Officials at National Bank of Southern California said Tuesday that a strong market for commercial loans was the primary factor in the 23-month-old bank's nearly six-fold increase in profits for 1984.
Most new banks take at least two years to begin showing a profit and have only modest earnings, if any, at the end of their second years. But Santa Ana-based National posted earnings of $619,830 for 1984, up 475% from the $107,804 profit reported at the end of 1983, a year in which it operated for 11 1/2 months.
Total income for 1984 was $7.46 million, up 79% from $4.17 million in 1983.
For the fourth quarter of 1984, National reported earnings of $103,696, a 40.6% increase from the $73,776 profit reported in the same quarter a year earlier.
The bank's fourth-quarter revenue totaled $2.2 million, a 215% increase from the $696,999 in gross revenue reported for the last three months of 1983.
National said its assets as of Dec. 31, 1984, were $70.4 million, up 17.5% from $59.9 million at the end of 1983. The bank's deposits totaled $61.1 million on Dec. 31, 18.7% better than the $51.5 million reported a year earlier.
National's loan portfolio of $44.5 million at the end of 1984 included $34 million in commercial loans, $5.8 million in real estate mortgage and construction loans and $4.7 million in consumer installment loans.
It represented a 17% increase from the 1983 year-end total of $38 million, which included $30.4 million in commercial loans, $5.2 million in real estate loans and $2.3 million in consumer loans.