Texas Capital Bancshares beats Q3 expectations, shares rise

EditorRachael Rajan
Published 17/10/2024, 11:36
© Reuters.
TCBI
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DALLAS - Texas Capital Bancshares, Inc. (NASDAQ:TCBI) reported better-than-expected third quarter results on Thursday, sending shares up 1.5% in after-hours trading.

The Dallas-based bank posted adjusted earnings per share of $1.60, significantly beating analyst estimates of a $1.97 loss per share. Revenue came in at $125.33 million, below the consensus estimate of $279.69 million but up from $46.87 million in the same quarter last year.

Texas Capital's net interest income rose to $240.1 million in Q3, compared to $232.1 million in the year-ago period. This increase was primarily driven by higher average total loans held for investment and improved yields on average earning assets.

The bank's provision for credit losses was $10 million for the quarter, down from $18 million in Q3 2023. Net charge-offs totaled $6.1 million, compared to $8.9 million in the prior year quarter.

"We achieved significant financial milestones this quarter as our multi-year transformation is increasingly delivering financial outcomes consistent with realized success delivering our proven and differentiated strategy," said Rob C. Holmes, President and CEO.

Total deposits increased 8% YoY to $25.87 billion. The bank's CET1 ratio stood at 11.2% at quarter-end, down from 12.7% a year ago but still well above regulatory requirements.

While beating earnings expectations, Texas Capital recorded a $179.6 million loss on the sale of available-for-sale debt securities during the quarter. The company said its current business momentum and strong capital position set it up well for continued execution through 2025.

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

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