Federal Reserve Bank of Dallas

Fifth Street, TX, United States

Federal Reserve Bank of Dallas

Fifth Street, TX, United States

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Koech J.,Federal Reserve Bank of Dallas | Wynne M.A.,Federal Reserve Bank of Dallas
Review of Regional Studies | Year: 2017

This paper documents the evolution of the international relationships of individual U.S. states along three dimensions: trade, migration, and finance. We examine how specialized or diversified state economies differ in terms of the products they export and with whom they trade, the origins of the immigrants who live in the state, and the origins of the foreign banks operating in the state. We show that states that are diversified along one of these dimensions are often quite specialized along others. New York is-perhaps, not surprisingly-the most diversified state in terms of global linkages. © Southern Regional Science Association 2017.


News Article | April 19, 2017
Site: globenewswire.com

DALLAS, April 19, 2017 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2017. “We begin 2017 with continued solid earnings and traditional LHI growth, while experiencing the contraction in the mortgage industry attributable to rising rates and the return of seasonal trends. We remain optimistic about 2017 as we expect the new lines of business we added or expanded in 2016 will give us market share takeaway potential, coupled with our continued ability to attract new talent," said Keith Cargill, CEO. "Additionally, we remain well-positioned to take advantage of rising rates and business opportunities in a pro-growth economic environment." DETAILED FINANCIALS  Texas Capital Bancshares, Inc. reported net income of $42.5 million and net income available to common stockholders of $40.1 million for the quarter ended March 31, 2017 compared to net income of $25.1 million and net income available to common stockholders of $22.7 million for the same period in 2016. On a fully diluted basis, earnings per common share were $0.80 for the quarter ended March 31, 2017 compared to $0.49 for the same period of 2016. The increase reflects the $17.4 million year over year increase in net income offset by the $0.06 per share dilutive effect of the fourth quarter 2016 common stock offering. Return on average common equity (“ROE”) was 8.60 percent and return on average assets (“ROA”) was 0.83 percent for the first quarter of 2017, compared to 10.82 percent and 0.85 percent, respectively, for the fourth quarter of 2016 and 6.13 percent and 0.53 percent, respectively, for the first quarter of 2016. The linked quarter decrease in ROE resulted from a decrease in net revenue for the first quarter of 2017 and an increase in equity resulting from the fourth quarter 2016 common stock offering. ROA remains low as a result of continuing high liquidity asset balances. Average liquidity assets for the first quarter of 2017 totaled $3.6 billion, including $3.3 billion in deposits at the Federal Reserve Bank of Dallas, which had an average yield of 80 basis points, compared to $2.6 billion for the first quarter of 2016, which had an average yield of 50 basis points. Net interest income was $163.4 million for the first quarter of 2017, compared to $171.2 million for the fourth quarter of 2016 and $144.8 million for the first quarter of 2016. Net interest margin for the first quarter of 2017 was 3.29 percent, an 18 basis point increase from the fourth quarter of 2016 and a 16 basis point increase from the first quarter of 2016. The linked quarter and year-over-year increases in net interest margin are due primarily to the increase in interest rates and the higher yielding loan portfolio components, including traditional LHI and loans held for sale ("LHS"). Average LHI, excluding mortgage finance loans, for the first quarter of 2017 were $13.0 billion, an increase of $278.7 million, or 2 percent, from the fourth quarter of 2016 and an increase of $1.1 billion, or 9 percent, from the first quarter of 2016. Average total mortgage finance loans (including Mortgage Correspondent Aggregation ("MCA")) for the first quarter of 2017 were $3.8 billion, a decrease of $1.5 billion, or 28 percent, from the fourth quarter of 2016 and a decrease of $28.7 million, or 1 percent, from the first quarter of 2016. Mortgage finance volumes showed decreases in average balances partially offset by an increase in MCA balances and a reduction in participation balances. The decline in average mortgage finance balances is primarily due to seasonality and the effect of higher interest rates on refinance volumes. Average LHS generated from our MCA business increased to $1.1 billion for the first quarter of 2017 from $944.5 million for the fourth quarter of 2016 and $126.1 million for the first quarter of 2016 as we continue to gain traction in that business. Average total deposits for the first quarter of 2017 decreased $1.6 billion from the fourth quarter of 2016 and increased $1.4 billion from the first quarter of 2016. Average demand deposits for the first quarter of 2017 decreased $1.6 billion, or 17 percent, to $7.5 billion from $9.1 billion during the fourth quarter of 2016, and increased $816.8 million, or 12 percent, from $6.7 billion during the first quarter of 2016. We recorded a $9.0 million provision for credit losses for the first quarter of 2017 compared to $9.0 million for the fourth quarter of 2016 and $30.0 million for the first quarter of 2016. The provision for the first quarter of 2017 was driven by the application of our methodology. The year-over-year decrease was primarily related to improvements in the composition of our pass-rated and classified loan portfolios, including energy loans. Overall 2016 provision levels were higher primarily related to energy exposure. The combined allowance for credit losses at March 31, 2017 decreased slightly to 1.37 percent of LHI excluding mortgage finance loans compared to 1.38 percent at December 31, 2016 and 1.43 percent at March 31, 2016. In management’s opinion, the allowance is appropriate and is derived from consistent application of the methodology for establishing reserves for Texas Capital Bank’s loan portfolio. We experienced a decrease in non-performing assets in the first quarter of 2017 compared to levels reported in the fourth and first quarters of 2016, bringing the ratio of total non-performing assets to total LHI plus other real estate owned (“OREO”) to 0.99 percent compared to 1.07 percent for the fourth quarter of 2016 and 1.12 percent for the first quarter of 2016. The year-over-year decrease is primarily related to the decrease in energy non-accrual loans from $141.3 million at March 31, 2016 to $100.9 million at March 31, 2017. Net charge-offs for the first quarter of 2017 were $5.7 million compared to $20.8 million for the fourth quarter of 2016 and $7.4 million for the first quarter of 2016. For the first quarter of 2017, net charge-offs related to energy loans were $7.1 million compared to $16.3 million for the fourth quarter of 2016 and $5.9 million for the first quarter of 2016. For the first quarter of 2017, net charge-offs were 0.15 percent of total LHI, compared to 0.48 percent for the fourth quarter of 2016 and 0.19 percent for the same period in 2016. At March 31, 2017, total OREO was $18.8 million compared to $19.0 million at December 31, 2016 and $17.6 million at March 31, 2016. Non-interest income increased $5.8 million, or 51 percent, during the first quarter of 2017 compared to the same period of 2016, and decreased $1.7 million, or 9 percent, compared to the fourth quarter of 2016. The year-over-year increase primarily related to an increase in servicing income, swap fees, brokered loan fees and service charges. Servicing income increased $2.2 million during the first quarter of 2017 compared to the same period of 2016 as a result of an increase in servicing assets primarily related to our MCA business. Swap fees increased $1.5 million during the first quarter of 2017 compared to the same period of 2016. These fees fluctuate from quarter to quarter based on the volume and size of transactions closed during the quarter. Brokered loan fees increased $1.0 million during the first quarter of 2017 compared to the same period of 2016 as a result of an increase in LHFS volumes. Service charges increased $935,000 during the first quarter of 2017 compared to the same period of 2016 as a result of the increase in deposit balances and improved pricing of treasury services. The linked-quarter decrease in non-interest income primarily related to a $1.6 million, or 22 percent, decrease in brokered loan fees attributable to reduced mortgage finance activity and a $2.4 million, or 49 percent, decrease in other non-interest income, offset by a $1.3 million increase in swap fees. Non-interest expense for the first quarter of 2017 increased $19.3 million, or 22 percent, compared to the first quarter of 2016, and decreased $429,000, or less than 1 percent, compared to the fourth quarter of 2016. The year-over-year increase is primarily related to an $11.6 million increase in salaries and employee benefits expense, a $2.1 million increase in legal and professional expense and a $1.0 million increase in marketing expense, all of which were due to general business growth. Servicing related expenses for the first quarter of 2017 increased $1.0 million compared to the same quarter in 2016 as a result of the increase in capitalized servicing assets primarily related to our MCA business from March 31, 2016 to March 31, 2017. Stockholders’ equity increased by 24 percent from $1.6 billion at March 31, 2016 to $2.1 billion at March 31, 2017, primarily due to retention of net income and proceeds from the fourth quarter 2016 common stock offering. Texas Capital Bank is well capitalized under regulatory guidelines and at March 31, 2017, our ratio of tangible common equity to total tangible assets was 9.0 percent. ABOUT TEXAS CAPITAL BANCSHARES, INC.  Texas Capital Bancshares, Inc. (NASDAQ®:TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. 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 management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “intend” and similar expressions. A number of factors, many of which are beyond our 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 credit quality of our loan portfolio, general economic conditions in the United States and in our markets, including the continued impact on our customers from declines and volatility in oil and gas prices, rates of default or loan losses, volatility in the mortgage industry, the success or failure of our business strategies, future financial performance, future growth and earnings, the appropriateness of our allowance for loan losses and provision for credit losses, the impact of increased regulatory requirements and legislative changes on our business, increased competition, interest rate risk, the success or failure of new lines of business and new product or service offerings and the impact of new technologies. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission. The information contained in this release speaks only as of its date. We are under no obligation, and expressly disclaim such obligation, to update, alter or revise our forward-looking statements, whether as a result of new information, future events, or otherwise.


"The digital divide affects our communities in profound ways and we know it's particularly pronounced in the Rio Grande Valley, which is an enormously important market for us," said Onur Genç, the CEO of BBVA Compass, which operates the most bank branches along the border. "We're committed to finding ways to bridge that divide so that we can connect all of our communities to a brighter future." In July 2016, the Federal Reserve advised financial institutions that efforts to close the digital divide could be considered favorably in the Community Reinvestment Act exam, which measures how well banks are meeting the credit needs in low- to moderate-income, or LMI, communities. It argued that closing the digital divide will open up opportunities for LMI individuals to gain access to safe financial services and products. BBVA Compass was ahead of the curve. It recognized the link between the digital divide and financial inclusion in 2015, when the bank's economists published exhaustive research that found that internet access is now the dominant factor in financial inclusion, overtaking other variables such as race or education levels in determining whether someone participates in the traditional banking system. They developed a Financial Inclusion Metropolitan Index to gauge the financial inclusion levels in more than 250 cities. The McAllen area, of which Pharr is part, was ranked last. Since the economists' study was published, BBVA Compass has moved into action, including its support for the feasibility study for Pharr Life Net. Jordana Barton, senior advisor at the Federal Reserve Bank of Dallas, said Pharr Life Net is the first comprehensive approach to closing the digital divide on the border. It provides a blueprint for bringing together all of the resources across the Rio Grande Valley and replacing the current patchwork system that leaves too many people behind. The Pharr Life plan calls for an additional 250 homes to receive broadband internet in the coming months. "What's been missing is a robust regional network that connects all of the major anchor institutions and provides the infrastructure to cost-effectively provide broadband or WiFi service to LMI residents," Barton said. "Pharr Life Net is that prototype, and will serve as a model that could be rolled out along the border. BBVA Compass was very forward-looking in funding the engineering study. It understood that there's a structural barrier that's preventing people's upward economic mobility." Pharr Life Net evolved out of the call from a collective impact group, the Digital Opportunity for the Rio Grande Valley, for a regional, intergovernmental fiberoptic network. The DO4RGV includes representatives from the Dallas Fed, The University of Texas Rio Grande Valley, the Texas Association of Telecommunications Officers and Advisors and several city governments, among other entities. Pharr Life Net was not, in fact, the first time BBVA Compass has stepped into the breach of the digital divide. Spurred by its economists' 2015 study on the effect of internet access on financial inclusion, the bank launched a small pilot in 2016 to put internet-connected smartphones in the hands of some of society's most vulnerable. The bank coordinated with select nonprofit community organizations in Austin, Texas, Riverside, Calif., and Birmingham, Ala., to provide financial literacy education to their clients. The clients were offered the opportunity to receive free prepaid smartphones with one month of service on a network that has a wide selection of free WiFi hotspots if they applied for the BBVA Compass ClearSpend prepaid card. The card comes with a budgeting app that empowers users by tracking spending. The goal with the pilot was to test the ways BBVA Compass can make an impact on the digital and financial inclusion of underserved communities through mobile internet access, using innovative mobile technologies to deliver banking services affordably with no compromise in quality or convenience. "This program is powerful because we are approaching the issue of financial inclusion holistically," said Julieta Falcon, the Underserved and Multicultural Segment Manager for BBVA Compass. "We are providing banking services and also stepping in as an educator of digital financial services and as a mobile phone provider. Our bankers are seeking out the underserved and giving them end-to-end the education, knowledge, training and tools they need to build financial stability. It's going to help us learn more and better ways to serve these consumers. Above all, we hope this pilot proves that BBVA Compass is a conscientious bank that's leaning into a digital future and leveraging its creativity to tackle some of society's most pressing issues." Barton, of the Fed, said efforts like that are precisely what the central bank is looking for. "We're going to have an even greater unbanked population if we don't find new ways to reach low- to moderate-income people," she said. "What we're calling for is for banks to be more innovative in thinking about how to do that." To learn more about BBVA Compass, visit: www.bbvacompass.com For more news visit: www.bbva.com and newsroom.bbvacompass.com About BBVA Group BBVA is a customer-centric global financial services group founded in 1857. The Group is the largest financial institution in Spain and Mexico and it has leading franchises in South America and the Sunbelt Region of the United States; and it is also the leading shareholder in Garanti, Turkey's biggest bank for market capitalization. Its diversified business is focused on high-growth markets and it relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. More information about BBVA Group can be found at bbva.com. About BBVA Compass BBVA Compass is a Sunbelt-based financial institution that operates 657 branches, including 342 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 38 in Colorado and 19 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 5th nationally in the total number of SBA loans originated in fiscal year 2016. Additional information about BBVA Compass can be found at www.bbvacompass.com. For more BBVA Compass news, follow @BBVACompassNews on Twitter or visit newsroom.bbvacompass.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bbva-compass-helps-tackle-rio-grande-valleys-digital-divide-with-innovative-pilot-program-300474907.html


News Article | July 19, 2017
Site: globenewswire.com

DALLAS, July 19, 2017 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the second quarter of 2017. “We are extremely pleased with our second quarter results, reporting record earnings led by strong core loan growth and rebounding mortgage finance balances," said Keith Cargill, CEO. "We continue to be optimistic about our earnings power for the remainder of 2017 and are well-positioned to exploit future business opportunities." DETAILED FINANCIALS Texas Capital Bancshares, Inc. reported net income of $51.1 million and net income available to common stockholders of $48.7 million for the quarter ended June 30, 2017 compared to net income of $38.9 million and net income available to common stockholders of $36.4 million for the same period in 2016. On a fully diluted basis, earnings per common share were $0.97 for the quarter ended June 30, 2017 compared to $0.78 for the same period of 2016. The increase reflects the $12.2 million year over year increase in net income offset by the $0.07 per share dilutive effect of the common stock offering in the fourth quarter 2016. Return on average common equity (“ROE”) was 10.08 percent and return on average assets (“ROA”) was 0.96 percent for the second quarter of 2017, compared to 8.60 percent and 0.83 percent, respectively, for the first quarter of 2017 and 9.65 percent and 0.77 percent, respectively, for the second quarter of 2016. The linked quarter increase in ROE and ROA resulted from increases in net interest income and non-interest income in the second quarter of 2017 that exceeded the growth of the provision for credit losses and non-interest expense. ROA also benefited from more effective utilization of liquidity balances and an increase in net interest margin. Average liquidity assets for the second quarter of 2017 totaled $2.4 billion, including $2.3 billion in deposits at the Federal Reserve Bank of Dallas, which had an average yield of 104 basis points, compared to $3.3 billion in the first quarter of 2017, which had an average yield of 80 basis points and $2.9 billion for the second quarter of 2016, which had an average yield of 53 basis points. Net interest income was $183.0 million for the second quarter of 2017, compared to $163.4 million for the first quarter of 2017 and $157.1 million for the second quarter of 2016. Net interest margin for the second quarter of 2017 was 3.57 percent, an increase of 28 basis points from the first quarter of 2017 and an increase of 39 basis points from the second quarter of 2016. The linked quarter and year-over-year increases in net interest margin are due primarily to the improved earning asset composition and the effect of the increase in interest rates on loan yields attributable to our asset-sensitive balance sheet. Average LHI, excluding mortgage finance loans, for the second quarter of 2017 were $13.7 billion, an increase of $738.2 million, or 6 percent, from the first quarter of 2017 and an increase of $1.4 billion, or 12 percent, from the second quarter of 2016. Average total mortgage finance loans (including Mortgage Correspondent Aggregation ("MCA")) for the second quarter of 2017 were $4.7 billion, an increase of $829.6 million, or 22 percent, from the first quarter of 2017 and a decrease of $81.5 million, or 2 percent, from the second quarter of 2016. Mortgage finance volumes showed increases in average balances from the seasonal lower volumes in the first quarter of 2017. Average loans held for sale ("LHS") generated from our MCA business decreased to $845.6 million for the second quarter of 2017 from $1.1 billion for the first quarter of 2017 as a result of the shorter holding period in the second quarter and increased from $157.9 million for the second quarter of 2016 as we continue to gain traction in that business. Average total deposits for the second quarter of 2017 increased $306.9 million from the first quarter of 2017 and increased $430.0 million from the second quarter of 2016. Average demand deposits for the second quarter of 2017 increased $316.1 million, or 4 percent, to $7.9 billion from $7.5 billion during the first quarter of 2017, and increased $95.7 million, or 1 percent, from $7.8 billion during the second quarter of 2016. We recorded a $13.0 million provision for credit losses for the second quarter of 2017 compared to $9.0 million for the first quarter of 2017 and $16.0 million for the second quarter of 2016. The provision for the second quarter of 2017 was driven by the application of our methodology. The linked-quarter increase was primarily related to loan growth and the year-over-year decrease was primarily related to improvements in the composition of our pass-rated and classified loan portfolios, including energy loans. Overall 2016 provision levels were higher primarily related to energy exposure. As a result of strong loan growth, the combined allowance for credit losses at June 30, 2017 decreased to 1.28 percent of LHI excluding mortgage finance loans compared to 1.37 percent at March 31, 2017 and 1.41 percent at June 30, 2016. In management’s opinion, the allowance is appropriate and is derived from consistent application of the methodology for establishing reserves for the loan portfolio. We experienced a decrease in non-performing assets in the second quarter of 2017 compared to levels reported in the first quarter of 2017 and second quarter of 2016, bringing the ratio of total non-performing assets to total LHI plus other real estate owned (“OREO”) to 0.73 percent compared to 0.99 percent for the first quarter of 2016 and 1.04 percent for the second quarter of 2016. The linked-quarter and year-over-year decreases are primarily related to the decrease in energy non-accrual loans from $127.0 million at June 30, 2016 and $100.9 million at March 31, 2017 to $82.6 million at June 30, 2017. Net charge-offs for the second quarter of 2017 were $12.4 million compared to $5.7 million for the first quarter of 2017 and $12.0 million for the second quarter of 2016. For the second quarter of 2017, net charge-offs related to energy loans were $6.4 million compared to $7.1 million for the first quarter of 2017 and $12.1 million for the second quarter of 2016. For the second quarter of 2017, net charge-offs were 0.28 percent of average total LHI, compared to 0.15 percent for the first quarter of 2017 and 0.29 percent for the same period in 2016. At June 30, 2017, total OREO was $18.7 million compared to $18.8 million at March 31, 2017 and $18.7 million at June 30, 2016. Non-interest income increased $4.8 million, or 35 percent, during the second quarter of 2017 compared to the same period of 2016, and increased $1.7 million, or 10 percent, compared to the first quarter of 2017. The year-over-year increase primarily related to an increase in servicing income and service charges on deposit accounts. Servicing income increased $3.7 million during the second quarter of 2017 compared to the same period of 2016 as a result of an increase in servicing assets primarily related to our MCA business. Service charges increased $656,000 during the second quarter of 2017 compared to the same period of 2016 as a result of the improved pricing of treasury services. The linked-quarter increase in non-interest income primarily related to a $1.5 million, or 68 percent, increase in servicing income. Non-interest expense for the second quarter of 2017 increased $17.6 million, or 19 percent, compared to the second quarter of 2016, and increased $5.7 million, or 5 percent, compared to the first quarter of 2017. In the second quarter of 2017, in an effort to improve processes and efficiencies, management determined that the current system in one of our support areas is not an effective technology, resulting in a $5.3 million technology write-off of the full value of the unamortized software and development costs. We are in the process of enabling a new technology. Other factors contributing to the year-over-year increase in non-interest expense included an $8.3 million increase in salaries and employee benefits expense and a $1.7 million increase in marketing expense, both of which were due to general business growth, and a $2.1 million increase in servicing related expenses, resulting from an increase in capitalized servicing assets, which are being amortized, primarily related to our MCA business. The linked quarter increase is primarily related to the second quarter 2017 technology write-off. Stockholders’ equity increased by 25 percent from $1.7 billion at June 30, 2016 to $2.1 billion at June 30, 2017, primarily due to retention of net income and proceeds from the fourth quarter 2016 common stock offering. Texas Capital Bank is well capitalized under regulatory guidelines and at June 30, 2017, our ratio of tangible common equity to total tangible assets was 8.4 percent. ABOUT TEXAS CAPITAL BANCSHARES, INC. Texas Capital Bancshares, Inc. (NASDAQ®:TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. 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 management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “intend” and similar expressions. A number of factors, many of which are beyond our 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 credit quality of our loan portfolio, general economic conditions in the United States and in our markets, including the continued impact on our customers from declines and volatility in oil and gas prices, rates of default or loan losses, volatility in the mortgage industry, the success or failure of our business strategies, future financial performance, future growth and earnings, the appropriateness of our allowance for loan losses and provision for credit losses, the impact of increased regulatory requirements and legislative changes on our business, increased competition, interest rate risk, the success or failure of new lines of business and new product or service offerings and the impact of new technologies. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission. The information contained in this release speaks only as of its date. We are under no obligation, and expressly disclaim such obligation, to update, alter or revise our forward-looking statements, whether as a result of new information, future events, or otherwise.


News Article | July 20, 2017
Site: www.prweb.com

Year Up Dallas/Fort Worth (“Year Up DFW”), a one-year workforce development program for low-income young adults, is proud to announce that it will host its first graduation ceremony this Thursday, July 20, 2017. Dale Petroskey, President and CEO of the Dallas Regional Chamber (DRC), will deliver keynote remarks to graduates of Year Up DFW’s Class One and their families, along with internship partners, faculty, staff and Year Up alumni. Year Up DFW launched in Fall 2016 on the campus of El Centro College. The one-year intensive training program combines professional skills development, college coursework and internships at some of America’s top companies, including JPMorgan Chase, Federal Reserve Bank of Dallas and Bank of America, New York Life and Liberty Mutual. Mr. Petroskey, Year Up DFW’s inaugural graduation speaker, oversees one of the largest and most established business organizations in the state of Texas representing more than 1,100 member companies. The DRC works to strengthen the business community by attracting companies and talented workers from around the world, improving education, advocating for pro-growth public policies, and enhancing the quality of life for all in the Dallas Region. Mr. Petroskey’s career also includes service as Assistant White House Press Secretary to President Ronald Reagan; as Senior Vice President for Mission Programs at National Geographic; and as the President of the National Baseball Hall of Fame and Museum in Cooperstown, New York. “Dale’s record of leadership and his commitment to improving the fabric of life for all residents in the Dallas Region aligns directly with our mission at Year Up,” said Scott Snyder, Executive Director, Year Up DFW. “Closing the opportunity divide is a priority we share with Dale and we are honored to have him speak to our graduates as they transition into the workforce equipped with the skills they learned at Year Up.” “I am honored to be the first keynote speaker at the first graduation of Year Up DFW students,” said Mr. Petroskey. “Like Year Up, the Dallas Regional Chamber places a high priority on education and I look forward to working with this important organization to help its students become successful members of the business community – and role models for future Year Up students.” Year Up DFW’s lead founding donors include AT&T, W.W. Caruth Jr. Foundation and Lyn and John Muse. Year Up DFW has also been generously supported by its numerous internship partners, including Bell Helicopter, the Federal Reserve Bank of Dallas, ISNetworld, JLL Inc. and Sidley Austin LLP. The graduation ceremony will take place at El Centro College’s Performance Hall at 801 Main St, Dallas, TX 75202 on Thursday, July 20th. Students, family, faculty, alumni and friends are invited to join Year Up DFW’s Class one on their graduation day. About Year Up Year Up's mission is to close the Opportunity Divide by providing urban young adults with the skills, experience, and support that will empower them to reach their potential through professional careers and higher education. Year Up achieves this mission through a high support, high expectation model that combines marketable job skills, stipends, internships and college-level coursework. Its holistic approach focuses on students' professional and personal development to place these young adults on a viable path to economic self-sufficiency. Year Up currently serves more than 3,600 students annually across 24 campuses in Arizona, Baltimore, Bay Area, Chicago, Dallas/Fort Worth, Greater Atlanta, Greater Boston, Greater Philadelphia, Jacksonville, Los Angeles, National Capital Region, New York City, Providence, Puget Sound, South Florida and Wilmington. To learn more, visit http://www.yearup.org, and follow us on LinkedIn, Facebook, and Twitter: @YearUp


News Article | July 26, 2017
Site: www.prnewswire.com

"Prosperity reported $68.554 million in net income for the second quarter of 2017.  These results reflect a 15.39% annualized return on tangible common equity and a 1.22% annualized return on quarterly average assets.  These returns are some of the best in the business and are evidence of Prosperity's strong core deposit base, efficient operations and sound asset quality," said David Zalman, Prosperity's Chairman and Chief Executive Officer. "Further, Prosperity has seen solid loan growth over the last three quarters, with loans increasing 5.1% on an annualized basis during the second quarter of 2017 and 4.9% on an annualized basis during the first quarter of 2017," continued Zalman. "Texas and Oklahoma have continued to rebound from the downturn in the oil business. Texas employers added more than 40,000 jobs in June 2017, which brings Texas to an annualized job growth rate of 2.7%, up from 2.4% in May and in line with job growth nationally.  The Texas unemployment rate fell to 4.6% in June from 4.8% in May.  The recent acceleration in job growth led the Federal Reserve Bank of Dallas to boost its forecast for employment growth in Texas to 2.8%," added Zalman. "With a better economy, loan growth and a strong pipeline of approved but unfunded loans, we look forward to a solid second half of 2017," concluded Zalman. Results of Operations for the Three Months Ended June 30, 2017 Net income was $68.554 million(2) for the three months ended June 30, 2017 compared with $68.071 million(3) for the same period in 2016. Net income per diluted common share was $0.99 for the three months ended June 30, 2017 compared with $0.98 for the same period in 2016. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2017 were 1.22%, 7.36% and 15.39%(1), respectively.  Prosperity's efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and securities and taxes) was 42.34%(1) for the three months ended June 30, 2017. Net interest income before provision for credit losses for the three months ended June 30, 2017 was $152.231 million compared with $158.467 million during the same period in 2016, a decrease of $6.236 million or 3.9%. This change was primarily due to a $4.833 million decrease in loan discount accretion. Linked quarter net interest income before provision for credit losses decreased $204 thousand or 0.1% to $152.231 million compared with $152.435 million during the three months ended March 31, 2017. The net interest margin on a tax equivalent basis was 3.14% for the three months ended June 30, 2017, compared with 3.37% for the same period in 2016. This change was primarily due to a $4.833 million decrease in loan discount accretion. On a linked quarter basis the net interest margin was 3.14% compared with 3.20% for the three months ended March 31, 2017. Noninterest income was $27.780 million for the three months ended June 30, 2017 compared with $28.473 million for the same period in 2016, a decrease of $693 thousand or 2.4%. This change was primarily due to the net loss on sale of assets, partially offset by the gain on sale of securities. The sale of assets was primarily related to the sale of an aircraft acquired in a previous acquisition that was leased to a third party. On a linked quarter basis, noninterest income decreased $3.044 million or 9.9% compared with the three months ended March 31, 2017. This change was primarily due to the net loss on sale of assets, partially offset by the gain on sale of securities. Noninterest expense was $76.442 million for the three months ended June 30, 2017 compared with $79.235 million for the same period in 2016, a decrease of $2.793 million or 3.5%. This change was primarily due to a decrease in salaries and benefits and core deposit intangibles amortization. On a linked quarter basis, noninterest expense decreased $1.620 million or 2.1% compared with the three months ended March 31, 2017. This change was primarily due to a decrease in salaries and benefits. Results of Operations for the Six Months Ended June 30, 2017 Net income was $137.119 million(4) for the six months ended June 30, 2017 compared with $137.022 million(5) for the same period in 2016.  Net income per diluted common share was $1.97 for the six months ended June 30, 2017 compared with $1.96 for the same period in 2016. Annualized returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2017 were 1.22%, 7.41% and 15.60%(1), respectively.  Prosperity's efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and securities and taxes) was 42.68%(1) for the six months ended June 30, 2017. Net interest income before provision for credit losses for the six months ended June 30, 2017 was $304.666 million compared with $324.724 million for the same period in 2016, a decrease of $20.058 million or 6.2%. This change was primarily due to a $14.574 million decrease in loan discount accretion. The net interest margin on a tax equivalent basis for the six months ended June 30, 2017 was 3.17% compared with 3.43% for the same period in 2016. This change was primarily due to a $14.574 million decrease in loan discount accretion. Noninterest income was $58.604 million for the six months ended June 30, 2017 compared with $59.266 million for the same period in 2016, a decrease of $662 thousand or 1.1%. This change was primarily due to the net loss on sale of assets and a decrease in brokerage income, partially offset by the gain on sale of securities and an increase in service charges on deposit accounts. The sale of assets was primarily related to the sale of an aircraft acquired in a previous acquisition that was leased to a third party. Noninterest expense was $154.504 million for the six months ended June 30, 2017 compared with $159.763 million for the same period in 2016, a decrease of $5.259 million or 3.3%.  This change was primarily due to a decrease in salaries and benefits and core deposit intangibles amortization. At June 30, 2017, Prosperity had $22.297 billion in total assets, an increase of $500.233 million or 2.3%, compared with $21.796 billion at June 30, 2016. Loans at June 30, 2017 were $9.864 billion, an increase of $214.011 million or 2.2%, compared with $9.650 billion at June 30, 2016. Linked quarter loans increased $124.766 million or 1.3% (5.1% annualized) from $9.739 billion at March 31, 2017. As part of its commercial and industrial lending activities, Prosperity extends credit to oil and gas production and service companies. Oil and gas production loans are loans to companies directly involved in the exploration and/or production of oil and gas. Oil and gas service loans are loans to companies that provide services for oil and gas production and exploration. At June 30, 2017, oil and gas loans totaled $287.815 million or 2.9% of total loans, of which $115.358 million were to production companies and $172.457 million were to service companies. This compares with total oil and gas loans of $328.409 million or 3.4% of total loans at June 30, 2016, of which $156.734 million were to production companies and $171.675 million were to service companies. At March 31, 2017, oil and gas loans totaled $267.445 million or 2.8% of total loans, of which $108.267 million were production loans and $159.178 million were service loans. Deposits at June 30, 2017 were $17.071 billion, a decrease of $148.615 million or 0.9%, compared with $17.219 billion at June 30, 2016. Linked quarter deposits increased $34.958 million or 0.2% from $17.036 billion at March 31, 2017. Nonperforming assets totaled $47.618 million or 0.24% of quarterly average interest-earning assets at June 30, 2017, compared with $52.130 million or 0.27% of quarterly average interest-earning assets at June 30, 2016, and $41.199 million or 0.21% of quarterly average interest-earning assets at March 31, 2017. The linked quarter change was primarily due to one commercial and industrial loan placed on nonaccrual during the second quarter 2017. The allowance for credit losses was $83.783 million or 0.85% of total loans at June 30, 2017, $83.826 million or 0.87% of total loans at June 30, 2016 and $84.095 million or 0.86% of total loans at March 31, 2017.  Excluding loans acquired that are accounted for under FASB Accounting Standards Codification ("ASC") Topics 310-20 and 310-30, the allowance for credit losses was 0.93%(1) of remaining loans as of June 30, 2017, compared with 1.01%(1) at June 30, 2016 and 0.96%(1) at March 31, 2017. The provision for credit losses was $2.750 million for the three months ended June 30, 2017 compared with $6.000 million for the three months ended June 30, 2016 and $2.675 million for the three months ended March 31, 2017.  The provision for credit losses was $5.425 million for the six months ended June 30, 2017 compared with $20.000 million for the six months ended June 30, 2016. Net charge-offs were $3.062 million for the three months ended June 30, 2017 compared with $5.888 million for the three months ended June 30, 2016 and $3.906 million for the three months ended March 31, 2017. Net charge-offs for the second quarter of 2017 were primarily comprised of one commercial and industrial loan.  Net charge-offs were $6.968 million for the six months ended June 30, 2017 compared with $17.558 million for the six months ended June 30, 2016. Prosperity's management team will host a conference call on Wednesday, July 26, 2017 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) to discuss Prosperity's second quarter 2017 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383. The elite entry number is 7554104. Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at .  The webcast may be accessed from Prosperity's home page by selecting "Presentations & Calls" from the drop-down menu on the Investor Relations tab and following the instructions. Prosperity's management uses certain non−GAAP financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity, tangible equity to tangible assets ratio and the efficiency ratio, excluding net gains and losses on the sale of assets and securities.  Further, as a result of acquisitions and the related purchase accounting adjustments, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20, "Receivables-Nonrefundable Fees and Other Costs" and 310-30, "Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality").  Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and that their presentation, together with the accompanying reconciliations, provides a more complete understanding of factors and trends affecting Prosperity's business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook.  These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis measures and results; Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures. Prosperity Bancshares, Inc. declared a third quarter cash dividend of $0.34 per share, to be paid on October 2, 2017 to all shareholders of record as of September 15, 2017. As of June 30, 2017, Prosperity Bancshares, Inc. ® is a $22.297 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking to develop broad customer relationships based on service and convenience, Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at , Retail Brokerage Services, Credit Cards, MasterMoney Debit Cards, 24 hour voice response banking, Trust and Wealth Management, Mortgage Services, Cash Management and Mobile Banking. As of June 30, 2017, Prosperity operated 243 full-service banking locations: 65 in the Houston area, including The Woodlands; 29 in the South Texas area including Corpus Christi and Victoria; 34 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area including Austin and San Antonio; 34 in the West Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area, 6 in the Central Oklahoma area and 8 in the Tulsa, Oklahoma area. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the securities laws. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries.  These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements.  These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives.  Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather.  These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2016 and other reports and statements Prosperity Bancshares has filed with the SEC. Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from .


BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Taubman Centers, Inc. (NYSE: TCO) today announced the appointments of Cia Buckley Marakovits to the company’s Board of Directors and Myron E. (Mike) Ullman III to lead director, both effective immediately. Ms. Buckley Marakovits brings decades of real estate, financial and investment experience to the Taubman Board. She is chief investment officer, partner, managing director and a member of the Investment Committee at Dune Real Estate Partners, a real estate investment firm. Prior to joining Dune in 2007, Ms. Buckley Marakovits successfully managed a variety of investments and held key financial leadership roles, including president of the U.S. Fund Business, chief financial officer, head of Asset Management and head of Acquisitions at JER Partners, an affiliate of the J.E. Robert Companies. Ms. Buckley Marakovits will fill the vacancy created by the resignation of her predecessor from the Board on September 27, 2016, and will stand for election to the Board at the 2017 Annual Meeting. With her appointment, the Taubman Board consists of nine directors, seven of whom are independent, of whom two joined the Board this year. “Cia is a real estate industry leader with significant financial expertise and has a long history of fiduciary responsibility to a wide range of institutional investors,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “Her appointment follows direct engagement with many of our shareholders as part of the process led by the Nominating and Corporate Governance Committee to identify a highly qualified, independent candidate with the right experience and complementary skills. We are confident that Cia will be an exemplary contributor to Taubman’s continued growth, and we are pleased to welcome her.” “I am honored to join the Taubman Board and look forward to contributing my knowledge and perspectives to help lead the company forward,” said Ms. Buckley Marakovits. “Taubman’s strong assets and differentiated strategy position the company for continued growth and success. I am excited to begin working with the entire Board and management team to deliver further value for all Taubman shareholders.” Taubman also announced that it has created a new lead director position and that the chairman of the Nominating and Corporate Governance Committee, Myron E. (Mike) Ullman, III, has been appointed to this leadership role, effective immediately. Mr. Ullman joined the Taubman Board in April 2016 and previously served on the Board from 2003 to 2004. Mr. Ullman was appointed Chairman of the Nominating and Corporate Governance Committee in September 2016. “Mike is a tremendous asset to Taubman, and his appointment as lead director reflects his engagement and leadership,” said Mr. Taubman. “I am honored to be appointed by the company’s independent directors to this new position,” said Mr. Ullman. “I recognize the important role that a lead director can play in ensuring that a board appropriately oversees the management team while providing strong independent leadership and strategic guidance. I am also delighted to welcome Cia to the Board. I look forward to continue working with Bobby and the entire Board to further enhance value for all Taubman shareholders.” Ms. Buckley Marakovits is chief investment officer, partner, managing director and a member of the Investment Committee at Dune Real Estate Partners. During her nearly 10 year tenure at Dune, as a key member of the senior team Ms. Buckley Marakovits has been involved in the acquisition of approximately $9 billion in investments across multiple sectors. Prior to joining Dune in 2007, Ms. Buckley Marakovits was the president of the U.S. Fund Business for JER Partners, an affiliate of the J.E. Robert Companies. Ms. Buckley Marakovits joined JER in 1997 and held a variety of positions, including chief financial officer. Before joining JER, Ms. Buckley Marakovits spent nine years in the Real Estate Investment Banking Group of Bankers Trust, where she successfully managed a variety of investments. Ms. Buckley Marakovits is a member of the Urban Land Institute where she is a trustee and a member of the ULI Foundation Board of Directors. She is chair of the Investment Committee, a member of the Audit Committee and active in the Women's Leadership Initiative at ULI. Ms. Buckley Marakovits is a member of the Pension Real Estate Association, serves as a member of Columbia Business School's MBA Real Estate Program Advisory Board and is a member of the Executive Committee of the Samuel Zell and Robert Lurie Real Estate Center at the Wharton School. She is a member of Women Executives in Real Estate ("WX") and was honored as the WX Woman of the Year in 2011. Ms. Buckley Marakovits was selected by PERE as one of the Top Ten Women in Real Estate Private Equity. She also serves on the Board of Trustees of Collegiate School in New York City. Ms. Buckley Marakovits received an M.B.A. from Columbia University and a B.A. from Lafayette College. Mr. Ullman is a member of the Board of Directors of Starbucks Corporation and its lead director. Mr. Ullman until recently was executive chairman of J.C. Penney Company, Inc. and held numerous leadership and executive roles at the company, including chief executive officer and member of the Board (2013 to 2015), executive chairman (2011 to 2012), and chairman of the Board and chief executive officer (2004 to 2011). Mr. Ullman was previously chairman of the Federal Reserve Bank of Dallas through the end of 2014. He also served as directeur general, group managing director of LVHM Moët Hennessy Louis Vuitton, a luxury goods manufacturer and retailer from July 1999 to 2002. From 1995 to 1999, Mr. Ullman served as chairman and chief executive officer of DFS Group Limited, a retailer of luxury branded merchandise. From 1992 to 1996, Mr. Ullman was chairman and chief executive officer of R.H. Macy & Co., Inc. He previously served on the Boards of Ralph Lauren Corporation, Saks, Inc., and Pzena Investment Management, Inc. Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia and one under development. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry. Founded in 1950, Taubman is headquartered in Bloomfield Hills, Mich. Taubman Asia, founded in 2005, is headquartered in Hong Kong. www.taubman.com. For ease of use, references in this press release to “Taubman Centers,” “company,” “Taubman” or an operating platform mean Taubman Centers, Inc. and/or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself or the named operating platform. This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance. Forward-looking statements can be identified by words such as “will”, “may”, “could”, “expect”, “anticipate”, “believes”, “intends”, “should”, “plans”, “estimates”, “approximate”, “guidance” and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks, uncertainties and other factors. Such factors include, but are not limited to: changes in market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; the liquidity of real estate investments; the company’s ability to comply with debt covenants; the availability and terms of financings; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in value of investments in foreign entities; the ability to hedge interest rate and currency risk; risks related to acquiring, developing, expanding, leasing and managing properties; changes in value of investments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impact the company’s information technology, infrastructure or personal data; the loss of key management personnel; terrorist activities; maintaining the company’s status as a real estate investment trust; changes in the laws of states, localities, and foreign jurisdictions that may increase taxes on the company’s operations; and changes in global, national, regional and/or local economic and geopolitical climates. You should review the company's filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Report on Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.


Patent
Federal Reserve Bank Of Dallas, Federal Reserve Bank Of Kansas City, Federal Reserve Bank Of Atlanta and Federal Reserve Bank Of Cleveland | Date: 2010-03-24

Producing print streams for efficiently generating properly formatted and ordered paper cash letters comprises print stream file that includes electronic form definitions for each cash letter document. The cash letter documents can include a cover page, one or more bundles of substitute checks, a bundle summary for each substitute check bundle, and/or a cash letter bundle summary. Information from an electronic image cash letter file can be input in data fields of the electronic form definitions. Printing the information in the print stream file results in a properly formatted and ordered paper cash letter including substitute checks and audit data. Each substitute check can include all of the MICR data provided on a corresponding, original paper check. The audit data includes the cover page, bundle summary(ies), and/or cash letter bundle summary, which can each detail the documents printed concurrently therewith.


Swadley A.,Federal Reserve Bank of Dallas | Yucel M.,Federal Reserve Bank of Dallas
Energy Policy | Year: 2011

A key selling point for the restructuring of electricity markets was the promise of lower prices. There is not much consensus in earlier studies on the effects of electricity deregulation in the U.S., particularly for residential customers. Part of the reason for not finding a consistent link with deregulation and lower prices was that the removal of transitional price caps led to higher prices. In addition, the timing of the removal of price caps coincided with rising fuel prices, which were passed on to consumers in a competitive market. Using a dynamic panel model, we analyze the effect of participation rates, fuel costs, market size, a rate cap and switch to competition for 16 states and the District of Columbia. We find that an increase in participation rates, price controls, a larger market, and high shares of hydro in electricity generation lower retail prices, while increases in natural gas and coal prices increase rates. We also find that retail competition makes the market more efficient by lowering the markup of retail prices over wholesale costs. The effects of a competitive retail electricity market are mixed across states, but generally appear to lower prices in states with high participation rates. © 2011 Elsevier Ltd.


Grossman V.,Federal Reserve Bank of Dallas | MacK A.,Federal Reserve Bank of Dallas | Martinez-Garcia E.,Federal Reserve Bank of Dallas
Journal of Economic and Social Measurement | Year: 2014

The Database of Global Economic Indicators (DGEI) from the Federal Reserve Bank of Dallas aims to standardize and disseminate economic indicators for policy analysis and scholarly work on the role of globalization. Its main purpose is to offer a broad perspective on a number of global factors affecting the U.S. economy. DGEI indicators are based on a core sample of 40 countries with aggregates for the rest of the world (ex. the U.S.) and by level of development attainment and openness to trade. DGEI indicators currently include real GDP, industrial production (IP), Purchasing Managers Index (PMI), merchandise exports and imports, headline CPI, core CPI (ex. food and energy), PPI/WPI inflation, nominal and real exchange rates, and short-term interest rates. Here we describe our methodology to transform and combine different time series, for temporal and cross-country aggregation, and to highlight the importance of using representative data in international macroeconomics research. Our paper makes a related contribution to the literature by providing a formal assessment of conventional interpolation methods used to adjust the data frequency. A selection of the DGEI-derived global indicators-to be updated monthly-can be accessed at the following URL: http://www.dallasfed.org/institute/dgei/index.cfm. © 2014-IOS Press and the authors.

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