Durham-based Square 1 Bank, which is being sold to a much larger California bank, reported lower-than-expected first-quarter net income.
Square 1 reported Thursday that it generated net income of $8.2 million, or 27 cents per share, in the first quarter. Analysts were anticipating 30 cents per share, according to Bloomberg News.
The company’s net income was up 5 percent from a year ago but declined 15 percent from the fourth quarter. Among other factors, the company attributed the decline from the fourth quarter to a $1.4 million increase in the provision for loan losses.
Average loans rose 3.9 percent compared to the fourth quarter.
Sign Up and Save
Get six months of free digital access to The News & Observer
Shares of Square 1 Financial, the bank’s corporate parent, were trading at $25.74 Friday afternoon, down 57 cents. Its shares have risen 4 percent this year.
Last month Square 1 agreed to be acquired for stock valued at $849 million by Pacific West Bank.
Square 1 provides loans and other banking services to venture capital firms and the businesses they invest in nationwide. It has a low profile locally but had 13 offices across the country.