Noting its second-highest quarterly earnings to date, Silvergate Bank this week counted its reverse mortgage portfolio as having a positive impact on its net income of $5.40 million for 2013.
Silvergate noted in its earnings announcement that 2013 was its 16th consecutive profitable year. It began purchasing reverse mortgages in 2011.
During 2013, Silvergate acquired and/or funded $210.1 million in FHA-insured home equity conversion mortgages, according to the company’s earnings release. HECM sales during the year totaled $137.2 million, which “contributed significantly to the bank’s noninterest income for the year.”
Silvergate is a privately held bank based in La Jolla, California. It has reported positive reverse mortgage performance on a quarterly and annual basis since it began acquiring reverse mortgages in 2011.
The bank’s executives touted its overall performance over the course of 2013, noting its capital and asset quality ratios.
“We are pleased to report that in 2013 Silvergate Bank further extended its record of consistently profitable performance,” said Alan J. Lane, the Bank’s president and chief executive officer in a press release. “We also continued to maintain capital and asset quality ratios superior to comparable averages for all FDIC insured banks. These strengths are the foundation of our ability to provide clients with the products and services they have come to expect from us to help support and grow their business.”
Written by Elizabeth Ecker