DALLAS, April 17, 2025 (GLOBE NEWSWIRE) - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, has announced impressive operating results for the first quarter of 2025. The bank achieved a net income of $47.0 million, translating to net income available to common stockholders of $42.7 million, or $0.92 per diluted share. This marks a significant improvement compared to the same period last year, where net income available to common stockholders was only $21.8 million, or $0.46 per diluted share.

In a statement, Rob C. Holmes, Chairman, President, and CEO, remarked, We continue to leverage our diversified product suite and financially resilient balance sheet to effectively support our clients objectives. With substantial year-over-year improvements to many key financial metrics, we remain focused on achieving our financial targets for the latter half of the year.

The results reveal strong year-over-year balance sheet growth, with total deposits rising by 9% and total loans increasing by 7%. Notably, both Book Value and Tangible Book Value per share surged by 11% year-over-year, achieving record levels. The bank's capital ratios also remain robust, showcasing a Common Equity Tier 1 (CET1) ratio of 11.6% and a Total Capital ratio of 15.6%.

Below are some key operating results for the first quarter of 2025 compared to previous quarters:

  • Net income available to common stockholders: $42.7 million in Q1 2025 vs. $66.7 million in Q4 2024 and $21.8 million in Q1 2024.
  • Diluted earnings per share: $0.92 in Q1 2025 vs. $1.43 in Q4 2024 and $0.46 in Q1 2024.
  • Provision for credit losses: $17.0 million in Q1 2025 compared to $18.0 million in Q4 2024 and $19.0 million in Q1 2024.
  • Net interest income: Increased to $236.0 million in Q1 2025 from $229.6 million in Q4 2024 and $215.0 million in Q1 2024.
  • Non-interest income: Decreased by $9.6 million compared to Q4 2024, affected largely by a decline in investment banking and advisory fees.
  • Non-interest expense: Rose by $30.9 million or 18% primarily due to seasonal increases in salaries and benefits.

Holmes elaborated on the provisions for credit losses, indicating that the $17.0 million provision in Q1 2025 was primarily due to an increase in criticized loans, along with $9.8 million in net charge-offs, reflecting the current economic uncertainty.

The bank's credit quality metrics showed some improvements, with net charge-offs recorded at $9.8 million, lower than the $12.1 million and $10.8 million recorded in the previous quarter and the same quarter last year, respectively. Criticized loans totaled $762.9 million at the end of March 2025, which is an increase from $714.0 million at the end of December 2024, but a decrease from $859.5 million in March 2024. The ratio of non-accrual loans held for investment (LHI) to total LHI was 0.42%, down from 0.50% in Q4 2024.

Meanwhile, the bank's capital ratios continue to exceed "well capitalized" requirements, with the CET1 ratio standing at 11.6%, compared to 11.4% in the previous quarter. This solid capital position enables Texas Capital Bancshares to maintain a strong foundation as it pursues growth opportunities in the coming months.

In line with its commitment to returning value to shareholders, the company repurchased 396,106 shares of its common stock during the first quarter, with an aggregate purchase price of $31.2 million at an average price of $78.25 per share.

About Texas Capital Bancshares, Inc.

Founded in 1998 and headquartered in Dallas, Texas Capital Bancshares, Inc. is the parent company of Texas Capital Bank, a full-service financial services firm that offers a broad range of customized solutions for businesses and individuals. The bank operates with a strong commitment to serving its clients and has established a significant presence across the state of Texas and beyond.

Forward-Looking Statements

This news release contains forward-looking statements that are subject to risks, uncertainties, and changes in circumstances that may occur in the future. While these statements reflect management's current expectations, actual results may differ materially due to various factors affecting the bank's operations and the broader economic environment.