BofI Holding (BOFI) in San Diego reported its sixth consecutive quarter of record profits as an expansion of its balance sheet led to higher lending income.
The $3.1 billion-asset company earned $11.1 million in quarter ended June 30, a 30% increase from the same period in 2012, it announced Wednesday. Earnings per share of 74 cents were 2 cents above the average estimate of analysts polled by Bloomberg.
BofI's net interest income rose 30%, to $28 million, as its net interest margin increased by 9 basis points, to 3.89%. Its balance sheet expanded by $704 million, or 30%, as it originated $1.1 billion in loans. Provision for loan losses fell 29%, to $1.5 million.
Noninterest income rose 59%, to $7.9 million, as mortgage banking income, service fees and gains on asset sales all increased. Operating costs rose 53%, to $15.4 million, as compensation costs rose by $2.7 million, due to additional hiring.
In June, BofI agreed to acquire approximately $200 million in deposits from the $1.9 billion-asset Principal Bank in Des Moines, Iowa. In March, BofI began an at-the-market offering of up to approximately $43 million in common stock.