Third-quarter income at Seacoast Commerce Banc Holdings was just shy of $1.5 million in the third quarter, virtually unchanged compared to the same quarter of 2015, Seacoast Commerce Bank’s parent company said Thursday.
But the bank’s assets over the last 12 months were up by about $59 million, an increase of 11.4 percent, to $578.9 million, and Small Business Administration loan production increased by nearly 27 percent from about $50 million in 2015’s third quarter to about $74 million, Seacoast said.
The San Diego company attributed the slow income growth to one-time charges of about $300,000 related to reorganization.
Without the one-time charges, income growth compared to the third quarter of 2015 would have been 16.2 percent, instead of 2.9 percent, the bank said.
“While our growth in balances were good, we made some strategic decisions in the third quarter that negatively affected our income, including consolidating and eliminating some positions,” CEO Rick Sanborn said. “We could have made the decision to sell some additional loans to cover those expenses but we chose not to.”
That’s because the bank has been holding onto more SBA-guaranteed pieces of the loans it originates to grow its high-quality asset pool, he said.
Seacoast is the 12th-largest SBA lender in the country for the past two quarters, and the fifth-largest in California.