Texas Capital Bancshares Inc. (TCBI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Texas Capital Bancshares' primary subsidiary is Texas Capital Bank a commercial bank that delivers highly personalized financial services to Texas-based businesses and private client individuals. Headquartered in Dallas the bank has full-service locations in Austin Dallas Fort Worth Houston Plano and San Antonio. Texas Capital Bancshares Inc. has a market cap of $329.7 million; its shares were traded at around $10.63 with a P/E ratio of 11.8 and P/S ratio of 1.3. Texas Capital Bancshares Inc. had an annual average earning growth of 32.2% over the past 5 years.
Net interest income was $41.2 million for the first quarter of 2009, compared to $36.6 million for the first quarter of 2008. The increase was due to an increase in average earning assets of $900.5 million as compared to the first quarter of 2008. The increase in average earning assets included a $538.3 million increase in average loans held for investment and an increase of $415.7 million in loans held for sale, offset by a $60.5 million decrease in average securities. For the quarter ended March 31, 2009, average net loans and securities represented 93% and 7%, respectively, of average earning assets compared to 89% and 11% in the same quarter of 2008.
Non-interest expense for the first quarter of 2009 increased $4.0 million, or 15%, to $30.3 million from $26.3 million, and is primarily attributable to an $877,000 increase in salaries and employee benefits to $16.2 million from $15.3 million, which was primarily due to general business growth.
The aggregate loan portfolio at March 31, 2009 decreased $83.9 million from December 31, 2008 to $4.4 billion. Construction loans, real estate loans and leases increased $19.6 million, $23.0 million and $686,000, respectively. Commercial loans, consumer loans and loans held for sale decreased $48.4 million, $3.6 million and $69.4 million, respectively. Overall end of period decrease in loans held for investment from December 31, 2008 is due to payoffs. However, average loans held for investment increased in the quarter ended March 31, 2009 as compared to the quarter ended March 31, 2008. We anticipate that overall loan growth during the remainder of 2009 will be down from prior years as a result of tightened credit standards and reduced demand for credit due to overall economic conditions.
At March 31, 2009, our total non-accrual loans were $50.7 million. Of these, $13.4 million were characterized as commercial loans. This included a $6.7 million residence rehabilitation loan secured by single family residences, a $4.4 million manufacturing loan secured by the assets of the borrower and a $2.1 million in auto dealer loans secured by the borrowers accounts receivable and inventory. Non-accrual loans also included $29.5 million characterized as construction loans. This included an $8.9 million residential real estate development loan secured by fully-developed residential lots and unimproved land. Also included in this category is a $6.7 million commercial real estate loan secured by undeveloped lots, a $5.1 million commercial real estate loan secured by unimproved land, a $3.8 million commercial real estate loan secured by retail property and a $1.7 million commercial real estate loan secured by unimproved lots. Non-accrual loans also included $3.6 million characterized as real estate loans, $2.7 of which relates to single family mortgages that were originated in our mortgage warehouse operation. Each of these loans were reviewed for impairment and specific reserves were allocated as necessary and included in the allowance for loan losses as of March 31, 2000 to cover any probable loss.
At March 31, 2009, our OREO totaled $27.5 million. This included an unimproved commercial real estate lot valued at $7.5 million, commercial real estate property consisting of single family residences and developed lots valued at $5.0 million, commercial real estate property consisting of single family residences and a mix of lots at various levels of completion valued at $4.3 million, an unimproved commercial real estate lot valued at $2.9 million and an office building valued at $2.6 million.
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Texas Capital Bancshares' primary subsidiary is Texas Capital Bank a commercial bank that delivers highly personalized financial services to Texas-based businesses and private client individuals. Headquartered in Dallas the bank has full-service locations in Austin Dallas Fort Worth Houston Plano and San Antonio. Texas Capital Bancshares Inc. has a market cap of $329.7 million; its shares were traded at around $10.63 with a P/E ratio of 11.8 and P/S ratio of 1.3. Texas Capital Bancshares Inc. had an annual average earning growth of 32.2% over the past 5 years.
Highlight of Business Operations:
Net income and net income available to common shareholders decreased $1.9 million, or 24%, and $2.8 million, or 35%, respectively, for the three months ended March 31, 2009 compared to the same period in 2008. The decrease during the three months ended March 31, 2009 was primarily the result of a $4.8 million increase in the provision for loan losses and a $4.0 million increase in non-interest expense offset by a $4.6 million increase in net interest income, a $1.2 million increase in non-interest income and a $1.0 million decrease in income tax expense.Net interest income was $41.2 million for the first quarter of 2009, compared to $36.6 million for the first quarter of 2008. The increase was due to an increase in average earning assets of $900.5 million as compared to the first quarter of 2008. The increase in average earning assets included a $538.3 million increase in average loans held for investment and an increase of $415.7 million in loans held for sale, offset by a $60.5 million decrease in average securities. For the quarter ended March 31, 2009, average net loans and securities represented 93% and 7%, respectively, of average earning assets compared to 89% and 11% in the same quarter of 2008.
Non-interest expense for the first quarter of 2009 increased $4.0 million, or 15%, to $30.3 million from $26.3 million, and is primarily attributable to an $877,000 increase in salaries and employee benefits to $16.2 million from $15.3 million, which was primarily due to general business growth.
The aggregate loan portfolio at March 31, 2009 decreased $83.9 million from December 31, 2008 to $4.4 billion. Construction loans, real estate loans and leases increased $19.6 million, $23.0 million and $686,000, respectively. Commercial loans, consumer loans and loans held for sale decreased $48.4 million, $3.6 million and $69.4 million, respectively. Overall end of period decrease in loans held for investment from December 31, 2008 is due to payoffs. However, average loans held for investment increased in the quarter ended March 31, 2009 as compared to the quarter ended March 31, 2008. We anticipate that overall loan growth during the remainder of 2009 will be down from prior years as a result of tightened credit standards and reduced demand for credit due to overall economic conditions.
At March 31, 2009, our total non-accrual loans were $50.7 million. Of these, $13.4 million were characterized as commercial loans. This included a $6.7 million residence rehabilitation loan secured by single family residences, a $4.4 million manufacturing loan secured by the assets of the borrower and a $2.1 million in auto dealer loans secured by the borrowers accounts receivable and inventory. Non-accrual loans also included $29.5 million characterized as construction loans. This included an $8.9 million residential real estate development loan secured by fully-developed residential lots and unimproved land. Also included in this category is a $6.7 million commercial real estate loan secured by undeveloped lots, a $5.1 million commercial real estate loan secured by unimproved land, a $3.8 million commercial real estate loan secured by retail property and a $1.7 million commercial real estate loan secured by unimproved lots. Non-accrual loans also included $3.6 million characterized as real estate loans, $2.7 of which relates to single family mortgages that were originated in our mortgage warehouse operation. Each of these loans were reviewed for impairment and specific reserves were allocated as necessary and included in the allowance for loan losses as of March 31, 2000 to cover any probable loss.
At March 31, 2009, our OREO totaled $27.5 million. This included an unimproved commercial real estate lot valued at $7.5 million, commercial real estate property consisting of single family residences and developed lots valued at $5.0 million, commercial real estate property consisting of single family residences and a mix of lots at various levels of completion valued at $4.3 million, an unimproved commercial real estate lot valued at $2.9 million and an office building valued at $2.6 million.
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