California Bank Warehouse Funding Volume Grows Stronger

Silvergate Bank of California extended warehouse credit of $209 million in the first quarter, a year after launching the program. The La Jolla-based bank said the lines of credit helped its nonbank customers fund 745 mortgage loans during the period. Silvergate said its first quarter performance represented about two-thirds of all the loans funded since it entered the business. Silvergate had net income of $632,000 in the first quarter, up 63% over the previous year. Meanwhile, a reduction in the average balance of mortgage warehouse loans to a more historic level has resulted in lower interest income at Horizon Bancorp, Michigan City, Ind. For the quarter, the company had interest income of $16.1 million, down from $18.7 million for the same period in 2009. Net income at Horizon was $1.8 million, down from $2.6 million in the first quarter of 2009. As of March 31, 2010 Horizon had $96.3 million of mortgage warehouse loans on its balance sheet, down from $166.7 million as of Dec. 31, 2009 and $186.1 million as of March 31, 2009. None of its warehouse loans are non-performing or categorized as real estate owned, Horizon added.