“We had a pretty darn good quarter, just about even with last year,” said Jim Arneson, Venture president.

 • Net income came in at $3.1 million, compared to $3.2 million in the same period last year.

 • The provision for loan losses rose over the first quarter of 2007, from $375,000 to a current $1,525,000.

 • Total deposits decreased $10.2 million, or 1.2 percent, from $837.1 million last year to $826.9 million at the end of March. Deposits were $39.5 million – or 5 percent – higher than at the end of the first quarter of 2007.

 • Nonperforming assets – troubled loans – as a percentage of total assets were 1.72 percent at the end of the quarter, compared to 0.27 percent at the end of 2007.

Arneson explained that four delinquent loans – three to land developers and one to a builder – caused much of the increase in the loss provision. “It doesn’t necessarily mean we’ll have a loss,” he said.

Concerning the increase in the provision, he said, “Based on the best information we have, it’s setting aside money to make sure we have enough in case things get worse. It makes sense in this environment to have those numbers increasing. In certain geographies we’re seeing the price of lots and real estate decrease more than others.”

On a brighter side, Arneson said, commercial loans are increasing, as are loan originations.

“This may sound counterintuitive,” he said. “Our originations are about three times what they were last year. There are mortgage originators who aren’t in the market any more, and we are taking advantage of that opportunity. There’s not a lot of homes being built – we’re seeing less of that – but we’re seeing a lot of commercial.”

C.R. Roberts: 253-597-8535

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