Folsom Lake Bank Reports Strong 3rd Quarter Growth

Folsom Lake Bank (OTC Bulletin Board: FOLB), announced unaudited financial results for the quarter ending September 30, 2009. The bank had record asset growth for the quarter increasing $14.3 million. The successful opening of the Roseville branch as well as planned growth in the Folsom branch both contributed to the strong growth. "We are right on target with the original three year business plan, and now looking at our second three year plan which calls for continued strong growth in the communities that we serve," stated President Robert J. Flautt.

Folsom Lake Bank opened for business April 3, 2007 after raising $15.9 million in capital from 406 local investors. Robert J. Flautt, President and CEO commented, "We continue to be very excited about our success as Folsom's newest community bank. The bank continues to enjoy nice manageable steady growth. Our business plan for a classic community bank continues to unfold as envisioned." For the quarter ended September 30, 2009, total assets grew to $91.8 million, an increase of $39.8 million or 76.4% over the 3rd quarter of 2008. Total deposits grew to $75.7 million, increasing $37.3 million from September 30, 2008, a 96.9% increase from one year ago. Total loans outstanding as of September 30, 2009 were $60.4 million, up $23.4 million or 65.9% from the prior year.

Through September 30th of 2009 revenue was $3.3 million, up $1.4 million from one year ago, a 75.1% increase over the same nine month period of 2008, attributable to substantial growth in assets, strong increase in fee income and a healthy net interest margin. Expenses were up 39.3% during the same period, due in large part to start-up expenses for Roseville. For the three quarters of 2009 the bank lost $877,000, compared to $1,309,000 for the same period last year. This was a substantial improvement over the same period last year considering the additional start up costs incurred in opening the new Roseville branch. 2009 results also includes a healthy $576,633 addition to the loan loss reserve, which is now at 1.50% of loans. Operating losses are normal and expected for a new bank - Folsom Lake Bank is on schedule to achieve profitability sooner than the average start up bank.

As of September 30, 2009 the Bank does not have any non-accrual loans. Flautt stated, "We are very conservative in our lending practices, however we are not unaffected by the economic downturn and our loan portfolio remains strong with a healthy reserve. We remain an active lender in the community and look forward to a continued growth in our loan portfolio."

Folsom Lake Bank is the area's newest community bank, now with locations in both Folsom and Roseville. The Bank is a locally owned and locally operated full service commercial bank focused on small business owners, professionals and individuals in the communities surrounding Folsom Lake. Folsom Lake Bank is publicly traded on the Over-the-Counter Bulletin Board. For 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.