Although a bid from Wells Fargo Bank was 5/1000 percent lower at 4.970%, Siuslaw’s closing costs were instrumental in making the difference. Umpqua Bank was disqualified because it did not meet the City’s bid specifications.
The City of Cottage Grove will use the bond proceeds to purchase and operate the Middlefield golf course and use it for the disposal of effluent from the City’s wastewater treatment plant.

Siuslaw Bank has maintained a branch office in Cottage Grove since 1975. The bank was also successful in 1999 when the City awarded two bond issues; $1,653,000 and $1,300,000 for the Row River Urban Renewal District at 5.27% interest rate, in competition with four other banks.

Headquartered in Florence, Siuslaw Bank operates 10 offices in Lane County.

Consolidated net after-tax income for the third quarter totaled $1,439 million, compared to $1,475 million for the same quarter a year ago. Consolidated net after-tax earnings for the year to date totaled $4,269 million compared to $4,133 million reported during the same period last year. Diluted earnings per common share totaled $1.02 for the first three quarters of 2006, compared to $0.98 in 2005.

Loans increased by $18.6 million, totaling $207.6 million on September 30, 2006, a 9.9%% increase compared to $189.0 million reported last year. The company reported total assets on September 30, 2006 of $290.1 million and total deposits of $251.4 million.

Siuslaw Financial Group board of directors continued with a $0.20 per share cash dividend instituted last year. The dividend will be payable to shareholders of record as of November 3, 2006 and payable on or before November 10, 2006.

Consolidated net after-tax income for the second quarter totaled $1,497,000 a 14.9% increase over the same quarter a year ago when the company reported consolidated net income of $1,302,500.

Net earnings for the first six months totaled $2,830,500 a 6.5% increase over the same period a year ago when the company reported $ 2,658,200 in net earnings. Diluted earnings per common share totaled $0.67 compared to $0.62 for the same six-month period in 2005.

Johan Mehlum, chairman of the board and CEO of Siuslaw Financial Group and Siuslaw Bank said, “The increased earnings can be attributed to the 18.6% increase in the loan portfolio, which increased to $212.9 million from $179.5 million on June 30, 2005. Even with the strong loan demand, credit quality remains excellent with non-performing/non-accrual loans totaling less than $350,000.”

The company reported total assets on June 30, 2006 of $292.6 million, a 9.2% increase over the $268.0 million reported last year at the same time. Deposits increased to $254.8 million compared to $227.8 million on June 30, 2005.

Siuslaw Financial Group board of directors continued with a $0.20 per share cash dividend instituted last year. The dividend will be payable to shareholders of record as of July 21, 2006 and payable on or before August 4, 2006.

Siuslaw Financial Group, headquartered in Florenceis the parent company of Siuslaw Bank and Carter & Carter Financial with offices in Cottage Grove, Creswell, Eugene, Florence, Mapleton, Oakridge, Pleasant Hill, Springfieldand Veneta, all in LaneCounty.

This is the bank's 19th year of honoring outstanding students throughout Lane County. Scholarships were awarded to applicants who were judged to have the greatest scholastic aptitude and potential for community leadership. An endowment established with Western Lane County Foundation provides the financial support for the scholarship program, originally established by the late A.E. (Pony) Ellingson, former chairman of the bank.

Founded in 1964, Siuslaw Bank is Lane County’s oldest, independent community bank. The bank serves customers with retail banking offices in Cottage Grove, Creswell, Eugene, Florence, Mapleton, Oakridge, Pleasant Hill, Springfield, and Veneta, with a private banking office in Eugene. Siuslaw Bank is the winner of the 2005 Emerald Award for Community Caring.

The company reported $280 million in total assets on March 31, 2006, a 7.4% increase over the $260.8 million reported at March 31, 2005. Deposits totaled $242.7 million at quarter end compared to $224,400 for the same period last year, an increase of 8.1%. The Company experienced strong demand for credit, as net loans increased to $202.1 million at quarter end compared to $164.3 million at the end of March 2005, a 23% increase. Credit quality remains excellent with non-performing/non-accrual loans totaling less than $500,000.

The Board of Directors continued with a $0.20 per share quarterly cash dividend instituted last year. The dividend is payable to shareholders of record as of April 20, 2006 and payable on or before April 28, 2006

The Annual Meeting for Siuslaw Financial Group Shareholders will be held at 6:30 P.M. at the Florence Office on April 25, 2006.

Siuslaw Financial Group, headquartered in Florence is the parent company of Siuslaw Bank and Carter & Carter Financial with offices in Cottage Grove, Creswell, Eugene, Mapleton, Oakridge, Pleasant Hill, Springfield and Veneta, all in Lane County.

The Company paid a total dividend of $0.60 per share in 2004, and a total of $0.75 in 2005. The enhanced dividend payout is a result of increased earnings. Earnings per share increased from $1.00 per share in 2004 to $1.26 in 2005. Siuslaw Financial Group announced last month 2005 earnings of $5.29 million, a 23.4% increase over the $4.29 million reported in 2004.

Return on Equity (ROE) increased from 17.02% in 2004 to 21.24% in 2005. Return on Assets (ROA) improved to 1.99% in 2005 vs. 1.79% in 2004 and the company’s Efficiency Ratio remained constant at 52.58 in 2005 compared to 52.65 for 2004.

Siuslaw Financial Group, the parent company of Siuslaw Bank and Carter & Carter Financial operates ten offices, all located in Lane County, Oregon.

The company reported $272 million in total assets on December 31, 2005, a 6.7% increase over the $254.8 million reported at year-end 2004. Deposits totaled $218.7 million at year end. The Company experienced strong demand for credit, as net loans increased to $194.8 million at year end compared to $161.7 million at the end of 2004, a 20.4% increase. Credit quality remains excellent with non-performing/non-accrual loans totaling less than $1 million.

The Board of Directors continued with $0.20 per share quarterly cash dividends they instituted last year, resulting in $0.80 paid per share for the year. The decision to continue with the $0.20 per share quarterly cash dividends was based on the Company’s strong capital and liquidity position, the better than projected earnings, and the confidence in the Company’s ability to sustain the financial performance.

“2005 was a very rewarding and exciting chapter in our 41 year history. Earnings and total assets were at all time highs. The Company believes it has positioned itself for continued strong growth in the future, and we are extremely pleased with our operating performance this past year,” stated Johan Mehlum, chairman of the board and chief executive officer.

Siuslaw Financial Group, headquartered in Florence is the parent company of Siuslaw Bank and Carter & Carter Financial with offices in Cottage Grove, Creswell, Eugene, Mapleton, Oakridge, Pleasant Hill, Springfield and Veneta, all in Lane County.