Texas Capital Bancshares (TCBI) relied on loan growth and fee income to offset pressure on its net interest margin during the third quarter.
The Dallas company's earnings rose 50% from a year earlier, to $32.6 million. The $9.9 billion-asset company said in a press release Wednesday that average loans held for investment rose 21% from a year earlier, to $6.3 billion. Interest and fees on loans rose more than 23% from a year earlier, to $100.8 million.
Net interest income rose 22% from a year earlier, to $96.9 million, despite ongoing margin pressure. The company's margin contracted 13 basis points from the second quarter and 45 basis points from a year earlier, to 4.36%.
Noninterest income rose 39% from a year earlier, to $10.6 million, mostly because of a $2 million increase in brokered-loan fees tied to the company's mortgage warehouse lending division. Trust fee income increased 11% from a year earlier, to $1.2 million.
Noninterest expense rose 16% from a year earlier, to $53.5 million. The amount included a $5.4 million increase in salaries and employee benefits associated with general business growth and performance-based incentives, Texas Capital said.
The loan-loss provision fell 57% from a year earlier, to $3 million. Nonperforming assets declined by more than 25% from a year earlier, to $76.4 million.
