Strong loan and asset growth powered the Internet banking company BofI Holding (BOFI) to record profits in the quarter that ended Dec. 31.

The San Diego company said Wednesday that it earned $13.2 million in its fiscal year second quarter, up nearly 35% from the same period in 2012. BofI, the parent of BofI Federal Bank attributed the earnings growth largely to a 29% increase in its loan portfolio and a 24% jump in total assets, to nearly $3.6 billion.

Earnings per share climbed 30%, to 91 cents, the company said.

The loan and asset growth, along with a 20-basis-point increase in its net interest margin, helped to boost the bank's net interest income by 32% year over year, to $32.8 million. That more than offset an 11% dip in interest income resulting primarily from a $2.4 million decline in mortgage-related income.

The company also said that earnings were aided by a surge in deposit growth that contributed to lower funding costs. Deposits increased 22% year over year, to $2.4 million, while its interest expense fell nearly 3%, to $8.4 million.

The company also said that its efficiency ratio fell by more than 100 basis points, to 39.89%

BofI's shares were up 0.8% in late trading Wednesday, to $76.76.

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