Texas Capital Bancshares, Inc.’s (TCBI) steady loan growth will continue to support its financials. Given the company's strong liquidity position, its capital distribution activities seem sustainable. However, an elevated expense base and deteriorating asset quality are major concerns.Key Factors Driving Growth of Texas CapitalOrganic Growth Story: Texas Capital’s organic expansion efforts have been driving its growth.  An elevated level of investment banking, trading income and higher net interest income ( ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style S ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Developed ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

About My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing sinc ...

Aluminum producer Alcoa (AA) and financial holding company Texas Capital Bancshares (TCBI) are two stocks to watch after crushing their third quarter earnings expectations on Thursday. Further suggesting they are worthy of investors' consideration is that Alcoa and Texas Capital were able to post significant growth on their bottom lines from the comparative quarter. Alcoa's Q3 Results Zacks Rank #3 (Hold) With Aluminum prices up +20% this year to current levels of over $2,600 per "tonne", Alcoa's ability to ...

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. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share TCBI Nasdaq Stock Market 5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share TCBIO Nasdaq Stock Market ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended September 30, 2024 ☐ Transition Report pursuant to Sec ...

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]

Q3-2024 Earnings October 17, 2024 © 2024 Texas Capital Bank Member FDIC Forward-Looking Statements 2 This communication contains "forward-looking statements" within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI's financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as "believes," "projects," "expects," "may, ...