Siuslaw Financial Group Reports YTD Earnings and Announces Quarterly Dividend

FLORENCE, Ore.--(BUSINESS WIRE)--Siuslaw Financial Group (OTCBB:SFGP), parent company of Siuslaw Bank, today announced year-end financial results showing year to date after-tax earnings of $2,228,700 compared to $3,983,007 a year ago. Earnings per diluted common share totaled $0.54 vs $0.96 per common share in 2010.

The economic climate in our trade area continues to put a strain on earnings, stated Johan Mehlum, Chairman of the Board & Chief Executive. Legal fees to comply with regulatory accounting issues, write downs on other real estate owned due to property evaluation declines, loans on non-accrual and reduced rates for borrowers unable to pay under original contractual terms accounted for over $2 million in reduced operating revenue during 2011. It is believed that a portion of those costs will be recovered in the future.

The earnings represent a 6.77% Return on Equity (ROE) and a 0.70% Return on Assets (ROA). The 6.77% ROE is below the norm for Siuslaw but better than the industry average for banks at 5.79% ROE (12/10).

The company reported $317.7 million in total assets and deposits of $271.9 million, compared to $299.6 million and $255.5 million in 2010, an increase of 6.0% and 6.4% respectively. Net loans increased by 1.9% to $211.6 million.

The Board of Directors announced a $0.05 per share quarterly dividend to common shareholders and a $0.0525 per share dividend to preferred shareholders. The dividend is payable to shareholders of record as of February 13^th, 2012 and payable on or before February 17^th, 2012.

Siuslaw remains committed to the philanthropy and charitable giving in Oregon contributing over $88,872 to various non-profits in Lane County in 2011. In addition, Siuslaw’s employees gave $49,654 to the United Way and contributed over 1200 hours of community service. The bank has been recognized for the past five years as a Top 10 Philanthropic Company in the Portland Business Journal.

Headquartered in Florence, Siuslaw Financial Group is the parent company of Siuslaw Bank, with offices in Cottage Grove, Creswell, Eugene, Mapleton, Oakridge, Pleasant Hill, Springfield and Veneta. All offices are located in Lane County.

SIUSLAW FINANCIAL GROUP
SELECTED FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS)
		UNAUDITED	AUDITED	AUDITED
		12/31/11	12/31/10	12/31/09
INCOME STATEMENT DATA
	TOTAL INTEREST INCOME	13,642	15,249	16,383
	TOTAL INTEREST EXPENSE	1,419	1,886	2,662
	NET INTEREST INCOME	12,222	13,363	13,721
	PROVISION FOR LOAN LOSSES	1,275	1,000	1,600
	NET INTEREST INCOME AFTER RLL	10,947	12,363	12,121
	NON INTEREST INCOME	3,600	3,984	4,045
	NON INTEREST EXPENSE	12,177	11,214	11,138
	INCOME BEFORE TAXES	2,371	5,133	5,029
	PROVISION FOR TAXES	142	1,150	1,690
	NET INCOME	2,229	3,983	3,339
SHARE DATA
	EARNINGS PER COMMON SHARE	0.54	0.96	0.81
	BOOK VALUE PER COMMON SHARE	8.00	7.76	8.09
		12/31/11	12/31/10	12/31/09
BALANCE SHEET DATA
	INVESTMENT SECURITIES AVAILABLE FOR SALE	19,471	15,668	18,211
	NET LOANS	211,558	207,643	219,680
	TOTAL ASSETS	317,690	299,627	284,219
	TOTAL DEPOSITS	271,933	255,497	236,477
	TOTAL SHAREHOLDERS' EQUITY	32,936	31,936	29,742
KEY RATIOS
	RETURN ON EQUITY (ROE)	6.77%	12.47%	11.23%
	RETURN ON ASSETS (ROA)	0.70%	1.33%	1.17%