Commonwealth Business Bank released its first quarter earnings report on Tuesday, showing growth in net income and diluted earnings per share.

The Los Angeles bank had net income $3.6 million for the quarter ended March 31 – a 16 percent gain compared to the year-earlier period. The firm had net income of $3.4 million in the fourth quarter of 2016.

Diluted earnings per share grew nearly 12 percent from a year ago to $0.38 in the first quarter. That’s compared to $0.37 for the preceding quarter.

“Our first quarter financial performance reflects our efforts to grow our balance sheet and that we are well-positioned should interest rates rise or remain flat,” said Joanne Kim, Commonwealth’s chief executive, in a statement.

Commonwealth offers a range of services to small and midsize businesses. Shares rose 2 percent to close at $15.35 on Tuesday.

Residential real estate reporter Helen Zhao can be reached at hzhao@labusinessjournal.com. Follow her on Twitter @zhaomeow.