La Jolla-based Silvergate Bank on Tuesday posted second-quarter net income of $3.1 million, more than double the $1.5 million reported during the same period last year.
For the quarter ending on June 30, Silvergate’s total loans and deposits increased about 30 percent each, to $823 million and $629 million, respectively. The bank’s mortgage warehousing division funded $1.2 billion worth of loans, up 94 percent from last year.
“Net income increased substantially during the second quarter as the bank continued to leverage its lending expertise to expand existing markets and invest in promising new opportunities,” CEO Alan Lane said.
Total assets grew from $865 million in December to $936.5 million in June, though assets dropped $17 million from March, which the bank attributed to sales of lower-yielding reverse mortgages.
Loan loss provisions jumped from nothing last year to $661,000 as Silvergate built up its reserve levels as loans grew and it expanded its commercial lending.