South Sound Bank's profit fell to $1.02 million last year from $1.44 million in 2009, largely because the Olympia-based bank set aside more money to boost its loan-loss reserves, President and Chief Executive Dan Yerrington said this week.
Increasing loan-loss reserves is treated as an expense, which reduced the bank’s net income last year, he said. Still, the bank experienced growth in assets, deposits and total loans in the 2010/2009 period. The data show:
Assets: Rose to $173 million from $154.9 million.
Deposits: Rose to $133.6 million from $126.6 million.
Never miss a local story.
Total loans: Rose to $116.4 million from $111.7 million.
The bank has been busy with Small Business Administration loans, Yerrington said.
Customers like SBA loans because they typically get better terms – such as more time to pay off the loan – than they would with a conventional product, and banks like sharing the loan risk with the federal government, he said.
About 75 percent to 80 percent of the SBA loan typically is guaranteed by the federal government, Yerrington said.