Hank's Small Banks

[10 bagger]

FFSL...First Independence Corp.

First Independence Corporation
For Further Information, Call
Anne M. Bertie, Vice President & CFO
[phone]


FIRST INDEPENDENCE ANNOUNCES FOURTH QUARTER EARNINGS AND FISCAL YEAR END RESULTS:

INDEPENDENCE, KS (October 21, 2008) -- First Independence Corporation (OTC Bulletin Board: FFSL.OB) (the “Company”), reported net earnings of $427,000 for the fourth quarter of fiscal 2008, compared to $366,000 for the fourth quarter of fiscal 2007.

Diluted earnings per share of common stock for the fourth quarter of fiscal 2008 were $.51, compared to diluted earnings per share of $.42 for the fourth quarter of fiscal 2007. Net earnings for the 2008 fiscal year were $1,799,000, compared to $1,377,000 for the 2007 fiscal year. Diluted earnings per share for the 2008 fiscal year were $2.12, compared to diluted earnings per share of $1.57 for the 2007 fiscal year.

Return on average assets for the fourth quarter of fiscal 2008 was .84% (annualized), compared to .76% (annualized), for the same period last year. Return on average equity for the fourth quarter of fiscal 2008 was 9.81% (annualized), compared
to 8.65% (annualized), in the fourth quarter of fiscal 2007. Return on average assets for the 2008 fiscal year was .91%, compared to .73% for the same period last year. Return on average equity for the 2008 fiscal year was 10.50%, compared to 8.26%, for fiscal 2007.

We had $202.2 million in assets and $17.5 million in stockholders’ equity as of September 30, 2008. During this fiscal year, we repurchased 37,621 shares of common stock, at an average cost of $18.05 per share. At September 30, 2008, total shares outstanding were 834,163.

The Company is the parent corporation for First Federal Savings and Loan Association of Independence, Kansas ("First Federal"). At September 30, 2008, First Federal exceeded all of its regulatory capital requirements. First Federal has four fullservice branch offices primarily serving Montgomery, Wilson, Crawford and Chautauqua Counties in Kansas along with a loan production office in Lawrence, Kansas.

MYRTLE & SIXTH - P.O. DRAWER 947 - INDEPENDENCE, KANSAS 67301 - 620/331-1660

Myrtle & Sixth Streets
Independence, KS 67301
Phone: [phone]
Fax: [phone]
Web Site: http://www.firstfederalsl.com


BUSINESS SUMMARY
First Independence Corporation operates as the holding company for First Federal Savings and Loan Association of Independence, which provides general banking services in southeastern Kansas. The company attracts various deposits, such as NOW accounts, First Super NOW and First Money Fund accounts, passbook savings accounts, and certificates of deposits. It also originates loans for residential, consumer, and nonresidential purposes, including one-to-four family residential real estate loans, multi-family residential loans, nonresidential mortgage loans, and construction loans, as well as various consumer and other loans, such as automobile, home equity and second mortgages, unsecured home improvement, and mobile homes loans. The company was founded in 1905 and is based in Independence, Kansas.

[10 bagger]

HBCP..

Price correction $10.16....

[10 bagger]

TNCC..

Tennessee Commerce Bancorp Reports Record Third Quarter Results
Wednesday October 29, 6:30 am ET
Net Income Jumps 6.1% to $1.9 million


FRANKLIN, Tenn.--(BUSINESS WIRE)--Tennessee Commerce Bancorp, Inc. (NASDAQ:TNCC - News) today reported record net income, assets, loans and deposits for the third quarter ended September 30, 2008. Net income rose to $1.9 million, or $0.39 per diluted share, for the third quarter of 2008, compared with $1.8 million, or $0.36 per diluted share, in the third quarter of 2007.

http://biz.yahoo.com/bw/081029/20081029005370.html?.v=2“Tennesse

e Commerce’s continued growth highlights the strength of our local market and our strategic focus on the business banking market,” stated Mike Sapp, President of Tennessee Commerce Bancorp. “We achieved record earnings in the third quarter despite the turmoil in the financial markets that significantly reduced our loan sales to other banks. Our earnings benefited from solid growth in net interest income and improved margins that more than offset the reduced fees from loan sales compared with last year. We are on track for Tennessee Commerce to report record earnings for 2008 and expect to outperform the market during these tough economic times.

“Net loans rose 35% to a record $985.6 million in the third quarter and were up almost $59 million from the linked second quarter of this year. Our deposits were up 29% to a record $988.7 million and passed the $1 billion milestone early in the fourth quarter. Based on recent banking data for our home market, Tennessee Commerce holds the number one market position for deposits in Williamson County. We are very proud of achieving these records solely from organic growth and without any assistance from mergers or acquisitions,” continued Mr. Sapp.

Third Quarter Highlights


Net income rose 6.1% to $1.9 million, or $0.39 per share
Net loans increased 35.0% to a record $985.6 million
Asset quality remained strong with a 1.22% loan loss reserve to loans
Total deposits increased 29% to a record $988.7 million
Operating efficiency ratio was 47.44%, one of the best in the industry
Net interest income increased 30.8% to $9.3 million
Net interest margin was 3.46%
Total risk-based capital was 10.18% and Tier 1 capital was 9.01% for the bank
“Loan demand remains solid in many of the business sectors we serve and the outlook for the fourth quarter is very encouraging,” continued Mr. Sapp. “We expect total loans to pass the $1 billion mark before year end based on local market demand and the contribution from our new loan production offices opened earlier this year in Minneapolis and Atlanta.”

Net interest income rose 30.8% to $9.3 million in the third quarter of 2008 compared with $7.1 million in the third quarter of 2007. The increase in net interest income was due to a 39.2% increase in average earning assets to $1.1 billion generated by growth in the loan portfolio, offset somewhat by a 21 basis point decline in net interest margin since the third quarter of 2007. Net interest margin increased 2 basis points to 3.46% in the third quarter of 2008 compared with 3.44% in the linked second quarter of 2008. Our margin growth from the linked second quarter benefited from an excellent average loan yield of 7.56% in the third quarter combined with lower average deposit costs.

Provision for loan losses rose to $1.9 million in the third quarter of 2008, compared with $1.3 million in the third quarter of last year. At the end of the third quarter, the allowance for loan losses was $12.2 million, or 1.22% of loans, compared with $9.3 million, or 1.25% of loans, in the year prior period. The increase in allowance for loan losses was primarily related to the $255.7 million growth in the loan portfolio since the third quarter of 2007.

“Total non-performing loans increased in the third quarter primarily due to four credits that are well collateralized,” noted Mr. Sapp. “We believe our loan quality is very good overall due to our diversification across a wide range of industries and our strict underwriting standards. In addition, we have no exposure to the sub-prime market. We are maintaining our very aggressive stance in monitoring credit quality and quickly moving non-performing loans through the workout process to minimize potential losses. We believe that our current allowance for loan losses is adequate based on current reviews of our loan portfolio.”

Non-interest income was down 82.9% to $98,000 compared with $574,000 in the third quarter of last year. Tennessee Commerce sold approximately $3.9 million in loans during the third quarter of 2008 for a net gain of $1,000 compared with loan sales and participations sold of $9.6 million and a $547,000 ($0.07 per share after tax) gain on sale of loans in the third quarter of 2007. The 2008 gain on sale of loans was offset largely by the reversal of loan fees related to payoffs and loans repurchased during the quarter. In addition, third quarter of 2008 non-interest income was reduced by a $97,000 loss on security sales.

“The market for inter-bank loan sales was virtually frozen during the third quarter due to the turmoil in the financial industry. Our plans for the second half of 2008 called for a higher percentage of loan sales than the prior year to help balance loan growth with our capital base. The tight liquidity in the market contributed to the shutdown in loan sales during the quarter and reduced our potential earnings for the quarter. We expect the recent injection of funds into the market will have a positive impact on the resumption of inter-bank loan sales; however, it is too early to estimate the change in market conditions on our fourth quarter loan sales and earnings since loan sales remain very low to date for the fourth quarter,” continued Mr. Sapp.

Non-interest expenses rose 28.1% to $4.4 million compared with $3.5 million in the third quarter of 2007. This increase was due primarily to higher professional fees related to audit, legal and other professional expenses. In addition, other non-interest expenses increased due to higher costs related to loan portfolio management.

Tennessee Commerce was classified as a well-capitalized bank at the end of the third quarter. Total risk-based capital was 9.87% for the holding company and 10.18% for the bank compared with regulatory requirements of 10.0% for a well-capitalized bank and minimum regulatory requirements of 8.0%. Tier 1 capital was 8.70% for the holding company and 9.01% for the bank, both well above the requirement of 6.0% for a well-capitalized bank and minimum regulatory requirements of 4.0%.

Average weighted diluted shares outstanding decreased 2.6% to 4.85 million in the third quarter of 2008 from 4.98 million in the third quarter of 2007. The decrease in average weighted shares outstanding was due to certain stock options being excluded from the most recent quarter’s calculation since they were anti-dilutive shares.

Nine Months Results


Net income rose 6.5% to $5.1 million, or $1.05 per diluted share
Net interest income increased 30.1% to $25.1 million
Non interest income declined 28.8% to $1.4 million
Gain on sale of loans decreased 22.3% to $1.4 million
Non interest expenses were up 35.5% to $12.4 million
“Tennessee Commerce outperformed the majority of its peer group during the first nine months of 2008. We benefited from our business banking model that continues to deliver above average loan growth and very efficient operations. Our efficiency ratio of 47.4% for the third quarter was one of the best in the industry and our asset-to-employee ratio rose to $13.8 million, almost four times higher than the average for other Tennessee banks,” concluded Mr. Sapp.

Net income rose 6.5% to $5.1 million for the first nine months of 2008 compared with $4.8 million in the same period of 2007. Net income per diluted share increased 6.1% to $1.05 compared with $0.99 in the first nine months of 2007.

Net interest income rose 30.1% to $25.1 million, up from $19.3 million in the first nine months of 2007 based on a 42.5% increase in average earnings assets to $986 million. Net interest margin was 3.40% for the 2008 period compared with 3.73% for the same period in 2007.

Provision for loan losses was $5.8 million for the first nine months of 2008 compared with $4.3 million for the same period in 2007. The increase was primarily related to the overall growth in the loan portfolio.

About Tennessee Commerce Bancorp, Inc.

Tennessee Commerce Bancorp, Inc. is the parent company of Tennessee Commerce Bank. The Bank provides a wide range of banking services and is primarily focused on business accounts. Its corporate and banking offices are located in Franklin, Tennessee, and it has loan production offices in Atlanta, Birmingham, and Minneapolis. Tennessee Commerce Bancorp's stock is traded on the NASDAQ Global Market under the symbol TNCC.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Tennessee Commerce Bancorp's operating results, performance or financial condition are competition, changes in interest rates, the demand for its products and services, the ability to expand, and numerous other factors as set forth in the Corporation's filings with the Securities and Exchange Commission.

Additional information concerning Tennessee Commerce can be accessed at www.tncommercebank.com.

TENNESSEE COMMERCE BANCORP, INC.

[10 bagger]

(AUBN)AUBURN NATIONAL BANCORPORATION:
REPORTS THIRTEEN PERCENT INCREASE IN QUARTERLY NET EARNINGS


Third Quarter 2008 Highlights – Compared to Third Quarter 2007:
• Net earnings increased 13%
• Net interest income (on a tax-equivalent basis) increased 11%
• Return on average assets increased to 1.09%
• Average loans up 12% or $37.6 million


AUBURN, Alabama – Auburn National Bancorporation (Nasdaq: AUBN) reported record net earnings of
approximately $2.0 million, or $0.54 per share, for the third quarter of 2008, compared to $1.7 million, or $0.47 per
share, for the third quarter of 2007. Net earnings for the first nine months of 2008, were $5.7 million, or $1.55 per
share, compared to $5.1 million, or $1.38 per share, for the same period in 2007.
In the third quarter of 2008, total revenue (on a tax-equivalent basis) was approximately $6.7 million, an increase of
17% from the third quarter of 2007. Total revenue included a gain of approximately $1.1 million before taxes related to
the sale of certain real property in the third quarter of 2008. Net interest income (on a tax-equivalent basis) was
approximately $5.1 million for the third quarter of 2008, an increase of 11% from the third quarter of 2007, reflecting
strong balance sheet growth.
“Our balance sheet continues to be a source of strength and the key driver of our record earnings,” said E.L. Spencer,
Jr., President, CEO and Chairman of the Board. “As we look forward, we are fully aware of the challenges facing the
banking industry and will continue to closely monitor our asset quality.”
Credit quality remains strong, with an annualized net charge-off ratio of 0.23% for the third quarter of 2008. Although
this represents an increase from the third quarter of 2007, the Company’s annualized net charge-off ratio for the third
quarter of 2008 remains historically low. Nonperforming assets were 1.50% of total loans and foreclosed properties at
September 30, 2008, compared to 1.55% at June 30, 2008. Approximately $4.4 million of the $5.3 million in
nonperforming assets at September 30, 2008 relates to one purchased loan participation that was placed on nonaccrual
in the first quarter of 2008. Excluding the effects of this loan participation, nonperforming assets were only 0.25% of
total loans and foreclosed properties. Management continues to monitor this loan participation and currently believes
the level of the allowance for loan losses is adequate to absorb inherent losses in the loan portfolio, including this loan
participation. The provision for loan losses increased $380 thousand in the third quarter of 2008 compared with none in
the third quarter of 2007. This increase reflects growth in the loan portfolio and an increase in net charge-offs.
Noninterest income was approximately $1.5 million in the third quarter of 2008, an increase of approximately $453
thousand or 42% from the third quarter of 2007. As mentioned previously, this increase was primarily related to a gain
on the sale of certain real property in the third quarter of 2008. Noninterest income for the third quarter of 2008 reflects
a $285 thousand after-tax charge to adjust the carrying value of an affordable housing limited partnership investment
due to the correction of an accounting error in prior periods.
-moreREPORTS
THIRTEEN PERCENT INCREASE IN QUARTERLY NET EARNINGS/page 2
-more-
Noninterest expense was approximately $3.3 million, an increase of approximately $222 thousand or 7% from the third
quarter of 2007. The increase was primarily related to increases in salaries and benefits expense.
In the third quarter of 2008, the Company paid cash dividends of $680 thousand, or $0.185 per share, an increase of
$.01 per share or 6% from the third quarter of 2007. The Company’s dividend payout ratio for the third quarter of 2008
was 34.26%. As of September 30, 2008, the Company’s regulatory capital was well above the amounts required to be
“well capitalized.”
About Auburn National Bancorporation
Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total
assets of approximately $735 million. The Bank is an Alabama state-chartered bank that is a member of the Federal
Reserve System and has operated continuously since 1907. Both the Company and the Bank are headquartered in
Auburn, Alabama. The Bank conducts its business in East Alabama, including Lee County and surrounding areas. The
Bank operates full-service branches in Auburn, Opelika, Hurtsboro and Notasulga, Alabama. In-store branches are
located in the Auburn and Opelika Kroger stores, as well as in the Wal-Mart SuperCenter stores in Auburn, Opelika,
and Phenix City, Alabama. Mortgage loan offices are located in Phenix City, Valley, and Mountain Brook, Alabama.
Additional information about the Company and the Bank may be found by visiting www.auburnbank.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results,
costs and revenues, economic conditions in our markets, loan performance, and credit quality conditions, as well as
statements with respect to our objectives, expectations and intentions and other statements that are not historical facts.
Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates
and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control,
and which may cause the actual results, performance or achievements of the Company or the Bank to be materially
different from future results, performance or achievements expressed or implied by such forward-looking statements.
You should not expect us to update any forward-looking statements.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this
cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-
K for the year ended December 31, 2007, and otherwise in our SEC reports and filings.
Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with U.S. generally accepted accounting principles (GAAP), this press
release includes certain designated net interest income amounts presented on a tax-equivalent basis, a non-GAAP
financial measure, including the presentation of total revenue and the calculation of the efficiency ratio.
The Company believes the presentation of net interest income on a tax-equivalent basis provides comparability of net
interest income from both taxable and tax-exempt sources and facilitates comparability within our industry. Although
the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and
performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The reconciliation
of these non-GAAP financial measures from GAAP to non-GAAP are presented on the following page.
REPORTS THIRTEEN PERCENT INCREASE IN QUARTERLY NET EARNINGS/page 3
-more-
(In thousands) 2008 2007 2008 2007
Net interest income (GAAP) $ 4,789 $ 4,324 $ 14,013 $ 12,577
Tax-equivalent adjustment 346 286 1,008 832
Net interest income (Tax-equivalent) $ 5,135 $ 4,610 $ 15,021 $ 13,409
Three Months Ended September 30, Nine Months Ended September 30,
Total revenue (GAAP) $ 6,330 $ 5,412 $ 17,812 $ 15,991
Tax-equivalent adjustment 346 286 1,008 832
Total revenue (Tax-equivalent) $ 6,676 $ 5,698 $ 18,820 $ 16,823

[10 bagger]

MALAGA FINL CORP COM MLGF: OTC Bulletin Board Market

SOLVENCY RATIOS

SHORT-TERM SOLVENCY RATIOS (LIQUIDITY)
Free Cash Flow Margin 0.00
Free Cash Flow Margin 5YEAR AVG 8.44
Cash-Flow pS 0.00
Free Cash-Flow pS 0.00
FINANCIAL STRUCTURE RATIOS
Financial Leverage Ratio (Assets/Equity) 13.20
Debt Ratio 92.42
Total Debt/Equity (Gearing Ratio) 4.95
LT Debt/Equity 4.95
LT Debt/Capital Invested 83.18
LT Debt/Total Liabilities 40.56


VALUATION RATIOS
MULTIPLES
PQ Ratio 2.14
Tobin's Q Ratio 0.06
Current P/E Ratio - LTM 6.30
Enterprise Value (EV)/EBITDA 0.01
Enterprise Value (EV)/Free Cash Flow 0.00
Dividend Yield 2.9
Price/Tangible Book Ratio - LTM 0.63
Price/Book Ratio - LTM 0.63
Price/Cash Flow Ratio 5.7
Price/Free Cash Flow Ratio - LTM 0.0
P/E Ratio (1 month ago) - LTM 5.5
P/E Ratio (26 weeks ago) - LTM 9.8
P/E Ratio (52 weeks ago) - LTM 12.2
5-Y High P/E Ratio 21.6
5-Y Low P/E Ratio 8.2
5-Y Average P/E Ratio 12.8
Current P/E Ratio as % of 5-Y Average P/E 49
P/E as % of Industry Group 48.0
P/E as % of Sector Segment 22.0
Current 12 Month Normalized P/E Ratio - LTM 6.4
PER SHARE FIGURES
Tangible Book Value pS - LTM 17.53
Book Value pS - LTM 17.53
Capital Invested pS 95.26
Cash Flow pS - LTM 1.93
Free Cash Flow pS - LTM 0.00
Earnings pS (EPS) 1.00


OPERATING RATIOS
PROFITABILITY
Return on Equity (ROE) 10.99
Return on Equity (ROE) - 5YEAR AVRG. 12.7
Return on Capital Invested (ROCI) 1.85
Return on Capital Invested (ROCI) - 5YEAR AVRG. 2.3
Return on Assets (ROA) 0.83
Return on Assets (ROA) - 5YEAR AVRG. 1.0
EBIT Margin - LTM 82.8
EBITDA Margin - LTM 82.8
Pre-Tax Profit Margin 58.42
Pre-Tax Profit Margin - 5YEAR AVRG. 62.09
Net Profit Margin 34.84
Net Profit Margin - 5YEAR AVRG. 36.80
Effective Tax Rate 40.36
Effective Tax Rate - 5YEAR AVRG. 40.68
EFFICIENCY RATIOS
Revenue per Employee - LTM 850,906
Net Income per Employee - LTM 115,075
Assets/Revenue - LTM 1,000.00
Assets/Revenue - 5YEAR AVRG. 3,748.45

[10 bagger]

Home Bancorp, Inc. (HBCP),, $44.16...

SELECTED RATIOS
For The Quarter Ended Ended
September 30, % June 30, %
(dollars in thousands) 2008 2007 Change 2008 Change
Return on average assets 1.20% 0.96% 24% 1.00% 20%

Return on average total
equity 11.12% 8.28% 34% 8.68 28%

Efficiency ratio 60.71% 66.03% 66.20%

Average equity to average
assets 10.77% 11.65% 11.48%

Core capital ratio 10.57 12.13 11.44
Net interest margin 4.19% 3.85% 3.97%

Home Bancorp Announces Third Quarter 2008 Earnings

Oct 30, 2008 20:00:00 (ET)

LAFAYETTE, La., Oct 30, 2008,,, Home Bancorp, Inc. (HBCP) the holding company for Home Bank ( http://www.home24bank.com ), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced net income of $1.4 million for the third quarter of 2008, an increase of $409,000, or 42%, compared to the third quarter of 2007. Net income for the first nine months of 2008 was $3.5 million, an increase of $601,000, or 21%, compared to the first nine months of 2007.

John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, stated, "At a time when anxiety in the U.S. financial system is at an all time high, our initial public offering raised over $89 million -- further bolstering our strong capital position. We begin our second century of service well positioned to serve our customers and expand our company."

"On behalf of our Board of Directors and executive management team, I want to express our deep appreciation to Home Bank's employees for their incredible loyalty and dedication to serving our customers and growing our company," added Mr. Bordelon. "We would not be in this position of strength without their tremendous efforts."

Mutual to Stock Conversion

The Company completed its initial public stock offering on October 2, 2008, and began trading on the Nasdaq Global Market on October 3, 2008. The Company issued 8,926,875 shares of its common stock for an aggregate of $89,268,750 in total offering proceeds. The net proceeds of approximately $87 million will be reflected in the Company's shareholders' equity at December 31, 2008.

Baton Rouge Expansion

Home Bank opened its first full-service branch in Baton Rouge in September 2008. The Bank also operates a loan production office in Baton Rouge and expects to open its second full-service Baton Rouge branch in December.

Loans and Credit Quality

Loans totaled $317.6 million at September 30, 2008, an increase of $20.1 million, or 7%, from September 30, 2007, and an increase of $2.4 million, or 1%, from June 30, 2008. The majority ($7.9 million) of the Bank's 2008 loan growth relates to commercial real estate loans. Contrary to the national economy, south central Louisiana continues to enjoy relatively strong economic activity.

The Company recorded a $93,000 provision for loan losses in the third quarter of 2008, compared to $59,000 during the third quarter of 2007 and $98,000 in the second quarter of 2008. Net loan charge-offs for the first nine months of 2008 were $85,000, or 0.04%, of average loans outstanding on an annualized basis, compared to $30,000 for the first nine months of 2007. Non-performing assets totaled $638,000, or 0.13%, of total assets, at September 30, 2008, compared to $1.3 million and $836,000 at September 30, 2007 and June 30, 2008, respectively.

As of September 30, 2008, the allowance for loan losses as a percentage of total loans was 0.75%, compared to 0.71% and 0.75% at September 30, 2007 and June 30, 2008, respectively.

Investment Securities Portfolio

The Bank's investment securities portfolio totaled $80.2 million at September 30, 2008, an increase of $28.7 million, or 56%, from September 30, 2007, and an increase of $11.2 million, or 16%, from June 30, 2008. At September 30, 2008, the Bank had an unrealized loss position on its investment securities portfolio of $2.5 million, compared to an unrealized gain of $66,000 at December 31, 2007. The unrealized loss relates primarily to the Bank's non-agency (private-label) mortgage-backed securities holdings, which amounted to $47.5 million, or 9% of total assets, at September 30, 2008. The decline in the recorded value of this portfolio reflects broker quotes which, in the current market, include liquidations and distressed sales. Based on management's review of the securities and the Bank's intent and ability to hold the securities until maturity, such non-agency mortgage-backed securities are not deemed to be other than temporarily impaired at September 30, 2008. The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock.

Deposits

Deposits totaled $353.5 million at September 30, 2008, an increase of $8.2 million, or 2%, from September 30, 2007, and a decrease of $2.3 million, or 1%, from June 30, 2008. The Bank's focus has been on growing core deposits (i.e., checking, savings and money market accounts). As of September 30, 2008, core deposits have increased $13.4 million, or 8%, during 2008.

Accrued interest payable and other liabilities totaled $82.5 million at September 30, 2008, an increase of $79.8 million from June 30, 2008. This increase resulted from cash receipts for subscriptions to purchase shares of the Company's common stock in its initial public offering. The net proceeds of the initial public offering will be reflected in the Company's shareholders' equity at December 31, 2008.

Net Interest Income

Net interest income for the third quarter of 2008 totaled $4.6 million, an increase of $836,000, or 22%, compared to the third quarter of 2007, and an increase of $432,000, or 10%, compared to the second quarter of 2008. The Bank's net interest margin was 4.19% for the third quarter of 2008, 34 basis points higher than the same quarter a year ago and 22 basis points higher than the second quarter of 2008. Average interest-earning assets totaled $442.1 million for the quarter ended September 30, 2008, which represents increases of 12% and 5% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average yield on interest-earning assets for the quarter ended September 30, 2008 was 6.14%, which represents decreases of 31 and 2 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively.

Average interest-bearing liabilities totaled $335.5 million for the quarter ended September 30, 2008, an increase of 11% and 1% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended September 30, 2008 was 2.57%, which represents decreases of 81 and 22 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively.

Noninterest Income

Noninterest income for the third quarter of 2008 was $971,000, an increase of $200,000, or 26%, compared to the same quarter a year ago. The primary reasons for the increase in noninterest income compared to the same quarter last year were higher levels of service fees and charges (up 25%) and income from bank-owned life insurance policies purchased during the fourth quarter of 2007. Compared to the quarter ended June 30, 2008, noninterest income decreased $69,000, or 7%, due to reduced service fees and charges and gains on the sale of mortgage loans.

Noninterest Expense

Noninterest expense for the third quarter of 2008 was $3.4 million, an increase of $386,000, or 13%, compared to the same quarter a year ago. The primary reason for the increase in noninterest expense compared to the same quarter last year was compensation and benefits expense, which increased $314,000, or 17%, due mostly to the Bank's expansion. Compared to the quarter ended June 30, 2008, noninterest expense decreased $67,000, or 2%. The primary reasons for the decrease in noninterest expense from the previous quarter were lower marketing and data processing expenses.

This news release contains certain forward-looking statements. 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 our control -- could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp's prospectus, dated August 12, 2008, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.




HOME BANK
CONDENSED STATEMENTS OF FINANCIAL CONDITION

September 30, September 30, % June 30, December 31,
2008 2007 Change 2008 2007
Assets
Cash and
cash
equivalents $60,389,012 $19,226,509 214% $14,453,603 $11,746,082
Interest-
bearing
deposits
in banks 792,000 3,267,000 (76) 2,673,000 3,267,000
Cash
invested at
other ATM
locations 20,697,177 17,986,931 15 25,842,389 17,142,751
Securities
available
for sale,
at fair
value 76,301,887 45,545,768 68 64,853,202 56,995,287
Securities
held to
maturity 3,870,154 5,907,947 (34) 4,082,337 4,693,288
Mortgage
loans
held for
sale 281,200 1,366,200 (79) 535,000 1,174,650
Loans, net
of
unearned
income 317,564,165 297,477,394 7 315,192,357 308,582,151
Allowance
for loan
losses (2,390,573) (2,121,158) 13 (2,377,968) (2,314,132)
Loans,
net 315,173,592 295,356,236 7 312,814,389 306,268,019
Office
properties
and
equipment,
net 13,489,704 10,704,202 26 12,005,024 11,687,580
Cash
surrender
value of
bank-owned
life
insurance 5,201,472 - - 5,134,487 5,006,615
Accrued
interest
receivable
and other
assets 6,848,881 3,973,585 72 5,699,519 4,369,573
Total
Assets $503,045,079 $403,334,378 25% $448,092,950 $422,350,845


Liabilities
Deposits $353,476,182 $345,241,359 2% $355,760,365 $353,536,399
Federal
Home
Loan Bank
advances 15,843,422 6,396,491 148 38,856,903 16,883,436
Accrued
interest
payable
and other
liabilities 82,537,048 2,706,480 2,950 2,716,604 2,547,890
Total
Liabilities 451,856,652 354,344,330 28 397,333,872 372,967,725

Equity
Retained
earnings 52,854,168 48,930,514 8 51,461,993 49,339,479
Accumulated
other
comprehensive
income
(loss) (1,665,741) 59,534 (2,898) (702,915) 43,641
Total
Equity 51,188,427 48,990,048 4 50,759,078 49,383,120
Total
Liabilities
and
Equity $503,045,079 $403,334,378 25% $448,092,950 $422,350,845



HOME BANK
CONDENSED STATEMENTS OF INCOME

For The Three Months For The Nine Months
Ended September 30, % Ended September 30, %
2008 2007 Change 2008 2007 Change
Interest Income
Loans,
including
fees $5,343,053 $5,165,621 3% $15,851,725 $15,063,115 5%
Investment
securities 1,035,622 613,962 69 2,719,522 1,896,429 43
Other
investments
and deposits 405,809 577,744 (30) 1,122,387 1,616,766 (31)
Total interest
income 6,784,484 6,357,327 7 19,693,634 18,576,310 6

Interest Expense
Deposits 1,875,504 2,467,092 (24) 6,327,808 7,165,111 (12)
Federal
Home Loan
Bank advances 280,141 97,837 186 683,442 205,271 233
Total interest
expense 2,155,645 2,564,929 (16) 7,011,250 7,370,382 (5)
Net interest
income 4,628,839 3,792,398 22 12,682,384 11,205,928 13
Provision for
loan losses 92,500 59,499 55 161,437 142,386 13
Net interest
income after
provision for
loan losses 4,536,339 3,732,899 22 12,520,947 11,063,542 13

Noninterest Income
Service fees
and charges 705,167 563,310 25 2,118,281 1,674,573 26
Gain on sale
of loans,
net 41,555 83,498 (50) 192,553 218,321 (12)
Net loss on
sale of
real estate
owned - - - (3,488) - -
Other income 224,248 123,796 81 636,554 361,393 76
Total
noninterest
income 970,970 770,604 26 2,943,900 2,254,287 31

Noninterest Expense
Compensation
and
benefits 2,191,874 1,877,677 17 6,427,873 5,545,103 16
Occupancy 194,205 181,320 7 569,789 514,304 11
Marketing and
advertising 82,241 111,249 (26) 340,268 334,329
Data processing
and
communication 197,078 186,511 6 664,609 624,703 6
Depreciation 203,282 202,176 1 606,362 606,528 (0)
Other expenses 530,930 454,187 17 1,532,316 1,278,105 20
Total
noninterest
expense 3,399,610 3,013,120 13 10,141,217 8,903,072 14
Income before
income tax
expense 2,107,699 1,490,383 41 5,323,630 4,414,757 21
Income tax
expense 715,524 506,730 41 1,808,941 1,501,017 21
Net Income $1,392,175 $983,653 42% $3,514,689 $2,913,740 21%



HOME BANK
SUMMARY FINANCIAL INFORMATION

For the
Quarter
For The Quarter Ended Ended
September 30, % June 30, %
(dollars in thousands) 2008 2007 Change 2008 Change
EARNINGS DATA
Total interest income $6,785 $6,357 7% $6,504 4%
Total interest expense 2,156 2,565 (16) 2,307 (7)
Net interest income 4,629 3,792 22 4,197 10
Provision for loan losses (92) (59) 56 (98) (6)
Total noninterest income 971 771 26 1,040 (7)
Total noninterest expense 3,400 3,013 13 3,467 (2)
Income tax expense 716 507 41 569 26
Net Income $1,392 $984 41 $1,103 26


AVERAGE BALANCE SHEET DATA
Total assets $464,560 $407,927 14% $442,936 5%
Earning assets 442,051 394,055 12 422,358 5
Loans 315,431 292,534 8 311,413 1
Interest bearing deposits 296,485 295,007 1 298,548 (1)
Total deposits 359,210 347,624 3 356,153 1
Total equity 50,052 47,539 5 50,854 (2)

SELECTED RATIOS
Return on average assets 1.20% 0.96% 24% 1.00% 20%
Return on average total
equity 11.12 8.28 34 8.68 28
Efficiency ratio 60.71 66.03 (8) 66.20 (8)
Average equity to average
assets 10.77 11.65 (8) 11.48 (6)
Core capital ratio 10.57 12.13 (13) 11.44 (8)
Net interest margin 4.19 3.85 9 3.97 5


September 30, September 30, % June 30, %
2008 2007 Change 2008 Change
CREDIT QUALITY
Nonaccrual loans $552 $1,274 (57)% $787 (30)%
Accruing loans past due
90 days and over - - - - -
Total nonperforming loans 552 1,274 (57) 787 (30)
Other real estate owned 86 42 105 49 76
Total nonperforming assets $638 $1,316 (52) $836 (24)

Nonperforming assets to
total assets 0.13% 0.33% (61)% 0.19% (32)%
Allowance for loan losses
to nonperforming assets 374.7 161.2 132 284.4 32
Allowance for loan losses
to nonperforming loans 433.1 166.5 160 302.2 43
Allowance for
loan losses
to total loans 0.75 0.71 6 0.75 -

Year-to-date charge-offs $123 $36 242% $35 251%
Year-to-date recoveries 38 6 533 30 27
Year-to-date net charge-offs 85 30 183 5 1,600
Annualized YTD net
charge-offs to total loans 0.04% 0.01% 177 0.00% 1,700



SOURCE Home Bancorp, Inc.

[stock_peeker]

11:28 Janney initiates select regional banks

Janney initiates select regional banks. The firm initiates Colonial BancGroup (CNB) with a Buy and a $24 fair value, First Horizon (FHN) with a Buy and a $33 fair value, and Synovus Financial (SNV) with a Neutral and a $30 fair value.

[Teamlasvegas]

BEO Bancorp Declares Two for One Stock Split
Wednesday 08/01/2007 12:38 PM ET - BusinessWire
BEO Bancorp (OTCBB:BEOB) today announced that its Board of Directors declared a two for one stock split in the form of a 100% stock dividend. The shares will be distributed on August 20, 2007, to shareholders of record as of August 19, 2007. Shareholders will receive one additional share of common stock for every share currently owned. BEO Bancorp has 440,329 shares outstanding and will have 880,658 shares outstanding after the stock split.

"We are intent on building shareholder value. This move will seek to improve the liquidity of the stock and increase our franchise value," said E. George Koffler, President and CEO of BEO Bancorp and its subsidiary, Bank of Eastern Oregon. "We continue to post good results and are pleased to share our good fortune with the loyal group of shareholders we have," said Koffler.

Late in July, BEO Bancorp reported net income increased 73% year over year for the first half of 2007 to $1,039,000 and earning per share improved for the same period from $.81 per share to $1.32 per share. The loan portfolio grew 9.9% year over year and total assets grew 7.3% to $196,252,000.

For further information on the Company or to access Internet banking, please visit our website at http://www.beobank.com.

About BEO Bancorp

BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 11 branches and three loan production offices in nine eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil and Moro; loan production offices are located in Hermiston, Ontario, and Enterprise. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. Bank of Eastern Oregon's website is www.beobank.com.

Forward-Looking Statements

The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on BEO Bancorp. There can be no assurances that future developments affecting BEO Bancorp will be the same as those anticipated by management.

Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These risks and uncertainties include, but are not limited to: (1) competitive pressures in the banking and financial industries; (2) changes in interest rate environment; (3) general economic conditions, nationally, regionally, and in operating markets; (4) changes in regulatory environment; (5) changes in business conditions and inflation; (6) changes in securities markets; and (7) future credit loss experience.

SOURCE: BEO Bancorp

BEO Bancorp E. George Koffler, President & CEO, 541-676-0222 Mark Lemmon, EVP & CFO, 541-676-0224 or Wedbush Morgan Securities, Market Maker Joey J. Warmenhoven, 800-357-3680 or Howe Barnes Hoefer & Arnett, Market Maker John T. Cavender, 800-346-5544

[Teamlasvegas]

FYI & FWIW

“Start up Banks” article WSJ, Interesting but needs balanced perspective.June 10th, 2007
I recently did a study on investment results for de novo ( start up) banks. The results were quite impressive. For the sample used it showed that it was probable that an investor would achieve a total gain in value of at least 50% over the first three years the shares of the bank traded in the market. This statement is made with all the necessary caveats flying in full force i.e. each bank is unique unto inself and investors should not participate unless they have read and understand the risks involved as set out in the offering circular. Additionally, while the statistics showed that return was probable there were also banks where investor value dropped in the time period.

The recent WSJ article correctly observes that there have been 150 banks started last year. Let me add that there have been over 760 banks started since 2000. The new banks established have been the result of the market service gap left in communities due primarily to the many bank mergers that occured in the late 90’s. The article also correctly states that due to dillution of management available some of the start ups are not strong banks. Additionally the industry pressures of more loan problems and the cost of funds to banks do contribute to a tougher environment in which to make a profit banking. However, those issues don’t justify the tone and title of the article saying start ups “rush in” despite the profit and loan woes.

Solid community banks distinguish themselves from their very beginning. Their capital is raised in the community which they will serve and the Management, Organizers and Board of Directors are personally involved in the process. By doing so they are not only raising money they are building a customer base at the same time. By developing good relationship banking more demeand deposit money is garnered thus lowering cost of funds and increasing the gross interest spread for the Bank. The article also states that start up banks state they have a ” 5 year plan” in which they will open and then sell out to another bank in 5 years. If you encounter any organization spouting that line run for the exit. The article further states the premium received by the bank being acquired in the 5 year time frame is less than the average for other deals. Well no kidding. How much would you pay me for a piece of green fruit I want to sell you? Not much I’m sure. It typically takes a bank a good 5 years to hit its stride and develop full profitability. The premiums received for “ripe” banks are significantly higher.

I like investing in start up banks as one portfolio strategy. The key is doing the homework necessary to determine if the proposed bank has a probability of being a good investment. The first rule is to take each situation in its individuality and not rely on blanket conclusions and statements such as those made in the WSJ article. Some of the key elements I look at are; Location, does the bank fill a real need in the community? Management, is the management team experienced and does it have connections in the community? Capital Raise, is the bank raising its start up capital in the community it will serve and are all bank personnell involved in the process? In other words are they starting building the bank as they raise the capital? finally, make sure as an investor you understand the risks involved. I believe a well informed patient investor can do very well investing in the shares of start up banks.

[Teamlasvegas]

Mon, Jul 30, 2007

9:59 PM Federal Trust Corporation Announces 2007 Second Quarter Results - PR Newswire
8:57 PM MetroCorp Bancshares, Inc. Announces Net Income of $3.1 Million, or $0.28 Per Diluted Share, in Second Quarter 2007, and a Record Volume of $1.08 Billion in Loans and $1.20 Billion in Deposits - PrimeNewswire
8:06 PM Santa Clara Valley Bank Ranks #1 in Ventura and Santa Barbara County SBA Loan Originations - Business Wire
7:50 PM Cowlitz Bancorporation Receives Unsolicited Offer from Crescent Capital - PR Newswire
6:52 PM Georgia-Carolina Bancshares, Inc. Announces Growth in Second Quarter Earnings - PR Newswire
6:45 PM First Mountain Bancorp Announces Second Quarter and Year-to-Date 2007 Results - Business Wire
6:43 PM National Urban League Honors Citi - Business Wire
6:33 PM / CORRECTION - AMB Financial Announces Quarter Results and Payment of Cash Dividend - Market Wire
6:26 PM Brooklyn Federal Bancorp, Inc. Announces Operating Results for the Third Quarter of Fiscal 2007 and Announces a Quarterly Cash Dividend of $0.04 Per Share - PR Newswire
5:47 PM BNCCORP Reports Second Quarter 2007 Financial Results; Completes Significant Capital Transactions to Focus on Core Banking and Wealth Management Business - PR Newswire
5:45 PM Capitol Federal Financial to Present at Keefe, Bruyette, & Wood's 8th Annual Community Bank Investor Conference - PR Newswire
5:30 PM Summit State Bank Reports Second Quarter Earnings and Declaration of Dividend - PrimeNewswire
5:03 PM AMB Financial Announces Quarter Results and Payment of Cash Dividend - Market Wire
4:58 PM Georgetown Bancorp, Inc. Reports Results for Quarter Ended June 30, 2007 - Business Wire
4:58 PM Merchants Bancshares, Inc. Announces 2007 Second Quarter Results - PR Newswire
4:43 PM PAB Bankshares, Inc. Announces Second Quarter 2007 Financial Results - PrimeNewswire
4:35 PM Flushing Financial Corporation Appoints Sang Ki Han to Board of Directors - PrimeNewswire
4:35 PM First Federal of Northern Michigan Bancorp, Inc. Announces Second Quarter 2007 Earnings - PR Newswire
4:33 PM Independent Bank Corp. and O'Connell Investment Services, Inc. Announce Agreement by Rockland Trust Company to Acquire Assets from O'Connell Investment Services, Inc. - Business Wire
4:31 PM United Bankshares Declares Dividend - Business Wire
4:30 PM Nexity Financial Announces Outstanding Second Quarter Performance; Loans Grow to $629.0 Million and Diluted Net Income Per Share is $0.13 - Business Wire
4:30 PM HF Financial Corp. Announces Fourth Quarter, Full Year Earnings and Quarterly Dividend - PR Newswire
4:28 PM Dean A. Yoost Joins UnionBanCal Board of Directors - Business Wire
4:15 PM Centrue Financial Corporation Announces Extension of Stock Repurchase Program - Market Wire
4:00 PM SuffolkFirst Bank Reports Financial Results as of June 30, 2007 - PR Newswire

[CPTMatt]

The "stock picker" on CNBC said he likes COBH (PA Commerce Banc) and VLY (Valley National)

[CPTMatt]

CNBC is doing a panel about investing in small banks. Supposed to be up next. Friday July 20th around 12:35pm CST

[10 bagger]

MLGF

I don't have the time right now but if you google the bank you will find info at CALIFORINA state banking commision,, also i am sure you will find info at BEST.. Below is a link to a page on thier website that has quarterly info... As Small Banks must file with state reglatory depts and the commisioner of banking for each state I think the NASDAQ system gives them a pass.. Special rules for special people is NASDAQ's mode of oper.. If they deliste one Small Bank they would have to delist over 1400 and with the market maker paying $6.00 per month to be listed on the system as a trader in the stock(that was 1980 numbers} they look the other way.. I will be back in Small Bank mode twards the end of the year.. Be carefull in Calf because they haven't as of yet forced the bank to do meaningful writeoffs.. FRGB is still my all time favorite bank but it too has hit foreclousers... ATBC, BKSC, CACB, CWBS, FCEN, FSGI, IBCA, OPHC, PEBK, SAVB, TOWN, VCBI are others but I haven't done any DD on them for over a year..hank

http://www.malagabank.com/pages/secondary/fin_statements.html

[10 bagger]

http://www.malagabank.com/pages/secondary/fin_statements.html

[mandjb]

Question on SEC filing reqs for small banks

I'm looking into a small bank - mlgf.ob.

I can't find any SEC filings. I thought a stock would have to head for the pinks if it didn't file. Is there a different filing requirement for banks??

TIA for enlightening me.

[Gutsy Will]

Regarding CORS - Friday, was the last day to buy and qualify for special dividend. From the PR....

Corus’ special dividend will be paid to shareholders of record as of July 18, 2007, and will begin trading ex-dividend on July 16, 2007. The special dividend will be paid on August 1, 2007.

Ex-dividend it the first day it trades "without the dividend", so you would of had to own it by Friday's close.

Aside from that, ~55% of the float is short, stock has formed a bottom and headed up. Should be a breeze to get back to $24.

[OracleofNY]

Unusual Payout! CORS announces"Special $1 Dividend":

This coming Monday is THE VERY Last day to buy!(it will settle on the 18th)

On Corus website-Go to Investor's Relations -then -Press Releases:
>
>Corus announces Special div. of $1 payable july18th!
>
>http://www.corusbank.com/Investor%20Relations.asp

[10 bagger]

Mike..

Thats the reason for my choices in areas that are considered dead.. I believe that mortages given in stable semi rural areas by small banks are good paper.. The growth will come from those that have to drive to save on thier mortage payments and as more do so the new area of commuters will develope industry that includes the new populous.. Being there before others including BOA and other chain banks is the key.. As to the percentage of mortages to the banks assets ,, in flat price semi rural areas mark downs are not a problem.. The best is if this area is repopulated by those driving miles to go to work rather than spending all thier money to make mortage payments.. Just a theroy...hank

[MikeDDKing]

Hank, re: criteria...

I think another important criteria this time around is going to be their existing real estate mortgage exposure and type of exposure. I would avoid any that have subprime, Alt-A, and ARM residential real estate loans on their books. Also, all other things being equal, I think those with lower real estate mortgages on the books would be better than those with higher levels of real estate mortgages on the books. I know that generally you look for banks in areas with growing population so this may be less of an issue from a pure economic point of view. However, even if it isn't an economic issue it may be a perception issue with potential stockholders assuming that residential real estate is still in the dumps at that time (likely).

Right now I also don't have any small banks in my portfolio.

Mike

[10 bagger]

It's time to start all over again...

Just sold almost all of my last bank stock.. I posted on VMC the trades....

It's now time to start a bank list.. It will be different from the last and the criteria to be included will be lower...Please take a look at hank's small banks and see what you would change.. The new finds will be many of the old but coastal banks will not be included as much this time because the coastal housing market will be stale for a long time.. ARK,,Ala,, N.TEX,, MO,, Kansas, Western Ohio, W. Va, and OK are my guess for the next population moves for retirement.. LA and S. Miss also look good... Washington State on the shore might work.. But any way I would appreciate your thoughts.. I figure that we are 6 to 9 months away before any real progress will be made in the banking industry but pockets will happen and the job is to find any new small banks that appear without BOA or CITI in the neighborhood.. We need the place where Walmart will be in two years and they still don't have a McDonalds...hank

[biomanbaba]

anybody here study ACAS?.................................
ABOUT AMERICAN CAPITAL

American Capital is the largest U.S. publicly traded alternative asset manager with $12 billion in capital resources under management. American Capital invests directly and through its asset management business and is a global investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests from $5 million to $500 million in North America and euro 5 million to euro 400 million in Europe.

As of December 31, 2006, American Capital shareholders have enjoyed a total return of 617% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends.* American Capital has paid a total of $1.3 billion in dividends and paid or declared $22.44 in dividends per share since going public in August 1997 at $15 per share. Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at [phone], or visit http://www.AmericanCapital.com or http://www.EuropeanCapital.com.

*Including reinvestment of Q4 2006 dividend, which will be paid on 1/18/2007. Q4 dividend reinvestment amount is estimated based on the 12/31/2006 close price less a 5% discount.

Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.

This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.

SOURCE American Capital Strategies Ltd.

[Stock]

Large-Cap & Mid-Cap Bank Valuation Update
Valuation and Performance Spreadsheets for Large Caps: BAC, BK, BBT, C, FITB,
JPM, KEY, MEL, MI, MTB, NCC, NFB, NTRS, PNC, RF, STI, STT, USB, WB, WFC, ZION

And Mid-Cap Bank Stocks: ASO, ASBC, BXS, CBCF, CBSS, CMA, CNB,
CYN, FNB, FHN, FMER, FULT, HBAN, ONB, SKYF, SNV, SUSQ, TCB, UB, WL, VLY

http://home.flash.net/~factoids/fact6/fs0610.htm

[Stock]

Hello. Boardmarked. I'll be back soon.

[MikeDDKing]

CSBQ - Cornerstone Bancshares, Inc. Announces 3rd Quarter 2006 Financial Results
Friday October 13, 8:00 am ET


HIXSON, Tenn., Oct. 13 /PRNewswire-FirstCall/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ - News) today announced the following:
ADVERTISEMENT


Cornerstone Bancshares, Inc saw its 3rd quarter earnings increase to $1.55 million or $.48 a share and $4.37 million year to date an increase of 46.4% while book earnings per share increased to $1.35 versus $.99, an increase of 36.4%. The earnings growth was the result of continued balance sheet growth and core deposit growth coupled with an increase in Cornerstone's net interest margin to 5.72%. Leading the growth in deposits were certificates of deposit which on average grew 28.9% over the same period in 2005. The Bank experienced continued exceptional loan growth as the loan portfolio finished the quarter with an average 3rd quarter balance of $287 million, up 17.3% over the same period in 2005. The loan growth was concentrated in the business sector especially in asset based and commercial real estate lending as more customers choose customer service and went with a local organization that partnered with its customers. Asset growth followed in line with loan growth as the Bank averaged $350 million in assets for the 3rd quarter of 2006 up from $294 million during the 3rd quarter of 2005 an increase of 18.7%. The elevated net interest margin is due to increased number of participated loan servicing fees and a timing difference between the Bank's repricing of assets and liabilities.

The asset quality improved slightly and remained at the superior level during the first three quarters of 2006 as non-performing assets as a percentage of average total loans remained at 0.36%. The Bank had net charge offs of $90 thousand during the third quarter and $203 thousand year to date, while providing $1,058 thousand to the loan loss allowance year to date. The large provision was created to fully fund the loan loss allowance for the loan growth realized from the first three quarters of 2006, and as a result Cornerstone was able to maintain a 1.53% allowance for possible loan losses compared to average loans.

Cornerstone Bancshares Inc. 3rd quarter 2006 earnings of $1.55 million represent a 25.7% increase over the 3rd quarter in 2005 earnings of $1,230 thousand. Earnings per share for the 3rd quarter 2006 were $0.48 compared to $0.40 per share for the 3rd quarter of 2005.

Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches and $350 million in assets specializing in business financial services.



CORNERSTONE BANCSHARES, INC.
Selected Financial Information
as of September 30, 2006
(in thousands)
Three Months
Ending September 30 %
EARNINGS SUMMARY 2006 2005 Change

Interest income $7,534 $5,438 38.54%
Interest expense 2,781 1,642 69.37%
Net interest income 4,753 3,796 25.21%
Provision for loan loss 205 350 -41.43%
Net interest income after provision 4,548 3,446 31.98%
Noninterest income 418 492 -15.04%
Noninterest expense 2,423 1,970 22.99%
Pretax income 2,543 1,968 29.22%
Income taxes 997 738 35.09%
Net income $1,546 $1,230 25.69%

Earnings per common share $0.48 $0.40 20.00%
Weighted average common shares
outstanding (1) 3,250,815 3,061,312



Year-to-Date
Ending September 30 %
EARNINGS SUMMARY 2006 2005 Change

Interest income $21,229 $14,604 45.36%
Interest expense 7,375 4,204 75.43%
Net interest income 13,854 10,400 33.21%
Provision for loan loss 1,058 900 17.56%
Net interest income after provision 12,796 9,500 34.69%
Noninterest income 1,535 1,064 44.27%
Noninterest expense 7,221 5,731 26.00%
Pretax income 7,110 4,833 47.11%
Income taxes 2,745 1,851 48.30%
Net income $4,365 $2,982 46.38%

Earnings per common share $1.35 $0.99 36.36%
Weighted average common shares
outstanding (1) 3,235,682 3,012,731



Three Months
AVERAGE BALANCE Ending September 30 %
SHEET SUMMARY 2006 2005 Change

Loans, net of unearned income 287,354 $245,014 17.28%
Investment securities & Other 43,486 32,092 35.50%
Earning assets 330,840 277,106 19.39%
Total assets 349,508 294,367 18.73%
Noninterest bearing deposits 35,752 35,371 1.08%
Interest bearing transaction deposits 92,026 83,245 10.55%
Certificates of deposit 136,164 105,662 28.87%
Total deposits 263,942 224,278 17.69%
Other interest bearing liabilities 46,708 39,125 19.38%
Shareholder's equity 36,359 28,901 25.81%



Year-to-Date
AVERAGE BALANCE Ending September 30 %
SHEET SUMMARY 2006 2005 Change

Loans, net of unearned income $280,166 $228,142 22.80%
Investment securities & Other 38,817 32,393 19.83%
Earning assets 318,983 260,535 22.43%
Total assets 338,902 276,952 22.37%
Noninterest bearing deposits 36,139 33,853 6.75%
Interest bearing transaction deposits 91,970 78,093 17.77%
Certificates of deposit 129,905 98,427 31.98%
Total deposits 258,014 210,373 22.65%
Other interest bearing liabilities 43,715 37,328 17.11%
Shareholder's equity 34,917 27,486 27.04%



Three Months
Ending September 30
SELECTED RATIOS 2006 2005

Average equity to average assets 10.40% 9.82%
Average net loans to average total assets 82.22% 83.23%
Return on average assets 1.77% 1.67%
Return on average total equity 17.01% 17.02%
Actual Equity on September 30, $36,864,528 $30,042,401
Actual # shares outstanding on
September 30 3,253,159 3,072,334
Book value per common share $11.33 $9.78



Year-to-Date
Ending September 30
SELECTED RATIOS 2006 2005

Average equity to average assets 10.30% 9.92%
Average net loans to average total assets 82.67% 82.38%
Return on average assets 1.72% 1.44%
Return on average total equity 16.67% 14.47%
Actual Equity on September 30,
Actual # shares outstanding on
September 30
Book value per common share





--------------------------------------------------------------------------------
Source: Cornerstone Bancshares, Inc.

[10 bagger]

CHKJ..
This is my last position in Hanks's Small Banks,, It's a very small bank that I know inside out.. The market is $19.25 bid and offered at $36.00.. I am on both sides of the trade and my position is 10X ave daily trading volume.. I suspect a buy out is comming but have nothing but a gut feeling to confirm.. hank

[MikeDDKing]

CSBQ - I sold out of my CSBQ today for a slight profit.

Mike

[MikeDDKing]

I sold out of my CWBS on Wednesday and Thursday. I made 3.4% in 3 months which is better than I can say for most of my investments in that time period.

Mike

[10 bagger]

Week Ending 08/11/06..

This posting takes in the period which I was on vacation.. As I have posted on VMC I have unwound my small banks portfolio,, Not because I'm bearish but because I think Small Banks will be dead money for the rest of the year.. The banks that I keep are within a driving range from where I live in Florida..The positions in each are large when compaired to the volumes in each but they are still growing at a rate far in excess of thier PE's.. I believe the market is in stall mode and once the large INSTITUTIONS commit thier funds into large cap stocks,, any underpinions of this market will disappear..I believe 9200 before 12200 on the dow.. Since the last posting I sold 4601 CWBS@ 27.46,, 3095 FCEN @33.06,, 565 FSGI @11.28 and 1660 PEBK @27.18.. Total closed position profits on the sold positions were $29,435.50...hank

[10 bagger]

TEST..

[stock_peeker]

Hank, you've not posted here very recently. Which banks do you currently own? I think I heard or read somewhere that you may have sold all your small banks due to pessimism about general market. Correct or not?

[10 bagger]

CHKJ earnings..

Cherokee Banking Company Announces Bank Earnings for 2nd Quarter 2006

Jul 25, 2006 10:02:34 (ET)


CANTON, Ga., July 25, 2006 /PRNewswire-FirstCall via COMTEX/ -- Cherokee Banking Company (CHKJ, Trade ), the holding company of Cherokee Bank, N.A., reported that the bank had improved earnings for the second quarter of 2006 over the same time last year. For the three months ended June 30, 2006, Cherokee Bank reported net income of $387,364 compared to $326,927, for the three months ended June 30, 2005. For the first six months of 2006, net income increased to $706,883 from $554,795 in the respective period in 2006, an increase of 27%.

Dennis Burnette, President & CEO noted that there were also improvements in key balance sheet areas. As of June 30, 2006 total assets were $194.4 million, versus $164.9 million as of June 30, 2005. Net loans increased 34% to $125.3 million from $93.4 and all asset quality indicators remain positive. Total deposits increased to $178.7 million from $142.3 million for the same period.

Cherokee Banking Company, a bank holding company, owns 100% of the outstanding common stock of Cherokee Bank, N.A., which operates two full service offices in Canton, Georgia. The bank has a loan production office in Woodstock and a full service office in Woodstock is under construction. The bank also has a Loan Production Office in adjoining Pickens County. The Company's stock trades on the OTC bulletin board under the symbol "CHKJ".

SOURCE Cherokee Banking Company


Dennis W. Burnette - President & CEO of Cherokee Banking Company, [phone]



http://www.prnewswire.com

[MikeDDKing]

CWBS - Commonwealth Bankshares, Inc., Norfolk, VA, Announces Record Earnings for the Quarter and Six Months Ended June 30, 2006 and Declares Quarterly Cash Dividend
Tuesday July 25, 9:22 am ET


NORFOLK, Va., July 25 /PRNewswire-FirstCall/ -- Commonwealth Bankshares, Inc. (Nasdaq: CWBS - News) today reported record earnings of $4.6 million for the first six months of 2006, an increase of $1.9 million or 69.2% over the comparable period in 2005. For the quarter ended June 30, 2006, the Company earned a record $2.5 million, an increase of 70.2% over the $1.5 million reported in the second quarter of 2005. On a per share basis, diluted earnings increased 29.0% to $0.89 for the six months ended June 30, 2006 compared to $0.69 for the same period in 2005. For the quarter ended June 30, 2006, diluted earnings per share was $0.49, up from $0.37 for the second quarter in 2005.

In consideration of the Company's strong financial performance and proven track record, the Directors of Commonwealth Bankshares, Inc. declared a quarterly cash dividend in the amount of 5.5 cents per share on its common stock, payable August 31, 2006, to shareholders of record as of August 21, 2006. This is the third quarterly dividend declared in 2006, for a total year to date dividend of 16.4 cents per share, up 20% from the 13.7 cents per share dividend declared during the first three quarters of 2005. Total dividends paid in 2005 and 2004 were 19.1 cents and 18.2 cents per share, respectively. All share and per share amounts have been restated for all periods presented to reflect the eleven-for-ten stock split distributed on June 30, 2006 to shareholders of record on June 19, 2006.

Edward J. Woodard, Jr., CLBB, Chairman of the Board, President and Chief Executive Officer, commented, "Our tremendous growth rate continues unabated into the first half of 2006. We are pleased to report another record quarter in both earnings and asset growth. Our second quarter earnings surpassed any previously reported quarterly earnings. Equally meaningful, our exceptional growth rate has been achieved while, at the same time, improving profitability, maintaining our sound asset quality and building our capital base. We continue to seek opportunities to grow and expand our network. In June 2006, we opened a private banking center in Norfolk. Furthermore, we plan to open additional branches over the next twelve months. As we continue to grow we are continuously looking to expand our traditional nonbanking services as well as searching for new avenues of revenue. Our mortgage subsidiary, Bank of the Commonwealth Mortgage, has expanded its mortgage lending services to the outer banks of North Carolina. Our fourth mortgage office in Kill Devil Hills, NC at 2603 N. Croatan Highway opened in May 2006. As we look to the remainder of the year, we believe we are positioned for continued strong performance and growth. Our expansion strategy, combined with sound asset quality, expanding margins and improved operating efficiencies, continues to drive our results. We look forward to continuing to execute on a strategy we believe will enhance the long-term growth of the company and value for our stockholders."

The Company's record earnings resulted in favorable profitability ratios. Profitability as measured by the Company's return on average assets (ROA) was 1.53% for the six months ended June 30, 2006 up 17 basis points from 1.36% for the first six months of 2005. Return on average equity (ROE) increased 10 basis points to 14.11% for the six months ended June 30, 2006 as compared to 14.01% for the six months ended June 30, 2005. For the quarter ended June 30, 2006, ROA was 1.60% and ROE was 15.15%. Year to date average assets increased $202.6 million or 50.7% from June 30, 2005 to June 30, 2006. Year to date average equity increased $26.4 million or 68.1% as of June 30, 2006 as compared to the comparable period in 2005, as a result of the additional capital raised in the second quarter of 2005. In addition, the Company's efficiency ratio (tax equivalent basis) was 49.37% and 47.92% for the six months and three months ended June 30, 2006 compared to 52.92% and 49.84%, respectively, during the comparable period in 2005.

The record earnings were driven by the $197.5 million or 47.6% increase in the Bank's loan portfolio from June 30, 2005 to June 30, 2006. Total loans at June 30, 2006 reached a record $612.6 million. Our strong loan demand generated record increases in interest income. Interest income on loans increased $9.7 million or 68.9% to $23.8 million for the six months ended June 30, 2006. For the quarter ended June 30, 2006 interest income on loans increased 67.6% to $12.8 million up from the $7.6 million reported in the second quarter of 2005.

Interest expense of $10.2 million for the six months ended June 30, 2006 represented a $4.9 million increase from the comparable period in 2005. For the second quarter of 2006, interest expense was $5.5 million, an increase of $2.7 million over the second quarter of 2005. The increase was primarily attributable to the record increase in the Company's average interest bearing liabilities, along with the increase in overall rates paid on liabilities as a result of the rising interest rate environment.

A fundamental source of the Company's earnings, net interest income, is defined as the difference between income on earning assets and the cost of funds supporting those assets. Significant categories of earning assets are loans and securities, while deposits and short-term borrowings represent the major portion of interest bearing liabilities. The level of net interest income is impacted primarily by variations in the volume and mix of these assets and liabilities, as well as changes in interest rates when compared to previous periods of operations. As a result of the record increases in interest income, our net interest income reached an all time quarterly high of $7.5 million for the quarter ended June 30, 2006, an increase of $2.6 million or 52.7% over the comparable period in 2005. For the six months ended June 30, 2006, net interest income reached a record $14.1 million, an increase of $5.0 million over the comparable period in 2005.

Net interest margin, which is calculated by expressing net interest income as a percentage of average interest earning assets, is an indicator of effectiveness in generating income from earning assets. The Company's net interest margin (tax equivalent basis) increased 11 basis points from 4.80% during the first six months of 2005 to 4.91% for the same period in 2006. For the quarter ended June 30, 2006, the net interest margin was 4.94% compared to 4.80% for the comparable period in 2005.

Commonwealth Bankshares exceeded its goal for asset growth. Total assets at June 30, 2006 reached a new high of $658.6 million, up 38.5% or $183.1 million from $475.4 million at June 30, 2005.

Despite the rapid growth in the Company's loan portfolio, our asset quality remains exceptional. Net charge-offs for the six months ended June 30, 2006 were $61.3 thousand, or 0.01% of year to date average loans. Non- performing assets were $255.6 thousand or 0.04% of total assets at June 30, 2006 compared to $442.0 thousand or 0.09% of total assets at June 30, 2005.

About Commonwealth Bankshares

Commonwealth Bankshares, Inc. is the parent of Bank of the Commonwealth which opened its first office in Norfolk, Virginia, in 1971, creating a community bank that was attuned to local issues and could respond to the needs of local citizens and businesses. Over the last three decades, the Company's growth has mirrored that of the communities it serves. Today, Bank of the Commonwealth has eleven bank branches strategically located throughout the Hampton Roads region and an extensive ATM network for added convenience. The Company continues to grow and develop new services, such as Online Banking and a Corporate Cash Management program and at the same time, maintain the longstanding commitment to personal service. Our slogan conveys our true corporate philosophy: "When you bank with us, you bank with your neighbors." Bank of the Commonwealth offers insurance services through its subsidiary BOC Insurance Agencies of Hampton Roads, Inc., title services through its subsidiary Executive Title Center, mortgage funding services through its subsidiary, Bank of the Commonwealth Mortgage, and investment related services through its new subsidiary Commonwealth Financial Advisors, LLC.* Additional information about the company, its products and services, can be found on the Web at http://www.bankofthecommonwealth.com.

Contact: Edward J. Woodard, Jr., CLBB, Chairman of the Board, President and Chief Executive Officer, P.O. Box 1177, Norfolk, Virginia 23501, Phone: [phone] or [e-mail] Web Site: http://bankofthecommonwealth.com

*Securities and Insurance Products are: *not insured by FDIC or any Federal Government Agency * May Lose Value * Not a Deposit of or Guaranteed by the Bank or any Bank Affiliate. Securities and insurance offered through BI Investments, LLC. member NASD and SIPC. BI Investments is associated with Bank of the Commonwealth. Commonwealth Financial Advisors, LLC is a wholly-owned subsidiary of Bank of the Commonwealth. This press release contains forward- looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand and asset quality, including real estate and other collateral values; changes in banking regulations and accounting principals, policies or guidelines; and the impact of competition from traditional or new sources. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. Commonwealth Bankshares, Inc. undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.



Commonwealth Bankshares, Inc. and Subsidiaries
Selected Financial Information (Unaudited)

(in thousands, except
per share data) Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
Operating Results:
Interest Income $12,991 $7,746 $24,287 $14,381
Interest Expense 5,498 2,840 10,158 5,210
Net interest income 7,493 4,906 14,129 9,171
Provision for loan losses 750 685 1,420 1,015
Noninterest income 1,267 941 2,351 1,687
Noninterest expense 4,191 2,922 8,134 5,762
Income before provision for
income taxes and
noncontrolling interest 3,819 2,240 6,926 4,081
Provision for income taxes 1,296 762 2,352 1,386
Income before noncontrolling
interest 2,523 1,478 4,574 2,695
Noncontrolling interest in
subsidiary 8 - 14 -
Net income $2,515 $1,478 $4,560 $2,695

Per Share Data**:
Basic earnings $0.54 $0.43 $0.99 $0.80
Diluted earnings $0.49 $0.37 $0.89 $0.69
Book value $14.66 $13.23 $14.66 $13.23
Dividends $0.055 $0.045 $0.109 $0.091
Basic weighted average
shares outstanding 4,637,621 3,410,330 4,602,860 3,368,221
Diluted weighted average
shares outstanding 5,266,764 4,130,471 5,250,648 4,094,732
Shares outstanding at
period-end 4,662,820 4,439,808 4,662,820 4,439,808


Period End Balances:
Assets $658,554 $475,439 $658,554 $475,439
Loans* 612,607 415,086 612,607 415,086
Loans held for sale - 32,004 - 32,004
Investment securities 8,558 5,696 8,558 5,696
Deposits 474,770 353,581 474,770 353,581
Shareholders' equity 68,376 58,752 68,376 58,752

Average Balance:
Assets $631,738 $424,799 $602,211 $399,633
Loans* 591,281 384,924 563,494 363,551
Loans held for sale - 13,901 - 10,885
Investment securities 8,787 6,715 8,838 6,805
Deposits 445,726 315,460 418,126 298,630
Shareholders' equity 66,557 39,995 65,188 38,787

Financial Ratios:
Return on average assets 1.60 % 1.40 % 1.53 % 1.36 %
Return on average
shareholders' equity 15.15 % 14.82 % 14.11 % 14.01 %
Efficiency ratio (tax
equivalent basis) 47.92 % 49.84 % 49.37 % 52.92 %
Shareholders' equity to total
assets 10.38 % 12.36 % 10.38 % 12.36 %
Loan loss allowance to loans 1.12 % 0.92 % 1.12 % 0.92 %
Loan loss allowance to
non-performing assets 2692.00 % 861.21 % 2692.00 % 861.21 %
Non-performing assets to
total assets 0.04 % 0.09 % 0.04 % 0.09 %
Net interest margin (tax
equivalent basis) 4.94 % 4.80 % 4.91 % 4.80 %
Bank's Tier 1 capital to
average assets 14.15 % 14.53 % 14.15 % 14.53 %
Bank's Tier 1 capital to risk
weighted assets 14.77 % 15.28 % 14.77 % 15.28 %
Bank's Total capital to risk
weighted assets 15.91 % 16.22 % 15.91 % 16.22 %

* Net of unearned income and loans held for sale
** All share and per share amounts have been restated for all periods
presented to reflect the eleven-for-ten stock split distributed on
June 30, 2006

[10 bagger]

FCEN and the markets..

A poster has asked me to defend from it's last PR Release... I have highlighted some very important items from this release,, The return on STKholders equity and assets has jumped well above the normal rates of returs within the calif markets.. This is due the the type of loans that FCEN has on the books.. About one half are construction loan commitments made in the past 18 months and are for inital construction and not in the somewhat toppy housing markets for mortages...Thier gains from income from non interest items has declined as the bank has not participated in conduit or sold loans off creating profits from this source.. As FCEN also has almost 110 mil in non interest deposits this speaks well for the offsetting compensating balances required to do business with the bank..Salaries and offsetting expenses have come down and the bank seems able to contain any costs due to the cost of money in rising rate enviorments... while the bank has made earnings postings this reporting period of 50% + I still feel that the normal for this bank should be over 40% for the rest of the year... As it also has a religious division some of it's deposits are less likely to leave for a 1/4 point higher rate some where else.. I own 3095 shares at a cost aver below $30.00 and have actually bought more since the earnings release... hank

1st Centennial Bancorp Announces Record Earningsel
1st Centennial Bancorp (OTCBB:FCEN), parent holding company of 1st Centennial Bank, today announced second quarter operating results. The company reported earnings for the quarter ended June 30, 2006, of $1.8 million, compared to earnings of $1.2 million for the second quarter 2005, representing a 50%, or $618,000 increase. Basic earnings per share(1) were 58 cents for the current quarter compared to 39 cents for the same period last year. Year to date income for 2006 was $3.6 million compared to $2.2 million for 2005, an increase of $1.4 million, or 59%. Year to date basic earnings per share(1) were $1.12 compared to $0.72 for the same period last year.

The Return on Average Equity and Return on Average Assets as of June 30, 2006, were 20.03% and 1.54%, respectively, compared to 15.56% and 1.16% for the same period in 2005, respectively. The increases in Return on Average Equity and Return on Average Assets are attributed to our record earnings, which resulted primarily from an increase in average earning assets.

Total net loans increased $29.6 million, or 8% from $381.2 million at Dec. 31, 2005, to $410.8 million at June 30, 2006. Deposits, at $431.9 million on June 30, 2006, increased $30.6 million, or 8% from $401.3 million at Dec. 31, 2005. Total assets reached a record high of $491 million at June 30, 2006, up 8%, or $35.0 million, from $456 million at Dec. 31, 2005. The growth in assets, loans, and deposits was due to the continued success of our business development efforts in and around the marketplaces we serve.

Thomas E. Vessey, president and chief executive officer, stated: "Management is again proud to report the most profitable quarter in the company's history. We will stay the course of our Strategic Plan for targeted results for the balance of 2006."

Patrick J. Meyer, chairman of the board, stated: "We are pleased to continue our record performance during the second quarter of 2006. We are grateful for the continued trust and confidence shown to us by our shareholders and customers, and thank our employees for their commitment to excellent customer service."

1st Centennial Bank operates its main office and construction/real estate loan production offices in downtown Redlands; its Religious Lending Group and its SBA/Commercial Lending Group and a full-service branch in Brea, Calif.; its Homeowners Association and a full-service branch in Escondido; and full-service branches in Palm Desert, Irwindale and Temecula, Calif.

The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and California economies, the company's ability to implement its strategy and expand its lending operations, the company's ability to attract and retain skilled employees, customers' service expectations, the company's ability to successfully deploy new technology and gain efficiencies therefrom, the success of branch expansion, changes in interest rates, loan portfolio performance, and other factors detailed in the company's SEC filings.

Additional information is available on the Internet at www.1stcent.com or by contacting Beth Sanders, executive vice president and chief financial officer, at [e-mail].


--------------------------------------------------------------------------------

1ST CENTENNIAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION
June 30, 2006 and Dec. 31, 2005

Dollar amounts in thousands 2006 2005
(Unaudited)
ASSETS
Cash and due from banks $11,124 $16,862
Federal funds sold 22,730 21,505
Total cash and cash equivalents 33,854 38,367
Interest-bearing deposits in financial
institutions 2,497 2,334
Investment securities, available for sale 17,274 12,208
Stock investments restricted, at cost 1,650 1,620
Loans, net of allowance for loan losses of
$5,845 and $5,376 410,751 381,153
Accrued interest receivable 2,495 2,425
Premises and equipment, net 3,391 3,652
Goodwill 4,180 4,180
Cash surrender value of life insurance 11,400 6,735
Other assets 3,737 3,518

Total assets $491,229 $456,192

LIABILITIES
Deposits:
Noninterest-bearing demand deposits $109,761 $106,121
Interest-bearing deposits 322,183 295,154

Total deposits 431,944 401,275
Accrued interest payable 192 170
Other liabilities 3,209 3,020
Subordinated notes payable to subsidiary
trusts 18,306 18,306

Total liabilities 453,651 422,771

SHAREHOLDERS' EQUITY
Common stock, no par value; authorized
10,000,000 shares, issued and outstanding
3,200,661 and 2,100,075 shares at June 30,
2006, and Dec. 31, 2005, respectively 27,533 26,803
Retained earnings 10,174 6,617
Accumulated other comprehensive income (loss) (129) 1

Total shareholders' equity 37,578 33,421

Total liabilities and
shareholders' equity $491,229 $456,192




1ST CENTENNIAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
Three and Six Months Ended June 30, 2006, and 2005 (unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
Dollar amounts in thousands, 2006 2005 2006 2005
except per share amounts

Interest income:
Interest and fees on loans $9,316 $7,941 $17,874 $14,941
Deposits in financial
institutions 31 34 59 73
Federal funds sold 281 31 552 42
Investments:
Taxable 101 112 196 251
Tax-exempt 70 42 110 83

Total interest income 9,799 8,160 18,791 15,390

Interest expense:
Interest bearing demand and
savings deposits 1,427 423 2,589 775
Time deposits $100,000 or
greater 637 513 1,198 788
Other time deposits 344 263 665 468
Interest on borrowed funds 356 473 695 871

Total interest expense 2,764 1,672 5,147 2,902

Net interest income 7,035 6,488 13,644 12,488

Provision for loan losses 155 660 620 1,010

Net interest income
after provision for
loan losses 6,880 5,828 13,024 11,478

Noninterest income:
Customer service fees 357 354 685 675
Gains from sale of loans 52 250 317 305
Conduit loan sale income 63 344 558 646
Other income 174 173 254 409

Total noninterest
income 646 1,121 1,814 2,035

Noninterest expense:
Salaries and employee benefits 2,465 2,956 4,952 5,914
Net occupancy expense 571 483 1,122 930
Other operating expense 1,524 1,489 2,967 3,017

Total noninterest
expense 4,560 4,928 9,041 9,861

Income before provision
for income taxes 2,966 2,021 5,797 3,652

Provision for income taxes 1,119 792 2,234 1,413

Net income $1,847 $1,229 $3,563 $2,239

Basic earnings per share(1) $0.58 $0.39 $1.12 $0.72
Diluted earnings per share(1) $0.52 $0.36 $1.01 $0.66


(1) All per share data has been adjusted for the 50% stock
distribution declared to shareholders of record on March 3, 2006,
and distributed April 3, 2006.


1st Centennial Bancorp
Beth Sanders, 909-798-3611
Fax: [phone]
[e-mail]
www.1stcent.com

[10 bagger]

Small Banks and the markets...

For the first time i have noticed that there have been no movements in the trading of Small Banks... The earnings reports while strong by industrial or servvice companies have not been robust when compaired to other fast growing small banks.. I have sold out positions in PKBK,, PSBC,, ANCX,, FNRN and SAVB... All indications appear even though I sold nothing has occured in those markets.. ANCX is located in the Wash DC market and is one that i was always worried about.. My trade of buying on the secondary announcement and bringing my cost basis down has actually resulted in a no win or loss situation on the position...PKBK was sold at a $1720.00 loss and even though earnings appeared solid the management was not honest in thier headlines of PKBK's earnings release...PSBC and FNRN,, both Calif, were sold as that market seems unreliable at best in reporting future earnings... So in the past few days i have lightened up my in position while only buying one new,,, CSQB.. Mike brought it to my attention and it has the required screen to qualify in my portfolio.. I made my first purchase today of 888 shares at $25.50... The lightening process was due to my screens being tightened a little bit and no positions were granfathered...hank

[10 bagger]

Banks trade sometimes very strange.. Take a look at FRGB chart and the same for IBCA.. Sometimes it looks as though someone is trying to buy a large amount but break the biggest rule in buying small banks.. never pay the offer.. If you do you will pay for every share on an uptic.. as most that own these stocks never care about thier prices on a day to day basis they rarely see `that they are up.. aso keep your orders GTC.. about half my trades are made before 9:35 and then the real bids come in...

Another thing I have noticed in the last few days,, No position has gone up on earnings.. I have used this occasion to sell any position where earnings were not up at least 25%.. Just tightening my belt a little so the positions will become larger in each stock.. SAVB disappointed me but the bid was $37.05 and I offered the whole position at $37.00 and it traded at $37.06.. on over 4500 shares..The next day no trades were done in SAVB as the Volume was 0.... hank

[MikeDDKing]

CACB has retreated from my Sell on Thursday. However, I noticed today that it is in the IBD 100 list. Maybe I sold too soon. I don't know if it was on the list previously.

Mike

[10 bagger]

The 4.9 PE is trailing earnings and I doubt if you will see any earnings on the PR Release for the next quarter.. FMT more of a mortage wholsaler than a bank..hank

[10 bagger]

FNRN..

DIXON, Calif.--(BUSINESS WIRE)--July 21, 2006--First Northern Community Bancorp (the "Company") (OTCBB:FNRN - News), holding company for First Northern Bank ("First Northern" or the "Bank"), today announced earnings through the second quarter of 2006. Year-to-date net income as of June 30, 2006 was reported at $4.70 million, up 16.9% over the $4.02 million earned in the same fiscal period last year. Diluted earnings per share for the six months ended June 30, 2006 was $0.57, up 16.7% from the $0.48 reported last year (all 2005 per share earnings have been adjusted for a 6% stock dividend issued March 31, 2006). Annualized Return on Average Assets for the period ended June 30, 2006 was 1.41%, compared to 1.27% for the same period in 2005. Annualized Return on Beginning Core Equity was 16.57%, compared to 15.77% one year ago.

Total assets at June 30, 2006 were $652.5 million, an increase of $20.8 million, or 3.3% from prior-year second quarter levels. Total deposits of $576.5 million increased $18.2 million or 3.3% compared to June 30, 2005 figures. During that same period, total net loans (including loans held-for-sale) increased $32.9 million, or 7.3%, to $485.3 million.

Net income for the quarter ended June 30, 2006 was $2.29 million, down 1.3% from the $2.32 million earned in the same period in 2005. (Second quarter 2005 net income was increased through a $265 thousand, net of tax, recovery of provision for loan losses from a prior period.) Diluted earnings per share for the quarter was $0.28, which matched the $0.28 per diluted share earned a year ago.

Owen "John" Onsum, President and CEO stated, "The Company's net income figures are very strong at $2.29 million for the quarter and $4.70 million at the mid-year mark. We are pleased to announce the opening of our sixth Real Estate Loan Office in Folsom at 2360 East Bidwell Street. The Company will also open an Investment & Brokerage Services office and a full service bank branch at the same address later this summer. The team of financial experts who will be staffing the Company's Folsom offices are residents of the local area and look forward to bringing First Northern's brand of banking and financial services to the rapidly growing city."

First Northern Bank, an independent community bank headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer and parts of El Dorado Counties. First Northern currently has 11 branches located in Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Suisun City, Downtown Sacramento and Roseville. The Bank has real estate lending offices in Davis, Woodland, Vacaville, Roseville, Folsom and El Dorado Hills, and has an SBA Loan Office and full service Trust Department in Sacramento. First Northern also offers non-FDIC insured Investment and Brokerage Services at each branch location. The Bank can be found on the Web at www.thatsmybank.com.

Forward-Looking Statements

This press release may include certain "forward-looking statements" about First Northern Community Bancorp (the "Company"). These forward-looking statements are based on management's current expectations and are subject to certain risks, uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about these risk factors is contained in the Company's most recent reports filed with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's most recent reports on Form 10-K and Form 10-Q. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances arising after the date on which they are made. For further information regarding the Company, please read the Company's reports filed with the SEC and available at www.sec.gov.



Contact:
First Northern Community Bancorp & First Northern Bank
Owen J. Onsum, 707-678-3041

--------------------------------------------------------------------------------
Source: First Northern Bank

[10 bagger]

This week I have sold positions of SAVB,, PSBC,, PKBK,, and 2/3 of my position in ANCX.. I am risk adverse to positions and all in my opinion are going lower after reporting earnings this week.. In these periods I will continue to upgrade criteria,, which will limit my choices of new small banks.. I now have less than $350,000.00 in the portfolio.. I might add there were no real losses taken selling the positions.. PKBK was down 8.6% while PSBC was down less than 5%.. SAVB had a profit of 11%..hank

[10 bagger]

PKBK..

Sold the position.. I rarely see this in banks but it happens..

WASHINGTON TOWNSHIP, N.J., July 18, 2006 /PRNewswire-FirstCall via COMTEX/ -- Parke Bancorp, Inc. (PKBK, Trade ), Washington Township, New Jersey, today announced net earnings for the six months ended June 30, 2006 of $2,196,673, or $0.65 diluted income per share, compared to net income of $1,636,031, or $0.52 diluted income per share, a 34.3% increase over the same period last year.

Looks like a good report but the hid further down the release 2'nd quarter earnings..they were up only $0.04 and I am sure the efficeny ratio increased.. out it goes.. While i was at it I also 2/3 of the ANCX position.. locaton always made it my biggest worry and a secondary announcement has put a cap on this one.. I will repurchase in the LOW 8's if it gets there..hank

[10 bagger]

Mike.. great find..

I really like the area and what the bank is all about.. I posted in the I-Box the easiest efficency ratio to use...

Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches and $340 million in assets specializing in business financial services.

The bank has a super low efficency ratio of 0.32% and that has come down from 0.36%.. This means they earn thier business and don't buy it.. It is a little rich in PE but more than makes up for this in the total growth area...I will be a buyer but will remain on the bid.. I kicked PKBK today even though it had earnings,, location,, location just wasn't there.. I also sold 2/3 of my ANCX for the same reason and there is a secondary coming.. Cornerstone is a nice find.. I hope your ALY purchase works from here,, My bids start at $12.88 and continue each $0.20 down from there.. Inital purchase is 888 shares and the purchases increase 50% on each new purchase point.. FLK had a move today but on no volume and my buy points start at 14.68.. Those are the only oil service stocks that I have put open buy orders on..hank

[10 bagger]

Efficiency Ratio is different to many people but the one that works for me is:

A ratio used to calculate a bank's efficiency. Not all banks calculate the efficiency ratio the same way. We've seen the ratio calculated as all of the following:

1. Non-interest expense divided by total revenue less interest expense

2. Non-interest expense divided by net interest income before provision for loan losses

3. Non-interest expense divided into revenue

4. Operating expenses divided by fee income plus tax equivalent net interest income.

For all versions of the ratio, an increase means the company is losing a larger percentage of its income to expenses. If it is getting lower, it is good for the bank and its shareholders.

Investopedia Says: However the ratio is calculated, its purpose is to evaluate the overhead structure of a financial institution. Banking is no different from any mature industry - the surviving companies are those that keep costs down. The efficiency ratio gives us a measure of how effectively a bank is operating. Efficiency is usually a decent measure of profitability.

[kcflip]

Hank,

What do you think of CBSS? I used to work for them. Is it too big of a bank for you? Great earnings growth there.

RYAN

[MikeDDKing]

CSBQ.OB - Cornerstone Bancshares

I initiated a position today in CSBQ.OB. The current price of CSBQ is $26/share.

Here is a summary of my DD:

- They are based in Hamilton County, Tennessee which includes Chattanooga. Hamilton county has a population of 312,000 people. Best as I can tell, they cover some of the outskirts of Chattanooga in addition to Chattanooga. They have four full service branches in addition to their principal office in Hixson, Tennessee.
- They just reported earnings of $0.45/share for Q2 vs. $0.30/share for Q2 of last year.
- Q1 earnings jumped to $0.40/share from $0.26/share. Last year earnings grew 43%.
- The increased their guidance to full year EPS of $1.75. This is an average of $0.44/share for each fo the next two quarters.
- Return on equity is 16.78%
- Return on assets is 1.73%
- Assets grew from $279M to $338M.
- They don't publish their efficiency ratio.
- Non-interest income grew 147%.
- They pay a 0.9% dividend. Yahoo incorrectly indicates it is 0.7%.
- BV = $10.84

It looks like a great small bank to me.

Mike

[nelson1234]

FYI, Cramer on banks:

<<Cramer's 'Mad Money' Recap: To the Banks

By TheStreet.com Staff
7/20/2006 8:15 PM EDT
Click here for more stories by TheStreet.com Staff

Jim Cramer told "Mad Money" viewers on Thursday that he was going to commit stock market heresy -- and recommend buying bank stocks at this part of the business cycle.

The business cycle dictates which stocks will work. Where you are in that cycle should determine what sectors you buy into, Cramer said, adding that when people go against the cycle, they lose big.



At this point in the cycle, after 17 straight rate hikes, banks should be train wrecks and ugly untouchable businesses, he said. However, this is not the case. In fact, Cramer believes banks are going to go up, therefore, he broke the rules and told viewers they should want to buy a bank.

"But what if banks are on the verge of blowing up, and Cramer's being premature?" he said.

That's how you should be thinking when someone challenges an orthodox rule. After all, it's orthodox because it works, he said. However, he really believes bank are on their way up.

"Why are banks in a good place, when history and discipline says that they should be in a bad place right now?" he asked. "What makes me so confident?"

Reason No. 1 is that banks have stopped issuing stock and are beginning to buy back stock.



Secondly, whereas banks used to have pretty bad credit card losses when people declared bankruptcy, now with the new bankruptcy law, it is tough to declare it, Cramer said. In addition, you are still liable for your debt, even if you do declare bankruptcy.

The third reason he gave was that banks are cheap.

Cramer's final reason was that after 17 rate increases, when banks should be experiencing loan losses and mortgage problems, they actually have the fewest loan losses and mortgage problems they've had in years. Banks have created a slew of businesses that are fee-based by relying less on interest rates and more on fee-based business, he said.

Banks need to be bought, Cramer emphasized. They have great dividends and are holding up a lot better than other stocks. They should move up 15% to 20% over the next 12 to 18 months, he predicted.

"This time things are different for banks," Cramer said. "This time they have weathered the rate hikes and come out with barely a blemish." Buy banks while they are still cheap, he said.>>

Good Luck.

[10 bagger]

First Regional Bancorp Announces 3-for-1 Stock Split
Thursday July 20, 1:23 pm ET


CENTURY CITY, Calif., July 20, 2006 (PRIMEZONE) -- First Regional Bancorp (NASDAQ:FRGB - News) today declared a 3-for-1 stock split. Shareholders will receive two additional shares for every share held at the close of business on the record date of July 31, 2006. The additional shares will be mailed or delivered on or about August 21, 2006 by First Regional's transfer agent, Mellon Investor Services.
ADVERTISEMENT


First Regional currently has approximately 4.1 million shares outstanding, which will increase to approximately 12.3 million after the stock split. In connection with the stock split, the authorized number of shares will likewise be increased from 50 million to 150 million shares.

Jack A. Sweeney, chairman and chief executive officer, noted, ``First Regional recently announced record earnings of $9.6 million, or $2.22 per diluted share, for the three months ended June 30, 2006. The strength of our second quarter earnings, which represents a 49% increase over the results from the same period in 2005, is a direct result of the continued strength of our prudent lending and deposit gathering efforts, as well as the continued contributions of our Trust and Investment Division, Merchant Services and Trust Administration Services business units.''

Mr. Sweeney continued, ``We are pleased to see the market recognize our performance by causing the stock to trade over $100 for the first time in our history, which occurred yesterday, July 19, 2006. The closing sales price of $99.50 on the same day represents a gain of more than 300% over the past three years.''

Mr. Sweeney further noted, ``The stock split, which had been suggested by a number of our shareholders over the past two years, is expected to bring our stock into a range we believe will be desirable to a wider range of investors. We believe this action will help to increase our stock's liquidity, which ultimately should help to further increase shareholder value.''

First Regional Bancorp is a bank holding company headquartered in Century City, California. Its subsidiary, First Regional Bank, specializes in providing businesses and professionals with the management expertise of a major bank and the personalized service of an independent.

This report includes ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although First Regional believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from First Regional's expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which First Regional conducts its operations.



Contact:
First Regional Bancorp
Jack A. Sweeney, Chairman/CEO
310-552-1776


--------------------------------------------------------------------------------
Source: First Regional Bancorp

[Tr8dervic]

Thx.

With a current PE of 4.9 I may give it a "swing trade" shot now and again. Not in yet though. With earnings due 8/8/06 I might load up just before that if it gets into the 16's for a short term play.

Vic

[10 bagger]

FMT..
Is a loan originator.. Earnings are down 70% qtr to qtr.. stay away ..The PE on this bank has never been above 10 as long as I remember.. hank

[Tr8dervic]

A comptroller friend touted me on FMT as a good LT buy if interest rates stabilize.

I am terrible at bank/finance co. DD and thought I would mention it here to see if you had any feedback one way or the other.

TIA,

Vic

[10 bagger]

PSBC...

Small Banks Rock..

Pacific State Bancorp Reports Record Profits and Asset Growth
STOCKTON, Calif., July 20 /PRNewswire-FirstCall/ -- Steven A. Rosso, President and C.E.O. of Pacific State Bancorp (Nasdaq: PSBC), the parent company of Pacific State Bank, today reported record 2nd quarter profits and asset growth for the Stockton, California based financial institution:

-- Net income for the second quarter of 2006 of $1,307,000 and net income
for the six months ended June 30, 2006 of $2,514,000.
-- Total Assets as of June 30, 2006 of $327,902,000.

Rosso noted that the financial performance increases reflected strong annual and quarter over quarter improvement.

PSBC quarter over quarter June 30, 2006 compared to June 30, 2005 financial performance information is as follows:

Balance Sheet:

-- Total Federal Funds, Interest Bearing Deposits in Banks and Investment
Securities: $37,031,000, an increase of $6,017,000 or 19.40%.
-- Net Loans: $270,107,000, an increase of $57,561,000 or 27.08%.
-- Total Assets: $327,902,000, an increase of $64,417,000 or 24.45%.
-- Non-Interest Bearing Deposits: $64,127,000, an increase of $6,093,000
or 10.50%.
-- Total Deposits: $287,310,000, an increase of $57,285,000 or 24.90%.
-- Total Shareholders Equity: $24,578,000, an increase of $5,734,000 or
30.43%.

Income Statement:

-- Total Interest Income: $6,321,000, an increase of $1,792,000 or 39.57%.
-- Total Interest Expense: $2,122,000, an increase of $919,000 or 76.39%.
-- Net Interest Income: $4,199,000, an increase of $873,000 or 26.25%.
-- Non-Interest Income: $500,000, a decrease of $97,000 or (16.25%). The
decline in non-interest income was primarily due to a reduction in Gain
on Sale of Loan Income as compared to the 2nd quarter of 2005.
-- Non-Interest Expense: $2,452,000, an increase of $266,000 or 12.17%.
The primary reason for the increase in non-interest expense was
company-wide salary expense increases as compared to the 2nd quarter of
2005 to support the growth of the bank. As of June 30, 2006, the
Company had 75 full-time employees as compared to 69 as of
June 30, 2005.
-- Net Income: $1,307,000, an increase of $250,000 or 23.65%.
-- Net Interest Margin: 5.74%, up 44 basis points.
-- Annualized Return on Average Assets: 1.65% up from 1.57%.
-- Annualized Return on Average Equity: 22.60% down slightly from 23.00%.
-- Efficiency Ratio: 53.20% improving from 56.59%.
-- Basic Earnings Per Share: $0.37, an increase of $0.06 per share
or 19.35%.
-- Diluted Earnings Per Share: $0.34, an increase of $0.07 per share
or 25.93%.

PSBC Year-to-date financial performance information for the six month period ending June 30, 2006 is as follows:

Balance Sheet - June 30, 2006 as compared to December 31, 2005

-- Total Fed Funds, Interest Bearing Deposits in Banks and Investment
Securities: $37,031,000, a decrease of $10,628,000 or 22.30% from year
end 2005.
-- Net Loans: $270,107,000, an increase of $28,551,000 or 11.82% from year
end 2005.
-- Total Assets: $327,902,000, an increase of $18,291,000 or 5.91% from
year end 2005.
-- Non-Interest Bearing Deposits: $64,127,000 a decrease of $4,530,000 or
6.60% from year end 2005.
-- Total Deposits: $287,310,000, an increase of $14,236,000 or 5.21% from
year end 2005.
-- Total Shareholders Equity: $24,578,000, an increase of $3,205,000
or 14.99% from year end 2005.

Income Statement - Six months ended June 30, 2006 compared to June 30, 2005

-- Total Interest Income: $12,113,000, an increase of $3,656,000
or 43.23%.
-- Total Interest Expense: $3,841,000, an increase of $1,563,000
or 68.61%.
-- Net Interest Income: $8,272,000, an increase of $2,093,000 or 33.87%.
-- Non-Interest Income: $1,099,000, a decrease of $267,000 or 19.55%.
-- Non-Interest Expense: $5,039,000, an increase of $821,000 or 19.46%.
-- Net Income: $2,514,000, an increase of $509,000 or 25.39%.
-- Net Interest Margin: 5.85% up 65 basis points.
-- Annualized Return on Average Assets: 1.62% up from 1.50%.
-- Annualized Return on Average Equity: 22.64% up from 22.58%
-- Efficiency Ratio: 54.83% improving from 56.81%.
-- Basic Earnings Per Share: $0.72, an increase of $0.14 per share
or 22.41%.
-- Diluted Earnings Per Share: $0.65, an increase of $0.13 per share
or 25.00%.

Attached are certain additional unaudited financial statements supporting the above financial information. Further inquiries should be directed to Mr. Steven Rosso at 209-870-3214, or by mail to P.O. Box 1649, Stockton, California 95201. Additional information also can be obtained by visiting the Company website -- www.pacificstatebank.com.



PACIFIC STATE BANCORP AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
(in thousands, except share amounts) June 30 June 30
Assets 2006 2005

Cash and due from banks $13,702 $7,124
Federal funds sold -- --
Interest-bearing deposits in banks -- 5,000
Investment securities - available for
sale (carrying value of $23,546 in 2006
and $18,938 in 2005) 23,329 18,890

Loans, less allowance for loan losses
of $2,516 in 2006 and $2,332 in 2005 270,107 212,546
Bank premises and equipment, net 9,564 9,563
Company owned life insurance 4,499 4,329
Accrued interest receivable and other assets 6,701 6,033
Total assets $327,902 $263,485

Liabilities and Shareholders' Equity

Deposits:
Non-interest bearing $64,127 $58,034
Interest bearing 223,183 171,991
Total deposits 287,310 230,025
Other borrowings 4,900 4,000
Subordinated debentures 8,764 8,764
Accrued interest payable and other liabilities 2,350 1,852
Total liabilities 303,324 244,641
Shareholders' equity:
Preferred stock - no par value; 2,000,000
shares authorized; none outstanding
Common stock - no par value; 24,000,000
shares authorized; issued and outstanding
3,589,458 in 2006 and 3,481,152 in 2005 8,280 7,261
Retained earnings 16,426 11,631
Accumulated other comprehensive loss,
net of tax (128) (48)
Total shareholders' equity 24,578 18,844
Total liabilities and shareholders'
equity $327,902 $263,485


PACIFIC STATE BANCORP AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share amounts) June 30 December 31
Assets 2006 2005

Cash and due from banks $13,702 $14,453
Federal funds sold -- 4,667
Interest -bearing deposits in banks -- --
Investment securities - available for sale
(carrying value of $23,546 in 2006
and $28,696 in 2005) 23,329 28,539
Loans, less allowance for loan losses
of $2,516 in 2006 and $2,356 in 2005 270,107 241,556
Bank premises and equipment, net 9,564 9,511
Company owned life insurance 4,499 4,411
Accrued interest receivable and other assets 6,701 6,474
Total assets $327,902 $309,611

Liabilities and Shareholders' Equity

Deposits:
Non-interest bearing $64,127 $68,657
Interest bearing 223,183 204,417
Total deposits 287,310 273,074
Other borrowings 4,900 4,000
Subordinated debentures 8,764 8,764
Accrued interest payable and other liabilities 2,350 2,400
Total liabilities 303,324 288,238
Shareholders' equity:
Preferred stock - no par value; 2,000,000
shares authorized; none outstanding
Common stock - no par value; 24,000,000
shares authorized; issued and outstanding
3,589,458 in 2006 and 3,512,622 in 2005 8,280 7,556
Retained earnings 16,426 13,912
Accumulate other comprehensive loss,
net of tax (128) (95)
Total shareholders' equity 24,578 21,373
Total liabilities and shareholders'
equity $327,902 $309,611


PACIFIC STATE BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three months ended Six months ended
June 30 June 30
(in thousands, except
share amounts) 2006 2005 2006 2005
Interest income:
Interest and fees on loans $5,998 $4,234 $11,459 $7,881
Interest on federal funds sold 6 67 17 125
Interest on investment
securities 317 228 637 451
Total interest income 6,321 4,529 12,113 8,457
Interest expense:
Interest on deposits 1,792 1,070 3,276 2,005
Interest on subordinated
debentures 180 105 344 226
Interest on borrowings 150 28 221 47
Total interest expense 2,122 1,203 3,841 2,278
Net interest income 4,199 3,326 8,272 6,179
Provision for loan losses 90 60 180 120
Net interest income after
provision for loan losses 4,109 3,266 8,092 6,059
Non-interest income:
Service charges 250 189 458 370
Other fee income 230 192 461 410
Gain from sale of loans 20 216 180 586
Total non-interest income 500 597 1,099 1,366
Non-interest expenses:
Salaries and employee benefits 1,335 1,192 2,685 2,309
Occupancy 208 196 407 393
Furniture and equipment 183 147 361 279
Other 726 651 1,586 1,237
Total other expenses 2,452 2,186 5,039 4,218
Income before income taxes 2,157 1,677 4,152 3,207

Income tax expense 850 620 1,638 1,202
Net income $1,307 $1,057 $2,514 $2,005
Basic earnings per share $0.37 $0.31 $0.72 $0.58
Diluted earnings per share $0.34 $0.27 $0.65 $0.52
Weighted average common shares
outstanding 3,510,801 3,466,017 3,493,964 3,458,115
Weighted average common
and common equivalent
shares outstanding 3,900,010 3,845,993 3,894,748 3,869,135


PACIFIC STATE BANCORP
Yield Analysis

For the Three Months Ended For the Three Months Ended
Ended June 30, 2006 Ended June 30, 2005
Interest Interest
Income Average Income Average
Average or Yield or Average or Yield or
Balance Expense Cost Balance Expense Cost
Assets:
Interest-earning
assets:
Loans $265,333 $5,998 9.06% $208,585 $4,234 8.14%
Investment
securities 27,095 317 4.66% 28,628 174 2.44%
Federal funds
sold 861 6 2.80% 9,571 67 2.81%
Interest
Bearing
Deposits
in Banks -- -- --% 5,000 54 4.33%
Total
average
earning
assets 293,289 6,321 8.64% 251,784 4,529 7.21%

Non-earning
assets:
Cash and due
from banks 13,498 14,184
Other assets 11,215 4,849
Total
average
assets $318,002 $270,817


Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Deposits

Interest-bearing
Demand $89,412 573 2.57% $105,049 595 2.27%
Savings 6,298 15 0.96% 6,935 9 0.52%
Time Deposits 116,062 1,204 4.16% 72,901 466 2.56%
Other borrowings 19,592 330 6.76% 12,869 133 4.15%

Total
average
interest-
bearing
liabilities 231,364 2,122 3.68% 197,754 1,203 2.44%

Non-interest
bearing
liabilities:
Demand deposits 62,558 54,721
Other liabilities 881 170
Total
liabilities 294,803 252,645
Shareholders'
equity: 23,199 18,172
Total average
liabilities
and
shareholders'
equity $318,002 $270,817

Net interest
income $4,199 $3,326

Yield on
interest-earning
assets 8.64% 7.21%
Cost of funding
interest-earning
assets 2.90% 1.92%
Net interest margin 5.74% 5.30%


PACIFIC STATE BANCORP
Yield Analysis


For the Six Months Ended For the Six Months Ended
Ended June 30, 2006 Ended June 30, 2005
Interest Interest
Income Average Income Average
Average or Yield or Average or Yield or
Balance Expense Cost Balance Expense Cost
Assets:
Interest-
earning
assets:
Loans $257,036 $11,459 8.99% $206,150 $7,881 7.71%
Investment
securities 27,408 637 4.67% 18,587 366 3.97%
Federal funds
sold 845 17 4.06% 10,011 125 2.52%
Interest
Bearing
Deposits
in Banks -- -- --% 5,450 85 3.15%
Total
average
earning
assets 285,289 12,113 8.56% 240,198 8,457 7.10%

Non-earning
assets:
Cash and due
from banks 12,896 13,930
Other assets 14,431 14,462
Total
average
assets $312,616 $268,590


Liabilities
and
Shareholders'
Equity:
Interest-bearing
liabilities:
Deposits

Interest-
bearing
Demand $95,679 1,182 2.49% $103,045 1,137 2.23%
Savings 6,415 25 0.79% 7,109 18 0.51%
Time Deposits 106,785 2,069 3.91% 72,590 850 2.36%
Other
borrowings 18,169 565 6.27% 12,814 273 4.30%

Total
average
interest-
bearing
liabilities 227,048 3,841 3.41% 195,558 2,278 2.35%

Non-interest
bearing
liabilities:
Demand deposits 61,686 54,965
Other
liabilities 1,486 1,222
Total
liabilities 290,220 251,745
Shareholders'
equity: 22,396 16,845
Total average
liabilities
and
shareholders'
equity $312,616 $268,590

Net interest
income $8,266 $6,179

Yield on
interest-
earning
assets 8.56% 7.10%
Cost of
funding
interest-
earning
assets 2.72% 1.91%
Net interest
margin 5.84% 5.19%

SOURCE Pacific State Bancorp



Source: PR Newswire (July 20, 2006 - 2:35 PM EDT)