OmniAmerican Bancorp Inc. in Fort Worth, Tex., said Monday that its net income for the second quarter more than doubled from a year earlier, to $1.2 million, due largely to lower deposit costs and 20% increase in interest-earning assets.

Earnings per share rose 83%, to 11 cents, or three cents better than the estimates of analysts surveyed by Thomson Reuters.

The $1.3 billion-asset company made up for a 3.8% decline in loans by investing in securities and increasing its borrowings from the Federal Home Loan Bank of Dallas, which boosted its income from Home Loan Bank stock by more than $9 million.

Profits were also aided by a 24% decline in interest paid on deposits and a 59% decline in its provision for loan losses as the pace of chargeoffs slowed from the same period last year.

Overall, however, credit quality is slipping. At June 30, chargeoffs totaled 0.48% of outstanding loans, down from 1.24% in last year's second quarter but up from 0.3% in the second quarter. Also, nonperforming loans to total have been rising, from 1.03% in last year's second quarter to 2.03% this year.

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