Byron Bank Posts Record Assets, Loans
BYRON CENTER — OAK Financial Corp., the bank holding company for Byron Bank, reported 2008 first quarter net income of $1.48 million compared with $1.74 million for the first quarter of 2007. Basic and diluted earnings per share for the first quarter were 55 cents, a decline of 14 percent from the 64 cents reported for the prior year’s first quarter. According to the company, the decline in net income and earnings per share reflects a significant increase in the provision for loan losses during the quarter.
Despite recent economic challenges, total assets and total loans reached new record levels. Total assets increased at an annualized rate of 11 percent to a new record of $765 million at March 31. Total loans exceeded $600 million for the first time. During the first quarter total assets increased $21 million, total loans increased $22 million and total deposits increased $19 million. Non-performing assets declined 24% from $6.9 million at December 31, 2007 to $5.2 million at March 31, 2008.
“While net income was impacted by an additional allocation to our loan loss reserve, first quarter performance met out expectations,” said President and CEO Patrick K. Gill. “Core operating income was strong and we posted improvements in our nonperforming assets and net interest margin. On an overall basis, we’re very pleased.”
In the first quarter Byron Bank built a new banking office in Moline to replace the aging and outdated office there. The new office at 4426 Division Ave. is in a much more visible location, the company noted. Also during the first quarter, Byron Bank became the exclusive financial institution for Rivertown Mall. The bank put three ATMs and a merchant processing center inside the mall. Byron Bank announced it will open its 14th banking office later this month at 4024 Park East Court SE in Grand Rapids.