Northern California banks reported mixed results for the third quarter ended Sept. 30, with loan loss reserves taking a bite out of earnings.

Executives at financial institutions throughout the area characterized the economy as wobbly, prompting them to boost reserves dedicated to potential loan losses.

Here's a review of third-quarter results reported this week:

• Greater Sacramento Bancorp, the parent of Bank of Sacramento, posted a net loss of $124,000, or 5 cents a share, compared with earnings of $745,000, or 28 cents per share, in the year-ago quarter.

Through nine months, the company reported net income of $509,000, or 20 cents a share, down 61.7 percent from a profit of $1.33 million, or 50 cents a share, in 2008.

The bank said its performance was affected by nearly $1.8 million in write-offs and write-downs on two loans and adding $1.1 million to its loan-loss reserves in the most recent quarter.

William J. Martin, chairman and CEO, said "the negative impact on our capital was minimal," and he reiterated a previous prediction that "it will take the balance of this year and well into 2010 before we realize the benefits from our efforts to purge our balance sheet of nonperforming assets."

• American River Bankshares, parent of Rancho Cordova's American River Bank, reported net income of $827,000, or 14 cents a share, for the quarter, down from earnings of $1.93 million, or 33 cents a share, in 2008.

Through nine months, net income was $1.4 million, or 24 cents a share, compared with $5.7 million, or 98 cents a share, last year.

As of Sept. 30, ARB's allowance for loan and lease losses was $7.57 million, compared with $6.18 million last year.

• Placerville-based El Dorado Savings Bank posted quarterly net income of $2.68 million, a 19.3 percent decline from $3.32 million last year.

Through nine months, the company had earnings of $8.58 million, down from $8.96 million in 2008.

Thomas C. Meuser, bank chairman and CEO, said the bank's fiscal standing remains strong, despite the year-to-year profit decreases.

"We're very pleased," he said. "We've avoided the major problems. We don't have any sign of loan problems. … And we are adding to reserves."

• Nevada City-based Citizens Bancorp, holding company of Citizens Bank of Northern California, had a profit of $363,000 in the quarter, up from $176,000 a year ago.

However, through nine months, the company lost $1.7 million, compared with earnings of $889,000 in 2008. The company attributed the loss to an increase in the provision for loan losses, along with valuation expenses related to real estate it owns.

• Portland, Ore.-based Umpqua Holdings Corp., parent of Umpqua Bank, reported a net loss of $7.1 million in the quarter.

Losses to common shareholders were lower still – $10.4 million, or 14 cents per share – due to the company's participation in the Troubled Assets Relief Program.

The federal bailout program requires its participants to pay a dividend to the U.S. Treasury ahead of other shareholders.

The bank cited worries about bad loans. Umpqua has $236.7 million in commercial real estate loans coming due in 2009 and 2010.

To absorb the cost of future defaults from commercial real estate and other loans, Umpqua said it has set aside $52.1 million – its second-highest loan-loss provision since defaults began to rise in 2007.

Umpqua Bank operates more than 20 branches in the Sacramento region.

• Fresno-based Central Valley Community Bancorp, parent of Central Valley Community Bank, reported quarterly net income of $379,000, or 3 cents per share, compared with earnings of $1.2 million, or 19 cents a share, in 2008.

Through nine months, profits were $2.1 million, or 23 cents a share, compared with $3.8 million, or 61 cents a share, last year.

During the nine months ended Sept. 30, the company recorded a provision for credit losses of $7.65 million, compared with $905,000 for the same period in 2008.

The company operates about 15 Central Valley offices, including one in Sacramento.

Call The Bee's Mark Glover, (916) 321-1184.