- Total deposits reached $25.87 billion, exceeding the estimate of $24.37 billion.
- Loans held for investment were recorded at $16.76 billion.
- Net interest income amounted to $240.1 million.
- The net interest margin was 3.16%, slightly above the estimated 3.08%.
- The company reported a loss per share of $1.41, against an estimated earnings per share of 73 cents.
- Cash and due from banks totaled $297.0 million.
- Return on average common equity was negative 8.87%, while the estimate was 6.29%.
- The provision for credit losses amounted to $10.0 million, lower than the estimated $21.7 million.
- The tangible common equity ratio was 9.7%, compared to the estimate of 9.54%.
- Net charge-offs stood at $6.08 million, below the estimated $13.5 million.
- Non-performing assets were reported at $89.0 million.
- Analyst ratings included 5 buy recommendations, 6 holds, and 3 sells.
A look at Texas Capital Bancshares Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Texas Capital Bancshares is looking promising in the long term. With a strong value score of 4, the company is considered to be attractively priced in relation to its fundamentals. Additionally, a high resilience score of 4 indicates that the company is well-positioned to weather economic downturns and challenges. Momentum is also on the company’s side with a top score of 5, suggesting strong upward trends in performance. However, the dividend score of 1 implies that the company may not be a top choice for income-seeking investors. In terms of growth, Texas Capital Bancshares scores a respectable 3, pointing towards moderate potential for expansion.
As the holding company for Texas Capital Bank, NA, Texas Capital Bancshares focuses on attracting deposits from the public and allocating them into various types of loans. Primarily operating in the greater Dallas/Fort Worth metropolitan area, the company’s core business involves single-family residential loans, commercial real estate loans, commercial loans, and consumer loans. By leveraging its solid value, resilience, and momentum scores, Texas Capital Bancshares appears poised for a positive long-term outlook, despite its lower dividend score indicating limited income generation for investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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