Strong Growth for Folsom Lake Bank With 6/30/2008 Financial Results

    FOLSOM, Calif., July 17 /EMWNews/ -- Folsom Lake Bank (OTC

Bulletin Board: FOLB), announced unaudited financial results for the

quarter ending June 30, 2008. The bank commenced operations on 4/2/07 after

raising $15.9 million in capital and has now completed its fifth full

quarter of operations. Total assets grew to $44.2 million, an increase of

$24.8 million or 128.7% over June 30, 2007 assets, and an increase of $6.1

million or 16.0% over the prior quarter. Total deposits grew to $30.5

million, increasing $6.7 million or 28.1% for the quarter. Total loans

outstanding as of June 30, 2008, were $32.3, up $9.6 or 42.3% from the

prior quarter. Loans and deposits are up $27.7 million and $25.7 million

respectively from the 2nd quarter of 2007.



    The bank reported a net loss of $379,095 for the quarter, in line with

expectations and normal for a start-up banking operation, and down $102,863

over the 2nd quarter 2007 loss of $481,958. Robert J. Flautt, President and

CEO commented, "The bank has more than doubled in size over the past year

to $44 million. With a continued rapid and steady growth in loans and

deposits and continued control on expenses, we are making excellent

progress toward our goal of a profitable operation."



    "The bank continues to be strong and healthy," continued Flautt. "The

bank has no delinquent or non-performing loans. We are extremely proud of

our conservative approach to lending based on strong underwriting,

extensive knowledge of our communities and familiarity with each of our

loan clients." The bank provisioned $115,000 to the loan loss reserve to

cover the higher than expected loan growth, resulting in an allowance of

$385,000 or 1.18% of loans.



    Folsom Lake Bank is the areas newest community bank. The bank is a

locally owned and locally operated, full service commercial banking

organization focused on small business owners, professionals and

individuals in the communities surrounding Folsom Lake. By providing the

personal attention that clients want and delivering banking services that

they need, the bank continues to build strong banking relationships across

the communities that it serves. Folsom Lake Bank is publicly traded on the

Over-the-Counter Bulletin Board. Howe Barnes Hoefer & Arnett (John Cavender

415-538-5725) is the primary market maker. For more information please call

Robert Flautt at 916-235-4570.



    This correspondence may contain "forward-looking statements" within the

meaning of Section 27A of the Securities Act. All of the statements

contained in this correspondence, other than statements of historical fact,

should be considered forward-looking statements. Although the Bank believes

the expectations reflected in those forward-looking statements are

reasonable, it can give no assurance that those expectations will prove to

have been correct. Investors are cautioned not to place undue reliance on

these forward-looking statements, which speak only as of the date hereof

and are not intended to give any assurance as to future results.