BAKER BOYER INCREASES EARNINGS

WALLA WALLA -- Baker Boyer Bank announced that earnings for the first half of 2010 increased by 2.3% from the same period of 2009. Deposits grew by more than $46 mil­lion in the same period, a 13 % increase. "This increase in earnings came despite the fact that our FDIC Insurance expense for our share of the cost of bailing out failed banks has increased from $4.9 thousand in the month of January 2009 to $69.9 thousand in the month of June 2010," Megan Clubb, President and CEO said.

"We view this increase in earnings and growth in deposits as hopeful signs that the economic health of our customers is improving slightly, though economic uncertainty remains." Clubb said she is also optimistic that the Dodd-Frank Wall Street Reform and Consumer Protection Act passed by Con­gress recently and signed by the President will help rebuild confidence and trust in the banking system. "While it will take time for us to fully assess the impact of this bill, I believe that community bankers in Washington and across the country did a good job of representing our custom­ers,"

she said. "That effort helped legislators and regulators understand the sharp differences from what we provide to Main Street and the predatory practices of the Wall Street Banks and non-bank firms whose actions created the crisis."