Texas Regional Bancshares Inc. reported Monday that its first-quarter net income rose 39%, to $23.8 million.
The $6.1 billion-asset McAllen company said it was helped by its March 2004 acquisition of the $1.1 billion-asset Southeast Texas Bancshares Inc. of Beaumont and its January 2005 acquisition of the $179 million-asset Mercantile Bank and Trust of Dallas.
Nonperforming loans jumped substantially in the quarter, to $41.5 million, or 1.08% of total loans; at the end of 2004 its delinquent loans were $19.8 million, or 0.52% of the portfolio.
The company attributed the increase to a $22.5 million credit classified as nonaccrual. Another $27.5 million of loans kept accruing interest despite being more than 90 days past due. Chargeoffs remained relatively low, $4.6 million.
