Square 1 Bank results push stock higher
07/25/2014 1:34 PM
07/25/2014 1:35 PM
Shares of the corporate parent of Durham-based Square 1 Bank rose 5 percent Friday after the company reported second-quarter earnings that outpaced Wall Street’s expectations.
Square 1 Financial reported that it generated net income of $8.1 million, or 27 cents per share, up 59 percent from a year ago. That exceeded analysts’ estimates by 8 cents per share, according to investment website Seeking Alpha.
“We are pleased with these second-quarter results and our momentum going into the second half of the year,” CEO Douglas Bowers said during a conference call.
Bowers said the bank’s strong performance was primarily due to a growth in net interest income stemming from “our continued strong loan and strong deposit growth.”
Net interest income rose 41 percent, while the quarter-ending loan balance increased 27 percent.
Square 1 has about a dozen offices nationwide that provide banking services to venture capital and private equity firms and the businesses they invest in.
Bowers also said the bank was benefiting from a “strong venture capital environment.”
Shares closed Friday at $19.04, up 88 cents. Square 1 went public at $18 a share in March. Its shares have traded as high as $20.60.
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