67 WALL STREET, New York - February 5, 2013 - The Wall Street Transcript has just published its Southeast & Midwestern Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Heightened M&A Activity - Consolidation in Regional Banking - Growth in U.S. Midwest - Regulatory Obstacles and Fee Income Replacement - Rise of Commercial and Industrial Lending
Companies include: Taylor Capital Group Inc. (TAYC) and many others.
In the following excerpt from the Southeast & Midwestern Banks Report, the President and CEO of Taylor Capital Group, Inc. (TAYC) discusses the outlook for his regional bank and the industry.
TWST: In 2012 you did see the C&I increase by nearly 11%. What's your analysis of that success, and what do you anticipate for 2013?
Mr. Hoppe: We don't give guidance, so I'm not going to be able to talk in any specifics about 2013, but 2012 was strong across the board. We had growth in ABL; we had growth in our local commercial and industrial loan business, our middle market lending; we had growth in our new leasing operation that we started up in the summer. So it was across the board, so we feel good about that
TWST: Let's talk about the highlights of the results you released last week. What were the bullet points?
Mr. Hoppe: The bullet points are that we had a phenomenal year in our mortgage business. They had $5.2 billion in mortgage originations. For a three-year old business, that's a pretty impressive situation. They contributed more than half of our earnings.
That said, our other lines of business all contributed well. The C&I business continues to expand. They had 10% growth in commercial loans. We had 30%-plus increase in core deposits; we had an 18% increase in our fee income from our commercial banking business. So while the mortgage company really had just a grand slam year, the other areas of the bank all performed well, so it was a solid year for our organization all the way through our asset quality, which had been extremely challenged.
We had a lot of real estate loans when we got here five years ago, and it was very costly for this company. Our asset quality ratios are really coming around, and we've got an allowance for loan losses that covers our nonperforming loans by 138%, for instance. So we've got some pretty strong numbers in our criticized and classified nonperforming loans, and our OREO loans all reduced substantially during 2012. So through our organization, we had a strong year.
TWST: How do you feel about the value the market's currently putting on your company?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.