Stellar Business Bank has reported a net loss of $561,927, or $0.25 basic loss per share for the first quarter of 2008, its fourth full quarter of operations. The loss includes a loan loss reserve provision of $82,682.
The bank opened for business on April 9, 2007. As of March 31, 2008, the bank reported total assets of $55.4 million, an increase of 16% from the fourth quarter of 2007. Total deposits were $33.6 million, an increase of 29% from the fourth quarter of 2007, of which $3.7 million were non-interest bearing, with interest bearing deposits totaling $29.9 million.
From the date of organization to March 31, 2008, the bank reported a net loss of $2.7 million, or $1.19 per share of common stock, which includes a loan loss provision of $221,443. These numbers also reflect the impact of accounting rules that require companies to include stock compensation as an expense and pre-opening expenses of $790,046.
As of March 31, 2008, net loans totaled $17 million, an increase of 71% from the fourth quarter of 2007, with an additional $2.7 million in unfunded loan commitments and no residential ‘sub prime’ mortgage loans.
Timothy Walbridge, president and CEO, said: We are pleased with the growth of Stellar Business Bank through March 31, 2008, with total asset growth of $32.5 million or 142% since our initial capitalization and opening on April 9, 2007. In addition, we are succeeding in our strategy to control deposit growth while increasing loans at an accelerated level in order to maximize our income-producing earning assets.