Wheatland Bank says it logged record loan growth last year while enjoying asset quality achieved by few banks.

The bank, which has its administrative offices in Spokane, says it had no loan losses last year and ended 2008 with just 0.4 percent of its total loans delinquent and only 0.1 percent of its loans not performing. Delinquent loans are past due 30 days, although interest is still accruing. Nonperforming loans aren't earning interest, and the bank no longer anticipates full payment of the interest and principal.

"At a time when other financial institutions are facing unprecedented loan losses, Wheatland bucked the industry trend and may be one of the only banks in the state or even the country that has experienced no loan losses during 2008," Wheatland says.

Because demand for its common stock is strong, it's considering making a limited private placement of its common shares in the future, Wheatland says. The bank has about 350 shareholders, primarily among its officers, directors, and long-time customers.

In the year ended Dec. 31, Wheatland's net loans grew by 26 percent, and it ended the year with $169 million in total loans. At year-end, total deposits were $175 million, having gained 17 percent during the year. Net income for the year, at $1.1 million, exceeded budget by 7 percent, the bank says.

Wheatland, which was founded in Davenport, opened four new branches in Wenatchee, Yakima, Ellensburg, and Chelan in 2008 as part of an "aggressive" expansion plan in Central Washington, and it racked up strong deposit and loan growth there, says Susan Horton, its chairwoman, president, and CEO.

"The bank's expansion in Central Washington has been a home run" thanks to the expertise and performance of bankers from those markets whom it hired, Horton says.

"It was an aggressive move for Wheatland Bank, and one that wasn't without risk," she says. "The rewards of this big move for Wheatland will continue to substantially enhance shareholder value for years to come."

The bank had said earlier that it wouldn't seek capital through the U.S. government's Troubled Asset Relief Program, and Horton reiterates that it "does not need and has no plans to take taxpayer money from the U.S. Treasury."

She adds, "Wheatland's strong internally generated capital position will allow Wheatland to continue with its growth plans." The 30-year-old bank says it now has more than $200 million in total assets, 13 branches in seven counties, and more than 10,000 customers.