Exchange Bank’s board of directors announced this week that its current stockholders will see a dividend increase of $1 per share on common stock outstanding at the close of business on Friday, Nov. 30. The dividend will be payable on Dec. 14.
The bank said the dividend hike is a result of its strong earnings growth this year.
Exchange Bank on Oct. 23 reported a 43-percent increase in profit for the third quarter compared with the same period in 2017, according to the Press Democrat. The Santa Rosa bank had also reported a net income of $9.53 million for the three-month period that ended on Sept. 30, which was helped by a 16-percent increase in its net interest income, especially in its growing loan portfolio.
The upcoming cash dividend amounts to a 5-cent increase over the prior quarter’s dividend at 95 cents per share, according to the bank. The dividend increased from 90 cents per share during the similar quarter ending Dec. 31, 2017, an increase of 11 percent.
Exchange Bank said more than 50 percent of its cash dividend goes to the Doyle Trust, which funds the Doyle Scholarships at Santa Rosa Junior College.