A triple whammy of nonperforming energy loans, higher expenses and a decline in fee income walloped Texas Capital Bancshares' first-quarter profit.
The Dallas company said in a press release Friday that net income fell 30% from a year earlier to $22.7 million, or 49 cents a share.
Net interest income at the $20.2 billion-asset company, including the loan-loss provision, fell 4% to $144.8 million. The provision nearly tripled to $30 million because of energy loans moved to classified status. The net interest margin narrowed by 9 basis points to 3.13%.
Loans held for investment rose 5% to $17 billion. Mortgage finance loans, a segment of loans held for investment, fell 8% to $5 billion.
Noninterest income fell 8% to $11.3 million, reflecting declines in trust fee income and swap fees.
Noninterest expense rose 13% to $86.8 million. Salaries, occupancy expense, legal and professional services, technology and the carrying costs on foreclosed properties all increased. The efficiency ratio worsened to 55.6% from 53.8%.
