Texas Capital Bancshares in Dallas reported higher quarterly profit, fueled by an increase in the size and quality of its loan portfolio.
The $13.5 billion-asset company's profit rose 39% from a year earlier, to $33.4 million. Earnings of 71 cents a share were 3 cents higher than the average estimate of analysts polled by Bloomberg.
Loan growth lifted earnings, despite lower yields. Total loans increased 24%, to $12.9 billion. The net interest margin compressed by 32 basis points, to 3.87%.
Improved asset quality also contributed to the profit. The company slashed its loan-loss provision by 75%, $4 million. Net chargeoffs increased 5%, to $2.5 million.
Noninterest income fell 5%, to $10.5 million, partially because of lower brokered loan fees.
Noninterest expenses increased 2%, to $69.8 million.