Greater Sacramento Bancorp's First Quarter 2008 Net Income Up 5%

The 2008 First Quarter figure of $783,000 also represented a 20% increase from the Fourth Quarter 2007 Net Income figure of $655,000 ($.25 per share diluted).

In regards to credit quality the ratio of non-accrual loans to total loans at March 31, 2008 was virtually unchanged at 2.59% compared to 2.57% at December 31, 2007. The constitution of non-accrual loans in both quarters was exactly the same as this asset category was represented by a single $6 million loan to a local home builder which was placed on non-accrual in the Third Quarter 2007. The bank continues to aggressively pursue all possible remedies for the collection of this secured loan, however, no assurance can be given that the resolution of this matter will not result in the bank providing additional loan loss reserves or taking a loss on the loan.

During the First Quarter 2008 $100,000 was added to the allowance for loan losses compared to $0 for the First Quarter 2007.

In spite of interest rates falling dramatically during the First Quarter 2008, GSB's Net Interest Income after provision for possible loan losses at $3,553,000 was 5% greater than the $3,391,000 reported for the First Quarter 2007. Much of this income was attributable to our ability to continue growing non-interest bearing deposits. Also, primarily as a result of the growth of non-interest bearing deposits, the Net Interest Margin (NIM) for the First Quarter 2008 more than held its own compared to the First Quarter of 2007: NIM at March 31, 2008 was 4.67% compared to 4.66% at March 31, 2007.

While non-interest expense for the First Quarter 2008 at $2,650,000 was 13% greater than the First Quarter 2007 ($2,353,000), non-interest income increased 124% to $273,000 from $122,000 as a result of increased service charges and securities gains.

Total Deposits at March 31, 2008 stood at $285.8 million representing a 6% growth over the March 31, 2007 Total Deposits figure of $270.4 million. Net Loans increased 5% to $228.6 million at March 31, 2008 from $216.8 million at March 31, 2007.

Total Assets of GSB increased 5% from March 31, 2007 standing at $331.1 million at March 31, 2008 compared to $315.8 million at March 31, 2007.

For the First Quarter 2008 GSB's annualized Return on Average Assets (ROA) was .93%, which was down slightly from the First Quarter 2007 ROA of .97%.

GSB's Return on Average Equity (ROE) for the First Quarter 2008 was 11.63% down from 13.92% for the First Quarter 2007.

GSB's Tier I Capital at March 31, 2008 stood at $35,750,000 and the Company's Leverage Capital Ratio of 10.53% places GSB by all regulatory standards in a "well capitalized" position. -- Greater Sacramento Bancorp