Yahoo Finance

• Revenue Growth: 9% year-over-year increase.

• Adjusted Preprovision Net Revenue Growth: 21% increase year-over-year.

• Tangible Book Value Per Share Growth: 11% increase, reaching a record high.

• Net Interest Income Growth: 10% increase year-over-year.

• Treasury Product Fees: 22% year-over-year increase to a record high.

• Noninterest-Bearing Deposits Growth: 7% increase, largest quarterly increase since 2021.

• Net Interest Margin Increase: 26 basis points linked quarter increase.

• Total Revenue Increase: $24.1 million or 9% year-over-year.

• Noninterest Expense Increase: $30.9 million quarter over quarter.

• Provision Expense: $17 million for the quarter.

• Allowance for Credit Loss: Increased by $7.2 million to $332 million.

• Net Income to Common: $42.7 million, a 44% increase year-over-year.

• Quarterly Earnings Per Share Increase: 48% compared to adjusted earnings per share from the previous year.

• Linked Quarter Deposit Growth: $814 million or 3% increase.

• Average Commercial Loan Balances Increase: 4% or $401 million during the quarter.

• Real Estate Loans Increase: $208 million during the quarter.

• Average Mortgage Finance Loans Decrease: 27% linked quarter to $4 billion.

• Interest-Bearing Deposit Balances Increase: $2.9 billion or 19% year-over-year.

• Common Equity Tier 1 (CET1) Ratio: 11.63%, a 25 basis point increase from the prior quarter.

• Share Repurchase: Approximately 396,000 shares repurchased for $31 million at an average price of $78.25 per share.

• Warning! GuruFocus has detected 4 Warning Signs with THCH.

Release Date: April 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Texas Capital Bancshares Inc (NASDAQ:TCBI) reported a 9% year-over-year revenue growth, with a 21% increase in adjusted pre-provision net revenue.

• The company achieved a record high in intangible book value per share, growing by 11%.

• Noninterest-bearing deposits, excluding mortgage finance, grew 7% in the quarter, marking the largest quarterly increase since 2021.

• Treasury product fees increased by 22% year-over-year, reaching a record high for the firm.

• The firm maintained strong capital levels with a tangible common equity to tangible assets ratio of 10%.

Negative Points

• Total noninterest expense increased by $30.9 million quarter over quarter, driven by seasonal payroll and compensation expenses.

• Linked quarter total revenue declined by $3.2 million or 1%, due to a decline in fee revenue amid capital markets uncertainty.

• Provision expense of $17 million was recorded due to growth in loans held for investment and net charge-offs against problem credits.

• The firm remains cautious on the mortgage outlook for the remainder of 2025 due to ongoing rate volatility.

• Investment banking fees have been delayed due to economic uncertainty, impacting the fee income outlook.