B of I Holding Inc. of San Diego said net income for its fiscal fourth quarter, which ended June 30, increased 7% from a year earlier, to $904,000.
For the full year, net income rose 2%, to $3.3 million.
The $947 million-asset parent of Bank of Internet USA said Friday that the quarterly increase was a result of a 29% jump in deposits, to $548 million, and a 24% jump in net interest income, to $3 million.
B of I's credit quality remained stable. Its loan-loss allowance was flat, at $1.5 million as of June 30.
Its net interest margin slipped one basis point, to 1.39%, from the same period last year.
The company, which operates primarily online, said it started making indirect recreational vehicle loans in March and originated $33.9 million of those loans for the quarter.
It also originated $10.6 million of home equity loans online.
"Looking ahead, we are excited about our bank's opportunities," Gary Lewis Evans, B of I's president and chief executive officer, said in a press release. "Despite adverse market conditions, including an inverted yield curve and declining housing values, we believe our bank is well positioned."
