Seacoast Commerce Bank reported earnings of $2.3 million in 2017 compared with $6.9 million in the year prior.
The bank said merger expenses of $2 million and write-down of $3.8 million as a result of the tax reform bill passed in December reduced net income from $8.1 million, or 17.9 percent more than in 2016.
During 2017, Seacoast Commerce Banc Holdings (OTC Pink: SCBH), the bank's holding company, raised $10 million in private capital and completed its first acquisition, of the San Juan Capistrano-based Capital Bank.
The acquisition contributed to significant growth in total loans, which as of Dec. 31 were up by $330 million, or 73.8 percent, compared to the end of 2016. Deposits rose in 2017 by $201.7 million, or 41.3 percent.
"The Capital Bank acquisition is producing results in line with our expectations, and we are excited to see our new national sales managers expand our lending and deposit platforms," said Richard Sanborn, Seacoast's president and chief executive. "From a financial standpoint, with Capital Bank now fully integrated into Seacoast, we expect to benefit from a full year of synergies and cost saves which will drive value to our shareholders.”
Seacoast has banking branches in Encinitas, National City, San Diego and San Juan Capistrano.
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