NASDAQ$TCBI

Texas Capital Bancshares Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Texas Capital Bancshares' Q3 2024 performance was marked by a net loss, influenced by strategic actions and restructuring expenses, alongside a record level of income in fee areas of focus.

Texas Capital Bancshares reported a net loss available to common stockholders of $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024. This was primarily due to a $179.6 million loss on the sale of available-for-sale debt securities and restructuring expenses, partially offset by a release of FDIC special assessment accrual. However, the company achieved record levels of income in fee areas of focus and maintained strong capital ratios.

  • Net loss available to common stockholders was $65.6 million, or $1.41 net loss per diluted share.
  • Included a $179.6 million loss on sale of available-for-sale debt securities and restructuring expense of $5.9 million.
  • Partially offset by a $651,000 release of Federal Deposit Insurance Corporation special assessment accrual.
  • Book Value and Tangible Book Value per share both increased 14% year over year, reaching record levels.

Headline financials

Total Revenue

$125M

Previous: $279M-55.1%
EPS

-$1.41

Previous: $1.18-219.5%
Net Interest Margin

3.2%

Previous: 3.1%+1.0%
Return on Avg. Assets

-0.8%

Previous: 0.8%-196.3%
Return on Avg. Common Equity

-8.9%

No prior period
Efficiency Ratio

155.8%

Previous: 64.5%+141.6%
Tangible Common Equity Ratio

9.7%

No prior period
Common Equity Tier 1

11.2%

Previous: 12.7%-11.8%
Tier 1 Capital

12.6%

Previous: 14.3%-11.9%
Total Capital

15.2%

Previous: 17.1%-11.1%
Leverage Ratio

11.4%

No prior period
Capital Expenditures

-$57.4M

Previous: -$12.6M-354.1%
Free Cash Flow

-$119M

Previous: $49M-342.2%
Net Income

-$61.3M

Previous: $61.7M-199.4%
Operating Income

-$159M

Previous: $10.9M-1560.6%
Gross Profit

$115M

Previous: $261M-55.8%
Cash & Equivalents

$4.19B

Previous: $4.19B-0.0%
Total Assets

$31.6B

Previous: $29.6B+6.8%
Stock-Based Comp

$6.45M

Previous: $4.44M+45.3%

Revenue & EPS history

Texas Capital Bancshares · Revenue · Quarterly

$125M

Q3 2024-55.1%vs Q3 2023
Beat estimate in 10 of 14 quarters(71%)
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

This communication contains forward-looking statements regarding TCBI’s financial condition, results of operations, business plans and future performance. These statements are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict.

Tailwinds

  • TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses
  • TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations
  • TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services
  • TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches
  • The effectiveness of TCBI’s risk management processes strategies and monitoring

Headwinds

  • Economic or business conditions in Texas, the United States or globally that impact TCBI or its customers
  • Negative credit quality developments arising from the foregoing or other factors
  • The extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes
  • Elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities
  • Fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans

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 Q3 2024

Historical avgQ3 2024

+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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