The corporate parent of Durham-based Square 1 Bank posted a 23 percent jump in net income in the second quarter.
Square 1 Financial reported Wednesday that its second-quarter net income totaled $9.9 million, or 33 cents per share, up from $8.1 million, or 27 cents per share, a year ago. The bank’s second-quarter income also was 22 percent higher than its first-quarter results.
“The brand momentum of Square 1 Bank coupled with a very healthy venture (capital) environment put us in a good place to produce both quality earnings and strong balance sheet growth,” CEO Doug Bowers said in a prepared statement.
Square 1 provides loans and other banking services to venture capital firms and the businesses they invest in nationwide. It has 13 offices across the country.
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Net interest income totaled $31.4 million, up from $24.9 million a year ago. Loans totaled $1.52 billion, up from $1.15 billion a year ago.
Deposits rose $1.1 billion, or 46 percent, from a year ago. The company attributed the increase to “growth of our client base and a continued strong funding environment for venture-backed firms.”
Earnings per share in the second quarter were three cents higher, or 36 cents, after excluding merger-related expenses.
Square 1 has agreed to be acquired by California-based Pacific West Bank for stock valued at $849 million when the deal was unveiled in March. The deal is expected to be completed in the fourth quarter.
Bowers has agreed to be president of the Square 1 business for six months after it becomes a division of PacWest. The business will maintain a presence in Durham.
Pacific West also reported its second-quarter financial results Wednesday. It posted adjusted net earnings of $72.5 million, up from $62.5 million a year ago. Without adjustments, net earnings totaled $85.1 million in the second quarter, up from $10.6 million a year ago.