Mother Lode Bank serving Sonora and the Mother Lode
Mother Lode Bank Banking in Tuolumne & Calaveras County
Home Mother Lode Bank Locations Contact Us Serving Tuolumne County and Calaveras County

Shareholder News

The Prospector


The Presidents Corner


November 2, 2010 


Dear Shareholder:

Thanks to the additional capital provided by our organizers, shareholders and clients, we are pleased to report Mother Lode Bank continues toward significant progress in an economy that represents the steepest recession in memory. We took this step to strengthen the bank so we could continue to serve the community as we have since we opened in 2004. Mother Lode Bank’s capital position is above regulatory guidelines for well capitalized banks.


I am pleased to report our first profitable quarter for the three months ending September 30, 2010.


Our conservative relationship based approach in doing business has allowed us to continue to serve the financial needs of individuals and businesses within our community in which your Board of Directors and management remain committed.


I am also pleased to report that asset quality continues to improve as we realize significant progress in our loan portfolio. In terms of lending, Mother Lode Bank has never stopped lending and will continue to make sound loans which support our community.


As discussed in previous communications we will continue to aggressively manage costs and reduce the risks in our loan portfolio. We are committed to our strategic plan and expect our unrelenting focus will serve our investors and customers well in the coming recovery of this difficult economic period.


As we enter the final quarter of 2010 we are cautiously optimistic about 2011 and look forward to serving the financial needs of our shareholders, customers as well as prospective clients of Mother Lode Bank.

Thank you for your continued support!


Charles W. Milazzo


Financial Summary


Mother Lode Bank Posts Profitable Quarter:

I am pleased to report our first profitable quarter. For the three months ended September 30, 2010, the Bank reported net income of $7,000 compared to a loss of $842,000 in the comparable quarter of 2009. Year-to-date net loss through September 30, 2010, was $382,000 as compared to a loss of $2,589,000 for the nine months ended September 30, 2009.


The profitable quarter demonstrates the substantial progress we have made since the onset of the disruptions in the financial markets in 2008. Our improvements in core deposit growth and asset quality during the third quarter of 2010 are the result of our strategic emphasis on relationship banking.


Achieving profitability is always a critical milestone and we are especially pleased we were able to reach this objective through these challenging economic times. Continued uncertainty surrounding the economy and pressures on the business community we serve remains a challenge for 2010. Now more than ever, clients value relationships with community bankers and are choosing our brand of banking over other offerings in the market. We continue to support our communities by actively lending to local businesses, individuals and nonprofit organizations.


The bank’s capital position is above regulatory guidelines for well capitalized banks. At September 30, 2010, the Bank had a total risk based capital ratio of 10.58%. The on going support of our organizers, shareholders and clients is a key factor in our success.


Financial Comparison: Year to Date Third Quarter 2010 vs. 2009


  3rd Quarter 2010 3rd Quarter 2009 Change
Loans Outstanding $41,067,000 $44,798,000  -8%
Total Assets $60,791,000 $62,627,000 -3%
Deposits  $54,175,000 $58,158,000   -7%
Net Income ($382,000) ($2,589,000) 85%



Charles W. Milazzo



We are Local…and Simply a Better Bank!

Shareholder News Archives
Personal Banking, Business Banking, Mortgage, and Online Banking