Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2014.
“Our successful capital raising efforts in January 2014 have positioned us for growth in 2014 and beyond. We experienced exceptional core LHI growth in the first quarter, a period that can be seasonally challenging. We also demonstrated the benefit of our efforts to increase our competitive position in Mortgage Finance,” said Keith Cargill, President and CEO. “Our focus continues to be leveraging the recruiting success in the last twelve months that continued in the first quarter. The business model is producing solid growth and earnings for our shareholders in a challenging rate and regulatory environment.”
• Loans held for investment, excluding mortgage finance, increased 5% and total loans increased 3% on a linked quarter basis, growing 29% and 22%, respectively, from the first quarter of 2013.
• Demand deposits increased 3% and total deposits increased 5% on a linked quarter basis, growing 31% and 26%, respectively, from the first quarter of 2013.
• Offerings of 1.9 million common shares and $175 million of 5.25% subordinated notes due 2026 were completed in January 2014, increasing regulatory capital by $281.5 million, and increasing outstanding common shares by 5% and annual interest expense $9.2 million.
• Net income decreased 7% on a linked quarter basis and decreased 15% from the first quarter of 2013 attributable in part to the subordinated note offering.
• EPS decreased 10% on a linked quarter basis and decreased 25% from the first quarter of 2013, attributable in part to the effects of the common stock and subordinated note offerings and the absence of preferred stock dividends in the first quarter of 2013.
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