Strong loan production at good yields played a role in increased third-quarter earnings at Silvergate Bank in San Diego, which reported net income of $2.6 million compared to $2.1 million a year ago.
Net income for the first nine months of 2017 was $6.5 million compared to $5.7 million in the same period of 2016.
Bank assets hit $1.2 billion as of the end of the quarter that ended Sept. 30, surpassing $1 billion for the first time, the bank reported.
Net interest income increased year over year while non-interest income decreased.
In the third quarter, net interest income totaled $11.3 million, compared to $9.1 million for the third quarter in the past year.
Net interest margin in that time period was 3.7 percent, compared to 3.86 percent for the same period of 2016. The bank attributed the decrease to faster growth in interest-earning assets relative to the increase in interest income on those assets.
Non-interest income totaled $718,000 for the third quarter, compared to $833,000 for the same quarter in 2016.
The bank's continued expansion, including an increase in total employees, played a role in an increase in non-interest expenses, Silvergate reported. Those expenses were $7.5 million in the third quarter of 2017 compared to $6.2 million in the third quarter of 2016.