American River Bankshares in Sacramento, Calif., said Thursday that strong growth in commercial loans and core deposits helped fuel fourth-quarter earnings.
Net income rose 35%, to $2.57 million, the $613 million-asset company said.
Most of the gain came from a 26.7% increase in net interest income, to $6.95 million. Though total loans grew just 3.7%, to $365 million, lucrative commercial loans climbed 16.6%, to $78 million.
Moreover, a 14.4% increase in no-interest deposits, to $164 million, helped the net interest margin hit 5.09% in the fourth quarter, versus 4.90% a year earlier.
Noninterest income increased 13.3%, to $570,000. American River credited service fees and merchant fee income resulting from the recent acquisition of the $130 million-asset Bank of Amador in Jackson, Calif.
