First PacTrust Bancorp Inc. in Chula Vista, Calif., said Tuesday that third-quarter earnings dropped 7.4% from a year earlier, to $1.25 million. For the nine months through Sept. 30, net income fell 2.7%, to $3.5 million.
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The $818 million-asset company attributed the earnings drop largely to higher funding costs. Its interest income rose more than 30% in the quarter, to $12 million, thanks to strong loan growth, but that was more than offset by a 64% increase in interest expense, to $7.4 million.
As a result, First PacTrust's net interest margin fell by 32 basis points from a year earlier, to 2.38%, and its return on equity was down 68 basis points, to 6.26%.
Late Tuesday, First PacTrust's stock was down 0.71%, to $28.03 a share.
