Texas Capital Bancshares(US:TCBI)2025-04-17 20:05Financial Performance - Net income for Q1 2025 was $47.0 million, up from $26.1 million in Q1 2024, representing an increase of 80.5%[74] - Net income available to common stockholders increased to $42.7 million in Q1 2025 from $21.8 million in Q1 2024, a growth of 95.0%[74] - Basic earnings per common share rose to $0.93 in Q1 2025, compared to $0.46 in Q1 2024, reflecting a 102.2% increase[74] Income and Expenses - Net interest income increased to $236.0 million in Q1 2025 from $215.0 million in Q1 2024, a rise of 9.8%[73] - Non-interest income for Q1 2025 was $44.4 million, compared to $41.3 million in Q1 2024, marking an increase of 7.4%[73] - Non-interest expense increased by $627,000 to $203.0 million for the three months ended March 31, 2025, primarily due to higher salaries and benefits[86] Profitability Ratios - Return on average assets (ROA) improved to 0.61% in Q1 2025 from 0.36% in Q1 2024[74] - Return on average common equity (ROE) increased to 5.56% in Q1 2025, up from 3.03% in Q1 2024[74] - The efficiency ratio improved to 72.4% in Q1 2025 from 79.0% in Q1 2024, indicating better cost management[73] Asset and Loan Growth - Total assets grew to $31.1 billion in Q1 2025, up from $29.3 billion in Q1 2024[76] - Average earning assets increased by $1.8 billion to $26.1 billion for the three months ended March 31, 2025, compared to the same period in 2024[82] - Total loans held for investment reached $22.4 billion as of March 31, 2025, an increase of $70.3 million from December 31, 2024[88] Non-Performing Assets and Credit Losses - Non-performing assets decreased to $93.6 million as of March 31, 2025, down from $111.2 million at December 31, 2024[93] - The provision for credit losses was $17.0 million for the three months ended March 31, 2025, compared to $19.0 million for the same period in 2024[95] Deposits and Borrowings - Customer deposits increased to $25.7 billion as of March 31, 2025, representing 98.5% of total deposits[99] - Interest bearing cash and cash equivalents rose to $3.6 billion as of March 31, 2025, accounting for 16.1% of total loans held for investment[99] - As of March 31, 2025, the Company has total short-term borrowings of $750 million, down from $885 million as of December 31, 2024, reflecting a decrease of approximately 15.2%[101] Capital and Shareholder Actions - The average equity capital for the Company was $3.4 billion for the three months ended March 31, 2025, compared to $3.2 billion for the same period in 2024, representing a growth of approximately 6.25%[106] - The Company authorized a share repurchase program of up to $200 million on January 22, 2025, and repurchased 396,106 shares for $31.2 million during the three months ended March 31, 2025[107] Interest Rate Sensitivity - The Company’s total interest-sensitive assets amount to $30.61 billion, while total interest-sensitive liabilities are $19.59 billion, resulting in a positive gap of $7.04 billion in the 0-3 months category[117] - The Company has unused Federal Reserve borrowings capacity of $6.49 billion as of March 31, 2025, compared to $5.44 billion as of December 31, 2024, showing an increase of approximately 19.3%[101] - The company's interest rate risk exposure model indicates a hypothetical annualized change in net interest income of +7.4% for a 200 basis point increase and -12.2% for a 200 basis point decrease as of March 31, 2025[122] Risk Management - The company conducts sensitivity analysis to assess interest rate risk exposure on net interest income, utilizing various interest rate scenarios[120] - The company uses derivative contracts to manage exposure to adverse fluctuations in primary interest rate exposures[120] - The model's assumptions are inherently uncertain, leading to potential discrepancies between simulated and actual net interest income results[122]