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Taylor Capital Group Inc. Reports Operating Results (10-Q)

May 12, 2010 | About:
10qk

10qk

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Taylor Capital Group Inc. (TAYC) filed Quarterly Report for the period ended 2010-03-31.

Taylor Capital Group Inc. has a market cap of $143.4 million; its shares were traded at around $12.94 with and P/S ratio of 0.5. TAYC is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the first quarter of 2010, we reported a net loss applicable to common stockholders of $13.6 million, or ($1.30) per diluted share outstanding, compared to a net loss applicable to common stockholders of $5.7 million, or ($0.54) per diluted share, in the first quarter of 2009. The increase in the credit related costs, including the provision for loan losses and nonperforming asset expense, primarily produced the higher net loss applicable to common stockholders in the first quarter of 2010 as compared to the first quarter of 2009.

During the first quarter of 2010, pre-tax, pre-provision earnings from core operations were $14.2 million, as compared to $11.6 million during the first quarter of 2009, an increase of $2.6 million, or 22.2%. The increase in pre-tax, pre-provision earnings from core operations was due to a $6.1 million increase in net interest income, partly offset by higher noninterest expense. Our accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practice within the banking industry. Management does use certain non-GAAP financial measures to evaluate the Companys financial performance such as the non-GAAP measure of pre-tax, pre-provision earnings from core operations. In this non-GAAP financial measure, the provision for loan losses, nonperforming asset expense and certain non-recurring items, such as gains and losses on investment securities, are excluded from the determination of operating results. Management believes that this measure is useful because it provides a more comparable basis for evaluating financial performance from core operations period to period. The following table reconciles the loss before income taxes to pre-tax, pre-provision earnings from core operations as of the dates indicated.

Net interest income was $33.5 million for the first quarter of 2010, an increase of $6.1 million, or 22.4%, from $27.3 million of net interest income in the first quarter of 2009. With an adjustment for tax-exempt income, our consolidated net interest income for the first quarter of 2010 was $34.2 million, compared to $28.1 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 2010 were $4.48 billion as compared to $4.43 billion during the first quarter of 2009. Between those two quarterly periods, average investment balances increased while average loan balances decreased. During the first quarter of 2010, average investment securities were $1.35 billion, an increase of $201.1 million, or 17.5%, as compared to average investment securities in the first quarter of 2009. Average loan balances also decreased $215.7 million to $3.02 billion in the first quarter of 2010 as compared to $3.24 billion during the first quarter of 2009. Average loan balances decreased between the two quarterly periods because of our repositioning of our loan portfolio to reduce exposure to industries and sectors we no longer considered economically desirable, gross loan charge-offs, and lower line usage by our customers. On the liability side, average interest-bearing deposits decreased $320.3 million, or 12.2%, to $2.31 billion during the first quarter of 2010 as compared to $2.63 billion in the first quarter of 2009. A $362.3 million decrease in average time deposit balances between the two quarterly periods resulted in the decrease in average interest bearing deposits. This decrease was offset by an increase in average other borrowings and notes payable and other advances.

Read the The complete Report

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