California Oaks State Bank Reports Year-end Loss

California Oaks State Bank reported a $1 million net loss for 2008, or $0.73 per diluted share. The Thousand Oaks-based lender saw growth in assets, loans and deposits in the year, but said three construction loans valued at $2.6 million were all in non-accrual status. “There has been a concerted effort to reposition the portfolio from riskier construction lending to more typical commercial lending,” said President and CEO John Nerland in a prepared statement. Net interest income also fell by $1.2 million in 2008 due to drop of 400 basis points in the prime lending. California Oaks is still considered highly capitalized and on January 23, the bank received TARP funds to further bolster their balance sheet. Linda Coburn