A combination of a lower loan-loss provision and higher noninterest income contributed to improved profits at Texas Capital Bancshares (TCBI) in Dallas.
The $9.1 billion-asset company said Wednesday that its earnings rose almost 78% from a year earlier, to $29.6 million. Earnings per share of 76 cents beat analysts' estimates by a nickel, according to Thomson Reuters.
Texas Capital generated good loan growth and has "a strong pipeline in place to continue" the trend, George Jones, the company's chief executive, said in a press release. Total loans surged 37% from a year earlier, to $8.6 billion.
Net interest income rose 27% from a year earlier, to $90.6 million. Average loans held for investment increased by 22% from the second quarter of 2011, to $6 billion. An increase in brokered-loan fees led to a nearly 32% rise in noninterest income from a year earlier to $10.5 million.
Texas Capital's loan-loss provision fell 87% from a year earlier, to $1 million. Nonperforming assets fell almost 20% from a year earlier, to $84.3 million, as nonaccrual loans declined.
Jones said that Taylor Capital achieved "dramatic improvements" on its return on average equity and return on average assets. Its ROE was 18.08%, compared to 12.13% a year earlier. ROA totaled 1.4% at June 30, up from 1.08% a year earlier.