Total assets at La Jolla-based Silvergate Bank topped $1 billion for the first time in the bank's history during the second quarter, the bank reported Tuesday.
Silvergate said it earned net income of $2.2 million in the second quarter, which ended June 30, up from $1.6 million in the prior quarter and $1.7 million in the same quarter last year. For the first half of the year, the bank's net income was $3.8 million, up from $3.6 million in the first half of 2016, Silvergate said.
The bank reported total assets of $1.2 billion as of June 30, up from $948.9 million as of March 31.
Net interest income for the second quarter totaled $9.9 million, compared to $8.8 million for the prior quarter and $8.5 million for the second quarter of 2016, the bank said. Silvergate reported its net interest margin for the second quarter was 4.1 percent, compared to 3.94 percent for the first quarter and 3.76 percent for the second quarter of 2016. The improvement was due to an increase in higher yielding loans and a reduction in the bank's cost of funds, Silvergate said Tuesday.
“We are pleased to report strong earnings for the second quarter of 2017,” said Alan Lane, the bank’s chief executive officer. “We did this while growing the bank’s balance sheet to over $1.2 billion during the second quarter. We continue to invest in technology and people that allow Silvergate to offer innovative products and services to our business customers.”
Silvergate has been preparing for the milestone for some time. Banks with more than $1 billion in total assets are subject to more stringent government oversight, including more reporting requirements, than their smaller peers.
Silvergate, which opened in 1988, has branches in Carlsbad, Escondido, La Jolla, and La Mesa, and a loan production office in the Orange County city of Seal Beach.