Banking & Finance: North Bay banks report largely stronger earnings

Banks across the North Bay are reporting earnings, including:

Exchange Bank announced a net after tax profit for the third quarter of $3.2 million, 7 percent higher than during the same period last year.

Total assets increased $82 million –5 percent — over the 12 months ended Sept. 30. Strong core deposit growth lead to the accumulation of those assets, according to Exchange Bank, and total assets now exceed $1.63 billion.

The net value of loans was lower compared to the same period in 2011 — $1.01 billion, versus $1.04 billion. Investment securities have increased, with $388.8 million compared to $310.7 million last year.

The bank’s provision for loan losses was $2.1 million as of Sept. 30, down from $3 million at the same point in 2011. That decline was possible due to continued improvements to asset quality, with a 35 percent reduction in nonperforming assets over the past 12 months.***

Bank of Marin Bancorp (Nasdaq: BMRC), the parent company of Bank of Marin, reported net income fell nearly 24 percent in the third quarter but was up nearly 8 percent in the first nine months of this year.

For the third quarter ended Sept. 30, net income totaled $3.2 million, a 23.8 percent decrease from the same three months in 2011. The bancorp attributed that decrease largely to a heightened quarterly loss provision of $2.1 million primarily due to a $4.2 million commercial real estate loan. It is currently in the process of foreclosure, according to the bank.

For the nine-month period, earnings increased 7.7 percent to $13.1 million from $12.2 million earned during the same nine months in 2011.

Despite the increased provision for the quarter, the bank’s total loss provision for the nine-month period was less than half the $4.6 million allocated in the first nine months of 2011. The bank had allocated $100,000 in the prior quarter. Bank of Marin’s total risk-based capital ratio was 14 percent as of Sept. 30, up from 13.3 percent at the same point in 2011.***Net assets at Summit State Bank grew 11 percent over the first nine months of the year to $429.72 million and loans increased 5 percent over the same period, to $283.3 million, the bank reported.

Revenue from a one-time legal settlement helped boost net income for Summit State Bank (NASDAQ: SSBI) for the quarter ended Sept. 30, .

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