Exchange Bank reported 2017 first-quarter net income of $6.6 million, up 27 percent from the first quarter of 2016.
Net income for the second quarter of 2015 was $5.1 million.
“The increase in earnings can be attributed to both an increase in core earnings of the bank as a result of increased net-interest income as well as nonrecurring earnings in the form of gains on the sale of other real estate owned,” said Gary Hartwick, president and CEO, in a statement.
During the first quarter of 2017, the bank completed the sale of real estate it owned, which contributed pretax gains of approximately $1.4 million. There was no such gain on the sale of assets during the similar quarter in 2016, and there is no expectation of a similar sale in the future.
In 2016 the bank had a recovery of a $500 thousand provision for loan-loss reserves that was taken back into income. There was no similar recapture of provision for loan losses during the first quarter of 2017.
Without the real estate sale, Exchange Bank’s non-interest income rose by nearly $650,000 in the first quarter of 2017 compared to the first quarter of 2016.
Loan growth of $151 million in the past year buoyed earnings. Deposits were up $124 million or 6.8 percent over the year.
Exchange Bank paid a quarterly cash dividend of 80 cents per share on common stock outstanding to shareholders on March 17.The Doyle Trust, used to fund scholarships at Santa Rosa Junior College, receives 50.44 percent of all cash dividends paid by the bank.
Exchange Bank, headquartered in Santa Rosa and founded in 1890, has assets of about $2 billion and 18 branches. There are also three commercial and SBA lending offices in Roseville, San Jose and Lafayette.
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