Texas Regional Bancshares Inc. of McAllen announced Monday that its second-quarter net income rose 16%, to $21.9 million.
For the six months that ended June 30 the $6.2 billion-asset company reported a profit of $45.7 million, up 27%. Its loan portfolio stood at $3.9 billion at midyear, up 13.5% from a year earlier. Deposits rose 12%, to $5.15 billion.
Two special dividends issued by Discover Financial Services, Texas Regional's electronic funds transfer provider, added 8 cents to the bank's earnings per share for the first six months. Its earnings per share were 92 cents, versus 76 cents in the first half of 2004.
Nonperforming loans rose nearly 300% in the six months, to $46.7 million, or 1.20% of total loans. Texas Regional attributed that mostly loans totaling $33.4 million to five customers. It said that it received a $4 million payment from one of those borrowers earlier this month.
