Financial Data and Key Metrics Changes - Year-over-year revenue growth of 9% with total revenue increasing by $24.1 million [6][13] - Adjusted pre-provision net revenue growth of 21% to $77.5 million [14] - Tangible book value per share grew by 11%, reaching a record high [6] - Net income at common increased by 44% year-over-year to $42.7 million [15] - Quarterly earnings per share rose by 48% compared to the previous year [15] Business Line Data and Key Metrics Changes - Treasury product fees increased by 22% year-over-year, marking a record high [8] - Noninterest-bearing deposits grew by 7%, the largest quarterly increase since 2021 [8] - Average commercial loan balances increased by 4% or $401 million during the quarter [17] - Real estate loans increased by $208 million, remaining flat compared to Q1 2024 [17] - Average mortgage finance loans decreased by 27% linked quarter to $4 billion [17] Market Data and Key Metrics Changes - Client interest-bearing deposit balances increased by approximately $2.9 billion or 19% year-over-year [19] - Non-interest-bearing deposits excluding mortgage finance increased by $250 million or 7% linked quarter [18] - The firm's allowance for credit loss increased by $7 million linked quarter to $332 million [21] Company Strategy and Development Direction - The company aims to be the primary operating bank for clients, focusing on client relevance through breadth of services and quality of advice [7][9] - The firm is strategically positioned to operate through various market cycles, maintaining high capital levels and liquidity [11][12] - The company is focused on enhancing its mortgage finance product offerings and improving client relationships [60][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering risk-adjusted returns despite macroeconomic uncertainties [9][10] - The firm is preparing for potential impacts from recent tariff actions and market volatility [10][23] - The outlook for revenue growth has been raised to low double digits percent growth for the full year [26] Other Important Information - The company repurchased approximately 396,000 shares for a total of $31 million [26] - The total regulatory capital remained strong at 11.63%, a 25 basis point increase from the prior quarter [24] Q&A Session Summary Question: What is driving the higher revenue guidance? - Management indicated that the higher revenue guidance is driven by net interest income growth and expected loan growth [30][31] Question: How is the loan pipeline shaping up for the second quarter? - The loan pipeline remains strong, with ongoing client acquisition trends supporting loan growth despite some risks [36] Question: What is the outlook for mortgage finance? - The mortgage finance business is competitive, with expectations for a 10% increase in average balances for the full year [60][61] Question: What are the impacts of tariffs on specific sectors? - Management highlighted infrastructure, transportation, logistics, and general manufacturing as sectors of concern due to tariffs [91] Question: What is the expected impact of hedging on net interest income? - The firm expects to manage balance sheet duration effectively and has added forward starting swaps to mitigate falling rates [120] Question: How does the company view its capital position? - The company aims to maintain a strong capital position, viewing it as a competitive advantage [186]

For the quarter ended March 2025, Texas Capital (TCBI) reported revenue of $280.48 million, up 9.4% over the same period last year. EPS came in at $0.92, compared to $0.62 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $287.87 million, representing a surprise of -2.57%. The company delivered an EPS surprise of -7.07%, with the consensus EPS estimate being $0.99.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Financial Performance Highlights - Net interest income increased by $64 million QoQ, supported by growth in loans excluding mortgage finance and lower deposit costs[34] - Net interest margin expanded by 26bps due to higher loan yields and lower deposit costs[35] - Non-interest expense increased by $309 million to $2030 million, impacted by incentive accrual resets, new hires, and seasonal expenses[35] - The company repurchased 396 thousand shares in Q1, representing 09% of year-end 2024 shares outstanding, for $31 million[55] Balance Sheet Trends - Total deposits increased by $814 million or 3% QoQ[19, 21] - Non-interest bearing deposits, excluding mortgage finance, increased by $250 million or 7% QoQ to $37 billion[19, 21] - Commercial loans increased by $259 million or 2% QoQ, with average commercial loans increasing by $401 million or 4% QoQ[16] - Commercial real estate loans increased by $208 million or 4% QoQ[16] Asset Quality - Total ACL on loans increased by $67 million QoQ to $2784 million[43] - Non-performing assets declined by $176 million QoQ to 030% of total assets[46] - Net charge-offs were $98 million, representing 018% of average loans held for investment[40, 46] Capital Position - CET1 ratio was 1163%[48] - Total capital ratio was 1561%, placing it in the top quintile of its peer group[48, 55] - Tangible book value per share increased by $165 or 2% QoQ to $6797[53, 55] 2025 Full Year Guidance - The company expects to fully achieve a return on average assets of 110% in the second half of 2025[56] - The tax rate is expected to be approximately 25% for the year[56]

Texas Capital (TCBI) came out with quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.07%. A quarter ago, it was expected that this holding company for Texas Capital Bank would post earnings of $1.07 per share when it actually produced earnings of $1.43, delivering a surprise of 33.64%.Over the las ...

Exhibit 99.1 Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com MEDIA CONTACT Julia Monter, 469.399.8425 julia.monter@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS First quarter 2025 net income of $47.0 million and net income available to common stockholders of $42.7 million, or $0.92 per diluted share Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year Book Value and Tangible Book Value per share ...

First quarter 2025 net income of $47.0 million and net income available to common stockholders of $42.7 million, or $0.92 per diluted share Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year Book Value and Tangible Book Value(1) per share both increasing 11% year-over-year, reaching record levels Capital ratios continue to be strong, including 11.6% CET1 and 15.6% Total Capital DALLAS, April 17, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NAS ...

Company Leadership - Rob C. Holmes has been confirmed as Chairman of the Board of Directors of Texas Capital Bancshares, Inc. following the 2025 Annual Meeting of Stockholders [1] - Bob Stallings, the outgoing Chairman, has transitioned to the role of Lead Independent Director [2] Company Vision and Strategy - Holmes expressed gratitude towards Stallings for his contributions and emphasized the honor of serving as Chairman, highlighting the firm's differentiated platform, capital, liquidity, and vision for the future [3] - The company is positioned to serve clients through various economic conditions and aims to achieve its objectives for 2025 and beyond [3] Company Overview - Texas Capital Bancshares, Inc. is a member of the Russell 2000 Index and the S&P MidCap 400, and operates as a full-service financial services firm [4] - The company provides customized solutions across commercial banking, consumer banking, investment banking, and wealth management, with a network of clients nationwide [4]

Core Viewpoint - Texas Capital (TCBI) is expected to report a quarterly earnings per share (EPS) of $0.99, reflecting a year-over-year increase of 59.7%, with revenues projected at $287.87 million, a 12.3% increase compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.8%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Financial Metrics - Analysts project the 'Efficiency Ratio' to be 71.2%, down from 79% in the same quarter last year [5]. - The 'Net Interest Margin' is expected to reach 3.1%, compared to 3% in the same quarter last year [5]. - The estimated 'Average Balance - Total earning assets' is $30.88 billion, up from $28.19 billion a year ago [6]. - 'Total Non-Performing Assets' are expected to be $117.49 million, compared to $102.10 million in the same quarter last year [6]. - 'Non-Accrual Loans Held for Investment' are projected at $117.49 million, up from $92.85 million a year ago [7]. - 'Net Interest Income' is forecasted to be $230.46 million, compared to $215.01 million in the same quarter last year [7]. - 'Total Non-Interest Income' is expected to reach $57.34 million, up from $41.32 million a year ago [7]. - 'Net Interest Income (FTE)' is projected at $231.76 million, compared to $215.08 million last year [8]. - 'Service Charges on Deposit Accounts' are expected to be $7.15 million, up from $6.34 million last year [8]. - 'Other Non-Interest Income' is estimated at $8.44 million, compared to $6.37 million a year ago [8]. - 'Wealth Management and Trust Fee Income' is projected to be $4.09 million, compared to $3.57 million in the same quarter last year [9]. Stock Performance - Over the past month, shares of Texas Capital have declined by 16.9%, while the Zacks S&P 500 composite has decreased by 3.6% [9]. - Texas Capital currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near future [9].

Core Viewpoint - Investors in the Banks - Southwest sector should consider Texas Capital (TCBI) and Cullen/Frost Bankers (CFR) as potential undervalued stocks [1] Valuation Metrics - TCBI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CFR, which has a Zacks Rank of 3 (Hold) [3] - TCBI's forward P/E ratio is 10.71, while CFR's forward P/E ratio is 12.07 [5] - TCBI has a PEG ratio of 0.72, significantly lower than CFR's PEG ratio of 4.25, suggesting better value relative to expected earnings growth [5] - TCBI's P/B ratio is 0.92, compared to CFR's P/B ratio of 1.83, indicating TCBI is undervalued in terms of market value versus book value [6] - TCBI has a Value grade of A, while CFR has a Value grade of F, highlighting TCBI's superior valuation metrics [6]

Texas Capital (TCBI) shares ended the last trading session 6.7% higher at $66.24. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.4% loss over the past four weeks.Texas Capital witnessed a significant rally following Trump’s announcement on April 9, 2025, of a 90-day pause on reciprocal tariffs for most trading partners, excluding China. The tariff pause reduced immediate fears of a trade war, fostering a more f ...