With increased overhead costs and fewer investment tax credits, Pioneer Bancorp, the holding company for Pioneer Bank in Fullerton, reported that net income last year declined 8% to $441,454 from $480,062.
"We didn't have a lot of investment tax credits in 1985 that we had in 1984," said Richard B. Boyle, president and chief executive of the bank. "We also moved to a new headquarters in Fullerton and opened a new branch in Santa Ana. That takes its toll on overhead."
But the bank, Pioneer Bancorp's sole asset, showed strong growth in other areas. At the end of the year, total deposits rose 87% to $78.5 million from $42 million, and total loans jumped 51% to $55.3 million from $36.6 million.
Assets on Dec. 31 were $84.1 million, a 76% increase from $47.6 million a year earlier. But Boyle said part of that total was based on $12 million in short-term deposits that title and escrow companies put in on the last day of the year and took out within two weeks. He said average assets for the year were $72 million, a 51% increase.