Irvine-based Commercial Capital Bancorp’s profit more than tripled in the first quarter, the company said Monday.
Net income was $23.1 million in the period, up from about $7 million a year ago and more than the $20.3 million Wall Street was looking for.
Net interest income and deposits also nearly tripled in the quarter, to $38.3 million and $9.9 million, respectively.
Part of the gain came from two acquisitions,Hawthorne Financial Corp. and Timcor Exchange Corp. Both deals were completed in the past year.
Commercial Capital said it raised its dividend by 17% to 7 cents a share.
The thrift plans to sell some $600 million worth of adjustable home loans as it looks to lower its reliance on the single-family market.
Chief Executive Stephen Gordon called single family lending “a lower yielding, margin depressing, overly competitive and commoditized, lower return on equity way of doing business,” in a release.
“Originating these low-rate loans … doesn’t meet the higher hurdle rate of return performance characteristics of the Commercial Capital Bancorp business model, and as such is a poor use of the company’s deposits and equity,” Gordon said.
Instead, Commercial Capital plans to focus more on commercial and apartment lending.
Shares of Commercial Capital fell 6% to $16.9 after the earnings release.
