Silvergate Bank announced record earnings this week, citing reverse mortgage sales as one important driver of third-quarter and year-over-year growth. The company reported net income of $2.36 million during the third quarter as well as the acquisition and funding of $67.2 million in reverse mortgage loans.
Silvergate does not currently originate reverse mortgages, but has purchased loans through its correspondent channel and successfully completed its first Ginnie Mae securitization during the quarter.
The La Jolla, Calif.-based bank acquired and/or funded advances on $67.2 million in HECM loans in the third quarter of 2012, bringing its total acquisitions and advances for the first nine months to $181.0 million.
“The Bank’s capacity to accumulate and hold these loans on its balance sheet allows it to maximize its opportunities for gains on loan sales while enjoying increased interest income during the period these loans are held for sale,” the company said in an earnings statement.
Silvergate received approval to issue Ginnie Mae Securities in August 2012.
Written by Elizabeth Ecker