Texas Capital Bancshares Profit Doubles

Core Insights - Texas Capital Bancshares reported a 104% increase in adjusted EPS and 100% growth in adjusted net income year over year, supported by a 16% increase in adjusted revenue [1][3] - The company reaffirmed guidance for low double-digit percentage revenue growth for the full year and highlighted a record tangible book value of $70.14 per share [1][9] Financial Performance - Adjusted pre-provision net revenue reached $120.5 million, a 52% year-over-year increase, with both net interest income and adjusted fee-based revenues showing double-digit percentage gains [2] - Adjusted total revenue increased by 16%, adjusted net income to common stockholders rose by 100%, and adjusted earnings per share expanded by 104% [3] Fee Income and Strategic Diversification - Treasury product fees surged 37% year-over-year, marking increases in eight of the last 12 quarters, while investment banking and trading income climbed 43% quarter over quarter [4][5] - The ongoing build-out of equities, research, and trading operations now covers 72 companies, expected to scale further in the second half of 2025 [4] Risk Management and Capital Position - The bank increased its allowance for credit loss by $2 million to a record $334 million, representing 1.79% of loans held for investment, while criticized loans declined by 26% year over year [6][7] - The CET1 capital ratio remained high at 11.45%, and the company repurchased approximately 318,000 shares for $21 million, reflecting disciplined capital deployment [6] Future Outlook - Management expects quarterly noninterest income to reach $60 million to $65 million in Q3, supported by $35 million to $40 million in investment banking fees [9] - Full-year noninterest income guidance is now $230 million to $240 million, with noninterest expense guidance decreased to mid to high single-digit percent growth for the full year [9]