry in Santa Rosa.
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About Exchange Bank
Headquartered in Sonoma County with assets of $2.2 billion, Exchange Bank is a premier community bank providing a wide range of personal, commercial and trust and investment services with 18 branches in Sonoma County and a commercial and SBA lending office in Roseville and Marin, California. The Bank’s legacy of financial leadership and community support is grounded in its core values of Commitment, Respect, Integrity and Teamwork.
Exchange Bank is an 11-time winner of the North Bay Business Journal’s North Bay Best Places to Work survey and received the 2016 Healthiest Companies in the North Bay award. NorthBay biz magazine named Exchange Bank 2016 Best Business Bank. Exchange Bank can also be found in the North Bay Business Journal’s listing of leading SBA 7(a) Lenders, Wealth Management Advisors and Wine Industry Lenders. www.exchangebank.com.
November 17, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares Increase to Quarterly Cash Dividend
Santa Rosa, CA – On November 15th, 2016 Exchange Bank declared a quarterly cash dividend of $0.75 per share on common stock outstanding to shareholders of record at the close of business on November 25th, 2016. The dividend is payable December 9th, 2016. The cash dividend was increased by $0.05 per share or 7% above the previous quarterly dividend of $0.70 per share.
Exchange Bank President and CEO, Gary Hartwick, stated,”The decision by the Board of Directors to increase the dividend was a result of the Banks’ strong earnings and Boards’ confidence in the sustainability of the Bank’s financial performance as we look forward”.
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 19, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces Third Quarter Earnings Increase 5%
Today Exchange Bank announced results for the third quarter of 2016 with a profit after tax of $5.4 million, compared to $5.1 million in the third quarter of 2015. This represents an increase of $257 thousand or a 5% increase compared to the same period a year ago. “The increase in earnings for the third quarter is a significant accomplishment in this low rate environment that is posing a challenge to the entire banking industry. The meaningful increases we have witnessed during this past year in both loan and deposit volumes, are a result of the hard work and dedication of our employees, as well as the continued loyalty of our clients and support from the communities we serve,” stated Gary Hartwick, President and CEO. The Bank singled out strong loan activity and the continued expansion of the Bank’s Trust and Investment Management business as key contributors to the success in financial results.
The core earnings of the Bank are driven primarily by continued growth in loans which were funded by growth in deposits. Loan growth of $140 million or 11.3% during the 12 month period ending September 30, 2016 was funded by deposit growth of $127 million or 7.2%.This asset growth led to an increase in net interest income of approximately $900 thousand during the third quarter of 2016, a 5.3% increase over the similar quarter in 2015.
During the nine-months ending September 30, 2016, the Bank achieved net earnings of $16.05 million, compared to $15.9MM during the similar nine-month period in 2015. During the nine-months ending September 30, 2016 the Bank’s core earnings as measured by net interest income increased $3.3 million over the similar nine-month period in 2015, an increase of 6.6%. Net earnings for the Bank rose by $144 thousand or approximately 1% year-over-year as this increase in net interest income was largely offset by the decline in the recapture of provision for loan loss which fell from $3.2 million for the nine-months ending September 30, 2015 to $900 thousand during the similar nine-month period ending September 30, 2016.
Exchange Bank paid a quarterly cash dividend of $0.70 per share on common stock outstanding to shareholders on September 16, 2016. 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.
August 23, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares Increase to Quarterly Cash Dividend – 8.23.16
Santa Rosa, CA. On August 16, 2016 Exchange Bank declared a quarterly cash dividend of $0.70 per share on common stock outstanding to shareholders of record at the close of business on September 2, 2016. The dividend is payable September 16, 2016. The cash dividend while unchanged from the prior quarter at $.70 per share, has increased from $.55 per share during the similar quarter ending September 30, 2015, an increase of approximately 27%.
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 22, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces Second Quarter Earnings – 7.22.16
Santa Rosa, CA – Today, Exchange Bank announced results for the second quarter of 2016 with a profit after tax of $5.46 million, compared to $5.63 million in the second quarter of 2015. This represents a decrease of $173 thousand or a 3% decline compared to the same period a year ago. “The decline in earnings for the second quarter does not tell the true story of strength in core earnings. Absent a decline in non-recurring income in the form of reversal of provision for loan loss, which fell from $2.5 million in the second quarter of 2015 to a recovery of $400 thousand during the second quarter of 2016, core earnings would have demonstrated continued improvement”, stated Gary Hartwick, President and CEO. 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 of 2015 compared to a recovery of loans previously charged off of just $400 thousand during the second quarter of 2016. The Bank’s level of reserves to support future loan losses remains robust in comparison to industry standards and is supported by the Bank’s strong asset quality.
The core earnings of the Bank, absent the non-recurring elements of income and expense, are driven primarily by continued growth in loans which were funded by growth in deposits. Loan growth of $113 million or 9.3% during the 12 months ending June 30, 2016 was funded by deposit growth of $105 million or 6.1%.This asset growth led to an increase in net interest income of approximately $800 thousand during the second quarter of 2016, a 4.7% increase over the similar quarter in 2015.
During the six-months ending June 30, 2016, the Bank achieved net earnings of $10.66 million, compared to $10.77MM during the similar six-month period in 2015. During the six-months ending June 30, 2016 the Bank’s core earnings as measured by net interest income increased $2.1 million over the similar six-month period in 2015, an increase of 6.3%. Earnings were generally flat year-over-year as this increase in net interest income was offset by the decline in the recapture of provision for loan loss which fell from $2.9 million for the six-months ending June 30, 2015 to $900 thousand during the similar six month period ending June 30, 2016.
“Given the headwinds created by a slowing global economy and Treasury yields that have fallen recently to all-time lows, we are pleased with the results of the Bank. The ability to fund the credit needs of the communities we serve with net loan growth of $113 million is both the result of the dedication and hard work of our employees as well as the confidence the community places in Exchange Bank”, stated Mr. Hartwick. “The challenges of operating in this historically low interest rate environment will be a difficult hurdle to overcome as we attempt to continue growing the Bank’s earnings in future periods”, said Greg Jahn Executive Vice President and CFO.
Exchange Bank paid a quarterly cash dividend of $0.70 per share on common stock outstanding to shareholders on June 17, 2016. 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.
May 19, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares Increase to Quarterly Cash Dividend – 5.19.16
On February 18, 2016 Exchange Bank declared a quarterly cash dividend of $0.70 per share on common stock outstanding to shareholders of record at the close of business on June 03, 2016. The dividend is payable June 17, 2016. The cash dividend was increased $0.05 per share or 7.7% above the previous quarterly dividend of $0.65 per share.
Exchange Bank President and CEO, Gary Hartwick, stated, “The Board’s action was based upon the continuation of solid financial results of the Bank and the Board’s outlook that future financial performance will continue to support this healthy level of dividend on a sustainable basis. Our success is a result of the support of our clients and community, as well as the work of our dedicated employees.”
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.
April 21, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces First Quarter Earnings – 4.21.16
Today Exchange Bank announced results for the first quarter of 2016 with a profit after tax of $5.21 million, compared to $5.13 million in the first quarter of 2015. This represents an increase of $77 thousand or 1.5% over the same period a year ago.
The strength in earnings was driven primarily by continued growth in loans and deposits, leading to an increase in net interest income of approximately $1.3 million during the first quarter of 2016, an 8% increase over the similar quarter in 2015. Loans grew by approximately $60 million over the 12 months ending March 31, 2016, an increase of 5%. Deposits increased by approximately $140 million over totals reported as of March 31, 2015, an increase of 8.5%. “The Bank remains committed to funding the growth of our community by meeting the needs of small business and consumers, as our local economy continues to move forward in a relatively positive manner despite the turbulence of the global economy and uncertainties presented by future Fed policy as well as the future political landscape”, stated Gary Hartwick, President and CEO.
During the first quarter of 2016, $500 thousand of provision for loan loss reserves was taken back into income due to the recovery of loans that had been previously charged off. This compares to a recapture into the provision for loan losses of $400 thousand for the similar quarter ending March 31, 2015. The Bank did not make any provision for losses on loans during the first quarter of 2016 or 2015. The Bank’s level of reserves to support future loan losses remains strong in comparison to industry standards and is further supported by reductions in problem assets and the ongoing decline in net loan charge-offs.
The Bank’s gains in net interest income and recapture of provision for loan loss were largely offset by declines in non-interest income resulting primarily from a reduction in gains on sale of Small Business Administration (SBA) loans. “While this was another solid quarter of financial performance, given the headwinds to the Bank’s net interest margin as a result of the recent decline in interest rates, and uncertainty of future loan loss recoveries, it may be difficult to achieve this level of performance in future periods”, said Greg Jahn Vice President and CFO.
Exchange Bank paid a quarterly cash dividend of $0.65 per share on common stock outstanding to shareholders on March 18, 2016. 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.
February 22, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Declares $0.65 Quarterly Cash Dividend
On February 18, 2016 Exchange Bank declared a quarterly cash dividend of $0.65 per share on common stock outstanding to shareholders of record at the close of business on March 4, 2016. The dividend is payable March 18, 2016. The cash dividend was increased $0.05 per share or 8% above the previous quarterly dividend of $0.60 per share.
Exchange Bank President and CEO, Gary Hartwick, stated that “We are grateful for the support of the community whose patronage continues to provide robust deposit and loan growth, the primary drivers of the Bank’s core earnings. The decision to increase the dividend represents the Boards’ confidence in the Bank to continue this trend of sound financial performance.
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.
January 29, 2016
Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218
Exchange Bank Announces Fourth Quarter and Year Ending 2015 Earnings
Exchange Bank reported net income of $5.1 million in the fourth quarter of 2015, compared to $4.6 million for the same period in 2014, an increase of 12.5%. Net income for the year ending December 31, 2015, totaled $21.0 million, compared to $17.7 million a year ago, an increase of 18.6%. “2015 proved to be another year of significant improvement in the financial results and overall condition of the Bank”, stated Gary Hartwick, President and CEO.
This year’s profitability was influenced by a number of nonrecurring events, which impacted both revenue and expense. As a result of the significant improvement in the Bank’s credit quality, demonstrated by the $3.4 million in net recoveries of loans previously charged off, $3.2 million in provision for loan losses was reversed during the year. The Bank’s level of reserves available to support potential future loan losses remains strong in comparison to industry peers and is supported by the continued improvement in asset quality. The difference between nonrecurring income as a result of the reversal of provision for loan loss, after tax, provided a positive effect of approximately $2.0 million to the Bank’s net earnings for the year. Normalized core earnings for the Bank after removing all nonrecurring events would have been approximately $19.0 million, an increase of 7% over the $17.7 million earned for the year ending 2014. “We are proud of the Bank’s continued level of profitability, notwithstanding the impact the unusual level of positive, nonrecurring events had on our earnings. However, due to the recent economic headwinds and the continued pressure on our net interest margin, it will be difficult to replicate the level of earnings achieved in 2015”, stated Greg Jahn, Executive Vice President and CFO.
The core earnings of the Bank were 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 $3.7 million for the year ending December 31, 2015, a 9% increase over the similar year ending December 31, 2014. The Bank continued to witness meaningful growth in both loans and deposits during the 12 months ending December 31, 2015. Loans grew by approximately $57 million and investment securities by $58 million, funded by growth in deposits of approximately $170 million over totals reported as of December 31, 2014. Net loan growth of $58 million belies the true level of financing provided to the community in the form of consumer and business lending. Strong, new loan production for the year totaling in excess of $300 million was impacted by significant loan payoffs from our existing customer base reflecting the improvement in the financial condition of our borrowers and the local economy. The Bank’s credit quality remains strong with non-accrual loans declining to 0.35% of total loans at December 31, 2015, from 0.94% of total loans a year ago. As a result of the significant improvement in asset quality, and net loan recoveries, the Bank did not make any provision for loan losses in 2015, while maintaining a strong ratio of loan loss reserves to total loans of 2.96%. “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 $0.60 per share on common stock outstanding to shareholders on December 11, 2015. Total dividends paid to Exchange Bank common shareholders during 2015 were $3.77 million and represented an increase of approximately 42% above total dividends of $2.66 million paid to common shareholders during 2014. The Doyle Trust, which funds the Doyle Scholarships at the Santa Rosa Junior College, receives 51% of all cash dividends paid by the Bank.
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About Exchange Bank
Exchange Bank is headquartered in Santa Rosa and has $1.9 billion in assets. Founded in 1890, Exchange Bank provides a wide range of personal, commercial and Trust and Investment services with 18 branches and three commercial and SBA lending offices in Roseville, San Jose and Lafayette, California. www.exchangebank.com.
