Texas Capital Bancshares in Dallas reported lower quarterly profit that largely reflected an increased provision for energy loan losses.

The $18.9 billion-asset company said in a press release Wednesday that its fourth-quarter net income fell 9% from a year earlier, to $34.8 million, or 70 cents a share.

Net interest income, after taking into account the loan-loss provision, rose 6%, to $128.2 million. The provision more than doubled, to $14 million.

Loans held for investment rose 17%, to $16.7 billion, while the net interest margin narrowed by 55 basis points, to 3.01%.

Nonperforming assets totaled 1.08% of total loans held for investment and other real estate owned, marking a sharp increase from 0.31% a year earlier. The increase was primarily because of energy exposure. Though net chargeoffs rose 82%, to $1.1 million, none of the charged-off loans were energy related.

"While we have encountered challenges related to the energy industry, we believe we are appropriately reserved for losses," Keith Cargill, Texas Capital's chief executive, said in the release.

Fee income was flat from a year earlier, at $11.3 million, though brokered loan fees, trust fee income and swap fees all increased slightly.

Noninterest expense rose 17%, to $87 million. Salaries, legal and professional fees and FDIC-insurance assessments all increased.

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