South Sound Bank and Washington Business Bank were profitable in the second quarter of the year, although net income at both banks was lower from earlier quarters, the two banks announced.
South Sound Bank, which operates branches in Olympia and Lacey, said its second-quarter profit fell to $724,000 from $747,000 in the same year-ago period. The drop in net income was attributed to slower loan demand, particularly for residential and commercial development, President and Chief Executive Dan Yerrington said. “The trends here are similar around the country,” he said, adding that no one is building speculative housing or speculative “anything.”
Still, the bank has been busy lending money to businesses through U.S. Small Business Administration programs, helping 25 South Sound businesses with $13 million in loans during the past six months.
Also in the year-over-year second-quarter period:
• Total assets: Rose to $169.6 million from $162.1 million.
• Total deposits: Rose to $134.4 million from $132.5 million.
• Total loans: Fell to $113.1 million from $125.7 million.
The profit at Washington Business Bank, which operates a branch in Olympia and loan offices in Lacey and Kent, fell to $41,725 in the second quarter from $118,743 in the first quarter. Although net income fell last quarter, deposits are up 14.30 percent since the end of 2009.
Slower loan demand and higher deposits have chipped away at the bank’s profit, resulting in more interest expense and less interest income, President and Chief Executive Jon Jones said. Fewer businesses are looking for loans because of the slower economy, and those that are “have not been in a condition to prudently make the loan,” he said. Loans at the bank are down 3.85 percent since the end of 2009.