BOFI moving up, but 39% of earnings were from sale of securities.
Reports Q1 EPS of $0.77 vs the $0.46 consensus, this $7.18 mln in net income includes a $2.83 mln realized gain from the sales of securities, net of unrealized losses and income tax provisions; last quarter estimates included net realized gains on sales. The increase in interest and dividend income for the quarter was primarily attributable to growth in the average balance of loans and investment securities and higher rates earned on securities. The improvement in the net interest margin resulted from specific actions taken by the Bank to manage its assets and liabilities, as well as favorable changes in the U.S. Treasury yield curve and loan risk premiums. "I am pleased with our strong performance in this improving, but challenging, banking environment. Our results in this quarter and over the last several quarters were achieved concurrent with organically building the Bank's capital to a Tier 1 leverage ratio of 8.43% at March 31, 2010, up 22.4% from 6.89% at March 31, 2009. Excluding net securities gains, our core earnings were a record $4.3 million this quarter, up from $2.8 million for the third quarter of last fiscal year. We continue to execute on our two-pronged strategy of taking advantage of the plentiful current market opportunities and investing in our deposit and lending franchise. Our investments in our lending capabilities are well timed given the quality of the executives and employees that are available to us. We have assembled a strong team of multifamily and jumbo single family mortgage originators that are now positioned to provide us another engine for quality asset growth."
MILKY WAY over Devil's Tower
AI
