Pacific Financial Corporation (OTCQB: PFLC), the holding company for Bank of the Pacific has reported a net income increase.

Net income has increased 18 percent to $6.6 million, or 63 cents per share, in 2016, compared to $5.6 million, or 54 cents per share, for 2015.

For the fourth quarter of 2016, net income was $1.5 million, or 14 cents per share, down from $2.0 million, or 19 cents per share, for the third quarter of 2016, and up 20 percent compared to $1.2 million, or 12 cents per share, for the fourth quarter of 2015.

Profitability in 2016 was sustained by continued loan growth, stable net interest margin and increased noninterest income.

Fourth quarter and full year results were negatively impacted by charges related to a loss on the sale of other real estate owned (OREO), totaling $328,000, and a write-down taken to reduce the carrying value of a former branch property of $324,000. All results are unaudited.

“We achieved solid fourth quarter and full year financial results, including charges resulting from a sale of OREO and a valuation adjustment of a former branch property,” said Denise Portmann, president CEO. “The continued strength of our core earnings was due to steady loan growth, robust noninterest revenue and stable net interest margin.”

“As the economy continues to strengthen, our residential mortgage lending team is well situated to generate additional revenue from the anticipated increase in purchase activity,” she added.

The complete earnings report may be found in the investor relations section of Bank of the Pacific’s website, www.bankofthepacific.com.