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EB Exchange Bank Invested in you . FOR IMMEDIATE RELEASE May 6 , 2021 Exchange Bank Announces First Quarter 2021 Earnings Santa Rosa , CA - On May 6 , 2021 , Exchange Bank announced results for the first quarter of 2021 , reporting net income after taxes of $ 8.49 million , compared with $ 8.63 million for the same quarter in 2020 , a decrease of 1.60 % . The decrease in earnings in the first quarter of 2021 can be directly attributed to declines in net interest income , non - interest income and the resumption of provisioning for loan losses . " In response to the pandemic and the resulting societal and economic disruptions , the Bank began provisioning for loan losses in the third quarter of 2020 in a defensive posture , " said Troy Sanderson , president and CEO . “ If not for the provision of $ 1.2 million in the first quarter of 2021 , year - over - year first quarter income would actually be up 12.28 % . " The Bank's net interest income declined slightly from $ 23.90 million during the three months ended March 31 , 2020 to $ 23.27 million the same period in 2021. During a period of time when treasury yields remained anchored near historic lows , the Bank's margin was negatively impacted by declines in yields on loans and investments that surpassed the Bank's ability to affect a similar decline in interest expense through a lower cost of funds . The loss of interest income was somewhat offset by the PPP loans booked in both 2020 and 2021. As of March 31 , 2021 , the Bank had a total of $ 227 million in PPP loans . Other liquid investments increased approximately $ 226 million between March 31 , 2020 and 2021. The Bank's net interest margin decreased from 3.89 % in 2020 to 3.08 % in 2021. The Bank expects net interest margin challenges to continue into 2021 with the expectation that treasury yields will remain low . The Bank's results continue to be influenced by the changing patterns of behavior by both business and consumer clients as well as the fiscal and monetary response of the U.S. Government to the coronavirus pandemic . Non - interest income declined from $ 5.87 million in the first quarter of 2020 to $ 5.41 million in the similar period in 2021. This decline can be attributed to three main factors : lower account service fees due to higher than normal compensating balances across both business and consumer deposit accounts ; a decline in