Business
Exchange Bank Announces Second Quarter 2022 Earnings
Exchange Bank Announces Second Quarter 2022 Earnings.
About this update from Exchange Bank (santa Rosa, Ca)
[{"type":"text","content":"\nExchange Bank (OTC: EXSR) today announced results for the second quarter of 2022, reporting net income after taxes of $9.52 million, compared with $8.22 million for the same quarter of 2021, an increase of 15.82%. The increase in earnings in the second quarter of 2022 can be attributed to increases in net interest income of $1.3 million and a decrease in provision expense of $0.8 million.\n\nThe Bank’s net interest income increased from $23.24 million during the three months ended June 30, 2021 to $24.54 million the same period in 2022. The increase in interest income is due in large part to a growth in core earning assets and interest income earned on the Bank’s investment portfolio. The investment portfolio interest was $2.80 million more in the second quarter of 2022 compared to the second quarter of 2021. In addition, interest earned on fed funds increased $350,000 in the 2022 quarter. These positive changes were offset by a decrease in PPP loans fees of $468,000 from 2021 to 2022. The Bank’s net interest margin decreased from 2.90% in 2021 to 2.80% in 2022. The Bank expects net interest margin challenges to continue into 2022 as market conditions for loans remain very competitive.\n\nNon-interest income increased from $5.95 million in the second quarter of 2021 to $6.07 million in the similar period in 2022. This improvement can be attributed to an increase in consumer and business-related usage fees including interchange fees and ATM network fees. While not at pre-pandemic levels, usage-based fees have recovered from one year ago. Non-interest expenses increased 2.67% from 2021 to $17.47 million for the second quarter of 2022.\n\nThe quality of the Bank’s loan portfolio remains strong; the Bank did not take a provision for loan losses in the second quarter of 2022. Due to the economic uncertainty in the second quarter of 2021, the Bank elected to strengthen its reserve for potential future losses with a provision for loan loss totaling $0.8 million during the second quarter of 2021.\n\nTotal assets increased to $3.45 billion as of June 30, 2022 up from $3.43 million. The Bank’s cash position remains elevated at $163 million but down $336 million from $499 million in 2021. The excess cash remains from prior years and was related to PPP loans and economic stimulus received by our customers.\n\...