CommerceBank in Newport Beach said net income for the first quarter soared 41.3% to $291,000 from last year's first quarter net earnings of $206,000.
At the end of the quarter, the bank's assets were $180 million, a 47.5% increase over $122 million in assets a year earlier.
The bank's loans increased 19% to $99.2 million from $83.3 million and deposits--nearly half of which are in demand accounts--were $166.2 million at the quarter's end, a 48.6% increase over deposits of $111.9 million a year earlier.
Demand checking accounts provide banks a bigger profit margin than do interest-bearing checking and savings accounts because the banks invest the money and earn interest on it but do not pay any interest to customers. Banks of similar size usually have about 20% of their deposits in demand accounts, said Clyde Gossert, president and chief executive of CommerceBank.