Exchange Bank Announces First Quarter Earnings

SANTA ROSA, Calif., April 16, 2015 /PRNewswire/ -- Today Exchange Bank (OTC:EXSR) announced results for the first quarter of 2015 with a profit after tax of $5.13 million, compared to $4.06 million in the first quarter of 2014. This represents an increase of $1.07 million or 26% 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 $1.1 million during the first quarter of 2015, a 7% increase over the similar quarter in 2014. The Bank continued to witness significant growth in both loans and deposits during the 12 months ending March 31, 2015. Loans grew by approximately $78 million and deposits increased by approximately $115 million over totals reported as of March 31, 2014, an increase of 7% in each category. "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 experience growing optimism," stated Gary Hartwick, President and CEO.

Contributing to the positive earnings for the first quarter was the continuation of the steadily improving asset quality of the Bank's loan portfolio. During the first quarter of 2015 loans which had been previously charged off were recovered, leading to a recapture, or taking back into income $400 thousand of provision for loan loss reserves. The Bank did not make any provision for losses on loans in the first quarter of 2014. 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. "While we are pleased with the unexpected positive impact to earnings from the improving credit quality of the Bank's loan portfolio, the Bank is equally pleased with the positive trend in core earnings, as measured by the increase in net interest income. This represents a sustainable source of future revenue," said Greg Jahn Vice President and CFO.

Exchange Bank paid a quarterly cash dividend of $0.50 per share on common stock outstanding to shareholders on March 21, 2015. 51% of the 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.

SOURCE Exchange Bank

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