Exchange Bank posted its 17th straight quarterly profit this summer, even though its loan growth was confined to real estate and not consumer or business loans.
Sonoma County's largest commercial bank on Wednesday reported net income jumped to $3.8 million in the quarter ending June 30, up 34 percent compared to a year earlier.
For the year's first six months, net income rose 21 percent to $7 million, compared to the same period for 2012.
William R. Schrader, the bank's president and chief executive officer, said the bank had performed well in what remains "a slow recovery."
"There's still a cautiousness as far as capital spending is concerned," Schrader said.
The bank's loan portfolio increased by $25 million from a year earlier to $1.06 billion. That growth came solely from real estate lending, which increased 6 percent. Consumer loans fell 9 percent and business loans declined 4 percent.
Even so, officials said they expect to see business and consumer lending pick up as the economy improves. And they said they see a few encouraging signs.
The bank recently committed to its first construction loan for a single-family housing project in five years, said Gary Hartwick, executive vice president and chief operating officer at Exchange Bank. Officials declined to name the project.
"It's evidence of renewed construction activity on a small scale," Hartwick said.
For the quarter, deposits increased 6 percent from a year earlier to $1.49 billion. Total assets rose 4 percent to $1.69 billion.