Exchange Bank saw earnings leap 5 percent

Exchange Bank reported 2016 third-quarter net income of $5.4 million, up 5 percent from the third quarter of 2015. Net income for the second quarter of 2015 was $5.1 million.

“The increase in earnings for the third quarter is a significant accomplishment in this low-rate environment that is posing a challenge to the entire banking industry,” said Gary Hartwick, president and CEO, in a statement. Increases came in loan and deposit volume, as well as in expansion of the bank’s trust and investment management business.

Loan growth of $140 million or 11.3 percent in the past year buoyed earnings. Deposits were up $127 million or 7.2 percent.

Net interest income grew $900,000 in the third quarter of 2016 compared to the same quarter in 2015.

Exchange Bank had dividends per common share in the 2016 third quarter of 70 cents, payable to shareholders of September 16.The Doyle Trust, used to fund scholarships at Santa Rosa Junior College, receives 51 percent of all cash dividends paid by the bank.

Exchange Bank, headquartered in Santa Rosa and founded in 1890, has assets of $2 billion and 18 branches. There are also three commercial and SBA lending offices in Roseville, San Jose and Lafayette.