Heritage Oaks Bancorp (HEOP) has reported a 30.82 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $4.55 million, or $0.13 a share in the quarter, compared with $3.48 million, or $0.10 a share for the same period last year.      

Revenue during the quarter grew 14.62 percent to $20.84 million from $18.18 million in the previous year period. Net interest income for the quarter rose 8.31 percent over the prior year period to $17.46 million. Non-interest income for the quarter rose 39.74 percent over the last year period to $2.88 million.

Net interest margin improved 4 basis points to 3.71 percent in the quarter from 3.67 percent in the last year period. Efficiency ratio for the quarter improved to 62.42 percent from 68.58 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

"2016 marked a year of multiple successes for the Company, which should provide many long-term benefits for its shareholders, customers, and employees," stated Simone Lagomarsino, president and chief executive officer of Heritage Oaks Bancorp. “We achieved double-digit growth in loans and non-interest bearing demand deposits during 2016, and we also introduced our new interest rate swap product, which generated over $1.2 million in fee income. We successfully terminated the Bank Secrecy Act Consent Order, which should result in lower costs and improve our efficiency going forward. Finally, we announced our strategic merger with Pacific Premier Bancorp, Inc., which we believe will create a more attractive commercial banking franchise. Once the two organizations are combined we will offer a broader array of products and services, increased lending capacity, and an expanded geographic footprint. All of this should position us to better serve our customers and provide stronger returns to our shareholders," stated Ms. Lagomarsino.

Deposits stood at $1,683.90 million as on Dec. 31, 2016, up 7.60 percent compared with $1,564.96 million on Dec. 31, 2015.

Loans to deposits ratio was 82.28 percent for the quarter, up from 79.70 percent for the previous year quarter.

Investments stood at $458.82 million as on Dec. 31, 2016, up 1.75 percent or $7.88 million from year-ago. Shareholders equity was at $212.85 million as on Dec. 31, 2016.

Return on average assets moved up 17 basis points to 0.90 percent in the quarter from 0.73 percent in the last year period. At the same time, return on average equity increased 175 basis points to 8.42 percent in the quarter from 6.67 percent in the last year period.

Nonperforming assets moved down 15.15 percent or $1.23 million to $6.91 million on Dec. 31, 2016 from $8.15 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.34 percent in the quarter, down from 0.43 percent in the last year period.

Tier-1 leverage ratio stood at 9.47 percent for the quarter, down from 9.50 percent for the previous year quarter. Book value per share was $6.20 for the quarter, up 3.16 percent or $0.19 compared to $6.01 for the same period last year.