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.
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.