Press Release

Texas Capital Bancshares Announces Operating Results for Q2 2010

Company Release - 7/21/2010 4:02 PM ET

DALLAS--(BUSINESS WIRE)-- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the second quarter of 2010.

  • Net income increased 7% on a linked quarter basis and increased 25% from Q2 2009
  • EPS increased 5% on a linked quarter basis and increased 267% for the second quarter of 2010 as compared to the same quarter of 2009
  • Demand deposits grew 13% and total deposits increased 12% on a linked quarter basis and grew 54% and 35%, respectively, from Q2 2009
  • Loans held for investment remained consistent on a linked quarter basis and total loans increased 8% on a linked quarter basis; grew 6% and 15%, respectively, from Q2 2009

”We are pleased to report another quarter of solid core earnings and exceptional deposit growth. We have positioned ourselves to produce strong results in a challenging time for our industry,” said George Jones, CEO. “Although the entire industry continues to face credit and other challenges from the national economic conditions, we believe that those issues are manageable for Texas Capital.”

     

FINANCIAL SUMMARY

(dollars and shares in thousands)

 
Q2 2010 Q2 2009 % Change
QUARTERLY OPERATING RESULTS
Net Income(1) $ 8,116 $ 6,482 25 %
Net Income Available to Common Shareholders(1) $ 8,116 $ 2,029 300 %
Diluted EPS(1) $ .22 $ .06 267 %
ROA(1) .58 % .49 %
ROE(1) 6.33 % 5.45 %
Diluted Shares 37,487 33,866
 
BALANCE SHEET
Total Assets(1) $ 5,961,472 $ 5,306,407 12 %
Demand Deposits 1,120,664 730,034 54 %
Total Deposits 4,926,069 3,643,582 35 %
Loans Held for Investment 4,462,830 4,211,304 6 %
Total Loans(1) 5,459,980 4,755,956 15 %
Stockholders’ Equity 514,078 464,026 11 %

(1) From continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $8.1 million for the quarter ended June 30, 2010, compared to $6.5 million for the second quarter of 2009. Net income available to common shareholders from continuing operations was $8.1 million for the quarter ended June 30, 2010, compared to $2.0 million for the second quarter of 2009. On a fully diluted basis, earnings per common share from continuing operations were $.22 for the three months ended June 30, 2010 compared to $.06 for the same period last year. The effect of the TARP preferred stock dividends net of income earned on the TARP proceeds reduced earnings per share by $.13 for the three months ended June 30, 2009. The discussion below relates only to continuing operations.

Return on average equity was 6.33 percent and return on average assets was .58 percent for the second quarter of 2010, compared to 5.45 percent and .49 percent, respectively, for the second quarter of 2009.

The net interest margin in the second quarter of 2010 was 4.32 percent, a 44 basis point increase from the second quarter of 2009 and an 11 basis point decrease from the first quarter of 2010. The year over year increase is due to the significant reduction in funding costs and our ability to maintain and improve spreads on our loans. On a linked quarter basis, we reported a slight decrease in margin from 4.43% to 4.32%, compared to the significant increases in margin that we have reported since the first part of 2009. This decrease was due to increased liquidity created by our deposit growth being invested in lower yielding assets and the reduction in the use of borrowed funds at lower costs. Additionally, our nonaccrual loans have continued to increase and have negatively affected both our margin and net interest income. Net interest income was $57.9 million for the second quarter of 2010, compared to $48.8 million for the second quarter of 2009. The increase was due to an increase in average earning assets of $315.9 million over levels reported in the second quarter of 2009. The increase in average earning assets included a $334.9 million increase in average loans held for investment and an $8.0 million increase in average loans held for sale, offset by a decrease of $93.1 million in average securities.

Average total deposits for the second quarter of 2010 increased by $1.5 billion from the second quarter of 2009 and increased by $487.3 million from the first quarter of 2010. For the same periods, the average balance of demand deposits increased by $299.8 million, or 41 percent, to $1.0 billion from $724.5 million during the second quarter of 2009 and increased $67.9 million, or 7 percent, from the first quarter of 2010.

As a result of the overall economic downturn, we have continued to experience increases in levels of non-performing assets and exposure to credit losses during the second quarter of 2010. Provision for credit losses, valuation allowance and direct write-downs related to other real estate owned (“OREO”) totaled $15.1 million in second quarter of 2010 compared to $11.0 million in the second quarter of 2009 and $15.4 million in the first quarter of 2010. The Company recorded a $14.5 million provision for credit losses in the second quarter of 2010, compared to $11.0 million in the second quarter of 2009 and $13.5 million in the first quarter of 2010. The second quarter provision resulted in an increase in the combined reserve to 1.73 percent of loans held for investment as compared to 1.35 percent at June 30, 2009, and 1.69 percent at the end of the first quarter of 2010. In management’s opinion, the reserve is adequate 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 2010, net charge-offs were $12.6 million, compared to net charge-offs of $6.8 million in the second quarter of 2009 and net charge-offs of $9.3 million in the first quarter of 2010. Non-accrual loans were $138.2 million, or 3.10 percent, of loans at the end of the second quarter of 2010, compared to $49.6 million, or 1.18 percent of loans at the end of the second quarter of 2009, and $115.9 million, or 2.61 percent of loans at the end of the first quarter of 2010. At June 30, 2010, total OREO was $42.1 million compared to $31.4 million at the end of the second quarter of 2009, and $28.9 million at the end of the first quarter of 2010. The balance of $42.1 million at June 30, 2010 is stated net of an $8.9 million valuation allowance, for which we incurred a non-interest expense of $557,000 during the second quarter of 2010.

Non-interest income increased $620,000 during the second quarter of 2010, or 8%, compared to the same period of 2009 primarily related to a $1.3 million increase in other non-interest income due to gains on sale of leased equipment. Offsetting this increase was a $449,000 decrease in brokered loan fees related to a decline in volume, and a $257,000 decrease in equipment rental income related to a decline in the leased equipment portfolio.

Non-interest expense for the second quarter of 2010 increased $3.7 million, or 10 percent, to $39.1 million from $35.4 million in the second quarter of 2009. The increase is primarily related to a $3.4 million increase in salaries and employee benefits to $21.4 million from $18.0 million, which was primarily due to general business growth. Allowance and other carrying costs for OREO expense increased $430,000 to $808,000 related to deteriorating values of assets held in OREO. Of the $808,000 expense, $557,000 was related to increasing the valuation allowance.

Stockholders’ equity increased by 11 percent from $464.0 million at June 30, 2009 to $514.1 million at June 30, 2010. Contributing to the increase was retained net income and proceeds of sales of common stock. During the second quarter of 2010, we sold approximately 185,000 shares of common stock with net proceeds of $3.5 million under the discretionary equity issuance program announced in January 2010. The Bank is well capitalized under regulatory guidelines and at June 30, 2010, the Company’s ratio of tangible common equity to total tangible assets was 8.4 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 release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include 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 Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

 
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
2010 2010 2009 2009 2009
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 67,472 $ 64,306 $ 65,137 $ 62,197 $ 60,013
Interest expense   9,587     9,078     10,031     10,631     11,211  
Net interest income 57,885 55,228 55,106 51,566 48,802
Provision for credit losses   14,500     13,500     10,500     13,500     11,000  
Net interest income after provision for credit losses 43,385 41,728 44,606 38,066 37,802
Non-interest income 8,036 6,948 7,811 7,133 7,416
Non-interest expense   39,118     37,186     42,796     37,067     35,373  
Income from continuing operations before income taxes

12,303

11,490

9,621

8,132

9,845

Income tax expense   4,187     3,890     3,194     2,779     3,363  
Income from continuing operations 8,116 7,600 6,427 5,353 6,482
Loss from discontinued operations (after-tax)  

(54)

 

 

(55)

 

 

(55)

 

 

(41)

 

 

(44)

 

Net income 8,062 7,545 6,372 5,312 6,438
Preferred stock dividends                   4,453  
Net income available to common shareholders $ 8,062   $ 7,545   $ 6,372   $ 5,312   $ 1,985  
Diluted EPS from continuing operations $ .22 $ .21 $ .18 $ .15 $ .06
Diluted EPS $ .22 $ .21 $ .18 $ .15 $ .06
 
Diluted shares 37,486,785 36,783,719 36,311,306 36,303,975 33,866,237
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 5,961,472 $ 5,499,599 $ 5,698,318 $ 5,320,401 $ 5,306,407
Loans held for investment 4,462,830 4,443,456 4,457,293 4,290,453 4,211,304
Loans held for sale 997,150 592,436 693,504 549,787 544,652
Securities 227,029 246,209 266,128 285,869 308,187
Demand deposits 1,120,664 994,096 899,492 802,692 730,034
Total deposits 4,926,069 4,409,819 4,120,725 3,916,568 3,643,582
Other borrowings 376,646 452,061 957,029 790,192 1,059,572
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 514,078 499,996 481,360 474,044 464,026
 
End of period shares outstanding 36,776,836 36,524,313 35,919,524 35,802,068 35,688,244
Book value (excluding securities gains/losses) $ 13.79 $ 13.52 $ 13.23 $ 13.05 $ 12.87
Tangible book value (excluding securities gains/losses)

$

13.53

$

13.25

$

12.96

$

12.84

$

12.66

 
SELECTED FINANCIAL RATIOS
From continuing operations:
Net interest margin 4.32 % 4.43 % 4.21 % 4.06 % 3.88 %
Return on average assets .58 % .57 % .47 % .40 % .49 %
Return on average equity 6.33 % 6.21 % 5.26 % 4.46 % 5.45 %
Non-interest income to earning assets .60 % .55 % .59 % .56 % .59 %
Efficiency ratio 59.3 % 59.8 % 68.0 % 63.1 % 62.9 %
Efficiency ratio (excluding ORE valuation/write-down)

58.5

%

56.7

%

59.1

%

59.4

%

62.9

%

Non-interest expense to earning assets 2.91 % 2.97 % 3.26 % 2.91 % 2.80 %
From consolidated:
Net interest margin 4.32 % 4.43 % 4.21 % 4.06 % 3.88 %
Return on average assets .57 % .57 % .46 % .40 % .48 %
Return on average equity 6.29 % 6.17 % 5.21 % 4.43 % 5.41 %
 
Tangible common equity to total tangible assets 8.4 % 8.8 % 8.2 % 8.7 % 8.6 %
Tier 1 capital ratio 11.0 % 11.3 % 10.7 % 11.2 % 11.2 %
Total capital ratio 12.3 % 12.5 % 12.0 % 12.5 % 12.3 %
Tier 1 leverage ratio 10.7 % 11.0 % 10.5 % 10.8 % 10.6 %
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
  June 30,   June 30,   %
2010 2009 Change
Assets
Cash and due from banks $ 93,159 $ 74,478 25 %
Federal funds sold 27,990 6,000 N/M
Securities, available-for-sale 227,029 308,187 (26 )%
Loans held for sale 997,150 544,652 83 %
Loans held for sale from discontinued operations 582 578 1 %
Loans held for investment (net of unearned income) 4,462,830 4,211,304 6 %
Less: Allowance for loan losses   74,881     54,286   38 %
Loans held for investment, net 4,387,949 4,157,018 6 %
Premises and equipment, net 11,065 11,088 (0 )%
Accrued interest receivable and other assets 207,486 197,376 5 %
Goodwill and intangibles, net   9,644     7,608   27 %
Total assets $ 5,962,054   $ 5,306,985   12 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 1,120,664 $ 730,034 54 %
Interest bearing 3,394,648 2,530,562 34 %
Interest bearing in foreign branches   410,757     382,986   7 %
Total deposits 4,926,069 3,643,582 35 %
 
Accrued interest payable 2,503 2,900 (14 )%
Other liabilities 29,352 23,499 25 %
Federal funds purchased 309,722 632,945 (51 )%
Repurchase agreements 13,812 61,816 (78 )%
Other borrowings 53,112 364,811 (85 )%
Trust preferred subordinated debentures   113,406     113,406   -  
Total liabilities 5,447,976 4,842,959 12 %
 
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 – 36,777,253 and 35,688,661 at June 30, 2010 and 2009, respectively

368

357

3

%

Additional paid-in capital 342,724 321,987 6 %
Retained earnings 164,227 136,936 20 %
Treasury stock (shares at cost: 417 at June 30, 2010 and 2009)

(8

)

(8

)

-

Accumulated other comprehensive income, net of taxes   6,767     4,754   42 %
Total stockholders’ equity   514,078     464,026   11 %
Total liabilities and stockholders’ equity $ 5,962,054   $ 5,306,985   12 %
       
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
2010 2009 2010 2009
Interest income
Interest and fees on loans $ 64,935 $ 56,455 $ 126,504 $ 108,367
Securities 2,491 3,544 5,217 7,395
Federal funds sold 40 9 42 24
Deposits in other banks   6     5     15     33  
Total interest income 67,472 60,013 131,778 115,819
Interest expense
Deposits 8,420 8,769 16,178 20,348
Federal funds purchased 244 740 609 1,358
Repurchase agreements 2 14 6 28
Other borrowings 1 570 48 1,748
Trust preferred subordinated debentures   920     1,118     1,824     2,318  
Total interest expense   9,587     11,211     18,665     25,800  
Net interest income 57,885 48,802 113,113 90,019
Provision for credit losses   14,500     11,000     28,000     19,500  
Net interest income after provision for credit losses 43,385 37,802 85,113 70,519
Non-interest income
Service charges on deposit accounts 1,539 1,614 3,022 3,139
Trust fee income 980 952 1,934 1,836
Bank owned life insurance (BOLI) income 481 423 952 697
Brokered loan fees 2,221 2,670 4,125 4,702
Equipment rental income 1,196 1,453 2,540 2,909
Other   1,619     304     2,411     1,033  
Total non-interest income 8,036 7,416 14,984 14,316
Non-interest expense
Salaries and employee benefits 21,393 18,000 41,462 34,219
Net occupancy expense 3,032 3,387 6,046 6,141
Leased equipment depreciation 1,035 1,115 2,094 2,238
Marketing 1,101 655 1,888 1,210
Legal and professional 3,298 3,291 5,248 5,542
Communications and data processing 911 979 1,927 1,815
FDIC insurance assessment 2,241 3,493 4,109 5,040
Allowance and other carrying costs for OREO 808 378 3,100 1,578
Other   5,299     4,075     10,430     7,896  
Total non-interest expense   39,118     35,373     76,304     65,679  
Income from continuing operations before income taxes 12,303 9,845 23,793 19,156
Income tax expense   4,187     3,363     8,077     6,549  
Income from continuing operations 8,116 6,482 15,716 12,607
Loss from discontinued operations (after-tax)   (54 )   (44 )   (109 )   (139 )
Net income 8,062 6,438 15,607 12,468
Preferred dividends       4,453         5,383  
$ 8,062   $ 1,985   $ 15,607   $ 7,085  
 
Basic earnings per common share:
Income from continuing operations $ .22 $ .06 $ .43 $ .22
Net income $ .22 $ .06 $ .43 $ .22
 
Diluted earnings per common share:
Income from continuing operations $ .22 $ .06 $ .42 $ .22
Net income $ .22 $ .06 $ .42 $ .22
 
TEXAS CAPITAL BANCSHARES, INC.
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
  2nd Quarter   1st Quarter   4th Quarter   3rd Quarter   2nd Quarter
2010 2010 2009 2009 2009
Reserve for loan losses:
Beginning balance $ 71,705 $ 67,931 $ 65,818 $ 54,286 $ 50,145
Loans charged-off:
Commercial 6,653 7,551 2,098 115 92
Real estate – construction 5,789 420 4,051 576 1,821
Real estate – term 766 1,971 1,239 1,250
Consumer 3 80
Leases   218     594         72     3,724  
Total 12,660 9,331 8,123 2,082 6,887
Recoveries:
Commercial 46 18 34 21 48
Real estate – construction 6
Real estate – term 6 8 53
Consumer 7 16 5
Leases   55     25     34     20      
Total recoveries   107     51     134     57     53  
Net charge-offs 12,553 9,280 7,989 2,025 6,834
Provision for loan losses   15,729     13,054     10,102     13,557     10,975  
Ending balance $ 74,881   $ 71,705   $ 67,931   $ 65,818   $ 54,286  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 3,394 $ 2,948 $ 2,550 $ 2,607 $ 2,582
Provision (benefit) for off-balance sheet credit losses   (1,229 )   446     398     (57 )   25  
Ending balance $ 2,165   $ 3,394   $ 2,948   $ 2,550   $ 2,607  
 
Total reserves for credit losses $ 77,046 $ 75,099 $ 70,879 $ 68,368 $ 56,893
 
Total provision for credit losses $ 14,500 $ 13,500 $ 10,500 $ 13,500 $ 11,000
 
Reserve to loans held for investment(2) 1.68 % 1.61 % 1.52 % 1.53 % 1.29 %
Reserve to average loans held for investment(2) 1.68 % 1.63 % 1.55 % 1.54 % 1.32 %
Net charge-offs to average loans(1)(2) 1.13 % .85 % .72 % .19 % .66 %
Net charge-offs to average loans for last twelve months(1)(2) .73 % .61 % .46 % .41 % .41 %
Total provision for credit losses to average loans(1)(2) 1.30 % 1.24 % .95 % 1.26 % 1.07 %
Combined reserves for credit losses to loans held for investment(2)

1.73

%

1.69

%

1.59

%

1.59

%

1.35

%

 
Non-performing assets (NPAs): (4)
Non-accrual loans $ 138,236 $ 115,926 $ 95,625 $ 85,270 $ 49,592
Other real estate owned (OREO) (5)   42,077     28,865     27,264     34,671     31,404  
Total $ 180,313   $ 144,791   $ 122,889   $ 119,941   $ 80,996  
 
Non-accrual loans to loans(2) 3.10 % 2.61 % 2.15 % 1.99 % 1.18 %
Total NPAs to loans plus OREO(2) 4.00 % 3.24 % 2.74 % 2.77 % 1.91 %
Reserve for loan losses to non-accrual loans .5x .6x .7x .8x 1.1x
 
Restructured loans(6) $ $ 10,700 $ $ $
Loans past due 90 days and still accruing(3) $ 13,962 $ 2,390 $ 6,081 $ 7,569 $ 3,539
 
Loans past due 90 days to loans(2) .31 % .05 % .14 % .18 % .08 %

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At June 30, 2010, loans past due 90 days and still accruing includes premium finance loans of $1.7 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, 2010, non-performing assets include $1.5 million of mortgage warehouse loans, which were transferred to the loans held for investment portfolio at lower of cost or market, and some were subsequently moved to OREO.

(5) At June 30, 2010, OREO balance is net of $8.9 million valuation allowance.

(6) Loan was restructured in Q1-10 and was still accruing. During Q2-10, conditions related to this credit deteriorated and it is now included in nonaccruals.

 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
         

2nd Quarter

1st Quarter 4th Quarter 3rd Quarter 2nd Quarter
2010 2010 2009 2009 2009
Interest income
Interest and fees on loans $ 64,935 $ 61,569 $ 62,174 $ 58,959 $ 56,455
Securities 2,491 2,726 2,957 3,226 3,544
Federal funds sold 40 2 2 5 9
Deposits in other banks   6     9     4     7     5  
Total interest income 67,472 64,306 65,137 62,197 60,013
Interest expense
Deposits 8,420 7,758 8,560 8,916 8,769
Federal funds purchased 244 365 460 586 740
Repurchase agreements 2 4 11 14 14
Other borrowings 1 47 76 125 570
Trust preferred subordinated debentures   920     904     924     990     1,118  
Total interest expense   9,587     9,078     10,031     10,631     11,211  
Net interest income 57,885 55,228 55,106 51,566 48,802
Provision for credit losses   14,500     13,500     10,500     13,500     11,000  
Net interest income after provision for credit losses 43,385 41,728 44,606 38,066 37,802
Non-interest income
Service charges on deposit accounts 1,539 1,483 1,490 1,658 1,614
Trust fee income 980 954 979 1,000 952
Bank owned life insurance (BOLI) income 481 471 464 418 423
Brokered loan fees 2,221 1,904 2,221 2,120 2,670
Equipment rental income 1,196 1,344 1,357 1,291 1,453
Other   1,619     792     1,300     646     304  
Total non-interest income 8,036 6,948 7,811 7,133 7,416
Non-interest expense
Salaries and employee benefits 21,393 20,069 19,631 19,569 18,000
Net occupancy expense 3,032 3,014 2,986 3,164 3,387
Leased equipment depreciation 1,035 1,059 1,031 1,050 1,115
Marketing 1,101 787 1,119 705 655
Legal and professional 3,298 1,950 3,030 3,274 3,291
Communications and data processing 911 1,016 993 935 979
FDIC insurance assessment 2,241 1,868 1,972 1,452 3,493
Allowance and other carrying costs for OREO 808 2,292 6,377 2,390 378
Other   5,299     5,131     5,657     4,528     4,075  
Total non-interest expense   39,118     37,186     42,796     37,067     35,373  
Income from continuing operations before income taxes

12,303

11,490

9,621

8,132

9,845

Income tax expense   4,187     3,890     3,194     2,779     3,363  
Income from continuing operations 8,116 7,600 6,427 5,353 6,482
Loss from discontinued operations (after-tax)   (54 )   (55 )   (55 )   (41 )   (44 )
Net income 8,062 7,545 6,372 5,312 6,438
Preferred stock dividends                   4,453  
Net income available to common stockholders

$

8,062

 

$

7,545

 

$

6,372

 

$

5,312

 

$

1,985

 
 
TEXAS CAPITAL BANCSHARES, INC.
 
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
                             
2nd Quarter 2010 1st Quarter 2010 4th Quarter 2009 3rd Quarter 2009 2nd Quarter 2009
Average Revenue/ Yield/ Average Revenue/ Yield/ Average Average Average Average Revenue/ Yield/ Average Revenue/ Yield/
Balance

Expense (1)

Rate Balance

Expense (1)

Rate Balance Balance Balance Balance

Expense (1)

Rate Balance

Expense (1)

Rate
Assets
Securities – Taxable $ 193,542 $ 2,126 4.41 % $ 211,618 $ 2,341 4.49 % $ 230,686 $ 2,560 4.40 % $ 247,936 $ 2,813 4.50 % $ 280,372 $ 3,124 4.47 %
Securities – Non-taxable(2) 39,635 562 5.69 % 41,654 592 5.76 % 42,932 611 5.65 % 44,642 635 5.64 % 45,901 646 5.64 %
Federal funds sold 91,564 40 0.18 % 7,471 2 0.11 % 5,550 2 0.14 % 6,782 5 0.29 % 5,649 9 0.64 %
Deposits in other banks 12,449 6 0.19 % 12,457 9 0.29 % 12,916 4 0.12 % 12,649 7 0.22 % 12,268 5 0.16 %
Loans held for sale 664,474 8,244 4.98 % 457,459 5,490 4.87 % 601,793 7,286 4.80 % 539,889 6,836 5.02 % 656,462 7,727 4.72 %
Loans held for investment 4,459,790 56,691 5.10 % 4,413,960 56,079 5.15 % 4,384,692 54,888 4.97 % 4,264,202 52,123 4.85 % 4,124,937 48,728 4.74 %
Less reserve for loan losses   71,536  

    66,726  

    68,177  

    56,429  

    51,601  

 
Loans, net of reserve   5,052,728   64,935 5.15 %   4,804,693   61,569 5.20 %   4,918,308   62,174 5.02 %   4,747,662   58,959 4.92 %   4,729,798   56,455 4.79 %
Total earning assets