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.
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