Oct 17 2024: Texas Capital Bancshares, Inc. (NASDAQ: TCBI) reported stronger-than-expected third quarter earnings on Thursday, leading to a 1.5% increase in after-hours trading.
The Dallas-based financial institution announced adjusted earnings per share of $1.60, far exceeding analyst predictions of a $1.97 loss per share. Although revenue came in at $125.33 million, below the anticipated $279.69 million, it marked a notable improvement from $46.87 million in the same quarter last year.
The bank’s net interest income rose to $240.1 million in Q3, up from $232.1 million in the prior year, driven by higher average total loans held for investment and better yields on earning assets.
Credit loss provisions were reduced to $10 million for the quarter, down from $18 million in Q3 2023, while net charge-offs totaled $6.1 million, compared to $8.9 million in the same period last year.
“Our multi-year transformation continues to yield significant financial milestones, showcasing our success in executing a differentiated strategy,” said Rob C. Holmes, President and CEO.
Total deposits grew by 8% year-over-year to $25.87 billion, while the bank’s CET1 ratio stood at 11.2%, down from 12.7% a year ago but still comfortably above regulatory requirements.
Despite the positive earnings surprise, Texas Capital reported a $179.6 million loss on the sale of available-for-sale debt securities. However, the bank expressed confidence in its strong capital position and business momentum, projecting continued success through 2025.
