Higher net interest income and the absence of severance costs allowed private Gold Coast Bank to report soaring second quarter net income Thursday.

The Islandia-based, five-branch bank said it earned $206,000 or 7 cents a share in the three months ended June 30, up from $5,000 and 0 cents per share a year earlier. The year-earlier quarter included $278,000 in severance expense but also included a gain of $39,000 on the sale of securities.

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Net interest income, the difference between the revenue generated from a bank's assets and the expenses associated with liabilities, rose by 21 percent in the quarter from a year earlier to $2.1 million on an increase in average interest-bearing assets. That gain was partly offset by a decrease in net interest margin, a measure of the difference between the interest a bank earns on its assets such as loans and the interest it pays out to depositors.

Gold Coast said deposits at June 30 totaled $295 million, up 43 percent from a year earlier.

Total assets were $325 million at the end of the second quarter, up 25 percent from a year earlier.

Outstanding loans totaled $234 million, up 21 percent from a year earlier.