First National Bank of North County reported...

First National Bank of North County reported that net income fell to $25,022 from $238,387 for the six-month period ended June 30. Deposits rose from $53 million to $58 million, loans fell from $53 million to $50 million and total assets increased from $60 million to $65 million.

The bank blamed the drop in net income on “highly volatile mortgage interest rates” during the second quarter and costs generated by the opening of four mortgage banking offices.