Pacific State Bancorp, the parent company of Pacific State Bank, has reported that its net income for the first quarter of 2008 decreased 17.5% to $1.09 million compared to the same period in 2007.
The bank reported that its total assets as of March 31, 2008 increased 2.9% to $443.68 million from December 31, 2007. The bank has also experienced an increase in nonperforming loans from $432,000 at December 31, 2007 to $2.18 million or 0.66% of gross loans at March 31, 2008.
Steven Rosso, president and CEO of Pacific State Bancorp, noted that the decreased income performance is primarily the result of the bank experiencing a contraction in its net interest margin. The contraction of the net interest margin is the result of the bank’s interest earning assets repricing downward more quickly, after the federal reserve rate cuts, than the bank’s interest bearing liabilities.