Texas Capital Bancshares (NASDAQ:TCBI) Announces Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Texas Capital Bancshares (NASDAQ:TCBI) announced its quarterly earnings results on Thursday. The bank reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.17, FiscalAI reports. Texas Capital Bancshares had a net margin of 16.52% and a return on equity of 10.05%. The firm had revenue of $323.99 million during the quarter, compared to analysts’ expectations of $318.10 million. During the same period in the previous year, the company earned $0.92 earnings per share. Texas Capital Bancshares’s quarterly revenue was up 15.5% compared to the same quarter last year.

Here are the key takeaways from Texas Capital Bancshares’ conference call:

• Adjusted EPS rose 72% year‑over‑year to $1.58, total revenue increased 16% and non‑interest revenue grew 56% with record fee income, driving continued PPNR expansion and stronger revenue diversification.
• The firm returned capital and signaled confidence—repurchasing roughly $75M of stock in Q1 and initiating a $0.20 quarterly common dividend—while maintaining CET1 of 11.99% and TCE/TA of 9.87%.
• Management reorganized to accelerate growth and scale, naming Matt Scurlock President, appointing a new COO, creating a head of Private Bank & Family Office, and hiring a CHRO to align talent with strategy.
• Credit strain remains in pockets of the portfolio—Q1 net charge‑offs were $17.4M and select CRE multifamily credits were downgraded—though the allowance stands at $331M and management is planning provisions of 35–40 bps (ex‑mortgage finance).
• Mortgage finance volumes were elevated and volatile (period‑end ~ $7.0B) with 67% in enhanced credit structures; management expects a 70–80% self‑funding ratio and Q2 NII of $260–265M with margin ~3.35–3.40%.

Texas Capital Bancshares Stock Performance

Shares of TCBI traded up $1.27 during mid-day trading on Thursday, hitting $103.81. 132,140 shares of the company’s stock were exchanged, compared to its average volume of 461,482. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.19. Texas Capital Bancshares has a fifty-two week low of $66.25 and a fifty-two week high of $108.92. The business’s 50 day moving average is $97.64 and its two-hundred day moving average is $93.74. The firm has a market capitalization of $4.59 billion, a P/E ratio of 15.26, a P/E/G ratio of 0.96 and a beta of 0.67.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. TD Cowen raised their price objective on Texas Capital Bancshares from $103.00 to $110.00 and gave the stock a “hold” rating in a report on Monday, January 26th. Raymond James Financial upped their target price on Texas Capital Bancshares from $98.00 to $105.00 and gave the company an “outperform” rating in a research report on Wednesday, January 7th. Weiss Ratings restated a “buy (b-)” rating on shares of Texas Capital Bancshares in a research note on Wednesday, January 28th. Piper Sandler lifted their price target on Texas Capital Bancshares from $86.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday, January 23rd. Finally, Royal Bank Of Canada boosted their price objective on Texas Capital Bancshares from $105.00 to $110.00 and gave the company a “sector perform” rating in a research note on Friday, January 23rd. Four analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $100.75.

Insider Buying and Selling at Texas Capital Bancshares

In related news, Director Laura L. Whitley acquired 500 shares of the firm’s stock in a transaction on Monday, January 26th. The stock was bought at an average cost of $97.51 per share, with a total value of $48,755.00. Following the transaction, the director owned 7,961 shares of the company’s stock, valued at $776,277.11. The trade was a 6.70% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Robert W. Stallings bought 5,500 shares of the stock in a transaction on Friday, March 6th. The stock was bought at an average price of $22.80 per share, for a total transaction of $125,400.00. Following the completion of the purchase, the director directly owned 175,087 shares in the company, valued at approximately $3,991,983.60. The trade was a 3.24% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased a total of 49,500 shares of company stock valued at $1,252,855 in the last ninety days. Insiders own 1.91% of the company’s stock.

Hedge Funds Weigh In On Texas Capital Bancshares

A number of hedge funds and other institutional investors have recently bought and sold shares of TCBI. Commonwealth Equity Services LLC increased its stake in Texas Capital Bancshares by 2.3% in the 4th quarter. Commonwealth Equity Services LLC now owns 6,079 shares of the bank’s stock valued at $550,000 after buying an additional 135 shares during the period. Captrust Financial Advisors lifted its stake in shares of Texas Capital Bancshares by 1.7% in the 4th quarter. Captrust Financial Advisors now owns 15,558 shares of the bank’s stock worth $1,409,000 after acquiring an additional 261 shares during the period. Danske Bank A S purchased a new stake in shares of Texas Capital Bancshares in the third quarter valued at about $25,000. Smartleaf Asset Management LLC boosted its holdings in shares of Texas Capital Bancshares by 147.1% in the fourth quarter. Smartleaf Asset Management LLC now owns 519 shares of the bank’s stock valued at $48,000 after acquiring an additional 309 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new position in shares of Texas Capital Bancshares during the third quarter worth about $32,000. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc is a bank holding company headquartered in Dallas, Texas, operating through its wholly owned subsidiary, Texas Capital Bank. The company specializes in providing commercial banking services to middle-market companies, entrepreneurs, professional service firms, real estate developers, and not-for-profit organizations. Its broad range of offerings includes commercial lending, treasury and cash management, real estate finance, equipment finance, and energy lending, all designed to address the unique financial needs of businesses navigating growth and market challenges.

In addition to its core commercial banking capabilities, Texas Capital Bancshares delivers private banking and wealth management services for business owners and high-net-worth individuals.