Silvergate Bank earned net income of $2.1 million in the third quarter of 2016, down $200,000 from the $2.3 million earned in the same quarter in 2015, the La Jolla-based company said Monday.
However, the net income for the third quarter, which ended Sept. 30, was up from its second-quarter income of $1.7 million.
"The third quarter's net income was supported by continued strong loan production at good yields," said Derek Eisele, bank president.
Silvergate’s total loan balances were up by $16.7 million during the third quarter, to $834.2 million.
Of that, residential loan balances totaled $306.1 million as of Sept. 30, compared to $327.1 million on June 30 and $335.4 million the prior year on Sept. 30. Total commercial real estate loan balances were $350.7 million, compared to $317.7 million and $252.7 million on June 3, and Sept. 30 of 2015, respectively.
"We continued to see strong growth in our residential lending activities, as home refinance activity remained strong in the third quarter," bank CEO Alan Lane said. "Our operating results reflect our continued focus on strengthening and expanding the strong partnerships we've developed with both our local business customers and our national residential loan originators."
The bank reported earning net income of $5.7 million in the first three quarters of 2016. Last year, the bank had earned $6.5 million by Sept. 30. However, that total included a $1.1 million one-time gain from the sale of an asset, the bank said.
Silvergate’s total assets were $986.2 million at the end of the third quarter, up from $948.2 million at the end of 2015.
The bank, a subsidiary of Silvergate Capital Corp., opened in 1988. Silvergate has branches in Carlsbad, Escondido, La Jolla and La Mesa, as well as a loan production office in the Orange County city of Seal Beach.