CHOB Charter Oak Bank (CE)

Charter Oak Bank (OTCBB: CHOB), headquartered in Napa, California, reported a third quarter net income before tax of $185,000 as compared to net income before tax of $186,000 in the third quarter of 2008. The nine-month net income before tax was $52,000 including a $1,131,000 increase in the loan loss provision. In comparison, the 2008 year to date net income before tax was $542,000 including a $442,000 loan loss provision. The difference in the loan loss provisions from 2008 to 2009 was $689,000.

To ensure prudent reserves, the Allowance for Loan Losses as of September 30, 2009 was maintained at 1.94% of the total loan portfolio. That is an increase from 1.27% from the same period in 2008. During the third quarter the Board of Directors and Management believed it was prudent to charge off loans in the amount of $410,000 due to non-performance. These were the only charge-offs for the year.

"By employing our safe and sound business strategy, we have managed to remain profitable, even in the current economy," said Brian Kelly, President and CEO. "When bank closures are in the news, Charter Oak Bank remains a safe and sound community bank that you can trust."

Charter Oak Bank continues to remain "well-capitalized" by regulatory definition with total risk based capital at 12.79%. Regulatory guidelines state banks must maintain 10% total risk based capital to be "well-capitalized."

Loans ended September 30, 2009 at $132.7 million, an increase of $16 million or 13.7% from the same period last year. Deposits at September 30, 2009 amounted to $123.2 million, an increase of $19.4 million or 18.7% from last year. Total assets were $154.2 million, an increase of $22.9 million in the past twelve months. Shareholder book value at quarter-end was $9.53 per share.

Forward-Looking Statements

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results are pre-fiscal year-end audit and may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.

Contact: Brian Kelly Email Contact Phone: 707-265-2001