Syringa Bancorp Consolidated Third Quarter 2009 Financial Results

“Economic conditions are particularly challenging for community banks right now due to elevated loan losses and reduced net interest income caused by historically low interest rates and shrinking balance sheets,” said Jerry F. Aldape, President and CEO. “In the third quarter, we maintained a strong capital position while recognizing stress in our loan portfolio, liquidating some non-performing assets, and writing-off a deferred tax asset. On the funding side, local customer deposit growth was strong in the third quarter due to product enhancements and the safety of FDIC-insured accounts. By writing-off the deferred tax asset we presented a very conservative balance sheet at the end of the quarter and retain the ability to offset future income taxes once we return to profitability. We have confidence in the long-term economic strength and vitality of Idaho and look forward to more normalized economic conditions and interest rates following this recession. Until then, we are aggressively managing the stress in our loan portfolio and preparing our organization for the future.”

Local customer deposits as of September 30, 2009 increased $21,837,780 (14.3%) to $174,516,019 from $152,678,238 at September 30, 2008. Syringa Bancorp’s total assets as of September 30, 2009 decreased $23,906,156 (8.1%) to $269,885,371 from $293,791,528 at September 30, 2008. Net interest income in the first nine months of 2009 decreased $1,739,114 (19.5%) to $7,163,376 from $8,902,490 in the same period of 2008.

Syringa Bancorp’s non-interest income in the first nine months of 2009 improved $167,347 (16.7%) to $1,171,404 from $1,004,057 in the same period of 2008, including a $155,492 (43.4%) increase in non-interest income generated from mortgage activity. Non-interest expenses in the first nine months of 2009 improved $501,725 (5.4%) to $8,781,242 from $9,282,967 in the same period of 2008, including a $1,378,079 (24.4%) decrease in expense related to salaries and benefits. Total non-interest expenses were reduced despite significant increases in FDIC insurance, losses on real estate owned, and loan costs.

Syringa Bancorp was organized in April 2005 as a holding company of Syringa Bank. The Bank was formed in 1996 and has since expanded to six branch locations, two mortgage offices, and a residential construction loan production office, all within the state of Idaho. Syringa Bank is an Idaho state-chartered commercial bank.

Statements in this report regarding future events, performance or results are “forward-looking statements” within the meaning of the Private Litigation Reform Act of 1995 (“PSLRA”) and are made pursuant to the safe harbors of the PSLRA. Actual results could be materially different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ include but are not limited to: general economic and banking business conditions, competitive conditions between banks and non-bank financial service providers, interest rate fluctuations, regulatory and accounting changes, risks related to construction and development, commercial real estate and consumer lending and other risks. Forward-looking statements are accurate only as of the date released, and we do not undertake any responsibility to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Syringa Bancorp
Jerry F. Aldape, President and CEO, 208-947-9650
or
Sydney L. Mills, SVP Shareholder Relations, 208-947-9657