SVB Financial Earnings Drop

SVB Financial Group ( SIVB), a bank holding company, reported a 34.9% drop in profits for the second quarter.

The Santa Clara, Calif.-based company earned $13.6 million, or 36 cents a share, in the quarter, compared with $20.9 million, or 54 cents a share, a year ago. Analysts polled by Thomson First Call had estimated profits of 63 cents a share. The latest quarter was hit by an $18.4 million goodwill impairment charge.

Net interest income was $85.8 million as compared with $71.4 million in the previous year's quarter. Non-interest income was $41 million in the quarter as compared with $30.4 million last year.

Net interest margin stood at 7.30% in the quarter, as compared with 6.37% for the previous year. This increase was largely due to an increase in yields from the loan portfolio, partially offset by increases in the levels and rates of short-term borrowings.

Shares fell 39 cents to $45.18.

This story was created through a joint venture between TheStreet.com and IRIS.

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