Texas Capital Bancshares Inc. (TCBI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Texas Capital Bancshares Inc. has a market cap of $596.8 million; its shares were traded at around $16.31 with a P/E ratio of 27.2 and P/S ratio of 2.2. TCBI is in the portfolios of NWQ Managers of NWQ Investment Management Co, Chuck Royce of Royce& Associates.
Net income increased $1.6 million, or 25%, for the three months ended June 30, 2010, and net income available to common shareholders increased $6.1 million, or 300%, for the three months ended June 30, 2010 compared to the same period in 2009; and increased $3.1 million, or 25%, and increased $8.5 million, or 118%, respectively, for the six months ended June 30, 2010 compared to the same period in 2009. The $1.6 million increase during the three months ended June 30, 2010 was primarily the result of a $9.1 million increase in net interest income and $620,000 increase in non-interest income, offset by a $3.5 million increase in the provision for credit losses, a $3.7 million increase in non-interest expense and an $824,000 increase in income tax expense. The $3.1 million increase during the six months ended June 30, 2010 was primarily the result of a $23.1 million increase in net interest income and a $668,000 increase in non-interest income, offset by an $8.5 million increase in the provision for credit losses, a $10.6 million increase in non-interest income and a $1.5 million increase in income tax expense.
Net interest income was $57.9 million for the second quarter of 2010, compared to $48.8 million for the second quarter of 2009. The increase was due to an increase in average earning assets of $315.9 million as compared to the second quarter of 2009 and an increase in the net interest margin from 3.88% to 4.32%. The increase in average earning assets included a $334.9 million increase in average loans held for investment and an $8.0 million increase in loans held for sale, offset by a $93.1 million decrease in average securities. For the quarter ended June 30, 2010, average net loans and securities represented 95% and 4%, respectively, of average earning assets compared to 94% and 6% in the same quarter of 2009.
Net interest income was $113.1 million for the six months ended of 2010, compared to $90.0 million for the same period of 2009. The increase was due to an increase in average earning assets of $219.0 million as compared to June 30, 2009 and an increase in the net interest margin from $3.64% to 4.37%. The increase in average earning assets included a $363.2 million increase in average loans held for investment, offset by a decrease of $60.6 million in loans held for sale and a $103.8 million decrease in average securities. For the six months ended June 30, 2010, average net loans and securities represented 95% and 5%, respectively, of average earning assets compared to 93% and 7% in the same quarter of 2009.
Non-interest expense for the first six months of 2010 increased $10.6 million, or 16%, to $76.3 million from $65.7 million for the same period of 2009. The increase is primarily attributable to a $7.3 million increase in salaries and employee benefits to $41.5 million from $34.2 million, which was primarily due to general business growth.
During the second quarter of 2010, we recorded net charge-offs in the amount of $12.6 million, compared to net charge-offs of $6.8 million for the same period in 2009. For the first half of 2010, the ratio of net charge-offs to loans held for investment was .99% compared to .47% for the same period in 2009. The reserve for loan losses, which is available to absorb losses inherent in the loan portfolio, totaled $74.9 million at June 30, 2010, $67.9 million at December 31, 2009 and $54.3 million at June 30, 2009. This represents 1.68%, 1.52% and 1.29% of loans held for investment (net of unearned income) at June 30, 2010, December 31, 2009 and June 30, 2009, respectively. Including the $2.2 million of allowance for loss on off-balance sheet exposure, the total reserve percentage increased to 1.73% at June 30, 2010 from 1.59% and 1.35% of loans held for investment at December 31, 2009 and June 30, 2009, respectively. The total reserve percentage has increased over the past year as a result of the effects of national and regional economic conditions on borrowers and values of assets pledged as collateral.
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Texas Capital Bancshares Inc. has a market cap of $596.8 million; its shares were traded at around $16.31 with a P/E ratio of 27.2 and P/S ratio of 2.2. TCBI is in the portfolios of NWQ Managers of NWQ Investment Management Co, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
We reported net income of $8.1 million for the second quarter of 2010 compared to $6.5 million for the second quarter of 2009. We reported net income available to common shareholders of $8.1 million, or $.22 per diluted common share, for the second quarter of 2010 compared to $2.0 million, or $.06 per diluted common share, for the second quarter of 2009. Return on average equity was 6.33% and return on average assets was .58% for the second quarter of 2010, compared to 5.45% and .49%, respectively, for the second quarter of 2009. Net income for the six months ended June 30, 2010, totaled $15.7 million compared to $12.6 million for the same period in 2009. Net income available to common shareholders was $15.7 million, or $.42 per diluted common share, for the six months ended June 30, 2010, compared to $7.2 million, or $.22 per diluted common share,Net income increased $1.6 million, or 25%, for the three months ended June 30, 2010, and net income available to common shareholders increased $6.1 million, or 300%, for the three months ended June 30, 2010 compared to the same period in 2009; and increased $3.1 million, or 25%, and increased $8.5 million, or 118%, respectively, for the six months ended June 30, 2010 compared to the same period in 2009. The $1.6 million increase during the three months ended June 30, 2010 was primarily the result of a $9.1 million increase in net interest income and $620,000 increase in non-interest income, offset by a $3.5 million increase in the provision for credit losses, a $3.7 million increase in non-interest expense and an $824,000 increase in income tax expense. The $3.1 million increase during the six months ended June 30, 2010 was primarily the result of a $23.1 million increase in net interest income and a $668,000 increase in non-interest income, offset by an $8.5 million increase in the provision for credit losses, a $10.6 million increase in non-interest income and a $1.5 million increase in income tax expense.
Net interest income was $57.9 million for the second quarter of 2010, compared to $48.8 million for the second quarter of 2009. The increase was due to an increase in average earning assets of $315.9 million as compared to the second quarter of 2009 and an increase in the net interest margin from 3.88% to 4.32%. The increase in average earning assets included a $334.9 million increase in average loans held for investment and an $8.0 million increase in loans held for sale, offset by a $93.1 million decrease in average securities. For the quarter ended June 30, 2010, average net loans and securities represented 95% and 4%, respectively, of average earning assets compared to 94% and 6% in the same quarter of 2009.
Net interest income was $113.1 million for the six months ended of 2010, compared to $90.0 million for the same period of 2009. The increase was due to an increase in average earning assets of $219.0 million as compared to June 30, 2009 and an increase in the net interest margin from $3.64% to 4.37%. The increase in average earning assets included a $363.2 million increase in average loans held for investment, offset by a decrease of $60.6 million in loans held for sale and a $103.8 million decrease in average securities. For the six months ended June 30, 2010, average net loans and securities represented 95% and 5%, respectively, of average earning assets compared to 93% and 7% in the same quarter of 2009.
Non-interest expense for the first six months of 2010 increased $10.6 million, or 16%, to $76.3 million from $65.7 million for the same period of 2009. The increase is primarily attributable to a $7.3 million increase in salaries and employee benefits to $41.5 million from $34.2 million, which was primarily due to general business growth.
During the second quarter of 2010, we recorded net charge-offs in the amount of $12.6 million, compared to net charge-offs of $6.8 million for the same period in 2009. For the first half of 2010, the ratio of net charge-offs to loans held for investment was .99% compared to .47% for the same period in 2009. The reserve for loan losses, which is available to absorb losses inherent in the loan portfolio, totaled $74.9 million at June 30, 2010, $67.9 million at December 31, 2009 and $54.3 million at June 30, 2009. This represents 1.68%, 1.52% and 1.29% of loans held for investment (net of unearned income) at June 30, 2010, December 31, 2009 and June 30, 2009, respectively. Including the $2.2 million of allowance for loss on off-balance sheet exposure, the total reserve percentage increased to 1.73% at June 30, 2010 from 1.59% and 1.35% of loans held for investment at December 31, 2009 and June 30, 2009, respectively. The total reserve percentage has increased over the past year as a result of the effects of national and regional economic conditions on borrowers and values of assets pledged as collateral.
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