SVB Financial Group reported after markets closed Thursday that its second-quarter profit fell 7% from a year earlier to $21.3 million, or 62 cents a share.
The Santa Clara, Calif., company, which specializes in financing technology companies, said its results included a one-time loss of $3.9 million related to a cash settlement of notes.
The $7.3 billion-asset SVB Financial said its provision for loan losses doubled from a year earlier but remains relatively low at $8.4 million. The company, which does not sell home mortgages, said it has avoided the perils of the housing downturn and that demand from its commercial clients is steady. Its loan portfolio grew 23% from a year earlier, to $4.6 billion.
"We continue to see strong opportunities in our target markets, and our solid results in the second quarter suggest we're doing a good job of taking advantage of those opportunities to meet clients' needs," Ken Wilcox, President and CEO of SVB Financial Group, said in a press release "Our business model and culture of credit discipline have so far protected us from the worst of the problems facing other banks. We intend to maintain that discipline and focus."