Silvergate Bank, based in University Towne Center and with four branches, reported first quarter net income of $943,000, down from $1.39 million in net income for the like quarter of last year.

CEO Alan Lane attributed the decline in profit to reduced levels of net interest income and reduced volume of residential mortgages.That dropped 14 percent over the 12 months. The bank’s net interest margin, essentially its profit margin, decreased from 3.41 percent last year to 3.12 percent in the past quarter.

Total assets increased to $724.8 million, up 14 percent from the like quarter, while loans held for investment rose 27 percent to $427 million.

Total deposits decreased 9 percent to $444 million as of March 31, mainly due to the bank’s sale of its Lancaster branch, Lane said.

Nonperforming assets held by the bank fell slightly from 1.01 percent to 0.99 percent.

Capital ratios all are well above minimum standards to be considered well-capitalized with total risk-based capital at 17.14 percent.

Silvergate said it’s expanding its business lending platform, with the addition of commercial banking executive Dino D’Auria to head up this division.