Earnings for Santa Rosa’s Exchange Bank dip in Q4 but rise in 2022

Exchange Bank (OTC: EXSR) reported Tuesday earnings for the last quarter of 2022 declined from a year before, but full-year earnings were up.

At $9.64 million, quarterly net income slipped a little over 2% from the fourth quarter of 2021, the Santa Rosa-based bank stated.

However, earnings were $37.48 million for all of 2022, an annual increase of over 2%.

Net interest income, a figure that represents the difference between revenue generated by interest-bearing assets and the costs of servicing liabilities, was $99.14 million for 2022, up almost 6% year over year. It also went up between the third and fourth quarters, ending at $26.22 million.

Non-interest income, which is derived by fees, was 3% higher in 2022 as well, a $24.37 million.

Reflective of an economic correction coming off a period of explosive growth, deposits slipped by over 3% in 2022 to $3.07 billion. Bank officials reported the decrease was spread out across all types of accounts.

“It is possible the bank could continue to experience an additional runoff of the excess deposits due to their unusual and short-term nature as they are used to support small business and consumer-related expenses over the next year,“ the announcement stated.

The institution’s loan and lease portfolio was unchanged last year, at $1.5 billion, with a 26% drop in commercial loans offset by a 6% rise in real estate loans, which make up most of the portfolio at $1.14 billion, and a nearly 10% jump in consumer loans.

Founded in 1890, Exchange Bank holds $3.33 billion in assets and manages 17 retail branches in Sonoma County, a commercial branch in Roseville as well as trust and investment offices in its home base of Santa Rosa.

As is its practice, the bank plans to announce any dividend on a separate date.

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