Socially responsible investing is the idea that not only should you make money from the companies you invest in, but the companies you invest in should be good citizens of the world.

Texascapitalbank

Source: company.

One great example of this type of company is Texas Capital Bank (NASDAQ:TCBI). While the bank offers a full range of services, including personal banking and wealth management, it specializes in business banking. Let's look at why Texas Capital Bank is a socially responsible company, and then we'll see if it's a good investment as well.

What makes Texas Capital Bank so socially responsible?
Texas Capital Bank calls itself "The Best Business Bank in Texas." Basically, the company's mission is to meet the financial needs of all business owners, both large and small, and to provide a smoother, easier to understand, lending process than its competitors.

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Source: 401kcalculator.org via flickr.

The bank's lending services include working capital loans, lines of credit, equipment financing, and commercial real estate loans. It is known for making lending decisions quickly and locally. Texas Capital Bank also provides general business services such as commercial bank accounts.

While other banks have business services, it's the local, personal feel of Texas Capital Bank's services that sets it apart. In fact, according to the bank's website, 95% of its business results from client referrals. The bank offers a level of personal attention that many small business owners just don't find in other banks.

This gives small and medium-sized businesses access to capital and equipment they otherwise might not get, which allows more jobs to be created.

But is it a solid investment?
It looks like it. Over the past five years, the bank's operating revenue has grown at an annual rate of 19%, while net income has grown at an extremely impressive 43% annual rate.

Growth is still going strong, with net interest income up 16% year over year and 9% over the past quarter alone, despite increasing noninterest expenses (salaries and other operating costs) by just 3%.

Deposits are expected to grow at well over 20% in 2014 (over 2013's final numbers), continuing the trend of 25% annual growth since 2009, which has allowed the bank to deploy that capital and grow its lending portfolio. In fact, the total deposit base increased by 31% year over year during the third quarter, and demand deposits (checking and savings accounts) grew by an even more impressive 46%.

Finally, the bank's asset quality is excellent. Nonaccrual loans represent just 0.28% of the total loan portfolio, and the net charge-off rate is an extremely low 0.08% so far in 2014.

Trading for more than 21 times TTM earnings, Texas Capital Bank might seem expensive. However, when you consider the five-year annual earnings growth rate of 40%, this seems very reasonable. The bank is expected to grow its earnings by 18% in 2015, which means shares trade for just 17.4 times next year's earnings. This actually looks rather cheap considering the bank's rapid growth rate.

So not only is Texas Capital Bank a socially responsible company, but it actually looks like a pretty solid investment, too. With a winning business model and strong growth, Texas Capital Bank could be worth considering for your portfolio.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.