Texas Capital Bancshares, Inc. (TCBI) reported third-quarter 2024 adjusted earnings per share of $1.62, which beat the Zacks Consensus Estimate of 97 cents. Moreover, earnings compared favorably with $1.18 reported in the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Shares of Texas Capital rose 2.7% following the release of its third-quarter earnings, which highlighted a record high non-interest income. In the third quarter of 2024, the company included a $179. ...

Financial Data and Key Metrics Changes - Total adjusted revenue increased by $38 million or 14% for the quarter to $305 million, driven by a $23.5 million increase in net interest income and a $14.4 million or 29% linked-quarter increase in non-interest revenue [10] - Quarterly return on average assets was 1%, return on common equity was 10%, and earnings per share reached $1.59, all marking record levels since the beginning of the transformation [4] - Adjusted net income to common was $74.3 million, up $36.6 million or 97% linked-quarter [11] Business Line Data and Key Metrics Changes - Fee income reached $64.8 million, a record since the transformation began, with treasury product fees, wealth management fees, and investment banking and trading income delivering $54 million in non-interest revenue, up 25% linked-quarter and 32% year-over-year [5] - Investment banking and trading income increased 32% quarter-over-quarter to a record of $40.5 million, led by syndications, capital markets, and sales and trading [5] - Wealth and related fees increased by 9% this quarter, indicating early signs of increased client adoption in the private wealth business [6] Market Data and Key Metrics Changes - Non-brokered interest-bearing deposits increased by 24% or $3.1 billion year-over-year, while non-interest-bearing deposits, excluding mortgage finance, increased by 4% to $3.4 billion this quarter [8] - Total deposits increased by $2 billion or 9% during the quarter, with gains in both commercial non-interest bearing and interest-bearing accounts [12] - Commercial loans grew by $434 million in this quarter, inclusive of a $330 million loan portfolio acquisition [13] Company Strategy and Development Direction - The company is focused on leveraging its broad platform to serve clients based on their unique needs, with a commitment to achieving improved financial performance and resilience [8][19] - The strategic plan announced in September 2021 continues to guide the company, with significant progress in client acquisition and service offerings [4][48] - The company anticipates continued growth in fee income areas and aims for total non-interest revenue to reach $240 million in 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, indicating that the company is well-positioned to benefit from market share gains when loan demand picks up [24][44] - The outlook for 2025 includes expectations for high single to low double-digit full-year average loan growth, supported by a favorable rate environment [21] - Management remains cautious about the economic outlook but is confident in the company's ability to navigate challenges and capitalize on opportunities [19][20] Other Important Information - The company completed a significant repositioning of its bond portfolio, which is expected to contribute an incremental $35 million to $40 million in net interest income on an annualized basis [16] - The tangible common equity to tangible assets ratio finished at 9.65%, ranked first among the largest banks in the country [18] - The company is committed to maintaining a CET1 ratio around 11% while focusing on generating the right level of PPNR to average assets [33] Q&A Session Summary Question: Loan growth strategy and potential for additional loan purchases - Management clarified that the recent loan acquisition was part of a strategic effort to onboard bankers with existing relationships, rather than a traditional loan purchase [24] Question: Industry loan growth and economic conditions - Management noted that while loan growth is uncertain, they expect to benefit from market share gains when demand increases [26] Question: Investment banking performance drivers - Management highlighted that the investment banking success was driven by syndications and record volumes in fees, indicating a strong performance across various segments [27] Question: Mortgage warehouse yield and NIM assumptions for 2025 - Management provided insights into the expected rate environment and its impact on net interest income, projecting high single-digit growth [31] Question: Impact of hedges on financial performance - Management discussed the hedge impact and its relation to the SOFR curve, indicating a potential pickup in net interest income as swaps mature [36] Question: Technology investments and expense management - Management emphasized ongoing investments in technology to improve operational efficiency and client experience, which should help maintain flat expense levels [39]

Texas Capital (TCBI) reported $304.91 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 9.3%. EPS of $1.62 for the same period compares to $1.18 a year ago. The reported revenue represents a surprise of +9.04% over the Zacks Consensus Estimate of $279.64 million. With the consensus EPS estimate being $0.97, the EPS surprise was +67.01%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Texas Capital (TCBI) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 67.01%. A quarter ago, it was expected that this holding company for Texas Capital Bank would post earnings of $0.87 per share when it actually produced earnings of $0.80, delivering a surprise of -8.05%. Over the l ...

Record level of income in fee areas of focus(1) Quarterly strategic actions include acquisition of $332 million commercial loan portfolio and balance sheet repositioning of the proceeds from $1.2 billion sale of lower-yielding available-for-sale securities into higher yielding securities Book Value and Tangible Book Value(2) per share both increased 14% year over year, reaching record levels Capital ratios continue to be strong, including 11.2% CET1 and 15.2% Total Capital DALLAS, Oct. 17, 2024 (GLOBE NEWSW ...

Wall Street analysts forecast that Texas Capital (TCBI) will report quarterly earnings of $0.97 per share in its upcoming release, pointing to a year-over-year decline of 17.8%. It is anticipated that revenues will amount to $279.64 million, exhibiting an increase of 0.3% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone an upward revision of 6.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reasse ...

Texas Capital Bancshares, Inc. (TCBI) stock looks like an attractive investment option now. With ongoing progress in its strategic business plan, the company is well-poised to capitalize on growth opportunities while continuing to enhance its financial stability and operational capabilities. A strong capital position is an added positive. Analysts seem optimistic regarding TCBI's earnings growth potential. The Zacks Consensus Estimate for the company's 2024 earnings has been revised 5.7% upward over the pas ...

DALLAS, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, today announced that it expects to issue financial results for the third quarter of 2024 before market on Thursday, October 17, 2024. Executive management will host a conference call and webcast to discuss third quarter 2024 operating results on Thursday, October 17, 2024, at 9:00 a.m. EDT. Participants may pre-register for the call by visiting https://www.netroadshow.com/events ...

Texas Capital Bancshares (TCBI) — the parent company of Texas Capital — rose 4% on Friday. The upside followed after TCBI announced major strides in its strategic plan that will advance the company toward achieving performance goals specified in its Sept. 1, 2021, strategic plan. These actions include an acquisition, balance sheet restructuring, and operational enhancements and are expected to generate long-term value. Texas Capital 2021 Strategic Plan at a Glance Before discussing TCBI's progress under its ...

DALLAS, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc., the parent company of Texas Capital, led by President & CEO, Rob C. Holmes, today announced a series of actions that materially progresses the firm towards realization of the performance targets outlined in its strategic plan, communicated on September 1, 2021. "Three years after announcing our strategic plan, we are pleased with the tremendous progress made building a balance sheet and a business model worthy of serving the best cli ...