Regents Bank, based in La Jolla and with five branches, reported second quarter net income of $262,000, compared with a net loss of $927,000 for the like quarter of 2010.

For the half, Regents said it had net earnings of $822,000 compared with a net loss of $898,000 for the first half of 2010.

Regents took heavy losses in the first half of last year due to higher reserves it had to put aside for actual and potential losses from its problem loans.

The bank sold about $10 million of its problem loans last year, helping to clean up its books. As of June 30, it reported holding $3.6 million in nonperforming loans, or 1 percent of its total assets of $354.8 million.

Regents’ assets declined 8 percent from the second quarter of last year, but grew 5 percent from the first quarter.

Loans shrunk 6.5 percent from the prior year’s half to $216.7 million. CEO Dan Yates said demand for business loans locally and across the nation is tepid.

With loan demand so weak, the bank is concentrating on growing its deposit base. Deposits were down nearly 10 percent from the prior year to $314.6 million. From the first quarter of this year, deposits grew nearly 7 percent.

Regents is coming up on its 10-year anniversary next month, having opened right after the infamous terrorist attacks on the nation.

— Mike Allen