Texas Capital to Raise Capital, Misses Earnings Estimates

Texas Capital Bancshares (TCBI) is planning to sell 1.25 million shares of common stock in a public offering.

The $11.7 billion-asset company said in a regulatory filing that it will also offer underwriters a 30-day option to buy up to an additional 15% of common stock. The company did provide a price for the offering; its shares closed Wednesday at $63.52 a share.

Texas Capital also said it could also pursue a bank-level Tier II offering, subject to market conditions. Proceeds from the offerings would be used for general corporate purposes, including providing capital to the bank. Deutsche Bank Securities and Macquarie Capital will manage the offering.

Separately, Texas Capital said its fourth-quarter earnings fell 3% from a year earlier, to $30.4 million. The company’s earnings per share number of 67 cents missed the average estimate of analysts polled by Bloomberg by 12 cents.

Net interest income rose 10% from a year earlier the fourth quarter of 2012, to $111.5 million. The net interest margin compressed by 6 basis points from a year earlier, to 4.21%, largely because of growth in loans with lower yields.

Noninterest income fell 13% from a year earlier, to $11.2 million. The decline was largely because of a $1.6 million decrease in brokered loan fees.

Noninterest expense rose 17% from the fourth quarter of 2012, to $70.3 million. An $11.8 million increase in salaries and employee benefits tied to general growth was the primary reason for the jump.

The loan-loss provision rose 20% from a year earlier, to $4.9 million. Net chargeoffs fell 63% from a year earlier, to $1.3 million.

Chief Executive George Jones retired in December after leading the company since its creation in 1999. Keith Cargill succeeded Jones.