Texas Capital Bancshares in Dallas reported a higher second-quarter profit, citing increased lending and a boost in the number of loans held for investment.
The $17.8 billion-asset company's net income rose 15% to $35.5 million, or 76 cents, from a year earlier.
Net interest income rose 23% to $142.3 million. Loans held for investment rose 22% to $11.1 billion. Mortgage finance loans held for investment rose 33% to $4.9 billion. Total loans rose 25% to $16 billion. The net interest margin narrowed 65 basis points to 3.22%.
Fee income rose 21% to $12.8 million, as brokered loan fees increased.
Noninterest expenses rose 16% to $81.3 million on higher costs for salaries and employee benefits and a higher FDIC insurance assessment. The efficiency ratio improved to 52.4%.
Texas Capital also announced Wednesday that it's formed a mortgage correspondent aggregation business line, to complement its existing mortgage finance business.