Nearly all banks reported gains in net income for the six monthsended June 30, according to figures released recently by theFederal Deposit Insurance Corp. The Bank of Stockton saw earningsincrease 118% to $9.6 million, due mostly to gains in the bank'sinvestment portfolio, which were the highest in the bank's history.In addition, Union Safe Deposit Bank saw a 14% increase to $3.1million, and Farmers & Merchants Bank of Central California sawa 19% increase to $5.6 million.

Smaller banks also saw profits rise. The Bank of Agriculture andCommerce saw earnings increase 36% to $1.1 million. The Bank ofLodi saw a 10% increase to $580,000. Pacific State Bank saw profitsincrease 55% increase to $550,000.

On the losing side was Delta National Bank, whose earningsdeclined 19% to $410,000. Also unprofitable were Service 1st Bankand Community Bank of San Joaquin, both launched late last year.Community Bank, which expects to be profitable in the next 18months, has $31.6 million in assets. Service 1st has $24.3 millionin assets.