Encore Bancshares Inc. is a bank holding company headquartered in Houston Texas and offers a broad range of banking wealth management and insurance services through its main subsidiary Encore Bank N.A. Encore Bank operates 11 private client offices in Houston and six in southwest Florida. Headquartered in Houston and with $1.3 billion in assets Encore Bank builds relationships with professional firms privately-owned businesses investors and affluent individuals. Encore Bank offers a full range of business and personal banking products and services as well as financial planning wealth management trust and insurance products through its trust division Encore Trust and its subsidiaries Linscomb & Williams and Town & Country Insurance. Products and services offered by Encore Bank's affiliates are not FDIC insured. Encore Bancshares Inc. has a market cap of $83.5 million; its shares were traded at around $8.11 with and P/S ratio of 0.8. Highlight of Business Operations: Encore Bancshares, Inc. is a financial holding company and wealth management organization that provides banking, investment management, financial planning and insurance services to professional firms, privately-owned businesses, investors and affluent individuals. We are headquartered in Houston, Texas and currently manage, through our primary subsidiary, Encore Bank, National Association (Encore Bank), eleven private client offices in the greater Houston market and six private client offices in southwest Florida. We also operate five wealth management offices and three insurance offices in Texas. As of September 30, 2009, we had, on a consolidated basis, total assets of $1.6 billion, total loans of $1.1 billion, total deposits of $1.2 billion, shareholders equity of $186.5 million and $2.5 billion in assets under management.
The net loss for the quarter ended September 30, 2009 was $1.8 million, compared with net earnings of $228,000 for the quarter ended September 30, 2008. Loss per diluted common share for the third quarter of 2009 was $0.22, compared with earnings per diluted common share of $0.02 for the comparable period of 2008. Earnings per common share include the accrual of dividends on preferred stock which was issued in the fourth quarter of 2008. The decrease in earnings was due primarily to higher credit costs, as we provisioned $2.4 million in excess of net charge-offs for the third quarter of 2009 reflecting deterioration of real estate values in Florida.
For the nine months ended September 30, 2009, net earnings were $203,000, compared with $1.9 million for the same period of 2008. The loss per diluted common share (as a result of deducting preferred dividends from net earnings) for the nine months ended September 30, 2009 was $0.14, compared with earnings per diluted common share of $0.17 for the comparable period of 2008. Net interest income on a fully taxable-equivalent basis (TE) increased $2.9 million, or 8.9%, but was more than offset by higher credit costs and higher expenses. The increase in expenses was due primarily to higher FDIC insurance assessments. We posted a return on average common equity of (1.22)% and 1.56%, a return on average assets of 0.02% and 0.17%, and an efficiency ratio of 73.00% and 73.39% for the nine months ended September 30, 2009 and 2008.
Net interest income (TE) was $12.1 million for the three months ended September 30, 2009, an increase of $473,000, or 4.1%, compared with the third quarter of 2008. Average earning assets grew $145.5 million, or 10.5%, due primarily to growth in securities and deposits in banks. The net interest margin (TE) decreased 21 basis points to 3.13% for the same comparison period. The margin compression was due primarily to a decrease in loans and greater liquidity on the balance sheet as a result of the recession. Partially offsetting this margin compression was an improvement in average noninterest-bearing deposits, which were $147.9 million for the third quarter of 2009, a $28.9 million, or 24.3%, increase compared with the same period of 2008.
Net interest income (TE) was $35.2 million for the nine months ended September 30, 2009, an increase of $2.9 million, or 8.9%, compared with the same period of 2008. Average interest-earning assets increased $132.4 million, or 9.6%, due primarily to growth in securities and deposits in banks. For the nine months ended September 30, 2009, the net interest margin (TE) was 3.12%, a decrease of 2 basis points, compared with the same period of 2008. Average noninterest-bearing deposits were $149.3 million for the nine months ended September 30, 2009, a $32.9 million, or 28.2%, increase compared with the same period of 2008.
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