Pacific Inland Bancorp said its consolidated net income for the second quarter increased nearly nine-fold to $353,525 from last year's $42,426. The bank holding company's net income for the first six months more than quadrupled to $456,307 from $106,955.
"I wish we could say that it was super performance by the bank," but the huge increases merely reflect the fact that Pacific Inland was relatively new and didn't have as much business last year as its more-established competitors, said John Britt, president and chief executive of the Anaheim-based institution.
Tax benefits from previous operating losses also helped to boost income. In the quarter, the benefit rose to $154,000 from $19,100 a year ago. The benefit in the first six months was $202,300, four times the $50,100 amount a year ago.
The holding company said consolidated assets as of June 30 rose 23.2% to $63.7 million from $51.7. The bank's loan portfolio increased 27% to $38.1 million from $30 million, and its total deposits grew 34% to $52 million from $38.8 million.
The 28-month-old bank, which contributed 80% of Pacific Inland Bancorp's net income, took on higher personnel and lease costs to attract experienced bankers, Britt said, and it now must control expenses and expand its assets to support the personnel commitment it made.
Pacific Inland Bancorp attributed about 10% of its net income to Trident Investment Management Inc., its Paramis, N.J., investment adviser subsidiary. The rest of the earnings came from its Pacific Inland Venture Corp., a venture capital subsidiary in Anaheim, and from corporate activities.