Third-quarter earnings at Taylor Capital Group (TAYC) more than doubled to $15 million from last year as mortgage banking revenue continued to soar.
The $5.1 billion company posted earnings per share of 49 cents. For the first nine months of the year, income totaled $35.2 million, up from $1.4 million for the same period a year earlier, the Chicago company said Wednesday.
Taylor Capital's third-quarter revenue reached $84.4 million, up almost 69% year over year, as mortgage banking revenue totaled $40.7 million, more than five times higher than a year ago.
"Cole Taylor Mortgage, our mortgage division, continues to be a strong driver of our results and is capitalizing on this low interest rate environment with record revenue," Mark A. Hoppe, president and chief executive of Taylor, said in a news release.
Net interest income rose 7%, to $37.2 million, while noninterest income more than doubled from a year ago to $47.3 million. Net loans totaled $3 billion, up roughly 4% from the second quarter. Commercial and industrial loans and commercial owner-occupied rose more than 3%, primarily from new customers and customers increasing their working capital loans, Taylor Capital said.
Noninterest expenses rose 98%, to $55.9 million, from a year ago, as salaries and employee benefits more than doubled to $37 million.
The provision for loan losses fell roughly 94%, to $900,000, year over year.
Taylor Capital has hired more than 60 retail mortgage professionals, launched an equipment finance unit and opened a commercial loan production office in Wisconsin in recent months. It also recorded $3.7 million in pre-tax expense for the early extinguishment of debt related to prepaying $60 million of subordinated notes.