Texas Capital Bancshares reported significant financial growth in 2024, with income increasing and strong deposit and loan growth.
Quiver AI Summary
Texas Capital Bancshares, Inc. reported substantial growth in its financial performance for the fourth quarter and full year of 2024, highlighted by a 38% increase in income from key fee areas, a 13% rise in total deposits, and a 10% growth in total loans year-over-year. The company's book value and tangible book value per share also saw an 8% increase, reaching record highs, while capital ratios remained robust with a CET1 of 11.4% and total capital at 15.4%. The net income available to common stockholders for the fourth quarter was $66.7 million, or $1.43 per diluted share, a significant rebound from a loss in the third quarter. CEO Rob C. Holmes emphasized that the company's strategic goals, established in 2021, have been successfully executed, positioning Texas Capital for continued success in 2025. The bank's balance sheet showed growth, and it initiated a new $200 million share repurchase program.
Potential Positives
- Income in fee areas of focus increased 38% year-over-year.
- Strong balance sheet growth with total deposits increasing 13% and total loans growing 10% year-over-year.
- Book Value and Tangible Book Value per share both increased 8% year-over-year, reaching record levels.
- Capital ratios continue to be strong, including 11.4% CET1 and 15.4% Total Capital.
Potential Negatives
- Despite an overall increase in net income compared to the previous year, the company's net income was significantly lower than in 2023, with a decrease of approximately 59% compared to the full year 2023, raising concerns about sustained profitability.
- The increase in provision for credit losses to $18.0 million in Q4 2024 compared to $10.0 million in Q3 2024 suggests potential deterioration in credit quality that could indicate riskier lending practices or economic challenges ahead.
- The loss on the sale of available-for-sale debt securities and a notable drop in yields on average earning assets reflect potential management or investment challenges that could affect future revenue stability.
FAQ
What were Texas Capital Bancshares' key financial highlights for 2024?
Texas Capital Bancshares reported a 38% income increase in fee areas, with deposits up 13% and loans by 10% year-over-year.
How did Texas Capital's balance sheet perform in 2024?
The balance sheet saw total deposits rise 13% and total loans increase by 10%, contributing to strong growth.
What were Texas Capital's capital ratios at the end of 2024?
The company maintained robust capital ratios with 11.4% CET1 and 15.4% total capital as of December 31, 2024.
What strategic milestones did Texas Capital achieve?
Texas Capital successfully executed its strategy laid out in 2021, showing strong client adoption and positioning for future growth.
What does the new share repurchase program entail?
The board authorized up to $200 million for share repurchases, effective through January 31, 2026.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$TCBI Congressional Stock Trading
Members of Congress have traded $TCBI stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $TCBI stock by members of Congress over the last 6 months:
- REPRESENTATIVE JOSH GOTTHEIMER purchased up to $15,000 on 10/31.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$TCBI Insider Trading Activity
$TCBI insiders have traded $TCBI stock on the open market 13 times in the past 6 months. Of those trades, 13 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $TCBI stock by insiders over the last 6 months:
- ROBERT W STALLINGS has made 13 purchases buying 111,980 shares for an estimated $2,286,162 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$TCBI Hedge Fund Activity
We have seen 116 institutional investors add shares of $TCBI stock to their portfolio, and 117 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- NORTH REEF CAPITAL MANAGEMENT LP removed 425,000 shares (-20.2%) from their portfolio in Q3 2024, for an estimated $30,370,499
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 382,171 shares (+13.2%) to their portfolio in Q3 2024, for an estimated $27,309,939
- ARISTOTLE CAPITAL BOSTON, LLC removed 227,863 shares (-50.5%) from their portfolio in Q3 2024, for an estimated $16,283,089
- BLACKROCK, INC. removed 196,293 shares (-3.3%) from their portfolio in Q3 2024, for an estimated $14,027,097
- AQR CAPITAL MANAGEMENT LLC removed 178,629 shares (-16.4%) from their portfolio in Q3 2024, for an estimated $12,764,828
- BANK OF AMERICA CORP /DE/ removed 171,561 shares (-51.9%) from their portfolio in Q3 2024, for an estimated $12,259,749
- WELLINGTON MANAGEMENT GROUP LLP added 150,301 shares (+15.4%) to their portfolio in Q3 2024, for an estimated $10,740,509
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Income in fee areas of focus
(1)
increased 38% year-over-year
Strong balance sheet growth with total deposits increasing 13% and total loans growing 10% year-over-year
Book Value and Tangible Book Value
(2)
per share both increased 8% year-over-year, reaching record levels
Capital ratios continue to be strong, including
11.4%
CET1 and
15.4%
Total Capital
DALLAS, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the fourth quarter and full year of 2024.
“For the past four years, our team steadily pursued the strategy we laid out in 2021, positioning Texas Capital to serve the best clients in all our markets,” said Rob C. Holmes, President and CEO. “Given full year 2024 financial results, the successful execution of significant strategic milestones and the realization of client adoption trends, the firm has proven that it is poised to deliver in 2025.”
4th Quarter | 3rd Quarter | 4th Quarter | Full Year | Full Year | |||||||||||||||
(dollars in thousands except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
OPERATING RESULTS | |||||||||||||||||||
Net income/(loss) | $ | 71,023 | $ | (61,319 | ) | $ | 20,150 | $ | 77,508 | $ | 189,141 | ||||||||
Net income/(loss) available to common stockholders | $ | 66,711 | $ | (65,632 | ) | $ | 15,838 | $ | 60,258 | $ | 171,891 | ||||||||
Pre-provision net revenue (4) | $ | 111,522 | $ | (69,993 | ) | $ | 44,465 | $ | 174,061 | $ | 318,595 | ||||||||
Diluted earnings/(loss) per common share | $ | 1.43 | $ | (1.41 | ) | $ | 0.33 | $ | 1.28 | $ | 3.54 | ||||||||
Diluted common shares | 46,770,961 | 46,608,742 | 48,097,517 | 46,989,204 | 48,610,206 | ||||||||||||||
Return on average assets | 0.88 | % | (0.78) % | 0.27 | % | 0.25 | % | 0.64 | % | ||||||||||
Return on average common equity | 8.50 | % | (8.87) % | 2.25 | % | 2.04 | % | 6.15 | % | ||||||||||
OPERATING RESULTS, ADJUSTED (3) | |||||||||||||||||||
Net income/(loss) | $ | 71,023 | $ | 78,654 | $ | 35,403 | $ | 225,595 | $ | 204,394 | |||||||||
Net income/(loss) available to common stockholders | $ | 66,711 | $ | 74,341 | $ | 31,091 | $ | 208,345 | $ | 187,144 | |||||||||
Pre-provision net revenue (4) | $ | 111,522 | $ | 114,860 | $ | 64,351 | $ | 369,394 | $ | 338,481 | |||||||||
Diluted earnings/(loss) per common share | $ | 1.43 | $ | 1.59 | $ | 0.65 | $ | 4.43 | $ | 3.85 | |||||||||
Diluted common shares | 46,770,961 | 46,608,742 | 48,097,517 | 46,989,204 | 48,610,206 | ||||||||||||||
Return on average assets | 0.88 | % | 1.00 | % | 0.47 | % | 0.74 | % | 0.69 | % | |||||||||
Return on average common equity | 8.50 | % | 10.04 | % | 4.41 | % | 7.05 | % | 6.70 | % | |||||||||
BALANCE SHEET | |||||||||||||||||||
Loans held for investment | $ | 17,234,492 | $ | 16,764,512 | $ | 16,362,230 | |||||||||||||
Loans held for investment, mortgage finance | 5,215,574 | 5,529,659 | 3,978,328 | ||||||||||||||||
Total loans held for investment | 22,450,066 | 22,294,171 | 20,340,558 | ||||||||||||||||
Loans held for sale | — | 9,022 | 44,105 | ||||||||||||||||
Total assets | 30,731,883 | 31,629,299 | 28,356,266 | ||||||||||||||||
Non-interest bearing deposits | 7,485,428 | 9,070,804 | 7,328,276 | ||||||||||||||||
Total deposits | 25,238,599 | 25,865,255 | 22,371,839 | ||||||||||||||||
Stockholders’ equity | 3,367,936 | 3,354,044 | 3,199,142 | ||||||||||||||||
(1) Fee areas of focus include service charges on deposit accounts, wealth management and trust fee income, investment banking and advisory fees and trading income.
(2) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(3) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
(4) Net interest income plus non-interest income, less non-interest expense.
FOURTH
QUARTER
2024
COMPARED TO
THIRD
QUARTER
2024
For the fourth quarter of 2024, net income available to common stockholders was $66.7 million, or $1.43 net income per diluted share, compared to net loss available to common stockholders of $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024.
Provision for credit losses for the fourth quarter of 2024 was $18.0 million, compared to $10.0 million for the third quarter of 2024. The $18.0 million provision for credit losses recorded in the fourth quarter of 2024 resulted primarily from growth in total loans held for investment (“LHI”) and $12.1 million in net charge-offs.
Net interest income was $229.6 million for the fourth quarter of 2024, compared to $240.1 million for the third quarter of 2024, as a decrease in yields on average earning assets and an increase in average interest bearing deposits were partially offset by an increase in average total LHI and a decrease in funding costs. Net interest margin for the fourth quarter of 2024 was 2.93%, a decrease of 23 basis points from the third quarter of 2024, reflecting the impact of decreases in interest rates during the fourth quarter of 2024. LHI, excluding mortgage finance, yields decreased 44 basis points from the third quarter of 2024 and LHI, mortgage finance, yields decreased 47 basis points from the third quarter of 2024. Total cost of deposits was 2.81% for the fourth quarter of 2024, a 13 basis point decrease from the third quarter of 2024.
Non-interest income for the fourth quarter of 2024 increased $168.8 million compared to the third quarter of 2024 primarily due to the inclusion of a $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, partially offset by decreases in investment banking and advisory fees and other non-interest income.
Non-interest expense for the fourth quarter of 2024 decreased $23.2 million, or 12%, compared to the third quarter of 2024, primarily due to a decrease in salaries and benefits resulting from restructuring expenses recognized in the third quarter of 2024, as well as reductions in headcount and adjustments to compensation accruals.
FOURTH
QUARTER
2024
COMPARED TO
FOURTH
QUARTER
2023
Net income available to common stockholders was $66.7 million, or $1.43 per diluted share, for the fourth quarter of 2024, compared to net income available to common stockholders of $15.8 million, or $0.33 per diluted share, for the fourth quarter of 2023.
The fourth quarter of 2024 included a $18.0 million provision for credit losses, reflecting growth in total LHI and $12.1 million in net charge-offs, compared to a $19.0 million provision for credit losses for the fourth quarter of 2023.
Net interest income increased to $229.6 million for the fourth quarter of 2024, compared to $214.7 million for the fourth quarter of 2023, primarily due to an increase in average total LHI and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin was unchanged at 2.93% for the fourth quarter of 2024, as compared to the fourth quarter of 2023. LHI, excluding mortgage finance, yields decreased 32 basis points compared to the fourth quarter of 2023 and LHI, mortgage finance yields increased 34 basis points from the fourth quarter of 2023. Total cost of deposits decreased 1 basis point compared to the fourth quarter of 2023.
Non-interest income for the fourth quarter of 2024 increased $22.9 million compared to the fourth quarter of 2023 primarily due to an increase in investment banking and advisory fees.
Non-interest expense for the fourth quarter of 2024 decreased $29.2 million, or 15%, compared to the fourth quarter of 2023, primarily due to decreases in salaries and benefits, primarily from lower headcount, and Federal Deposit Insurance Corporation (“FDIC”) expense. The fourth quarter of 2023 included $19.9 million in FDIC special assessment expense.
CREDIT QUALITY
Net charge-offs of $12.1 million were recorded during the fourth quarter of 2024, compared to net charge-offs of $6.1 million and $13.8 million during the third quarter of 2024 and the fourth quarter of 2023, respectively. Criticized loans totaled $714.0 million at December 31, 2024, compared to $897.7 million at September 30, 2024 and $738.2 million at December 31, 2023. Non-accrual LHI totaled $111.2 million at December 31, 2024, compared to $89.0 million at September 30, 2024 and $81.4 million at December 31, 2023. The ratio of non-accrual LHI to total LHI for the fourth quarter of 2024 was 0.50%, compared to 0.40% for the third quarter of 2024 and 0.40% for the fourth quarter of 2023. The ratio of total allowance for credit losses to total LHI was 1.45% at December 31, 2024, compared to 1.43% and 1.46% at September 30, 2024 and December 31, 2023, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of December 31, 2024. CET1, tier 1 capital, total capital and leverage ratios were 11.4%, 12.8%, 15.4% and 11.3%, respectively, at December 31, 2024, compared to 11.2%, 12.6%, 15.2% and 11.4%, respectively, at September 30, 2024 and 12.6%, 14.2%, 17.1% and 12.2%, respectively, at December 31, 2023. At December 31, 2024, our ratio of tangible common equity to total tangible assets was 10.0%, compared to 9.7% at September 30, 2024 and 10.2% at December 31, 2023.
On January 22, 2025, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $200.0 million in shares of its outstanding common stock through January 31, 2026. Remaining repurchase authorization under the January 17, 2024 share repurchase program was terminated upon authorization of this new program.
About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, the parent company of Texas Capital Bank d/b/a Texas Capital, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.
Forward Looking Statements
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,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; increased or expanded competition from banks and other financial service providers in TCBI’s markets; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||
(dollars in thousands except per share data) | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
Interest income | $ | 437,571 | $ | 452,533 | $ | 422,068 | $ | 417,378 | $ | 417,072 | |||||
Interest expense | 207,964 | 212,431 | 205,486 | 202,369 | 202,355 | ||||||||||
Net interest income | 229,607 | 240,102 | 216,582 | 215,009 | 214,717 | ||||||||||
Provision for credit losses | 18,000 | 10,000 | 20,000 | 19,000 | 19,000 | ||||||||||
Net interest income after provision for credit losses | 211,607 | 230,102 | 196,582 | 196,009 | 195,717 | ||||||||||
Non-interest income | 54,074 | (114,771 | ) | 50,424 | 41,319 | 31,133 | |||||||||
Non-interest expense | 172,159 | 195,324 | 188,409 | 202,393 | 201,385 | ||||||||||
Income/(loss) before income taxes | 93,522 | (79,993 | ) | 58,597 | 34,935 | 25,465 | |||||||||
Income tax expense/(benefit) | 22,499 | (18,674 | ) | 16,935 | 8,793 | 5,315 | |||||||||
Net income/(loss) | 71,023 | (61,319 | ) | 41,662 | 26,142 | 20,150 | |||||||||
Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | ||||||||||
Net income/(loss) available to common stockholders | $ | 66,711 | $ | (65,632 | ) | $ | 37,350 | $ | 21,829 | $ | 15,838 | ||||
Diluted earnings/(loss) per common share | $ | 1.43 | $ | (1.41 | ) | $ | 0.80 | $ | 0.46 | $ | 0.33 | ||||
Diluted common shares | 46,770,961 | 46,608,742 | 46,872,498 | 47,711,192 | 48,097,517 | ||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
Total assets | $ | 30,731,883 | $ | 31,629,299 | $ | 29,854,994 | $ | 29,180,585 | $ | 28,356,266 | |||||
Loans held for investment | 17,234,492 | 16,764,512 | 16,700,569 | 16,677,691 | 16,362,230 | ||||||||||
Loans held for investment, mortgage finance | 5,215,574 | 5,529,659 | 5,078,161 | 4,153,313 | 3,978,328 | ||||||||||
Loans held for sale | — | 9,022 | 36,785 | 37,750 | 44,105 | ||||||||||
Interest bearing cash and cash equivalents | 3,012,307 | 3,894,537 | 2,691,352 | 3,148,157 | 3,042,357 | ||||||||||
Investment securities | 4,396,115 | 4,405,520 | 4,388,976 | 4,414,280 | 4,143,194 | ||||||||||
Non-interest bearing deposits | 7,485,428 | 9,070,804 | 7,987,715 | 8,478,215 | 7,328,276 | ||||||||||
Total deposits | 25,238,599 | 25,865,255 | 23,818,327 | 23,954,037 | 22,371,839 | ||||||||||
Short-term borrowings | 885,000 | 1,035,000 | 1,675,000 | 750,000 | 1,500,000 | ||||||||||
Long-term debt | 660,346 | 660,172 | 659,997 | 859,823 | 859,147 | ||||||||||
Stockholders’ equity | 3,367,936 | 3,354,044 | 3,175,601 | 3,170,662 | 3,199,142 | ||||||||||
End of period shares outstanding | 46,233,812 | 46,207,757 | 46,188,078 | 46,986,275 | 47,237,912 | ||||||||||
Book value per share | $ | 66.36 | $ | 66.09 | $ | 62.26 | $ | 61.10 | $ | 61.37 | |||||
Tangible book value per share (1) | $ | 66.32 | $ | 66.06 | $ | 62.23 | $ | 61.06 | $ | 61.34 | |||||
SELECTED FINANCIAL RATIOS | |||||||||||||||
Net interest margin | 2.93 | % | 3.16 | % | 3.01 | % | 3.03 | % | 2.93 | % | |||||
Return on average assets | 0.88 | % | (0.78 | )% | 0.56 | % | 0.36 | % | 0.27 | % | |||||
Return on average assets, adjusted (4) | 0.88 | % | 1.00 | % | 0.57 | % | 0.47 | % | 0.47 | % | |||||
Return on average common equity | 8.50 | % | (8.87 | )% | 5.26 | % | 3.03 | % | 2.25 | % | |||||
Return on average common equity, adjusted (4) | 8.50 | % | 10.04 | % | 5.31 | % | 4.11 | % | 4.41 | % | |||||
Efficiency ratio (2) | 60.7 | % | 155.8 | % | 70.6 | % | 79.0 | % | 81.9 | % | |||||
Efficiency ratio, adjusted (2)(4) | 60.7 | % | 62.3 | % | 70.4 | % | 75.1 | % | 73.8 | % | |||||
Non-interest income to average earning assets | 0.69 | % | (1.52 | )% | 0.71 | % | 0.59 | % | 0.43 | % | |||||
Non-interest income to average earning assets, adjusted (4) | 0.69 | % | 0.86 | % | 0.71 | % | 0.59 | % | 0.43 | % | |||||
Non-interest expense to average earning assets | 2.21 | % | 2.59 | % | 2.65 | % | 2.89 | % | 2.79 | % | |||||
Non-interest expense to average earning assets, adjusted (4) | 2.21 | % | 2.52 | % | 2.65 | % | 2.74 | % | 2.52 | % | |||||
Common equity to total assets | 10.0 | % | 9.7 | % | 9.6 | % | 9.8 | % | 10.2 | % | |||||
Tangible common equity to total tangible assets (3) | 10.0 | % | 9.7 | % | 9.6 | % | 9.8 | % | 10.2 | % | |||||
Common Equity Tier 1 | 11.4 | % | 11.2 | % | 11.6 | % | 12.4 | % | 12.6 | % | |||||
Tier 1 capital | 12.8 | % | 12.6 | % | 13.1 | % | 13.9 | % | 14.2 | % | |||||
Total capital | 15.4 | % | 15.2 | % | 15.7 | % | 16.6 | % | 17.1 | % | |||||
Leverage | 11.3 | % | 11.4 | % | 12.2 | % | 12.4 | % | 12.2 | % | |||||
(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) Non-interest expense divided by the sum of net interest income and non-interest income.
(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
(4) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
TEXAS CAPITAL BANCSHARES, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(dollars in thousands) | ||||||||
December 31, 2024 | December 31, 2023 | % Change | ||||||
Assets | ||||||||
Cash and due from banks | $ | 176,501 | $ | 200,493 | (12 | )% | ||
Interest bearing cash and cash equivalents | 3,012,307 | 3,042,357 | (1 | )% | ||||
Available-for-sale debt securities | 3,524,686 | 3,225,892 | 9 | % | ||||
Held-to-maturity debt securities | 796,168 | 865,477 | (8 | )% | ||||
Equity securities | 75,261 | 51,825 | 45 | % | ||||
Investment securities | 4,396,115 | 4,143,194 | 6 | % | ||||
Loans held for sale | — | 44,105 | (100 | )% | ||||
Loans held for investment, mortgage finance | 5,215,574 | 3,978,328 | 31 | % | ||||
Loans held for investment | 17,234,492 | 16,362,230 | 5 | % | ||||
Less: Allowance for credit losses on loans | 271,709 | 249,973 | 9 | % | ||||
Loans held for investment, net | 22,178,357 | 20,090,585 | 10 | % | ||||
Premises and equipment, net | 85,443 | 32,366 | 164 | % | ||||
Accrued interest receivable and other assets | 881,664 | 801,670 | 10 | % | ||||
Goodwill and intangibles, net | 1,496 | 1,496 | — | % | ||||
Total assets | $ | 30,731,883 | $ | 28,356,266 | 8 | % | ||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Non-interest bearing deposits | $ | 7,485,428 | $ | 7,328,276 | 2 | % | ||
Interest bearing deposits | 17,753,171 | 15,043,563 | 18 | % | ||||
Total deposits | 25,238,599 | 22,371,839 | 13 | % | ||||
Accrued interest payable | 23,680 | 33,234 | (29 | )% | ||||
Other liabilities | 556,322 | 392,904 | 42 | % | ||||
Short-term borrowings | 885,000 | 1,500,000 | (41 | )% | ||||
Long-term debt | 660,346 | 859,147 | (23 | )% | ||||
Total liabilities | 27,363,947 | 25,157,124 | 9 | % | ||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value, $1,000 liquidation value: | ||||||||
Authorized shares - 10,000,000 | ||||||||
Issued shares - 300,000 shares issued at December 31, 2024 and 2023 | 300,000 | 300,000 | — | % | ||||
Common stock, $.01 par value: | ||||||||
Authorized shares - 100,000,000 | ||||||||
Issued shares - 51,520,315 and 51,142,979 at December 31, 2024 and 2023, respectively | 515 | 511 | 1 | % | ||||
Additional paid-in capital | 1,056,719 | 1,045,576 | 1 | % | ||||
Retained earnings | 2,495,651 | 2,435,393 | 2 | % | ||||
Treasury stock - 5,286,503 and 3,905,067 shares at cost at December 31, 2024 and 2023, respectively | (301,842 | ) | (220,334 | ) | 37 | % | ||
Accumulated other comprehensive loss, net of taxes | (183,107 | ) | (362,004 | ) | (49 | )% | ||
Total stockholders’ equity | 3,367,936 | 3,199,142 | 5 | % | ||||
Total liabilities and stockholders’ equity | $ | 30,731,883 | $ | 28,356,266 | 8 | % | ||
TEXAS CAPITAL BANCSHARES, INC. | |||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||
(dollars in thousands except per share data) | |||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Interest income | |||||||||
Interest and fees on loans | $ | 340,388 | $ | 325,210 | $ | 1,377,925 | $ | 1,300,653 | |
Investment securities | 44,102 | 28,454 | 148,219 | 108,294 | |||||
Interest bearing cash and cash equivalents | 53,081 | 63,408 | 203,406 | 220,976 | |||||
Total interest income | 437,571 | 417,072 | 1,729,550 | 1,629,923 | |||||
Interest expense | |||||||||
Deposits | 189,061 | 170,173 | 736,196 | 587,775 | |||||
Short-term borrowings | 10,678 | 18,069 | 49,994 | 70,642 | |||||
Long-term debt | 8,225 | 14,113 | 42,060 | 57,383 | |||||
Total interest expense | 207,964 | 202,355 | 828,250 | 715,800 | |||||
Net interest income | 229,607 | 214,717 | 901,300 | 914,123 | |||||
Provision for credit losses | 18,000 | 19,000 | 67,000 | 72,000 | |||||
Net interest income after provision for credit losses | 211,607 | 195,717 | 834,300 | 842,123 | |||||
Non-interest income | |||||||||
Service charges on deposit accounts | 6,989 | 5,397 | 25,546 | 20,874 | |||||
Wealth management and trust fee income | 4,009 | 3,302 | 15,315 | 13,955 | |||||
Brokered loan fees | 2,519 | 2,076 | 8,961 | 8,918 | |||||
Investment banking and advisory fees | 26,740 | 6,906 | 104,965 | 63,670 | |||||
Trading income | 5,487 | 3,819 | 21,635 | 22,512 | |||||
Available-for-sale debt securities gains/(losses), net | — | — | (179,581 | ) | 489 | ||||
Other | 8,330 | 9,633 | 34,205 | 31,001 | |||||
Total non-interest income | 54,074 | 31,133 | 31,046 | 161,419 | |||||
Non-interest expense | |||||||||
Salaries and benefits | 97,873 | 107,970 | 466,578 | 459,700 | |||||
Occupancy expense | 11,926 | 9,483 | 45,266 | 38,494 | |||||
Marketing | 4,454 | 5,686 | 22,349 | 25,854 | |||||
Legal and professional | 15,180 | 17,127 | 53,783 | 64,924 | |||||
Communications and technology | 24,007 | 23,607 | 93,085 | 81,262 | |||||
Federal Deposit Insurance Corporation insurance assessment | 4,454 | 25,143 | 23,351 | 36,775 | |||||
Other | 14,265 | 12,369 | 53,873 | 49,938 | |||||
Total non-interest expense | 172,159 | 201,385 | 758,285 | 756,947 | |||||
Income before income taxes | 93,522 | 25,465 | 107,061 | 246,595 | |||||
Income tax expense | 22,499 | 5,315 | 29,553 | 57,454 | |||||
Net income | 71,023 | 20,150 | 77,508 | 189,141 | |||||
Preferred stock dividends | 4,312 | 4,312 | 17,250 | 17,250 | |||||
Net income available to common stockholders | $ | 66,711 | $ | 15,838 | $ | 60,258 | $ | 171,891 | |
Basic earnings per common share | $ | 1.44 | $ | 0.33 | $ | 1.29 | $ | 3.58 | |
Diluted earnings per common share | $ | 1.43 | $ | 0.33 | $ | 1.28 | $ | 3.54 | |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SUMMARY OF CREDIT LOSS EXPERIENCE | |||||||||||||||
(dollars in thousands) | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
Allowance for credit losses on loans: | |||||||||||||||
Beginning balance | $ | 273,143 | $ | 267,297 | $ | 263,962 | $ | 249,973 | $ | 244,902 | |||||
Allowance established for acquired purchase credit deterioration loans | — | 2,579 | — | — | — | ||||||||||
Loans charged-off: | |||||||||||||||
Commercial | 14,100 | 6,120 | 9,997 | 7,544 | 8,356 | ||||||||||
Commercial real estate | 2,566 | 262 | 2,111 | 3,325 | 5,500 | ||||||||||
Consumer | — | 30 | — | — | — | ||||||||||
Total charge-offs | 16,666 | 6,412 | 12,108 | 10,869 | 13,856 | ||||||||||
Recoveries: | |||||||||||||||
Commercial | 4,562 | 329 | 153 | 105 | 15 | ||||||||||
Commercial real estate | 18 | — | — | — | 4 | ||||||||||
Consumer | 15 | — | — | — | — | ||||||||||
Total recoveries | 4,595 | 329 | 153 | 105 | 19 | ||||||||||
Net charge-offs | 12,071 | 6,083 | 11,955 | 10,764 | 13,837 | ||||||||||
Provision for credit losses on loans | 10,637 | 9,350 | 15,290 | 24,753 | 18,908 | ||||||||||
Ending balance | $ | 271,709 | $ | 273,143 | $ | 267,297 | $ | 263,962 | $ | 249,973 | |||||
Allowance for off-balance sheet credit losses: | |||||||||||||||
Beginning balance | $ | 45,969 | $ | 45,319 | $ | 40,609 | $ | 46,362 | $ | 46,270 | |||||
Provision for off-balance sheet credit losses | 7,363 | 650 | 4,710 | (5,753 | ) | 92 | |||||||||
Ending balance | $ | 53,332 | $ | 45,969 | $ | 45,319 | $ | 40,609 | $ | 46,362 | |||||
Total allowance for credit losses | $ | 325,041 | $ | 319,112 | $ | 312,616 | $ | 304,571 | $ | 296,335 | |||||
Total provision for credit losses | $ | 18,000 | $ | 10,000 | $ | 20,000 | $ | 19,000 | $ | 19,000 | |||||
Allowance for credit losses on loans to total loans held for investment | 1.21 | % | 1.23 | % | 1.23 | % | 1.27 | % | 1.23 | % | |||||
Allowance for credit losses on loans to average total loans held for investment | 1.22 | % | 1.24 | % | 1.27 | % | 1.32 | % | 1.24 | % | |||||
Net charge-offs to average total loans held for investment (1) | 0.22 | % | 0.11 | % | 0.23 | % | 0.22 | % | 0.27 | % | |||||
Net charge-offs to average total loans held for investment for last 12 months (1) | 0.19 | % | 0.20 | % | 0.22 | % | 0.20 | % | 0.25 | % | |||||
Total provision for credit losses to average total loans held for investment (1) | 0.32 | % | 0.18 | % | 0.38 | % | 0.38 | % | 0.37 | % | |||||
Total allowance for credit losses to total loans held for investment | 1.45 | % | 1.43 | % | 1.44 | % | 1.46 | % | 1.46 | % | |||||
(1) Interim period ratios are annualized.
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS | |||||||||||||||
(dollars in thousands) | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
Non-accrual loans held for investment | $ | 111,165 | $ | 88,960 | $ | 85,021 | $ | 92,849 | $ | 81,398 | |||||
Non-accrual loans held for sale(1) | — | — | — | 9,250 | — | ||||||||||
Other real estate owned | — | — | — | — | — | ||||||||||
Total non-performing assets | $ | 111,165 | $ | 88,960 | $ | 85,021 | $ | 102,099 | $ | 81,398 | |||||
Non-accrual loans held for investment to total loans held for investment | 0.50 | % | 0.40 | % | 0.39 | % | 0.45 | % | 0.40 | % | |||||
Total non-performing assets to total assets | 0.36 | % | 0.28 | % | 0.28 | % | 0.35 | % | 0.29 | % | |||||
Allowance for credit losses on loans to non-accrual loans held for investment | 2.4x | 3.1x | 3.1x | 2.8x | 3.1x | ||||||||||
Total allowance for credit losses to non-accrual loans held for investment | 2.9x | 3.6x | 3.7x | 3.3x | 3.6x | ||||||||||
Loans held for investment past due 90 days and still accruing | $ | 4,265 | $ | 5,281 | $ | 286 | $ | 3,674 | $ | 19,523 | |||||
Loans held for investment past due 90 days to total loans held for investment | 0.02 | % | 0.02 | % | — | % | 0.02 | % | 0.10 | % | |||||
Loans held for sale past due 90 days and still accruing | $ | — | $ | — | $ | 64 | $ | 147 | $ | — | |||||
(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||
(dollars in thousands) | |||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||||
Interest income | |||||||||||
Interest and fees on loans | $ | 340,388 | $ | 361,407 | $ | 345,251 | $ | 330,879 | $ | 325,210 | |
Investment securities | 44,102 | 38,389 | 33,584 | 32,144 | 28,454 | ||||||
Interest bearing deposits in other banks | 53,081 | 52,737 | 43,233 | 54,355 | 63,408 | ||||||
Total interest income | 437,571 | 452,533 | 422,068 | 417,378 | 417,072 | ||||||
Interest expense | |||||||||||
Deposits | 189,061 | 190,255 | 181,280 | 175,600 | 170,173 | ||||||
Short-term borrowings | 10,678 | 13,784 | 12,749 | 12,783 | 18,069 | ||||||
Long-term debt | 8,225 | 8,392 | 11,457 | 13,986 | 14,113 | ||||||
Total interest expense | 207,964 | 212,431 | 205,486 | 202,369 | 202,355 | ||||||
Net interest income | 229,607 | 240,102 | 216,582 | 215,009 | 214,717 | ||||||
Provision for credit losses | 18,000 | 10,000 | 20,000 | 19,000 | 19,000 | ||||||
Net interest income after provision for credit losses | 211,607 | 230,102 | 196,582 | 196,009 | 195,717 | ||||||
Non-interest income | |||||||||||
Service charges on deposit accounts | 6,989 | 6,307 | 5,911 | 6,339 | 5,397 | ||||||
Wealth management and trust fee income | 4,009 | 4,040 | 3,699 | 3,567 | 3,302 | ||||||
Brokered loan fees | 2,519 | 2,400 | 2,131 | 1,911 | 2,076 | ||||||
Investment banking and advisory fees | 26,740 | 34,753 | 25,048 | 18,424 | 6,906 | ||||||
Trading income | 5,487 | 5,786 | 5,650 | 4,712 | 3,819 | ||||||
Available-for-sale debt securities losses, net | — | (179,581 | ) | — | — | — | |||||
Other | 8,330 | 11,524 | 7,985 | 6,366 | 9,633 | ||||||
Total non-interest income | 54,074 | (114,771 | ) | 50,424 | 41,319 | 31,133 | |||||
Non-interest expense | |||||||||||
Salaries and benefits | 97,873 | 121,138 | 118,840 | 128,727 | 107,970 | ||||||
Occupancy expense | 11,926 | 12,937 | 10,666 | 9,737 | 9,483 | ||||||
Marketing | 4,454 | 5,863 | 5,996 | 6,036 | 5,686 | ||||||
Legal and professional | 15,180 | 11,135 | 11,273 | 16,195 | 17,127 | ||||||
Communications and technology | 24,007 | 25,951 | 22,013 | 21,114 | 23,607 | ||||||
Federal Deposit Insurance Corporation insurance assessment | 4,454 | 4,906 | 5,570 | 8,421 | 25,143 | ||||||
Other | 14,265 | 13,394 | 14,051 | 12,163 | 12,369 | ||||||
Total non-interest expense | 172,159 | 195,324 | 188,409 | 202,393 | 201,385 | ||||||
Income/(loss) before income taxes | 93,522 | (79,993 | ) | 58,597 | 34,935 | 25,465 | |||||
Income tax expense/(benefit) | 22,499 | (18,674 | ) | 16,935 | 8,793 | 5,315 | |||||
Net income/(loss) | 71,023 | (61,319 | ) | 41,662 | 26,142 | 20,150 | |||||
Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | ||||||
Net income/(loss) available to common shareholders | $ | 66,711 | $ | (65,632 | ) | $ | 37,350 | $ | 21,829 | $ | 15,838 |
TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||||||
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED) (1) | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||
4th Quarter 2024 | 3rd Quarter 2024 | 2nd Quarter 2024 | 1st Quarter 2024 | 4th Quarter 2023 | ||||||||||||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
Investment securities (2) | $ | 4,504,101 | $ | 44,102 | 3.79 | % | $ | 4,314,834 | $ | 38,389 | 3.34 | % | $ | 4,427,023 | $ | 33,584 | 2.80 | % | $ | 4,299,368 | $ | 32,144 | 2.77 | % | $ | 4,078,975 | $ | 28,454 | 2.48 | % | ||||
Interest bearing cash and cash equivalents | 4,472,772 | 53,081 | 4.72 | % | 3,958,843 | 52,737 | 5.30 | % | 3,273,069 | 43,233 | 5.31 | % | 4,051,627 | 54,355 | 5.40 | % | 4,637,374 | 63,408 | 5.42 | % | ||||||||||||||
Loans held for sale | — | — | — | % | 23,793 | 565 | 9.44 | % | 28,768 | 683 | 9.55 | % | 51,164 | 1,184 | 9.31 | % | 29,071 | 672 | 9.17 | % | ||||||||||||||
Loans held for investment, mortgage finance (4) | 5,409,980 | 50,685 | 3.73 | % | 5,152,317 | 54,371 | 4.20 | % | 4,357,288 | 42,722 | 3.94 | % | 3,517,707 | 31,455 | 3.60 | % | 3,946,280 | 33,709 | 3.39 | % | ||||||||||||||
Loans held for investment (3)(4) | 16,919,925 | 289,916 | 6.82 | % | 16,792,446 | 306,541 | 7.26 | % | 16,750,788 | 301,910 | 7.25 | % | 16,522,089 | 298,306 | 7.26 | % | 16,164,233 | 290,897 | 7.14 | % | ||||||||||||||
Less: Allowance for credit losses on loans | 272,975 | — | — | 266,915 | — | — | 263,145 | — | — | 249,936 | — | — | 244,287 | — | — | |||||||||||||||||||
Loans held for investment, net | 22,056,930 | 340,601 | 6.14 | % | 21,677,848 | 360,912 | 6.62 | % | 20,844,931 | 344,632 | 6.65 | % | 19,789,860 | 329,761 | 6.70 | % | 19,866,226 | 324,606 | 6.48 | % | ||||||||||||||
Total earning assets | 31,033,803 | 437,784 | 5.59 | % | 29,975,318 | 452,603 | 5.96 | % | 28,573,791 | 422,132 | 5.86 | % | 28,192,019 | 417,444 | 5.88 | % | 28,611,646 | 417,140 | 5.69 | % | ||||||||||||||
Cash and other assets | 1,178,284 | 1,239,855 | 1,177,061 | 1,058,463 | 1,120,354 | |||||||||||||||||||||||||||||
Total assets | $ | 32,212,087 | $ | 31,215,173 | $ | 29,750,852 | $ | 29,250,482 | $ | 29,732,000 | ||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 2,141,739 | $ | 15,403 | 2.86 | % | $ | 1,988,688 | $ | 15,972 | 3.20 | % | $ | 2,061,622 | $ | 16,982 | 3.31 | % | $ | 2,006,493 | $ | 16,858 | 3.38 | % | $ | 1,972,324 | $ | 15,613 | 3.14 | % | ||||
Savings deposits | 12,932,458 | 144,393 | 4.44 | % | 12,240,616 | 147,770 | 4.80 | % | 11,981,668 | 143,173 | 4.81 | % | 11,409,677 | 136,790 | 4.82 | % | 11,043,155 | 132,801 | 4.77 | % | ||||||||||||||
Time deposits | 2,331,009 | 29,265 | 4.99 | % | 2,070,537 | 26,513 | 5.09 | % | 1,658,899 | 21,125 | 5.12 | % | 1,719,325 | 21,952 | 5.14 | % | 1,716,812 | 21,759 | 5.03 | % | ||||||||||||||
Total interest bearing deposits | 17,405,206 | 189,061 | 4.32 | % | 16,299,841 | 190,255 | 4.64 | % | 15,702,189 | 181,280 | 4.64 | % | 15,135,495 | 175,600 | 4.67 | % | 14,732,291 | 170,173 | 4.58 | % | ||||||||||||||
Short-term borrowings | 883,326 | 10,678 | 4.81 | % | 1,012,608 | 13,784 | 5.42 | % | 927,253 | 12,749 | 5.53 | % | 912,088 | 12,783 | 5.64 | % | 1,257,609 | 18,069 | 5.70 | % | ||||||||||||||
Long-term debt | 660,270 | 8,225 | 4.96 | % | 660,098 | 8,392 | 5.06 | % | 778,401 | 11,457 | 5.92 | % | 859,509 | 13,986 | 6.54 | % | 858,858 | 14,113 | 6.52 | % | ||||||||||||||
Total interest bearing liabilities | 18,948,802 | 207,964 | 4.37 | % | 17,972,547 | 212,431 | 4.70 | % | 17,407,843 | 205,486 | 4.75 | % | 16,907,092 | 202,369 | 4.81 | % | 16,848,758 | 202,355 | 4.76 | % | ||||||||||||||
Non-interest bearing deposits | 9,319,711 | 9,439,020 | 8,647,594 | 8,637,775 | 9,247,491 | |||||||||||||||||||||||||||||
Other liabilities | 522,641 | 558,368 | 537,754 | 509,286 | 541,162 | |||||||||||||||||||||||||||||
Stockholders’ equity | 3,420,933 | 3,245,238 | 3,157,661 | 3,196,329 | 3,094,589 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 32,212,087 | $ | 31,215,173 | $ | 29,750,852 | $ | 29,250,482 | $ | 29,732,000 | ||||||||||||||||||||||||
Net interest income | $ | 229,820 | $ | 240,172 | $ | 216,646 | $ | 215,075 | $ | 214,785 | ||||||||||||||||||||||||
Net interest margin | 2.93 | % | 3.16 | % | 3.01 | % | 3.03 | % | 2.93 | % | ||||||||||||||||||||||||
(1) Taxable equivalent rates used where applicable.
(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.
(3) Average balances include non-accrual loans.
(4)In the first quarter of 2024, enhancements were made to our methodology for applying relationship pricing credits to mortgage client loans. To conform to the current period presentation, certain prior period interest income amounts have been reclassified from loans held for investment, mortgage finance to loans held for investment and related yields have been adjusted accordingly.
GAAP TO NON-GAAP RECONCILIATIONS
The following items are non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures.
These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP.
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||
(dollars in thousands except per share data) | 4th Quarter 2024 | 3rd Quarter 2024 | 2nd Quarter 2024 | 1st Quarter 2024 | 4th Quarter 2023 | Full Year 2024 | Full Year 2023 | ||||||||||||||
Net interest income | $ | 229,607 | $ | 240,102 | $ | 216,582 | $ | 215,009 | $ | 214,717 | $ | 901,300 | $ | 914,123 | |||||||
Non-interest income | 54,074 | (114,771 | ) | 50,424 | 41,319 | 31,133 | 31,046 | 161,419 | |||||||||||||
Available-for-sale debt securities losses, net | — | 179,581 | — | — | — | 179,581 | — | ||||||||||||||
Non-interest income, adjusted | 54,074 | 64,810 | 50,424 | 41,319 | 31,133 | 210,627 | 161,419 | ||||||||||||||
Non-interest expense | 172,159 | 195,324 | 188,409 | 202,393 | 201,385 | 758,285 | 756,947 | ||||||||||||||
FDIC special assessment | — | 651 | (462 | ) | (3,000 | ) | (19,886 | ) | (2,811 | ) | (19,886 | ) | |||||||||
Restructuring expenses | — | (5,923 | ) | — | (2,018 | ) | — | (7,941 | ) | — | |||||||||||
Legal Settlement | — | — | — | (5,000 | ) | — | (5,000 | ) | — | ||||||||||||
Non-interest expense, adjusted | 172,159 | 190,052 | 187,947 | 192,375 | 181,499 | 742,533 | 737,061 | ||||||||||||||
Provision for credit losses | 18,000 | 10,000 | 20,000 | 19,000 | 19,000 | 67,000 | 72,000 | ||||||||||||||
Income tax expense/(benefit) | 22,499 | (18,674 | ) | 16,935 | 8,793 | 5,315 | 29,553 | 57,454 | |||||||||||||
Tax effect of adjustments | — | 44,880 | 104 | 2,262 | 4,633 | 47,246 | 4,633 | ||||||||||||||
Income tax expense/(benefit), adjusted | 22,499 | 26,206 | 17,039 | 11,055 | 9,948 | 76,799 | 62,087 | ||||||||||||||
Net income/(loss) (1) | $ | 71,023 | $ | (61,319 | ) | $ | 41,662 | $ | 26,142 | $ | 20,150 | $ | 77,508 | $ | 189,141 | ||||||
Net income/(loss), adjusted (1) | $ | 71,023 | $ | 78,654 | $ | 42,020 | $ | 33,898 | $ | 35,403 | $ | 225,595 | $ | 204,394 | |||||||
Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | 17,250 | 17,250 | ||||||||||||||
Net income/(loss) to common stockholders (2) | $ | 66,711 | $ | (65,632 | ) | $ | 37,350 | $ | 21,829 | $ | 15,838 | $ | 60,258 | $ | 171,891 | ||||||
Net income/(loss) to common stockholders, adjusted (2) | $ | 66,711 | $ | 74,341 | $ | 37,708 | $ | 29,585 | $ | 31,091 | $ | 208,345 | $ | 187,144 | |||||||
PPNR (3) | $ | 111,522 | $ | (69,993 | ) | $ | 78,597 | $ | 53,935 | $ | 44,465 | $ | 174,061 | $ | 318,595 | ||||||
PPNR (3) , adjusted | $ | 111,522 | $ | 114,860 | $ | 79,059 | $ | 63,953 | $ | 64,351 | $ | 369,394 | $ | 338,481 | |||||||
Weighted average common shares outstanding, diluted | 46,770,961 | 46,608,742 | 46,872,498 | 47,711,192 | 48,097,517 | 46,989,204 | 48,610,206 | ||||||||||||||
Diluted earnings/(loss) per common share | $ | 1.43 | $ | (1.41 | ) | $ | 0.80 | $ | 0.46 | $ | 0.33 | $ | 1.28 | $ | 3.54 | ||||||
Diluted earnings/(loss) per common share, adjusted | $ | 1.43 | $ | 1.59 | $ | 0.80 | $ | 0.62 | $ | 0.65 | $ | 4.43 | $ | 3.85 | |||||||
Average total assets | $ | 32,212,087 | $ | 31,215,173 | $ | 29,750,852 | $ | 29,250,482 | $ | 29,732,000 | $ | 30,613,195 | $ | 29,537,344 | |||||||
Return on average assets | 0.88 | % | (0.78 | )% | 0.56 | % | 0.36 | % | 0.27 | % | 0.25 | % | 0.64 | % | |||||||
Return on average assets, adjusted | 0.88 | % | 1.00 | % | 0.57 | % | 0.47 | % | 0.47 | % | 0.74 | % | 0.69 | % | |||||||
Average common equity | $ | 3,120,933 | $ | 2,945,238 | $ | 2,857,661 | $ | 2,896,329 | $ | 2,794,589 | $ | 2,955,467 | $ | 2,794,964 | |||||||
Return on average common equity | 8.50 | % | (8.87 | )% | 5.26 | % | 3.03 | % | 2.25 | % | 2.04 | % | 6.15 | % | |||||||
Return on average common equity, adjusted | 8.50 | % | 10.04 | % | 5.31 | % | 4.11 | % | 4.41 | % | 7.05 | % | 6.70 | % | |||||||
Efficiency ratio (4) | 60.7 | % | 155.8 | % | 70.6 | % | 79.0 | % | 81.9 | % | 81.3 | % | 70.4 | % | |||||||
Efficiency ratio, adjusted (4) | 60.7 | % | 62.3 | % | 70.4 | % | 75.1 | % | 73.8 | % | 66.8 | % | 68.5 | % | |||||||
Average earning assets | $ | 31,033,803 | $ | 29,975,318 | $ | 28,573,791 | $ | 28,192,019 | $ | 28,611,646 | $ | 29,449,530 | $ | 28,457,737 | |||||||
Non-interest income to average earning assets | 0.69 | % | (1.52 | )% | 0.71 | % | 0.59 | % | 0.43 | % | 0.11 | % | 0.57 | % | |||||||
Non-interest income to average earning assets, adjusted | 0.69 | % | 0.86 | % | 0.71 | % | 0.59 | % | 0.43 | % | 0.72 | % | 0.57 | % | |||||||
Non-interest expense to average earning assets | 2.21 | % | 2.59 | % | 2.65 | % | 2.89 | % | 2.79 | % | 2.57 | % | 2.66 | % | |||||||
Non-interest expense to average earning assets, adjusted | 2.21 | % | 2.52 | % | 2.65 | % | 2.74 | % | 2.52 | % | 2.52 | % | 2.59 | % | |||||||
(1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.
(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.
(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.
(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted.
INVESTOR CONTACT |
Jocelyn Kukulka, 469.399.8544 |
jocelyn.kukulka@texascapitalbank.com |
MEDIA CONTACT |
Julia Monter, 469.399.8425 |
julia.monter@texascapitalbank.com |
This article was originally published on Quiver News, read the full story.
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