Business
Exchange Bank Announces Third Quarter 2021 Earnings
Exchange Bank Announces Third Quarter 2021 Earnings.
About this update from Exchange Bank (santa Rosa, Ca)
[{"type":"text","content":"\nExchange Bank (OTC: EXSR) today announced results for the third quarter of 2021, reporting net income after taxes of $9.85 million, compared with $7.98 million for the same quarter in 2020, an increase of 23.43%.\n\nThe Bank’s net interest income decreased slightly from $24.08 million during the three months ended September 30, 2020 to $23.99 million during the same period in 2021. The 2021 interest income was supported by the PPP loans booked in both 2020 and 2021 and the fees associated with these loans. In the third quarter of 2021, the Bank recognized $1.82 million in PPP loan fees.\n\nThe Bank’s results continue to be influenced by the changing patterns of behavior by both business and consumer clients as well as the fiscal and monetary response of the U.S. Government to the coronavirus pandemic. Non-interest income increased from $5.22 million in the third quarter of 2020 to $5.55 million in the similar period in 2021. A highlight of the favorable non-interest income is Trust and Investment Management with an increase of $0.45 million over the third quarter of 2020 to $2.52 million for the three months ended September 30, 2021. This favorable income was offset by three main factors: slightly lower account service fees due to higher than normal compensating balances across both business and consumer deposit accounts; a decline in interchange fees as a result of reduced consumer spending; and lower SBA fee income due to diminished business activities during this period. These fee-based decreases are a continuing trend from 2020 which the Bank expects to continue for the remainder of 2021.\n\nThe quality of the Bank’s loan portfolio remains strong and the Bank did not add to its reserve during the third quarter of 2021. The Bank did take a provision for loan loss of $0.9 million during the similar period in 2020.\n\nThe previously discussed increases in revenue were supplemented by the Bank’s decreased operating expenses. The Bank had a decrease operating expenses during the three months ending September 30, 2021 of $1.53 million or 8.80% in comparison to the three months ended September 30, 2020. The 2020 expenses include approximately $2.00 million related to the Bank’s core system conversion.\n\nThe Bank experienced a dramatic increase in deposit balances which were up year-over-year by appr...