Banks: 3 Small Cap Growth Stocks Worth Buying – Rockville Financial Inc (RCKB) and More

Financial Strengths of the Company

• Strong loan growth continued as total loans increased $69.5 million, or 5%, during the quarter ended Sept. 30, 2012 and have increased $189.8 million or 15% since Dec. 31, 2011.
• Net interest income increased $588,000, or 5%, for the quarter ended Sept. 30, 2012 as a result of strong organic loan growth compared to the quarter ended June 30, 2012.
• Checking accounts grew by 4%, or 1,282 net new accounts, for the quarter ended Sept. 30, 2012 compared to the quarter ended June 30, 2012.
• The company remained well-capitalized, with an estimated total capital to risk weighted asset ratio of 19.15% on Sept. 30, 2012.

Texas Capital Bancshares Inc (NASDAQ:TCBI)

This 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.

The stock has witnessed sturdy price momentum since December 2011. Moreover, the company has been continuously outperforming its 200-day moving average over the past year, showing a steady growth trend. The company has a trailing 12-month ROE of 16.8%, compared with the peer group average of 10.1%. Considering the recent share price fluctuations and consistent growth trends, there is a strong possibility of considerable upside from the current levels.

The company recently announced earnings and operating results for the fourth quarter and full year of 2012. EPS increased 51% for the year, a 5% decrease on a linked quarter basis (3% increase excluding litigation settlement), and a 13% increase for the fourth quarter of 2012 as compared to the same quarter of 2011.

Financial Strengths of the Company

• Net income increased 59% for the year and 22% increase for the fourth quarter of 2012 as compared to the same quarter of 2011.

• Demand deposits increased 45% and total deposits increased 34% for the year from 2011, reflecting linked quarter increases of 20% and 11%, respectively.

• Loans held for investment increased 22% and total loans increased 30% for the year from 2011, reflecting linked quarter increases of 4% and 6%, respectively.

The article Banks: 3 Small Cap Growth Stocks Worth Buying originally appeared on Fool.com and is written by Anindya Batabyal.

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