Organic loan growth propelled the Internet banking company BofI Holding (BOFI) to record profits in the quarter that ended March 31.
The $3.9 billion-asset company earned $14.6 million in its fiscal year third quarter, up 40.5% from the same period a year earlier. This increase marks the ninth consecutive quarter that the San Diego company, which is the parent of BofI Federal Bank, attained record earnings.
Earnings per share rose 45% to $1, BofI said.
BofI's third-quarter earnings were boosted by a surge in loan originations, particularly in its commercial and industrial portfolio. BofI originated $696 million in the quarter, up 56% from the same period in 2013.BofI's loan portfolio increased 41% year over year, to $906.1 million.
An uptick in deposits also aided the record earnings, as deposits increased by 35% on a yearly basis, to $730 million.
Net interest income was 36% higher than a year ago, to $9.5 million, as average earning assets grew by $861 million. Meanwhile, the company's net interest margin increased 15 basis points, to 3.89%.
The bank's Tier 1 capital was up 43 basis points through fiscal year third quarter to 9.07%.