Paso Robles-based Heritage Oaks Bancorp earnings missed analyst estimates for the fourth quarter but earnings were significantly up on the year.
Heritage Oaks reported net income of $3.5 million, or 10 cents per share, for the fourth quarter. That missed analyst expectations of 11 cents per share and was down from $4.2 million net earnings, or 13 cents per share, from the fourth quarter of 2014.
For the year, net income was up 74 percent to $15.3 million, or 45 cents per share, from $8.8 million, or 27 cents per share, in 2014.
Gross loans increased by $53.8 million, or 4.5 percent, in the fourth quarter to $1.25 billion compared to the same period last year. New loan production totaled $112.2 million for the quarter.
“We were pleased to achieve the highest level of quarterly loan growth for 2015 during the fourth quarter,” Heritage Oaks President and CEO Simone Lagomarsino said in a news release. “Loan production increased by 18 percent compared to the prior quarter. We have closed the year with a strong loan pipeline and have already recorded our first interest rate swap during January. We expect that our customers’ interest in the swap product will increase given the rising rate environment.”
Total deposits grew by 12.2 percent, or $170 million, to $1.56 billion for the fourth quarter, up from $1.39 billion in the fourth quarter of 2014.
Tier 1 capital ratios at the quarter’s end were 9.50 percent and 13.74 percent for total risk-based capital.
The board declared a dividend of 6 cents per common share for shareholders of record as of Feb. 17, which is payable to shareholders on Feb. 29.
Total assets increased by $189.6 million, or 11.1 percent, to $1.9 billion year-over-year.
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