American River Bancshares has posted its 83rd straight quarter of profitability.
The Sacramento company said Friday that its third-quarter net income rose 6.3%, to $1.3 million. The increase was fueled largely by higher loan demand and a nearly 80% increase in the value of its securities investments, to $129 million.
However, American River’s net interest margin dropped 33 basis points, to 4.78%, and noninterest income fell 31.6%, to $441,000, mainly because of a drop in fee income from its lease brokerage services and mortgage services.
Total assets increased 23%, to $457 million, mainly because of the huge increases in the value of its securities investments. During the fourth quarter assets should increase again, to $560 million, after American River completes its acquisition of the $130 million-asset Bank of Amador in Jackson, Calif.
American River Bank has five branches in the Sacramento area and three in Sonoma County, where it operates under the name North Coast Bank. After the Bank of Amador deal closes, it would have three branches in Amador County.
