California Community Bank, which is based in Escondido and has four branches, reported third-quarter net income of $307,000 compared with $528,000 for the like quarter of 2010, the bank said Oct. 26.

For the nine months, California Community said net income was $688,000 compared with net income of $1.12 million for the like period of 2010.

The bank attributed the decline in profits to allocating $522,000 for income taxes for the period. In the prior year, the bank’s earnings weren’t fully taxable, and required no provision.

The bank’s gross loans as of Sept. 30 were $153.5 million, down from $158.5 million in the prior year’s third quarter.

CEO Larry Hartwig said while the overall loans outstanding declined, the bank had moderate loan growth for the first nine months of this year. Because of payoffs, the loan balance fell 3 percent.

Total assets stood at $241.6 million, up 6 percent from the prior year’s third quarter, and total deposits were $214.9 million, up 8 percent from the prior year.

California Community’s total risk-based capital ratio at Sept. 30 was 16.49 percent, above the 10 percent ratio to be well-capitalized.