MISSOULA, MT -- (Marketwire) -- 05/03/11 -- Treasure State Bank ("the Bank") (OTCBB: TRSU), a Montana chartered community bank, today announced:
President and Chief Executive Officer Jim Salisbury stated, "It is nice to report a profit of $128,000 for the quarter just ended. The Board of directors and the employees of the Bank have been working diligently to rebuild the foundation of the Bank since the economic downturn began in 2008. Assets have decreased $8.7MM since March 31, 2010 in an effort to build the capital ratios back to acceptable levels. The Bank continues to restructure its deposit base. Local deposits to total deposits have increased from 69.01% at March 31, 2010 to 74.10% at March 31, 2011. The Bank has only $306,000 of brokered deposits. In addition, as noted above, the cost of funds for the Bank continue to decline. For the quarter year over year operating expenses have continued to decline as noted above.
"The Bank now has an allowance for loan losses to gross loans of 3.92% ($2.2MM) to act as a cushion to absorb potential losses on existing troubled loans. The Bank has made substantial headway in its efforts to reduce non-performing assets. During the quarter just ended, the Bank sold $1.24MM of non-performing assets, which follows the sale of $1.2MM for the quarter ended December 31, 2010. The Bank has $3.6MM of repossessed property at March 31, 2011 as compared to $4.9MM at December 31, 2010. Total non-performing assets, which include repossessed assets, declined $200,000 during the quarter to $9.1MM at March 31, 2011. The decrease would have been substantially higher but the Bank took a conservative approach by placing a $1.9MM loan on non-accrual status that was 57 days past due as of March 31, 2011. Non-performing asset levels continue to be unacceptable. But the Bank's employees are working diligently to reduce the dollar amount of the non-performing assets. Nearly twenty-two cents of every dollar is held in liquid assets to cushion the Bank from a rising interest rate environment. The Bank has positioned itself to be asset sensitive. Therefore, if interest rates were to increase, the effect on the Bank's net interest income should not be material. The 53.47% reduction in the Bank's cost of funds since September 30, 2009 has positioned the Bank to maintain a net interest margin sufficient to cover the Bank's normal operating expenses during these difficult times. The Western Montana economy continues to present challenges to the Bank in its efforts to dispose of repossessed vacant land and certain portions of its loan portfolio. We will continue to work diligently to improve the asset quality of the Bank, generate profits and retain adequate liquidity in these uncertain economic times."
For more information regarding this release, or the Bank in general, you may contact James A. Salisbury, President and CEO at 406-543-8700.
About Treasure State Bank
Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. Treasure State Bank currently trades on the OTCBB under the ticker symbol "TRSU." Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit www.treasurestatebank.com.
Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
James A Salisbury
President & CEO
Treasure State Bank
3660 Mullan Road
Missoula, MT 59808