Texas Capital Bancshares Inc. in Dallas said Wednesday that its second-quarter earnings fell 31% from a year earlier, to $5.8 million, or 22 cents a share.
The decrease was largely attributable to an $8 million loan-loss provision.
"The Texas economy continues to outperform the rest of the country, with particularly strong performance in the energy sector," George Jones, the $4.4 billion-asset Texas Capital’s president and chief executive officer, said in a press release. However, because of "continued margin pressures and a modest deterioration in the grading of our loan portfolio due to the economy," it lowered its full-year earnings guidance to a range of $30 million to $33 million, from a previous range of $33 million to $35 million in April.
The net interest margin was unchanged from a quarter earlier but fell 16 basis points from a year earlier, to 3.65%.
The nonperforming loan ratio rose 53 basis points from the first quarter and 73 basis points from a year earlier, to 1.07% of total loans.
