Oct. 23--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.