Paso Robles-based Heritage Oaks Bank reported a net income of $4.2 million in the third quarter, or 12 cents per diluted common share, up from $4 million, or 12 cents per share, for the same period last year.
Gross loans increased by $136 million, or 11.3 percent, to $1.3 billion, compared to $1.2 billion in the third quarter of 2015. New loan production totaled $113.1 million, an increase of 3.6 percent compared to the same quarter last year.
Total deposits increased by $59.6 million, or 3.8 percent, to $1.6 billion, up from $1.57 billion a year earlier.
“Our earnings for the third quarter were supported by an increase in non-interest income attributable to strong levels of customer swap fee income, and mortgage banking revenue, as our customers took advantage of the decline in long-term interest rates,” Heritage Oaks President and CEO Simone Lagomarsino said in a news release. “We also continued to grow the deposit and loan portfolios, although loan growth was subdued from the pay-off of two large construction loans due to the early completion of projects, and due to the seasonal decline in agribusiness line utilization. Our loan pipeline remains strong going into the fourth quarter, and we continue to anticipate long-term annual loan growth in the low double digits.”
The company reached the $2 billion mark in total assets in the third quarter. It also declared a dividend of 6 cents per common share for shareholders of record as of Nov. 15, which is payable to common shareholders on Nov. 30.
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