BYRON CENTER — OAK Financial Corp., the holding company for Byron Bank, reported third quarter net income of $1.87 million, up 12 percent form the third quarter of 2005. Basic and diluted earnings per share were also up 12 percent to 76 cents, compared with 68 cents in last year’s third quarter.
For the first three quarters of the year net income was $5.13 million, a 19 percent increase from the $4.32 million reported in the first three quarters of 2005. Basic diluted earnings per share for the first three quarters were $2.09, reflecting a 19 percent increase over the same period a year ago. OAK attributed the rise in net income for the year-to-date period to a 12 percent increase in total revenue, with double digit increases in both net interest income and non-interest income.
“While our size and our geographic boundaries have grown significantly, our business remains rooted in the bedrock of relationships — one by one and community by community,” said President and CEO Patrick Gill.
The quarterly cash dividend of 20 cents in the third quarter represented a 25 percent increase over last year’s third quarter, and the board of directors approved an additional 10 percent increase to the quarterly dividend, to 22 cents per share.
The bank experienced some compression of the net interest margin as a result of re-pricing of certificates of deposits, intense local competition and seasonal factors, according to the company.
OAK’s total assets increased $77 million from