Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Texas Capital Bancshares reports mixed Q1 results

EditorRachael Rajan
Published 18/04/2024, 08:28 pm
© Reuters.
US2000
-
TCBI
-

DALLAS - Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital Bank, reported its first-quarter earnings, revealing a miss on the analyst consensus for adjusted earnings per share (EPS).

The company announced a Q1 EPS of $0.46, which was $0.12 lower than the analyst estimate of $0.58. However, the revenue for the quarter was $256.33 million, slightly above the consensus estimate of $253.08 million.

In comparison to the same quarter last year, the bank's net income available to common stockholders decreased from $34.3 million, or $0.70 per diluted share, to $21.8 million, or $0.46 per diluted share. This year's first-quarter results included various expenses such as a $5.0 million legal settlement, a special assessment expense of $3.0 million by the Federal Deposit Insurance Corporation (FDIC), and $2.0 million in restructuring expenses.

President and CEO Rob C. Holmes commented on the quarter's performance, stating, "We continue to leverage our unique balance sheet positioning and maturing product capabilities to build an enduring and valuable franchise. Quality quarterly growth in areas of focus coupled with strong firm-wide pipelines signal emerging momentum moving into the second quarter."

Despite the earnings miss, Texas Capital Bancshares reported growth in loans held for investment by 2.4% and a 7.1% increase in total deposits. The bank's capital ratios remained strong, with a Common Equity Tier 1 (CET1) ratio of 12.4% and a total capital ratio of 16.6%.

Credit quality showed mixed signals, with net charge-offs of $10.8 million recorded during the first quarter of 2024, compared to $13.8 million and $19.9 million in the previous two comparable quarters. The ratio of non-accrual loans to total loans held for investment was slightly higher at 0.45% compared to 0.40% in the previous quarter and 0.47% in the same quarter of the previous year.

Texas Capital Bancshares, Inc., founded in 1998, is a member of the Russell 2000® Index and the S&P MidCap 400®. The company provides a range of financial services to businesses, entrepreneurs, and individual customers across the country.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.