Folsom Lake Bank Tops $52 Million in Assets with 9/30/2008 Results

FOLSOM, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Folsom Lake Bank
(OTC Bulletin Board: FOLB), announced unaudited financial results for the
quarter ending September 30, 2008. As of 9/30/08, total assets for the bank
reached $52.0 million, an increase of $27.6 million or 113% over the September
30, 2007 assets, and an increase of $7.8 million or 17.6% over the prior
quarter. Total deposits grew to $38.4 million, increasing $8.4 million or
28.0% for the quarter. Total loans outstanding as of September 30, 2008, were
$35.9 million, up $6.9 or 23.8% from the prior quarter. Loans and deposits are
up $23.0 million and $28.6 million respectively from the 3rd quarter of 2007.
The bank reported a net loss of $295,409 for the quarter, in line with
expectations and normal for a start-up banking operation, and down $101,959
over the 3rd quarter 2007 loss of $397,368. Robert J. Flautt, President and
CEO commented, "We again had strong growth for the quarter thanks to strong
support from the community. Small business owners, professionals and local
consumers have all found great value in our unique brand of banking
excellence. We have continued a rapid and steady growth in loans and deposits
in spite of the worst financial calamity to hit the banking industry in
decades. Community banks clearly are enjoying a flight to safety. Just as we
know our customers very well, likewise our customers see us a safe, secure and
strong alternative to the large financial institutions and their myriad of
continuing loan problems."
"Since opening in April of 2007, we have been diligent and watchful to
make sure our lending practices were appropriate and conservative", continued
Flautt. "The bank has no delinquent loans or any loans on non-accrual. We have
never done subprime lending and never will. Our conservative approach to
lending is based on strong underwriting, extensive knowledge of our
communities and familiarity with each of our loan clients." The bank
provisioned $75,000 to the loan loss reserve to cover the higher than expected
loan growth, resulting in an allowance of $460,000 or 1.26% of loans.
Folsom Lake Bank is the area's newest community bank. The bank is a
locally owned and locally operated, full service commercial banking
organization focused on small business owners, professionals and individuals
in the communities surrounding Folsom Lake. By providing the personal
attention that clients want and delivering banking services that they need,
the bank continues to build strong banking relationships across the
communities that it serves. Folsom Lake Bank is publicly traded on the
Over-the-Counter Bulletin Board. Howe Barnes Hoefer & Arnett (John Cavender
415-538-5725) is the primary market maker. For more information please call
Robert Flautt at 916-235-4570.
This correspondence may contain "forward-looking statements" within the
meaning of Section 27A of the Securities Act. All of the statements contained
in this correspondence, other than statements of historical fact, should be
considered forward-looking statements. Although the Bank believes the
expectations reflected in those forward-looking statements are reasonable, it
can give no assurance that those expectations will prove to have been correct.
Investors are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof and are not intended to
give any assurance as to future results.
SOURCE Folsom Lake Bank

Bob Flautt, CEO, +1-916-235-4570 or Jack Olson, CFO, +1-916-235-4560, both of
Folsom Lake Bank