Seacoast Commerce Banc Holdings, the holding company of Rancho Bernardo-based Seacoast Commerce Bank, reported second-quarter net income of $1.4 million, or 23 cents per share, compared with net income of $1.8 million, or 30 cents per share, a year ago, a 22.7 percent decrease.
In the first quarter of 2017, Seacoast, which trades on the over-the-counter "pink sheets" market, reported net income of $1.6 million, or 26 cents per share.
The company is in the process of acquiring San Jan Capistrano-based Capital Bank, and a portion of the decrease in net income was attributable to merger-related expenses, which subtracted $281,000 from the company's bottom line. That deal is expected to close in the fourth quarter.
Net income at the company, whose primary business is making U.S. Small Business Administration loans, was also being impacted by the bank's decision, announced in spring, to sell fewer of the SBA-guaranteed portion of the loans it makes. The move was intended to boost interest income over time, a steady source of revenue, at the expense of shorter-term gains.
The SBA said Seacoast was the 14th-largest SBA lender in the nation for the nine months that ended June 30 of the more than 3,000 financial institutions approved to make such loans. That's based on total dollars approved, which was $197.3 million for Seacoast in that time period.
The bank also recently relocated its branch in Chula Vista to National City.
Seacoast's assets grew 9.5 percent to $590 million in the second quarter of 2017 compared to a year ago. Its total assets are projected to increase by $900 million with the Capital Bank acquisition.