Texas Capital Bancshares Announces Operating Results For Q2 2012

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the second quarter of 2012.
  • Net income increased 9% on a linked quarter basis and increased 77% from Q2 2011
  • EPS increased 9% on a linked quarter basis and increased 73% for the second quarter of 2012 as compared to the same quarter of 2011
  • Demand deposits increased 15% and total deposits increased 10% on a linked quarter basis; and grew 36% and 23%, respectively, from Q2 2011
  • Loans held for investment increased 8% and total loans increased 7% on a linked quarter basis; and grew 21% and 37%, respectively, from Q2 2011

“This has been another outstanding quarter for Texas Capital,” said George Jones, CEO. “Along with achieving dramatic improvements in ROE and ROA, we experienced good growth in total loans, deposits and earnings and have a strong pipeline in place to continue that trend.”
       

FINANCIAL SUMMARY

(dollars and shares in thousands)
 
Q2 2012 Q2 2011 % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 29,623 $ 16,708 77 %
Diluted EPS $ .76 $ .44 73 %
ROA 1.40 % 1.08 %
ROE 18.08 % 12.13 %
Diluted Shares 39,142 38,333
 
BALANCE SHEET(1)
Total Assets $ 9,144,360 $ 6,709,338 36 %
Demand Deposits 2,019,473 1,483,159 36 %
Total Deposits 6,660,290 5,421,726 23 %
Loans Held for Investment 6,234,692 5,164,293 21 %
Total Loans 8,642,724 6,286,623 37 %
Stockholders’ Equity 680,705 563,924 21 %

(1) Operating results, assets and loans are reporting from continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $29.6 million for the quarter ended June 30, 2012 compared to $16.7 million for the second quarter of 2011. On a fully diluted basis, earnings per common share from continuing operations were $.76 for the three months ended June 30, 2012, compared to $.44 for the same period last year. The discussion below relates only to continuing operations.

Return on average equity was 18.08 percent and return on average assets was 1.40 percent for the second quarter of 2012, compared to 12.13 percent and 1.08 percent, respectively, for the second quarter of 2011.

Net interest income was $90.6 million for the second quarter of 2012, compared to $88.2 million in the first quarter of 2012 and $71.1 million for the second quarter of 2011. The net interest margin in the second quarter of 2012 was 4.49 percent, a 37 basis point decrease from the second quarter of 2011 and a 5 basis point decrease from the first quarter of 2012. The year over year decrease in net interest margin is due to the growth in loans with incremental yields that are less than the prior year net interest margin with an offsetting benefit of the reduction in funding costs. The growth in loans more than compensated for the reduction in yields and produced the strong growth in net interest income.

Average loans held for investment for the second quarter of 2012 were $6.0 billion, an increase of $1.1 billion from the second quarter of 2011 and an increase of $289.9 million from the first quarter of 2012. Average loans held for sale for the second quarter of 2012 increased $1.3 billion compared to the second quarter of 2011 and increased $25.8 million from the first quarter of 2012.

Average total deposits for the second quarter of 2012 increased $999.7 million from the second quarter of 2011 and increased $417.2 million from the first quarter of 2012. For the same periods, the average balance of demand deposits increased $409.1 million, or 28 percent, to $1.9 billion from $1.5 billion during the second quarter of 2011 and increased $164.1 million, or 10 percent, from the first quarter of 2012.

In the second quarter of 2012, we experienced decreases in the ratios of non-performing assets and credit losses to loans held for investment. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $4.1 million in the second quarter of 2012 compared to $8.7 million in the second quarter of 2011 and $5.7 million in the first quarter of 2012. We recorded a $1.0 million provision for credit losses in the second quarter of 2012 compared to $8.0 million in the second quarter of 2011 and $3.0 million in the first quarter of 2012. At June 30, 2012, the combined reserve decreased to 1.21 percent of loans held for investment as compared to 1.34 percent at June 30, 2011 and 1.29 percent at March 31, 2012. In management’s opinion, the reserve is appropriate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio. In the second quarter of 2012, net charge-offs were $533,000, compared to net charge-offs of $10.5 million in the second quarter of 2011 and net charge-offs of $828,000 in the first quarter of 2012. Non-accrual loans were $56.4 million, or .91 percent of loans held for investment at the end of the second quarter of 2012, $77.9 million, or 1.51 percent, at the end of the second quarter of 2011 and $50.2 million, or .87 percent, at the end of the first quarter 2012. At June 30, 2012, total OREO was $27.9 million compared to $27.3 million at the end of the second quarter of 2011, and $32.6 million at the end of the first quarter of 2012. The OREO balance of $27.9 million at June 30, 2012 is stated net of a $9.0 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $3.1 million in the second quarter of 2012 compared to $725,000 in the second quarter of 2011 and $2.7 million in the first quarter of 2012. We realized a profit of $433,000 on sales of OREO during the second quarter of 2012, which is included in non-interest income, but offsets the OREO valuation expense of $3.1 million included in non-interest expense during the quarter.

Non-interest income increased $2.5 million during the second quarter of 2012, or 32 percent, compared to the same period of 2011 primarily related to a $1.6 million increase in brokered loan fees earned in the mortgage warehouse lending division.

Non-interest expense for the second quarter of 2012 increased $8.7 million, or 19 percent, to $54.0 million from $45.3 million in the second quarter of 2011. The increase is primarily related to a $6.1 million increase in salaries and employee benefits to $30.2 million from $24.1 million, which was primarily due to general business growth and costs of performance-based incentives resulting from the increase in stock price. Allowance and other carrying costs for OREO expense increased $2.8 million to $3.8 million, which included a $3.1 million valuation expense during the second quarter of 2012. Of the $3.1 million valuation expense in the second quarter of 2012, $2.7 million related to increasing the valuation allowance and $423,000 related to direct write-downs of the OREO balance, compared to $725,000 related to direct write-downs in the same period of 2011.

Stockholders’ equity increased by 21 percent from $563.9 million at June 30, 2011 to $680.7 million at June 30, 2012, primarily related to retained net income. The Bank is well capitalized under regulatory guidelines and at June 30, 2012, the Company’s ratio of tangible common equity to total tangible assets was 7.2 percent.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This news release may be deemed to include forward-looking statements which are based on Texas Capital’s current estimates or expectations of future events or future results. Texas Capital is under no obligation, and expressly disclaims such obligation, to update, alter or revise its forward-looking statements, whether as a result of new information, future events, or otherwise. A number of factors, many of which are beyond Texas Capital’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the prospectus supplement relating to the offering and the Annual Report on Form 10-K and other filings made by Texas Capital with the Securities and Exchange Commission (SEC).

This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
 
TEXAS CAPITAL BANCSHARES, INC.
 
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)
  2nd Quarter   1st Quarter   4th Quarter   3rd Quarter   2nd Quarter
2012   2012   2011   2011   2011
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 95,546 $ 93,131 $ 92,967 $ 83,263 $ 75,259
Interest expense   4,906       4,902       4,820       4,065       4,165  
Net interest income 90,640 88,229 88,147 79,198 71,094
Provision for credit losses   1,000       3,000       6,000       7,000       8,000  
Net interest income after provision for credit losses 89,640 85,229 82,147 72,198 63,094
Non-interest income 10,462 9,190 8,994 7,603 7,951
Non-interest expense   53,973       52,276       50,353       46,186       45,263  
Income from continuing operations before income taxes

46,129

42,143

40,788

33,615

25,782
Income tax expense   16,506       15,062       15,043       11,905       9,074  
Income from continuing operations 29,623 27,081 25,745 21,710 16,708

Income (loss) from discontinued operations (after-tax)
 

(1

)
   

4
     

(5

)
   

(7

)
   

(54

)
Net income $ 29,622     $ 27,085     $ 25,740     $ 21,703     $ 16,654  
Diluted EPS from continuing operations $ .76 $ .70 $ .67 $ .56 $ .44
Diluted EPS $ .76 $ .70 $ .67 $ .56 $ .43
 
Diluted shares 39,141,544 38,914,241 38,609,094 38,435,386 38,332,888
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 9,144,360 $ 8,559,917 $ 8,137,225 $ 7,705,372 $ 6,709,338
Loans held for investment 6,234,692 5,792,349 5,572,371 5,302,584 5,164,293
Loans held for sale 2,408,032 2,255,281 2,080,081 1,909,567 1,122,330
Securities 114,964 123,828 143,710 142,895 157,821
Demand deposits 2,019,473 1,751,443 1,751,944 1,661,125 1,483,159
Total deposits 6,660,290 6,063,558 5,556,257 5,486,463 5,421,726
Other borrowings 1,609,039 1,657,728 1,768,116 1,451,894 561,902
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 680,705 647,341 616,331 587,944 563,924
 
End of period shares outstanding 38,114,012 37,912,054 37,666,291 37,457,762 37,329,726
Book value (excluding securities gains/losses) $ 17.75 $ 16.96 $ 16.24 $ 15.56 $ 14.97
Tangible book value (excluding securities gains/losses) $ 17.22 $ 16.42 $ 15.69 $ 15.01 $ 14.41
 
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin 4.49 % 4.54 % 4.60 % 4.81 % 4.86 %
Return on average assets 1.40 % 1.33 % 1.28 % 1.25 % 1.08 %
Return on average equity 18.08 % 17.36 % 17.05 % 14.93 % 12.13 %
Non-interest income to earning assets .52 % .47 % .47 % .46 % .54 %
Efficiency ratio 53.4 % 53.7 % 51.8 % 53.2 % 57.3 %
Efficiency ratio (excluding OREO valuation/write-down) 50.3 % 50.8 % 50.7 % 51.3 % 56.3 %
Non-interest expense to earning assets 2.67 % 2.69 % 2.62 % 2.80 % 3.08 %
Non-interest expense to earning assets (excluding OREO valuation charge)

2.52

%

2.55

%

2.57

%

2.70

%

3.03

%
 
Tangible common equity to total tangible assets 7.2 % 7.3 % 7.3 % 7.3 % 8.0 %
Tier 1 capital ratio 9.5 % 9.5 % 9.6 % 9.7 % 10.2 %
Total capital ratio 10.5 % 10.4 % 10.6 % 10.7 % 11.3 %
Tier 1 leverage ratio 9.0 % 8.9 % 8.8 % 9.8 % 10.5 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
  June 30,   June 30,   %
2012   2011   Change
Assets
Cash and due from banks $ 93,377 $ 70,751 32 %
Interest-bearing deposits 49,254 18,575 165 %
Federal funds sold 20 100 %
Securities, available-for-sale 114,964 157,821 (27 )%
Loans held for sale 2,408,032 1,122,330 115 %
Loans held for sale from discontinued operations 388 396 (2 )%
Loans held for investment (net of unearned income) 6,234,692 5,164,293 21 %
Less: Allowance for loan losses   72,404       67,748     7 %
Loans held for investment, net 6,162,288 5,096,545 21 %
Premises and equipment, net 12,037 12,118 (1 )%
Accrued interest receivable and other assets 284,207 210,406 35 %
Goodwill and intangibles, net   20,181       20,792     (3 )%
Total assets $ 9,144,748     $ 6,709,734     36 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 2,019,473 $ 1,483,159 36 %
Interest bearing 4,230,806 3,196,108 32 %
Interest bearing in foreign branches   410,011       742,459     (45 )%
Total deposits 6,660,290 5,421,726 23 %
 
Accrued interest payable 887 1,032 (14 )%
Other liabilities 80,421 47,744 68 %
Federal funds purchased 271,835 203,969 33 %
Repurchase agreements 22,148 14,634 51 %
Other borrowings 1,315,056 343,299 N/M
Trust preferred subordinated debentures   113,406       113,406     -  
Total liabilities 8,464,043 6,145,810 38 %
 
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares – 10,000,000
Issued shares -
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 38,114,429 and 37,330,143 at June 30, 2012 and 2011, respectively

381

373

2

%
Additional paid-in capital 357,713 343,997 4 %
Retained earnings 318,490 214,340 49 %
Treasury stock (shares at cost: 417 at June 30, 2012 and 2011, respectively)

(8

)

(8

)

-
Accumulated other comprehensive income, net of taxes   4,129       5,222     (21 )%
Total stockholders’ equity   680,705       563,924     21 %
Total liabilities and stockholders’ equity $ 9,144,748     $ 6,709,734     36 %
       
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30 June 30
2012   2011   2012   2011
Interest income
Interest and fees on loans $ 94,291 $ 73,509 $ 186,065 $ 141,549
Securities 1,203 1,680 2,510 3,526
Federal funds sold 4 5 5 33
Deposits in other banks   48       65       97     262  
Total interest income 95,546 75,259 188,677 145,370
Interest expense
Deposits 3,482 3,417 6,954 8,288
Federal funds purchased 240 94 521 201
Repurchase agreements 4 2 7 4
Other borrowings 492 14 927 14
Trust preferred subordinated debentures   688       638       1,399     1,271  
Total interest expense   4,906       4,165       9,808     9,778  
Net interest income 90,640 71,094 178,869 135,592
Provision for credit losses   1,000       8,000       4,000     15,500  
Net interest income after provision for credit losses 89,640 63,094 174,869 120,092
Non-interest income
Service charges on deposit accounts 1,624 1,608 3,228 3,391
Trust fee income 1,232 1,066 2,346 2,020
Bank owned life insurance (BOLI) income 588 539 1,109 1,062
Brokered loan fees 4,128 2,558 7,779 5,078
Equipment rental income 172 676 333 1,459
Other   2,718       1,504       4,857     2,625  
Total non-interest income 10,462 7,951 19,652 15,635
Non-interest expense
Salaries and employee benefits 30,230 24,109 59,249 48,281
Net occupancy expense 3,679 3,443 7,283 6,753
Leased equipment depreciation 143 447 282 1,003
Marketing 3,174 2,733 5,997 4,856
Legal and professional 3,330 4,264 7,321 6,987
Communications and technology 2,720 2,584 5,203 4,931
FDIC insurance assessment 1,596 1,972 3,165 4,483
Allowance and other carrying costs for OREO 3,812 1,023 7,154 5,053
Other   5,289       4,688       10,595     9,315  
Total non-interest expense   53,973       45,263       106,249     91,662  
Income from continuing operations before income taxes 46,129 25,782 88,272 44,065
Income tax expense   16,506       9,074       31,568     15,418  
Income from continuing operations 29,623 16,708 56,704 28,647
Income (loss) from discontinued operations (after-tax)   (1 )     (54 )     3     (114 )
Net income $ 29,622     $ 16,654     $ 56,707   $ 28,533  
 
Basic earnings per common share:
Income from continuing operations $ .78 $ .45 $ 1.50 $ .77
Net income $ .78 $ .45 $ 1.50 $ .77
 
Diluted earnings per common share:
Income from continuing operations $ .76 $ .44 $ 1.45 $ .75
Net income $ .76 $ .43 $ 1.45 $ .74
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
  2nd Quarter   1st Quarter   4th Quarter   3rd Quarter   2nd Quarter
2012   2012   2011   2011   2011
Reserve for loan losses:
Beginning balance $ 71,992 $ 70,295 $ 67,897 $ 67,748 $ 70,248
Loans charged-off:
Commercial 1,048 462 1,348 1,523 3,654
Real estate – construction
Real estate – term 56 559 2,438 5,049 6,424
Consumer 283
Leases   26       95       238       (16 )     464  
Total 1,130 1,116 4,024 6,556 10,825
Recoveries:
Commercial 191 159 390 109 143
Real estate – construction 5
Real estate – term 348 108 45 152 122
Consumer 3 5 4 1 3
Leases   55       16       171       36       26  
Total recoveries   597       288       610       303       294  
Net charge-offs 533 828 3,414 6,253 10,531
Provision for loan losses   945       2,525       5,812       6,402       8,031  
Ending balance $ 72,404     $ 71,992     $ 70,295     $ 67,897     $ 67,748  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 2,937 $ 2,462 $ 2,274 $ 1,676 $ 1,707

Provision (benefit) for off-balance sheet credit losses
  55       475       188       598       (31 )
Ending balance $ 2,992     $ 2,937     $ 2,462     $ 2,274     $ 1,676  
 
Total reserves for credit losses $ 75,396 $ 74,929 $ 72,757 $ 70,171 $ 69,424
 
Total provision for credit losses $ 1,000 $ 3,000 $ 6,000 $ 7,000 $ 8,000
 
Reserve to loans held for investment(2) 1.16 % 1.24 % 1.26 % 1.28 % 1.31 %
Reserve to average loans held for investment(2) 1.22 % 1.27 % 1.30 % 1.30 % 1.39 %
Net charge-offs to average loans(1)(2) .04 % .06 % .25 % .48 % .86 %
Net charge-offs to average loans for last twelve months(1)(2) .20 % .40 % .58 % .90 % 1.06 %
Total provision for credit losses to average loans(1)(2) .07 % .21 % .44 % .53 % .66 %
Combined reserves for credit losses to loans held for investment(2)

1.21

%

1.29

%

1.31

%

1.32

%

1.34

%
 
Non-performing assets (NPAs):
Non-accrual loans $ 56,433 $ 50,160 $ 54,580 $ 66,714 $ 77,884
Other real estate owned (OREO) (4)   27,882       32,601       34,077       35,796       27,285  
Total $ 84,315     $ 82,761     $ 88,657     $ 102,510     $ 105,169  
 
Non-accrual loans to loans(2) .91 % .87 % .98 % 1.26 % 1.51 %
Total NPAs to loans plus OREO(2) 1.35 % 1.42 % 1.58 % 1.92 % 2.03 %
Total NPAs to earning assets(2) .97 % 1.01 % 1.14 % 1.40 % 1.64 %
Reserve for loan losses to non-accrual loans

1.3

x

1.4

x

1.3

x

1.0

x

.9

x
 
Restructured loans $ 13,943 $ 12,582 $ 25,104 $ 24,963 $ 23,540
Loans past due 90 days and still accruing(3) $ 4,421 $ 5,941 $ 5,467 $ 3,003 $ 10,333
 
Loans past due 90 days to loans(2) .07 % .10 % .10 % .06 % .20 %
 

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At June 30, 2012, loans past due 90 days and still accruing includes premium finance loans of $3.2 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.

(4) At June 30, 2012, OREO balance is net of $9.0 million valuation allowance.
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
  2nd Quarter   1st Quarter   4th Quarter   3rd Quarter   2nd Quarter
2012   2012   2011   2011   2011
Interest income
Interest and fees on loans $ 94,291 $ 91,774 $ 91,512 $ 81,692 $ 73,509
Securities 1,203 1,307 1,408 1,524 1,680
Federal funds sold 4 1 1 3 5
Deposits in other banks   48       49     46       44       65  
Total interest income 95,546 93,131 92,967 83,263 75,259
Interest expense
Deposits 3,482 3,472 3,471 3,191 3,417
Federal funds purchased 240 281 273 128 94
Repurchase agreements 4 3 4 2 2
Other borrowings 492 435 404 110 14
Trust preferred subordinated debentures   688       711     668       634       638  
Total interest expense   4,906       4,902     4,820       4,065       4,165  
Net interest income 90,640 88,229 88,147 79,198 71,094
Provision for credit losses   1,000       3,000     6,000       7,000       8,000  
Net interest income after provision for credit losses 89,640 85,229 82,147 72,198 63,094
Non-interest income
Service charges on deposit accounts 1,624 1,604 1,504 1,585 1,608
Trust fee income 1,232 1,114 1,108 1,091 1,066
Bank owned life insurance (BOLI) income 588 521 500 533 539
Brokered loan fees 4,128 3,651 3,408 2,849 2,558
Equipment rental income 172 161 223 223 676
Other   2,718       2,139     2,251       1,322       1,504  
Total non-interest income 10,462 9,190 8,994 7,603 7,951
Non-interest expense
Salaries and employee benefits 30,230 29,019 26,658 25,596 24,109
Net occupancy expense 3,679 3,604 3,537 3,367 3,443
Leased equipment depreciation 143 139 198 281 447
Marketing 3,174 2,823 3,798 2,455 2,733
Legal and professional 3,330 3,991 4,362 3,647 4,264
Communications and technology 2,720 2,483 2,468 2,210 2,584
FDIC insurance assessment 1,596 1,569 1,595 1,465 1,972
Allowance and other carrying costs for OREO 3,812 3,342 2,383 2,150 1,023
Other   5,289       5,306     5,354       5,015       4,688  
Total non-interest expense   53,973       52,276     50,353       46,186       45,263  
Income from continuing operations before income taxes

46,129

42,143

40,788

33,615

25,782
Income tax expense   16,506       15,062     15,043       11,905       9,074  
Income from continuing operations 29,623 27,081 25,745 21,710 16,708
Income (loss) from discontinued operations (after-tax)  

(1

)
   

4
   

(5

)
   

(7

)
   

(54

)
Net income $ 29,622     $ 27,085   $ 25,740     $ 21,703     $ 16,654  
 
 

TEXAS CAPITAL BANCSHARES, INC.
 

QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations
(Dollars in thousands)
 
  2nd Quarter 2012     1st Quarter 2012     4th Quarter 2011     3rd Quarter 2011     2nd Quarter 2011
Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/
Balance  

Expense(1)
  Rate Balance  

Expense(1)
  Rate Balance  

Expense(1)
  Rate Balance  

Expense(1)
  Rate Balance  

Expense(1)
  Rate
Assets
Securities – Taxable $ 91,623 $ 948 4.16 % $ 109,003 $ 1,041 3.84 % $ 109,761 $ 1,126 4.07 % $ 115,871 $ 1,214 4.16 % $ 127,269 $ 1,346 4.24 %
Securities – Non-taxable(2) 26,817 393 5.89 % 28,506 409 5.77 % 30,065 434 5.73 % 33,051 477 5.73 % 35,804 514 5.76 %
Federal funds sold 8,077 4 0.20 % 6,848 1 0.06 % 8,505 1 0.05 % 20,864 3 0.06 % 14,303 5 0.14 %
Deposits in other banks 60,416 48 0.32 % 49,470 49 0.41 % 42,644 46 0.43 % 36,495 44 0.48 % 77,928 65 0.33 %
Loans held for sale 2,062,449 21,087 4.11 % 2,036,622 21,315 4.21 % 2,093,883 22,332 4.23 % 1,191,375 13,340 4.44 % 808,165 9,591 4.76 %
Loans held for investment 5,950,913 73,204 4.95 % 5,660,993 70,459 5.01 % 5,395,253 69,180 5.09 % 5,219,496 68,352 5.20 % 4,890,696 63,918 5.24 %

Less reserve for loan losses
  71,779    

 

    70,261    

 

    67,214    

 

    66,215    

 

    68,031    

 

 
Loans, net of reserve   7,941,583     94,291   4.78 %   7,627,354     91,774   4.84 %   7,421,922     91,512   4.89 %   6,344,656     81,692   5.11 %   5,630,830     73,509   5.24 %
Total earning assets 8,128,516 95,684 4.73 % 7,821,181 93,274 4.80 % 7,612,897 93,119 4.85 % 6,550,937 83,430 5.05 % 5,886,134 75,439 5.14 %
Cash and other assets   394,086   388,009   382,577   333,563   306,372
Total assets $ 8,522,602 $ 8,209,190 $ 7,995,474 $ 6,884,500 $ 6,192,506
 
Liabilities and Stockholders’ Equity
Transaction deposits $ 694,463 $ 198 0.11 % $ 565,319 $ 140 0.10 % $ 429,980 $ 33 0.03 % $ 412,203 $ 52 0.05 % $ 375,084 $ 55 0.06 %
Savings deposits 2,664,598 2,107 0.32 % 2,535,412 2,083 0.33 % 2,422,465 2,062 0.34 % 2,253,123 1,664 0.29 % 2,465,118 1,700 0.28 %
Time deposits 584,581 831 0.57 % 624,823 920 0.59 % 534,441 927 0.69 % 468,196 1,032 0.87 % 541,337 1,351 1.00 %
Deposits in foreign branches   444,478     346   0.31 %   409,422     329   0.32 %   578,728     449   0.31 %   588,221     443   0.30 %   415,998     311   0.30 %
Total interest bearing deposits 4,388,120

3,482

0.32

%
4,134,976

3,472

0.34

%
3,965,614

3,471

0.35

%
3,721,743

3,191

0.34

%
3,797,537

3,417

0.36

%
Other borrowings 1,428,575 736 0.21 % 1,554,716 719 0.19 % 1,588,198 681 0.17 % 894,073 240 0.11 % 233,388 110 0.19 %
Trust preferred subordinated debentures   113,406    

688
 

2.44

%
  113,406    

711
 

2.52

%
  113,406    

668
 

2.34

%
  113,406    

634
 

2.22

%
  113,406    

638
 

2.26

%
Total interest bearing liabilities 5,930,101

4,906

0.33

%
5,803,098

4,902

0.34

%
5,667,218

4,820

0.34

%
4,729,222

4,065

0.34

%
4,144,331

4,165

0.40

%
Demand deposits 1,864,456 1,700,390 1,659,132 1,525,087 1,455,366
Other liabilities 69,076 78,108 70,142 53,233 40,177
Stockholders’ equity   658,969   627,594   598,982   576,958   552,632
Total liabilities and stockholders’ equity $ 8,522,602 $ 8,209,190 $ 7,995,474 $ 6,884,500 $ 6,192,506
 
Net interest income $ 90,778 $ 88,372 $ 88,299 $ 79,365 $ 71,274
Net interest margin 4.49 % 4.54 % 4.60 % 4.81 % 4.86 %

(1) The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.

(2) Taxable equivalent rates used where applicable.

Copyright Business Wire 2010

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