Taylor Capital Group Inc. (TAYC) filed Quarterly Report for the period ended 2009-03-31.
Taylor Capital Group is a bank holding company which derives virtually all of its revenue from its subsidiary Cole Taylor Bank. Taylor Capital provides a range of products and services concentrating in four primary banking areas: middle-market business banking small business banking commercial real estate lending and wealth management. Taylor Capital Group Inc. has a market cap of $68.7 million; its shares were traded at around $6.2 with and P/S ratio of 0.4.
Highlight of Business Operations:For the first quarter of 2009, we reported a net loss available to common stockholders of $5.7 million, or ($0.54) per diluted share outstanding, compared to a net loss of $3.8 million, or ($0.37) per diluted share, in the first quarter of 2008. Earnings declined between the two periods due to a $3.8 million increase in the provision for loan losses and $2.9 million of preferred stock dividends and discounts during the first quarter of 2009. This decline was partly offset by an increase in net interest income and non-interest income. Earnings in recent quarters have been negatively impacted by the downturn in the real estate market, which has impacted our provision for loan losses, nonperforming loans, other real estate owned, and legal collection and workout expenses.
Net interest income was $27.3 million for the first quarter of 2009, an increase of $2.9 million, or 11.7%, from $24.5 million of net interest income in the first quarter of 2008. With an adjustment for tax-exempt income, our consolidated net interest income for the first quarter of 2009 was $28.1 million, compared to $25.3 million for the same quarter a year ago. This non-GAAP presentation is discussed further below.
Average interest-earning assets during the first quarter of 2009 were $4.4 billion, an increase of $954.2 million, or 27.8%, as compared to the same quarter in 2008. Most of the increase in average interest-earning assets resulted from a $767.9 million, or 33.2%, increase in average commercial and commercial real estate loans. The increase in loans is a result of our growth strategy implemented in 2008, which included the hiring of over 50 commercial bankers. In addition, we increased the size of the investment portfolio to take advantage of higher yields on longer duration securities. Average investment balances increased $270.0 million, or 30.7%, to $1.15 billion during the first quarter of 2009 as compared to the same quarter a year ago. These increases were partly offset by lower average consumer loans which decreased by 8.4% during the first quarter of 2009 compared to the same quarter in 2008.
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