Nexbank is one of the leading financial institutions based in Texas that provides services to its customers through three main businesses, which includes investment banking, mortgage banking, and commercial banking. Additionally, the bank provides customized banking and financial services that are geared towards corporations and financial institutions nationwide. In June 2016, Nexbank Capital, Inc. announced that it had raised a $24 million equity which will be used for general corporate purposes.
According to the banks CEO, the raised capital will provide the necessary support for the company’s growth and development. In the first six months of 2016, the bank reported an average ROAE (return on average equity) of 37.6 percent and net income of $38.1 million. The total deposits reached $2.6 billion while the total assets exceeded $3.5 billion as at June 30, 2016, which is a yearly increase of 49 and 61 percent respectively.
The bank also reported a gross loan of 2.5 billion dollars, which is about 72 percent of the bank’s total assets, but still maintained a capitalized status with a risk based ratio of 12.98 % and 9.44 %. According to the chief operating officer and executive vice president of Nexbank, the capital raised will enable the bank to grow their scalable business across different sectors of the bank. Also, the bank received an upgraded rating from Kroll Bond Ratings with a stable outlook, which is a reflection of the bank’s strong liquidity profile and earnings as well as capital levels. Additionally, the banks SSB received an upgrade of the senior unsecured and deposit debt from BBB to BBB+.