Suffolk Bancorp, the parent company of Suffolk County National Bank, has boasted another impressive second quarter.
The company reported a net income of $5.1 million for the second quarter of 2015, up by more than 35 percent from 2014’s second quarter total of $1.3 million.
Additionally, for the six-month period that ended June 30, 2015 the company had a net income of $9.1 million as compared to $7.5 million the previous year.
The jump was due to a $2.3 million increase in net interest income and a $250,000 reduction in loan loss provisions, according to a news release.
“I am very pleased to report what was truly a phenomenal second quarter,” said president and CEO of Suffolk Bancorp Howard Bluver in a statement. “It is gratifying to see our expansion strategies and company-wide focus on high quality execution result in strong financial performance across the board.”
The bank reported total outstanding loans increased from $1.382 billion in May to $1.477 billion by the end of June, a 6.8 percent increase. Compared to the second quarter of 2014, loans increased 23.5 percent.
“As the local economy has improved, loan demand has strengthened in both our traditional markets on the east end of Long Island, as well as in our new markets in Nassau County and New York City,” Mr. Bluver said.
Demand deposits increased by 12.3 percent this quarter compared to the first quarter of 2015 and tangible book value per share in June increased by 4.9 percent to $15.97 million compared to 2014.
Opening branches further west over the last three years in locations like Melville, Garden City and Long Island City has also added to increased revenues, the company reported
“We are clearly picking up market share as we expand west into markets with an abundance of the small and middle market businesses that are our lifeblood,” Mr. Bluver said. “As a result, notwithstanding the strong loan grown experienced in the second quarter, our loan pipeline continues to be robust and we remain optimistic about the prospect for continued strong loan growth during the second half of 2015.”
But the company reported the strong earnings were slightly opposed by a $628,000 reduction in non-interest income in 2015.