Texas Capital Bancshares in Dallas reported higher net income because of an increase in correspondent lending income and a wider net interest margin.
The $23 billion-asset company said in a press release Wednesday that its second-quarter profit rose 31% from a year earlier to $51.1 million, or 97 cents a share.
Net interest income rose 16.5% to $183 million. Total loans increased by 13% to $20.3 billion, while the net interest margin widened by 39 basis points to 3.57%. The loan-loss provision fell 19% to $13 million.
Net chargeoffs increased by 3.3% to $12.4 million. Net chargeoffs tied to energy loans fell by 47% to $6.4 million.
Noninterest income rose 35% to $18.8 million, largely reflecting $3.7 million in servicing income tied to a correspondent lending business the company formed in late 2015. Service charges on deposit accounts increased by 27% to $3.1 million; wealth management and trust fees were up 28% to $1.4 million.
Noninterest expenses increased by 19% to $111.8 million. Communications and technology costs increased by 86% to $11.9 million.