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News Room 2018 Archive

2018 Press Releases

December 17, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
707.541.1250

Exchange Bank Expands Trust & Investment Management Services into Sacramento, Welcoming Three Professionals from First Northern Bank Asset Management and Trust Services Division Acquisition

Santa Rosa, CA – (December 17, 2018) – Exchange Bank welcomes three experienced professionals to their Trust and Investment Management department. Vice President and Trust Officers Chris Ann Bachtel and Alysia Corell and Trust Specialist Kelly Lind join Exchange Bank following the recent acquisition of First Northern Bank’s Asset Management & Trust Services Division. The acquisition is part of Exchange Bank’s expansion of trust and investment services into the Sacramento area. All three will be located in Exchange Bank’s Roseville office.

“We are very happy to welcome First Northern Bank’s well-respected officers to our team of experienced professionals. We believe the expansion of our Trust & Investment Management department will provide significant value to our shareholders, clients and employees,” Gary Hartwick, president and CEO of Exchange Bank, said in a statement. “First Northern Bank’s shared values and highly respected team is a natural fit which increases our wealth management capabilities toward serving the families and businesses of the Sacramento area.”

Chris Ann Bachtel previously served as senior vice president and founding member of First Northern Bank’s Asset Management and Trust Department, located in downtown Sacramento. Prior to her position at First Northern Bank, Ms. Bachtel served as trust officer, business development officer and private client manager for Wells Fargo Bank, Bank of the West, and Santa Barbara Bank and Trust. Ms. Bachtel earned her bachelor’s degree from Wake Forest University of Winston-Salem, North Carolina. In addition, she received the professional designation of Certified Financial Planner (CFP) in 1991, and both Certified Trust and Financial Advisor (CTFA) and Accredited Asset Management Specialist (AAMS) in 1997. She received her series 7, 63 and 65 licenses in 1999. Ms. Bachtel is an active member of the Sacramento community, serving on the Board of Trustees of Sutter Medical Center Foundation and the Marguerite Home Foundation Board and Salvation Army Advisory Board. In her new position, Ms. Bachtel will continue to serve in a leadership role for Exchange Bank’s new Trust and Investment Management office within their Roseville location, focusing on business development while also administering a book of trust and investment accounts.

Alysia Corell has over 17 years of trust administration experience and previously served as vice president and senior trust officer for First Northern Bank. Ms. Corell earned her bachelor’s degree in Communications from San Diego State University, and earned her designation as Certified Trust and Financial Advisor (CTFA) in 2008. Alysia is a past president and current member of the Sacramento Estate Planning Council. Ms. Corell will administer complex trust accounts including revocable, irrevocable, charitable and terminating trusts. In addition, Alysia will be an integral part of Exchange Bank’s plan to expand into the Sacramento area.

Kelly Lind most recently served as trust operations administrator for First Northern Bank’s Asset Management & Trust Department where she was responsible for supervising day-today transaction processing, trust accounting and securities settlement for the team. Prior to her time at First Northern Bank, Ms. Lind served as senior marketing and development associate for the Sacramento Region Community Foundation, where she worked to raise awareness and increase charitable giving through the Foundation through the use of charitable trusts. In her new position, Ms. Lind will continue to support trust officers Chris Ann Bachtel and Alysia Corell in all areas of trust administration and investment management.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2018 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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November 14, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
707.524.3218

Exchange Bank Declares Increase to Quarterly Cash Dividend

On November 14, 2018, the Exchange Bank Board of Directors declared a quarterly cash dividend of $1.00 per share on common stock outstanding to shareholders of record at the close of business on November 30, 2018. The dividend is payable December 14, 2018. The cash dividend which represents an increase of $.05 over the prior quarter’s dividend at $.95 per share, is a reflection of the Bank’s strong earnings growth this year. The dividend has increased from $.90 per share during the similar quarter ending December 31, 2017, an increase of 11%.

50.44% 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

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.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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October 23, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
707.541.1250

Exchange Bank Names Michael Sullivan as Executive Vice President & Chief Credit Officer

Santa Rosa, CA – (October 23, 2018) – Exchange Bank announces that it has named Michael Sullivan to be Executive Vice President and Chief Credit Officer, reporting to President and CEO Gary Hartwick, beginning October 15, 2018. He will be responsible for ensuring the overall credit quality of the Bank’s loan portfolio, including overseeing loan generation and the development of loan policies and procedures to ensure high levels of financial performance and compliance.

“Mike’s long and distinguished career in Sonoma County gives him a deep understanding of the local market,” stated Gary Hartwick, President and CEO. “His track record of building strong credit cultures make him an excellent fit to round out our executive team.”

Mr. Sullivan has a strong and diverse knowledge of credit acquired through progressively responsible positions held at Wells Fargo Bank. Most recently, he served as a Senior Vice President in their Financial Institutions group where he led credit origination and strategies in the US, Canada and Europe. His previous roles included leadership for Wells Fargo’s Regional Commercial Banking group in Santa Rosa. Sullivan earned his MBA at the University of California, Berkeley and has served the community on various boards. He was a founding board member of the Sonoma State University Wine Business Institute and served on the board of the United Way of Sonoma, Mendocino and Lake Counties. He currently serves as a board member of Catholic Charities of the Diocese of Santa Rosa and the Sonoma State University Foundation.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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October 23, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
707.541.1250

Exchange Bank Names Troy Sanderson as Executive Vice President & Chief Banking Officer

Santa Rosa, CA – (October 23, 2018) – Exchange Bank announces that it has named Troy Sanderson to be Executive Vice President and Chief Banking Officer, reporting to President and CEO Gary Hartwick, beginning October 15, 2018. He will be responsible for contributing to the strategic planning and direction of the bank, overseeing customer relationship growth, and insuring compliance with operating policies and regulatory requirements. He will lead and support Exchange Bank’s team of professionals including Retail Banking, Information Technology, Risk Management, and Strategic Initiatives/Marketing.

“Troy is a longtime resident of Sonoma County—his family has been in Petaluma for over 100 years,” said Gary Hartwick, President and CEO. “His strong knowledge of the local banking market brings leadership that will enhance our delivery of products and services. He’ll add strength to our ongoing efforts to meet our customers’ needs in an ever-changing industry.”

During his banking career, Mr. Sanderson has had the opportunity to work in loan production, credit administration, regional sales management, branch management, risk management and training. Most recently he served as the President and Chief Credit Officer of Bank of Rio Vista. A graduate of California State University, Sacramento with a degree in Business Administration, Sanderson completed the Pacific Coast Banking School, graduating with honors. He spent 10 years on the Petaluma City School Board of Education, five years as president of Petaluma National Little League, and recently served as a director in the Solano County Farm Bureau.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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October 23, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
707.524.3218

Exchange Bank Announces Third Quarter 2018 Earnings

Santa Rosa, CA – (October 23, 2018) – Exchange Bank announces results for the third quarter of 2018 with a profit after tax of $9.53 million, compared to $6.65 million in the third quarter of 2017. This represents a 43% increase compared to the same period a year ago. The Bank experienced another quarter of steady growth in its core business as evidenced by an increase in net interest income of $3.27 million, a 16% increase for the quarter ending September 30, 2018 compared to the similar quarter in 2017.

Contributing to the positive trend in net interest income was growth in the loan portfolio of $32 million and an increase in the investment portfolio of $251 million, representing increases of 2.2% and 38.9% respectively over similar balances as of September 30, 2017. This strong growth in assets was funded by an increase in deposits totaling $345 million, an increase of 17.1% above deposit balances at September 30, 2017. Deposit growth during this period was strongly influenced by fire related insurance proceeds received by customers of the Bank. The Bank estimates that such short term insurance related deposits contributed in excess of $300 million of the Bank’s total growth.

Non-interest income for the quarter ending September 30, 2018 was consistent with the similar quarter in 2017 at approximately $5.6 million. Generally, increases in fee income generated from the Bank’s Trust and Investment Division offset declines in deposit fee income. Operating expenses increased from approximately $1 million during the third quarter of 2018 over the similar quarter in 2017 rising from $15.1 million in 2017 to $16.1 million in 2018, an increase of 7.2%. Increased operating expenses were focused on salaries and benefits which increased by approximately $460 thousand as well as increases in professional services and Bank facilities. Contributing to the increased profitability during the third quarter of 2018 was the impact of a lower federal income tax rate, which declined from 35% in 2017 to 21% in 2018. The Bank estimates that the effect of this lower income tax rate in 2018 contributed approximately $1.5 million to net income after tax during the third quarter of 2018.

During the nine months ending September 30, 2018, the Bank achieved net earnings of $29.5 million, compared to $19.8 million during the similar nine-month period in 2017, an increase of approximately $9.7 million or 49%. During the nine months ending September 30, 2018, the Bank’s net interest income increased $10.1 million over the similar nine-month period in 2017, an increase of 17.2%. Non-interest income for the nine months ended September 30, 2018 was positively influenced by gains on the sale of other real estate owned in the second quarter totaling approximately $3.25 million. Similarly, non-interest income for the nine months ended September 30, 2017 was positively influenced by a litigation settlement of $1.4 million in the second quarter of 2017, as well as gains on sale of other real estate totaling approximately $1.38 million in the first quarter of 2017. Removing the after tax impact of these nonrecurring events during both nine-month periods in 2018 and 2017 would have produced net income after tax of approximately $27.2 million in 2018, compared to $18.1 million in 2017. The Bank estimates that the effect of a decline in the Federal tax rate from 35% in 2017 to 21% during 2018 contributed approximately $4.5 million to net income after tax for the nine-month period ended September 30, 2018.

“We are very pleased to report strong earnings this quarter driven by our significant deposit growth,” stated Gary Hartwick, President and CEO. “The meaningful increases we’ve 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.”

Exchange Bank paid a quarterly cash dividend of $0.95 per share on common stock outstanding to shareholders on September 21, 2018. 50.44% of the cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.

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October 9, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
707.541.1250

Exchange Bank Announces the Acquisition of First Northern Bank’s Asset Management & Trust Services Division

Santa Rosa, CA – (October 09, 2018) – Exchange Bank (OTC: EXSR) today announced the signing of a purchase and sale agreement to acquire the Trust Department of First Northern Bank, based in Dixon, CA. The purchase is subject to regulatory approval by the Department of Business Oversight.

Joining Exchange Bank from First Northern Bank are Senior Vice President and Trust Manager Chris Ann Bachtel, Vice President and Senior Trust Officer Alysia Corell, and Trust Operations Administrator Kelly Lind. They have been offered positions at Exchange Bank’s Roseville office.

“We are very happy to welcome First Northern Bank’s well-respected officers to our team of experienced professionals. We believe the expansion of our Trust & Investment Department will provide significant value to our shareholders, clients and employees,” Gary Hartwick, president and CEO of Exchange Bank, said in a statement. “First Northern Bank’s shared values and highly respected team is a natural fit which increases our wealth management capabilities and ability to serve the families and businesses of the Sacramento area.”

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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August 21, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218

Exchange Bank Declares Increase to Quarterly Cash Dividend – 8.21.18

Santa Rosa, CA – On August 21, 2018, Exchange Bank declared a quarterly cash dividend of $0.95 per share on common stock outstanding to shareholders of record at the close of business on September 07, 2018. The dividend is payable September 21, 2018. The cash dividend is unchanged over the prior quarter’s dividend at $.95 per share. The dividend has increased from $.85 per share during the similar quarter ending September 30, 2017, an increase of approximately 12%.

50.44% 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

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

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 13-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

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July 20, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218

Exchange Bank Announces Second Quarter Earnings – 7.20.18

Santa Rosa, CA – (July 20, 2018) – Exchange Bank (OTC: EXSR) today announced results for the second quarter of 2018 with a profit after tax of $8.87 million, compared to $6.51 million in the second quarter of 2017. This represents a 36% increase compared to the same period a year ago. The Bank continues to experience solid growth in its core business as evidenced by an increase in net interest income of $3.88 million, a 20% increase for the quarter ending June 30, 2018 compared to the similar quarter in 2017. Contributing to the positive trend in net interest income was growth in the loan portfolio of $48 million and an increase in the investment portfolio of $251 million, representing increases of 3.3% and 44.3% respectively over similar balances as of June 30, 2017. This strong growth in assets was funded by an increase in deposits totaling $362 million, an increase of 18.1% above deposit balances at June 30, 2017. Deposit growth during this period was strongly influenced by fire related insurance proceeds received by customers of the Bank. The Bank estimates that such short term insurance related deposits contributed in excess of $300 million of the Bank’s total growth.

Non-interest income declined in the second quarter of 2018 by $1.32 million compared to the similar quarter ending June 30, 2017. A comparison of second quarter non-interest income year-over-year was influenced by an unusual event in 2017 that was not replicated in 2018. During the quarter ending June 30, 2017, the Bank experienced a gain of $1.4 million relating to a litigation settlement. Contributing to the increased profitability during the first quarter of 2018, was the impact of a lower federal income tax rate, which declined from 35% in 2017 to 21% in 2018. The Bank estimates that the effect of this lower income tax rate in 2018 contributed approximately $1.4 million to net income after tax during the second quarter of 2018.

During the six months ending June 30, 2018, the Bank achieved net earnings of $19.97 million, compared to $13.15 million during the similar six month period in 2017, an increase of approximately $6.8 million or 52%. During the six-months ending June 30, 2018, the Bank’s net interest income increased $6.9 million over the similar six month period in 2017, an increase of 17.8%. Non-interest income for the six-months ended June 20, 2018 was positively influenced by gains on the sale of other real estate owned in the first quarter totaling approximately $3.25 million. Similarly, non-interest income for the six months ended June 30, 2017 was positively influenced by the aforementioned litigation settlement of $1.4 million in the second quarter of 2017 as well as gains on sale of other real estate owned totaling approximately $1.38 million in the first quarter of 2017. Removing the after tax impact of these nonrecurring events during both six month periods in 2018 and 2017 would have produced net income after tax of approximately $17.8 million in 2018, compared to $11.4 million in 2017. The Bank estimates that the effect of a decline in the Federal tax rate from 35% in 2017 to 21% during 2018 contributed approximately $3.2 million to net income after tax for the six month period ended June 30, of 2018.

“While this was another strong quarter of financial performance, as demonstrated by the increased net interest income, it is important to note that the unusual nature of the gains on the sale of other real estate owned totaling $3.25 million will not reoccur in future periods. We are very pleased with the significant improvement in financial results, and I am proud 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 President and Chief Executive Officer, Gary Hartwick.

Exchange Bank paid a quarterly cash dividend of $0.95 per share on common stock outstanding to shareholders on June 15, 2018. 50.44% of the cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 12-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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May 22, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218

Exchange Bank Declares Increase to Quarterly Cash Dividend

Santa Rosa, CA – On May 22, 2018, Exchange Bank declared a quarterly cash dividend of $0.95 per share on common stock outstanding to shareholders of record at the close of business on June 1, 2018. The dividend is payable June 15th, 2018. The cash dividend is unchanged over the prior quarter’s dividend at $.95 per share. The dividend has increased from $.85 per share during the similar quarter ending June 30, 2017, an increase of approximately 12%.

50.44% 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

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

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 12-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

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May 16, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media
707.541.1250

Exchange Bank Announces Debbie Meekins as New Board Member

Santa Rosa, CA – (May 16, 2018) – Exchange Bank is pleased to announce Debbie Meekins as the newest member of Exchange Bank’s Board of Directors, effective June 1, 2018. Ms. Meekins brings a wealth of banking expertise and respected leadership experience in both the finance world and with non-profit organizations, having formerly served as CEO of Sonoma National Bank, Executive Vice President and Retail Banking Director of Sterling Savings Bank, and President and CEO of Poppy Bank.

“Debbie complements our very strong board and fully shares our values. She has unquestionable integrity, professionalism, naturally positive leadership skills and compassion for the community,” said Bill Schrader, Chairman of the Board.

Ms. Meekins has a long history of community service in Sonoma County. She has chaired the Santa Rosa Chamber of Commerce, United Way, Santa Rosa Memorial Hospital Foundation and the Rose Parade. She has been recognized as one of the top “25 Women to Watch” in banking by U.S. Banker Magazine and the “Best Business Community Leader in Sonoma County” in a North Bay Biz reader’s poll. She created a forum for Women in Business in Sonoma County which provided education to assist women and minority-owned businesses which spanned 10 years.

Ms. Meekins currently serves on the Board of Western Bankers Association, Santa Rosa Memorial Hospital Foundation and the Redwood Empire Food Bank.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 12-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

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May 11, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media
707.541.1250

Exchange Bank Announces Paul Yeomans as Senior Vice President, Wholesale Banking Sales Manager

Santa Rosa, CA – (May 11, 2018) – Exchange Bank announces the hiring of Paul Yeomans as Senior Vice President, Wholesale Banking Sales Manager, overseeing Commercial Banking, Construction and Mortgage Lending and Small Business Administration.

Yeomans brings to his new role over 30 years of experience in the banking and finance industry. He has an extensive experience in both commercial lending and branch banking. He specializes in business lending, credit analysis, and business planning.

Paul comes to Exchange Bank from Tri Counties Bank where he was the Regional Vice President and Manager of the North Bay Commercial Lending Group. Previously to that, he served as Vice President and Commercial Banking Manager for Umpqua Bank, and spent seven years with Sterling Savings Bank as Team Leader of the bank’s Sonoma County Commercial Banking Group. He also held the role of Regional Vice President at Westamerica Bank.

Yeomans is active in the community. He is a past chair of the Santa Rosa Junior College Foundation, a member of the Sebastopol Rotary Club and a Sonoma County Alliance member.

Paul is a graduate of American University with a degree in Economics, holds a master’s degree in business from Golden Gate University and is a graduate of Pacific Coast Banking School.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 12-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

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April 25, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218

Exchange Bank Announces First Quarter Earnings – 4.25.18

Santa Rosa, CA – (April 25, 2018) – Exchange Bank (OTC: EXSR) today announced results for the first quarter of 2018 with a profit after tax of $11.10 million, compared to $6.63 million in the first quarter of 2017. This represents an increase of $4.47 million or 67.3% over the same period a year ago.

The increase in earnings can be attributed to an increase in net interest income and nonrecurring earnings in the form of gains on the sale of other real estate owned (OREO). During the first quarter of 2018, the Bank successfully completed the disposition of other real estate held for sale, which contributed pretax gains of approximately $3.25 million. There was a similar gain on the sale of assets during the first quarter of 2017 totaling $1.38 million. Contributing to the increased profitability was the impact of a lower federal income tax rate which declined from 35% in 2017 to 21% in 2018. The Bank estimates that the effect of this lower income tax rate in 2018 contributed approximately $1.70 million to the net income after tax during the first quarter of 2018.

“While this was another strong quarter of financial performance, as demonstrated by the increased net interest income, it is important to note that the unusual nature of the gains on the sale of other real estate owned totaling approximately $3.25 million is not anticipated in future periods. Conversely, the positive benefit from a lower federal income tax rate will continue to add value for years to come,” said Greg Jahn, Executive Vice President and CFO.

Exclusive of the non-recurring gain on the sale of OREO, the strength in pretax earnings was driven primarily by continued growth in loans and investments fueled by the strength of an extraordinary increase in deposits, leading to an increase in net interest income of approximately $3.0 million during the first quarter of 2018, a 15.5% increase over the similar quarter in 2017. Loans grew by $91 million over the 12 months ending March 31, 2018, an increase of 6.4%, while liquid investments grew by $378 million, an increase of 57%. This increase in interest earning assets was funded primarily by growth in deposits of approximately $463 million, an increase of 23.6% over 2017. The extraordinary growth in deposits occurred during the past six months and are to a large extent related to the inflow of insurance settlements received by the Bank’s clients who suffered losses as a result of the unprecedented wildfires in the communities we serve.

Absent the gain on sale of OREO in both 2017 and 2018, the Bank’s non-interest income increased by approximately $400 thousand during the first quarter of 2018 compared to the similar quarter in 2017, and was driven by increases in gain on sale of Small Business Administration (SBA) loans, as well as income generated by the Bank’s Trust and Investment business.

“We remain committed to identifying ways in which we can support our community and colleagues after the most devastating wildfires in California history. We have developed a number of innovative and low cost loan products designed to help finance the rebuild efforts. We are grateful that our positive financial results leave us in a great position to assist the community as we move forward through rebuilding,” said Gary Hartwick, President and CEO.

Exchange Bank paid a quarterly cash dividend of $0.95 per share on common stock outstanding to shareholders on March 16, 2018. 50.44% 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:

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.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890, Exchange Bank is a premier community bank with assets of $2.6 billion. Exchange Bank provides 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 a 12-time winner of the North Bay Business Journal’s Best Places to Work survey, a recipient of the 2018 North Bay Community Philanthropy Award and the 2017 Healthiest Companies in the North Bay Award. NorthBay biz magazine named Exchange Bank the 2018 Best Consumer Bank and Gold Medal Winner for Best Business Bank. The North Bay Bohemian’s “Best of 2018” Readers Poll named Exchange Bank the Best Business Bank and Best Consumer 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.

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April 18, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
(707) 541-1250

Exchange Bank Announces Dave McLennon as Regional Sales Manager

Santa Rosa, CA – (April 13, 2018) – Exchange Bank announces the promotion of Dave McLennon, Vice President and Branch Manager, to Regional Sales Manager, responsible for overseeing Exchange Bank’s southern region. Dave joined Exchange Bank in 2016 and has been serving as the Vice President and Manager of our Sebastopol office. Prior to joining Exchange Bank, Dave served locally as a Branch Manager with Washington Mutual and its successor JP Morgan Chase. Dave began his 30+ year banking career at Wells Fargo in Sonoma County. Dave is a graduate of Northern Michigan University and lives in Santa Rosa. He is an active member of the Sebastopol Rotary Club.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890 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 a 12-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 2017 Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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April 2, 2018

Contact: Carolyn Cole-Schweizer, Corporate Communications & Social Media Specialist
(707) 541-1250

Exchange Bank Announces Rick Mossi as Senior Vice President of Retail Delivery

Santa Rosa, CA – (April 2, 2018) – Exchange Bank announces the promotion of Rick Mossi, Vice President and Regional Sales Manager, to Senior Vice President of Retail Delivery, responsible for overseeing Exchange Bank’s retail branches and merchant services. Rick has worked for Exchange Bank for over 18 years and has been a leader on the retail team.

Rick was hired into Exchange Bank in 1999 as the Branch Manager of Petaluma Main. He was promoted to Regional Manager overseeing six offices in 2005. In 2012, Rick was promoted to Regional Sales Manager overseeing the expanded nine branch southern region.

Before joining Exchange Bank, Rick had a 21-year career at Bank of America serving in a variety of retail and lending roles. Rick is a graduate of UC Davis, a native of Petaluma and a leader in the local community—having served as president of both the Petaluma Rotary Club and the Petaluma Chamber of Commerce. Rick currently serves as the president of the Rotary Club of Petaluma Foundation.

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About Exchange Bank

Headquartered in Sonoma County and founded in 1890 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 a 12-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 2017 Best Consumer 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.

Member FDIC — Equal Housing Lender — Equal Opportunity Employer

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February 5, 2018

Contact: Greg Jahn, EVP, Chief Financial Officer
(707) 524-3218

Exchange Bank Announces Fourth Quarter and Year Ending 2017 Earnings

Exchange Bank announces results for the fourth quarter and year ending 2017. “We have a great story to tell about the financial performance of Exchange Bank during 2017. However, throughout the fourth quarter, our focus was on assisting our employees, customers and the community after the most devastating wildfires in California history. We are grateful that because of our positive financial position we are able to help our community move forward through the rebuild process,” said Gary Hartwick, President and CEO.

Exchange Bank reported income before taxes of $10.86 million in the fourth quarter of 2017, compared to $8.80 million for the same period in 2016, an increase of 23%. Income before taxes for the year ended December 31, 2017 totaled $43.57 million, compared to $34.67 million a year ago, an increase of 26%. As a result of the enactment of the “Tax Cuts and Jobs Act” (Tax Act) as signed into law on December 22, 2017, the Bank reported an additional adjustment to income tax expense totaling $6.9 million in the fourth quarter of 2017, which had a material impact on net income for both the year and quarter ending December 31, 2017. As a result of this additional tax expense, the Bank reported a net loss of $293 thousand in the fourth quarter of 2017 and net income for the year ending December 31, 2017 of $19.5 million, as compared to net income of $5.45 million and $21.50 million for the quarter and year ended December 31, 2016. Without this additional income tax expense, net income would have been $6.6 million and $26.4 million for the quarter and year ending December 31, 2017.

The increase in income tax expense was the result of a remeasurement related to the carrying value of the Bank’s net deferred tax assets due to the reduction in federal income tax rates from 35% to 21%. Net deferred tax assets represent the tax effected timing difference between revenues and expenses recorded for book purposes as compared to the timing of revenues and expense recorded for tax purposes. “While the Bank was required to remeasure its net deferred tax assets in the fourth quarter of 2017, the reduction in federal tax rates beginning January 1, 2018 is expected to have a significant and positive impact on net income in future periods. Based on the projected level of Bank earnings, the 2017 impact on tax expense resulting from the net deferred tax asset remeasurement is expected to be earned back through a reduction in income tax expense in less than eighteen months,” stated Greg Jahn, Executive Vice President and Chief Financial Officer.

The Bank did benefit from two unusual and nonrecurring items of income during 2017 that contributed to this elevated level of earnings, including a gain of $1.6 million on the sale of other real estate held for sale and a $1.4 million litigation settlement. These benefits were partially offset by the reversal of loan loss provisions of $900 thousand during 2016, which were not repeated in 2017.

The earnings of the Bank were driven primarily by continued growth in loans and investments, which were funded by a significant increase in deposits. The growth in loans and investments led to an increase in net interest income of approximately $8.3 million for the year ending December 31, 2017, an 11% increase over the year ending December 31, 2016. The Bank experienced loan growth of approximately $71 million and an increase in investments and interest earning deposits primarily held with the Federal Reserve Bank totaling $322 million, which represent increases of 5% and 51% respectively. This increase in interest earning assets was funded primarily by growth in deposits of approximately $400 million, an increase of 21% over 2016. The extraordinary growth in deposits occurred during the fourth quarter and to a large extent related to the inflow of insurance settlements received by the Bank’s clients who suffered losses as a result of the unprecedented wildfires in the communities we serve. “Through this heartbreaking time, we used our financial resources and personnel in a number of innovative ways to support disaster relief efforts, and we continue to be a resource for liquidity and credit to our clients. We have recently announced a number of innovative and low-cost financial solutions to assist our community through the rebuild efforts. During this period of extraordinary devastation in Northern California, we have never been more proud to be a part of this generous and caring community,” said Gary Hartwick, President and CEO.

The Bank’s credit quality remains strong, with non-accrual loans declining to just 0.18% of total loans at December 31, 2017. Despite continued loan growth, as a result of the continued improvement in asset quality and net loan recoveries, the Bank did not make any provision for loan losses in 2017 and was able to maintain a ratio of loan loss reserves to total loans of 2.70%. In addition, the Bank’s capital ratios remain in excess of the regulatory definitions of “well capitalized.” As of December 31, 2017, the Bank reported total risk-based capital of 12.92%.

Exchange Bank paid a quarterly cash dividend of $0.90 per share on common stock outstanding to shareholders on December 8, 2017. Total dividends paid to Exchange Bank common shareholders during 2017 were $5.8 million and represented an increase of approximately 21% above total dividends of $4.8 million paid to common shareholders during 2016. The Doyle Trust, which funds the Doyle Scholarships at the Santa Rosa Junior College, receives 50.44% of all cash dividends paid by the Bank.

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