Quarterly profit rose 36% at BofI Holdings (BOFI) in San Diego, as the online bank's loan growth led to higher interest income.
The $3.3 billion-asset company earned $12.2 million in the quarter ended Sept. 30, up from $9 million in the same period in 2012. Per share earnings of 85 cents met the expectations of analysts polled by Bloomberg, and BofI's stock rose nearly 11% following the announcement, to $67.93 a share Tuesday morning.
BofI's net interest income rose 25%, to $28.1 million, and its net interest margin widened by 16 basis points, to 3.86%. Its loan portfolio expanded by 27%, to $2.4 billion, while its provision for loan losses fell to $500,000 from $2.5 million.
BofI's noninterest income increased by 3%, to $7 million, due to a $3.1 million bump from a gain on sales of structured settlements. Noninterest expenses rose 26%, to $14.5 million, mostly due to higher staffing costs, BofI said.
BofI has been raising capital through stock sales over the past year. In June, it agreed to acquire about $200 million in deposits from Principal Bank in Des Moines.