NASDAQ$TCBI

Texas Capital Bancshares Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Texas Capital Bancshares' first quarter 2022 earnings were announced, revealing a net income of $39.7 million, or $0.69 per diluted share.

Texas Capital Bancshares reported a net income of $39.7 million, or $0.69 per diluted share, for the first quarter of 2022. The results reflect a strategic shift to reduce reliance on the mortgage finance business, with growth in loans held for investment, excluding mortgage finance and PPP, increasing by $577.7 million, or 15% annualized.

  • Net income for Q1 2022 was $39.7 million, or $0.69 per diluted share.
  • Mortgage finance loans experienced declines due to rising interest rates.
  • Loans held for investment, excluding mortgage finance and PPP, increased by $577.7 million, representing a 15% annualized growth.
  • Net interest margin for the first quarter of 2022 was 2.23%.

Headline financials

Total Revenue

$204M

Previous: $239M-14.8%
EPS (adj)

$0.69

Previous: $1.33-48.1%
Net Interest Margin

2.2%

Previous: 2.1%+6.7%
Return on Avg. Assets

0.5%

Previous: 0.7%-35.6%
Return on Avg. Common Equity

5.0%

No prior period
Efficiency Ratio

75.1%

No prior period
Tangible Common Equity Ratio

8.9%

No prior period
Common Equity Tier 1

11.5%

Previous: 10.2%+12.7%
Tier 1 Capital

13.0%

Previous: 12.3%+5.7%
Total Capital

15.7%

Previous: 14.0%+12.1%
Leverage Ratio

9.9%

Previous: 8.3%+19.3%
Capital Expenditures

-$2.71M

Previous: -$924K-193.2%
Free Cash Flow

$36.9M

Previous: $71M-48.0%
Net Income

$39.7M

Previous: $71.9M-44.9%
Operating Income

$132M

Previous: $170M-22.0%
Gross Profit

$202M

Previous: $233M-13.4%
Cash & Equivalents

$5.37B

Previous: $11.4B-53.0%
Total Assets

$31.1B

Previous: $40.1B-22.4%
Stock-Based Comp

$5.59M

Previous: $6.37M-12.2%

Revenue & EPS history

Texas Capital Bancshares · Revenue · Quarterly

$204M

Q1 2022-14.8%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Texas Capital Bancshares · $215M total across 2 segments · Q3 2021

  • Net Interest Income
    $194M
  • Non-Interest Income
    $21.2M

Forward guidance

Texas Capital Bancshares is progressing against its strategic plan, beginning to realize the benefits from focused investments in core product offerings and key talent acquisition. The company continues to take deliberate actions to position its asset-sensitive balance sheet to perform more favorably through the rate cycle.

Tailwinds

  • Focused growth initiatives across the platform
  • Reducing reliance on Mortgage Finance franchise
  • Investments in core product offerings
  • Key talent acquisition
  • Positioning asset-sensitive balance sheet

Headwinds

  • Impact from increase in long-term rates on Mortgage Finance business
  • Decrease in net interest income driven by decrease in average loans held for investment
  • Decrease in non-interest income related to decreases in investment banking and trading income
  • Increase in non-interest expense due to increases in salaries and benefits expense
  • Decline in brokered loan fees impacted by lower mortgage finance volumes

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.7%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+11.3%

Q3 2013

Best reaction

-13.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%-1.7%-3.1%
Q4 2025-0.1%-4.5%+2.7%
Q3 2025+3.1%+2.3%+7.2%
Q2 2025+0.4%-0.8%+3.2%
Q1 2025+1.4%+1.1%+16.4%
Q4 2024-4.5%-3.4%-1.2%
Q3 2024+0.7%-1.3%+10.9%
Q2 2024-6.6%-4.8%-12.9%
Q1 2024+4.9%+7.6%+11.5%
Q4 2023+3.5%+1.5%-3.4%
Q3 2023-7.9%-7.3%-5.5%
Q2 2023+3.3%+1.4%-2.9%
Q1 2023+1.7%-3.6%-3.8%
Q4 2022+1.3%+3.0%+6.3%
Q3 2022-13.4%-11.9%-13.1%
Q2 2022+1.4%+0.9%+13.0%
Q1 2022-6.5%-8.7%-12.0%
Q4 2021-0.3%+1.1%+4.2%
Q3 2021-2.7%-3.1%-5.4%
Q2 2021+2.1%+4.0%+7.3%
Q1 2021-1.1%+4.0%+7.5%
Q4 2020-3.8%-7.9%+8.7%
Q3 2020+9.6%+15.6%+45.3%
Q2 2020+9.2%+10.5%+12.9%
Q1 2020+6.1%+23.6%+30.3%
Q4 2019-0.2%-1.6%+4.5%
Q3 2019+2.4%+1.1%+6.7%
Q2 2019-4.6%-0.9%-6.7%
Q1 2019+6.7%+6.7%+3.3%
Q4 2018-0.5%+5.3%+6.1%
Q3 2018-11.7%-16.0%-21.0%
Q2 2018+4.7%+3.9%+1.0%
Q1 2018+7.4%+7.8%+10.0%
Q4 2017-0.3%-2.0%-6.8%
Q3 2017+3.7%+3.6%-2.6%
Q2 2017+4.5%+3.9%-6.9%
Q1 2017-6.3%-2.9%-4.4%
Q4 2016+8.4%+5.8%+14.2%
Q3 2016+3.7%+2.7%+26.5%
Q2 2016-2.3%-2.2%+1.3%
Q1 2016+5.9%
Q4 2015-12.9%
Q3 2015-0.8%
Q2 2015+0.2%
Q1 2015+2.9%
Q4 2014-6.0%
Q3 2014+0.6%
Q2 2014+3.5%
Q1 2014-11.8%
Q4 2013-4.3%
Q3 2013+11.3%
Q2 2013-3.1%
Q1 2013-3.5%
Q4 2012-10.6%
Q3 2012-0.2%
Q2 2012+1.6%
Q1 2011+10.0%
Q1 2012+10.0%
Q4 2010+1.6%
Q1 2010+1.6%
Q4 2011+1.6%
Q4 2009+1.6%
Q3 2010-1.5%
Q3 2011-1.5%
Q2 2011+7.3%
Q2 2010+7.3%

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