First PacTrust Bancorp, parent of Chula Vista-based Pacific Trust Bank, reported first quarter net income of $693,000 compared with net income of $625,000 for the like quarter of 2010.

The bank, which raised $60 million in a private stock placement last year and repaid $19.3 million in federal bank bailout funding, is still grappling with above average levels of problem assets.

As of March 31, the bank held $34 million in nonperforming assets, up from $26.5 million in problem assets at Dec. 31, and up from $30.3 million at March, 2010. The assets consisted of $27.6 million in nonperforming loans and $6.4 million in foreclosed real estate.

The problem assets made up 4.08 percent of First PacTrust’s total assets of $834.9 million in March. That compared with 3.07 percent in problem assets in the prior March.

The bank said it took $1.2 million in losses connected to its real estate properties, including a net loss of $768,000 on the sale of single family house. The increased loss on the sale was caused from structural issues that had not been identified in a recent appraisal, the company said.

In conjunction with the new capital raised last year, Pacific Trust Bank has been transforming itself from a lender of jumbo mortgages to a commercial business lender. Last year, newly appointed First PacTrust CEO Greg Mitchell (former CEO Hans Ganz is chief executive of the bank) hired four new executives: a chief credit officer, chief lending officer, director of retail banking and director of credit services and other staffers.

Pacific Trust Bank also is expanding, opening a new office in La Jolla last quarter and another branch in San Marcos that will open by the second quarter. It expects to open an office in Los Angeles in the third quarter. That would bring its branch network to 11.

— Mike Allen