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The company is opening a loan production office in Wisconsin to focus on commercial loans. The reason? More than 300 banks are fighting for loans in Chicago, leading the local bank to look elsewhere for new business.
July 17
Taylor Capital Group's (TAYC) second-quarter earnings surged as mortgage banking revenue increased.
The Chicago company reported quarterly income of $12.5 million, compared to a $3.9 million loss a year earlier. Earnings per share of 41 cents beat analysts' estimates by 17 cents, according to Thomson Reuters.
The $4.8 billion-asset company's noninterest income was almost five times higher than a year earlier, at $31.9 million. Mortgage banking revenue grew ten-fold from a year earlier, to $23 million.
Improved credit quality also aided Taylor Capital's results. Nonperforming loans decreased 21% from the first quarter and 48% from a year earlier, to $74.1 million. The decrease from the first quarter was tied to the payoff of commercial construction nonaccrual loans mostly related to one borrower. The allowance for loan losses fell 20% from a year earlier, to $87 million.
Total noninterest expense rose 20% from the first quarter and 58% from a year earlier, to $44 million. Expenses have risen as Taylor Capital has increased its performance-based incentives and salary costs related to adding to the headcount in its mortgage division.
The company said recently that it was
