Exchange Bank announces $3 million first quarter profit
Exchange Bank issued a press release this week announcing that it made an after tax profit of $3 million for the first quarter of 2011. "However, with many consumer and business customers still struggling through this modest economic recovery, the Bank remains cautious in their outlook until the local recovery begins to support substantially stronger employment and consumer spending," the release added.
The report indicated the bank's net income after tax was $2.984 million in the first quarter, an increase of $856 thousand or 40% over the first quarter of 2010.
The bank's net interest income declined $1.8 million because of "... soft demand for new loan growth and the existing loan portfolio decline of $50 million when compared to the first quarter of 2010."
But the report added that the "... decline in net interest income was more than offset by operating strengths in other core areas, expense control, and a decline in the provision for loan loss of $2.75 million. The provision for loan loss declined from $6.0 million during the quarter ending March 31, 2010 to $3.25 million for the similar quarter ending March 31.2011. The decline in the provision for loan loss reserve is a reflection of the declining loss exposure within the Bank’s Loan portfolio."
“We are pleased to report our eighth consecutive quarterly profit;” stated President and Chief Executive Officer William R. Schrader.” “We continue in our efforts to restore asset quality and it will remain a challenge in this weak economic recovery. The dedication and efforts of our entire team have enabled our organization to continue a steady recovery despite the many economic challenges in our local and state economies. “