Texas Capital Bancshares, Inc. Announces Second Quarter 2024 Results


Second quarter 2024 net income of $41.7 million and net income available to common stockholders of $37.4 million, or $0.80 per diluted share

Book Value and Tangible Book Value(1) per share both increased 1.9%, reaching record levels, after giving effect to the repurchase of $50.0 million in shares

Capital ratios continue to be strong, including 11.6% CET1 and 15.7% Total Capital

DALLAS, July 18, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the second quarter of 2024.

Net income available to common stockholders was $37.4 million, or $0.80 per diluted share, for the second quarter of 2024, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024 and $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.

“Building a platform resilient to market and rate cycles is a foundational tenant of our strategic plan,” said Rob C. Holmes, President and CEO. “We continue to deliver differentiated solutions for clients across our markets and areas of industry focus at a pace that exceeds observed market behavior. We remain focused on realizing the clear strategic value of our platform through enhanced financial performance.”

FINANCIAL RESULTS     
(dollars and shares in thousands)     
 2nd Quarter 1st Quarter 2nd Quarter
 2024 2024 2023
OPERATING RESULTS     
Net income$41,662  $26,142  $68,651 
Net income available to common stockholders$37,350  $21,829  $64,339 
Diluted earnings per common share$0.80  $0.46  $1.33 
Diluted common shares 46,872   47,711   48,421 
Return on average assets 0.56%  0.36%  0.95%
Return on average common equity 5.26%  3.03%  9.17%
      
BALANCE SHEET     
Loans held for investment$16,700,569  $16,677,691  $16,227,203 
Loans held for investment, mortgage finance 5,078,161   4,153,313   5,098,812 
Total loans held for investment 21,778,730   20,831,004   21,326,015 
Loans held for sale 36,785   37,750   29,097 
Total assets 29,854,994   29,180,585   28,976,544 
Non-interest bearing deposits 7,987,715   8,478,215   9,429,352 
Total deposits 23,818,327   23,954,037   23,318,240 
Stockholders’ equity 3,175,601   3,170,662   3,081,927 
      


(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.


SECOND QUARTER 2024 COMPARED TO FIRST QUARTER 2024

For the second quarter of 2024, net income available to common stockholders was $37.4 million, or $0.80 per diluted share, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024.

Provision for credit losses for the second quarter of 2024 was $20.0 million, compared to $19.0 million for the first quarter of 2024. The $20.0 million provision for credit losses recorded in the second quarter of 2024 resulted primarily from growth in total loans held for investment (“LHI”) and $12.0 million in net charge-offs.

Net interest income was $216.6 million for the second quarter of 2024, compared to $215.0 million for the first quarter of 2024, as an increase in average earning assets and a decline in funding costs was partially offset by an increase in average interest bearing deposits. Net interest margin for the second quarter of 2024 was 3.01%, a decrease of 2 basis points from the first quarter of 2024. LHI, excluding mortgage finance, yields decreased 1 basis point from the first quarter of 2024 and LHI, mortgage finance, yields increased 34 basis points from the first quarter of 2024. Total cost of deposits was 2.99% for the second quarter of 2024, a 2 basis point increase from the first quarter of 2024.

Non-interest income for the second quarter of 2024 increased $9.1 million, or 22%, compared to the first quarter of 2024, primarily due to increases in investment banking and advisory fees and other non-interest income.

Non-interest expense for the second quarter of 2024 decreased $14.0 million, or 7%, compared to the first quarter of 2024, primarily due to a $9.9 million decrease in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, as well as decreases in legal and professional expense and Federal Deposit Insurance Corporation (“FDIC”) insurance assessment expense, partially offset by an increase in other non-interest expense. The second quarter of 2024 included $460,000 in FDIC special assessment expense, as compared to $3.0 million in the first quarter of 2024. Legal and professional expense in the first quarter of 2024 included a $5.0 million legal settlement expense.

SECOND QUARTER 2024 COMPARED TO SECOND QUARTER 2023

Net income available to common stockholders was $37.4 million, or $0.80 per diluted share, for the second quarter of 2024, compared to $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.

The second quarter of 2024 included a $20.0 million provision for credit losses, reflecting growth in total LHI and $12.0 million in net charge-offs, compared to a $7.0 million provision for the second quarter of 2023.

Net interest income decreased to $216.6 million for the second quarter of 2024, compared to $232.0 million for the second quarter of 2023, primarily due to increases in funding costs and average interest bearing deposits, partially offset by increases in yields on average earning assets and average LHI, excluding mortgage finance. Net interest margin decreased 28 basis points to 3.01% for the second quarter of 2024 compared to the second quarter of 2023. LHI, excluding mortgage finance, yields increased 25 basis points compared to the second quarter of 2023 and LHI, mortgage finance yields decreased 59 basis points from the second quarter of 2023. Total cost of deposits increased 62 basis points compared to the second quarter of 2023.

Non-interest income for the second quarter of 2024 increased $4.4 million, or 10%, compared to the second quarter of 2023. The increase was primarily due to an increase in investment banking and advisory fees, partially offset by a decrease in trading income.

Non-interest expense for the second quarter of 2024 increased $6.8 million, or 4%, compared to the second quarter of 2023, primarily due to increases in salaries and benefits, occupancy expense, communications and technology expense, FDIC insurance assessment expense and other non-interest expense, partially offset by a decrease in legal and professional expense.

CREDIT QUALITY

Net charge-offs of $12.0 million were recorded during the second quarter of 2024, compared to net charge-offs of $10.8 million and $8.2 million during the first quarter of 2024 and the second quarter of 2023, respectively. Criticized loans totaled $859.7 million at June 30, 2024, compared to $859.5 million at March 31, 2024 and $619.4 million at June 30, 2023. Non-accrual LHI totaled $85.0 million at June 30, 2024, compared to $92.8 million at March 31, 2024 and $81.0 million at June 30, 2023. The ratio of non-accrual LHI to total LHI for the second quarter of 2024 was 0.39%, compared to 0.45% for the first quarter of 2024 and 0.38% for the second quarter of 2023. The ratio of total allowance for credit losses to total LHI was 1.44% at June 30, 2024, compared to 1.46% and 1.32% at March 31, 2024 and June 30, 2023, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of June 30, 2024. CET1, tier 1 capital, total capital and leverage ratios were 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024, compared to 12.4%, 13.9%, 16.6% and 12.4%, respectively, at March 31, 2024 and 12.2%, 13.7%, 16.4% and 12.4%, respectively, at June 30, 2023. The second quarter 2024 decline in regulatory ratios resulted primarily from the redemption in full of the bank-issued senior unsecured credit-linked notes of $275.0 million in the second quarter of 2024. At June 30, 2024, our ratio of tangible common equity to total tangible assets was 9.6%, compared to 9.8% at March 31, 2024 and 9.6% at June 30, 2023.

During the second quarter of 2024, the Company repurchased 852,098 shares of its common stock for an aggregate purchase price, including excise tax expense, of $50.0 million, at a weighted average price of $58.14 per share.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, the parent company of Texas Capital Bank d/b/a Texas Capital, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: 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; 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 developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; 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; 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; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter
 20242024202320232023
CONSOLIDATED STATEMENTS OF INCOME     
Interest income$422,068 $417,378 $417,072 $425,769 $401,916 
Interest expense 205,486  202,369  202,355  193,698  169,926 
Net interest income 216,582  215,009  214,717  232,071  231,990 
Provision for credit losses 20,000  19,000  19,000  18,000  7,000 
Net interest income after provision for credit losses 196,582  196,009  195,717  214,071  224,990 
Non-interest income 50,424  41,319  31,133  46,872  46,011 
Non-interest expense 188,409  202,393  201,385  179,891  181,644 
Income before income taxes 58,597  34,935  25,465  81,052  89,357 
Income tax expense 16,935  8,793  5,315  19,373  20,706 
Net income 41,662  26,142  20,150  61,679  68,651 
Preferred stock dividends 4,312  4,313  4,312  4,313  4,312 
Net income available to common stockholders$37,350 $21,829 $15,838 $57,366 $64,339 
Diluted earnings per common share$0.80 $0.46 $0.33 $1.18 $1.33 
Diluted common shares 46,872,498  47,711,192  48,097,517  48,528,698  48,421,276 
      
CONSOLIDATED BALANCE SHEET DATA     
Total assets$29,854,994 $29,180,585 $28,356,266 $29,628,249 $28,976,544 
Loans held for investment 16,700,569  16,677,691  16,362,230  16,183,882  16,227,203 
Loans held for investment, mortgage finance 5,078,161  4,153,313  3,978,328  4,429,489  5,098,812 
Loans held for sale 36,785  37,750  44,105  155,073  29,097 
Interest bearing cash and cash equivalents 2,691,352  3,148,157  3,042,357  3,975,860  2,587,131 
Investment securities 4,388,976  4,414,280  4,143,194  4,069,717  4,226,653 
Non-interest bearing deposits 7,987,715  8,478,215  7,328,276  9,352,883  9,429,352 
Total deposits 23,818,327  23,954,037  22,371,839  23,878,978  23,318,240 
Short-term borrowings 1,675,000  750,000  1,500,000  1,400,000  1,350,000 
Long-term debt 659,997  859,823  859,147  858,471  857,795 
Stockholders’ equity 3,175,601  3,170,662  3,199,142  3,077,700  3,081,927 
      
End of period shares outstanding 46,188,078  46,986,275  47,237,912  48,015,003  47,992,521 
Book value per share$62.26 $61.10 $61.37 $57.85 $57.97 
Tangible book value per share(1)$62.23 $61.06 $61.34 $57.82 $57.93 
      
SELECTED FINANCIAL RATIOS     
Net interest margin 3.01% 3.03% 2.93% 3.13% 3.29%
Return on average assets 0.56% 0.36% 0.27% 0.81% 0.95%
Return on average common equity 5.26% 3.03% 2.25% 8.08% 9.17%
Non-interest income to average earning assets 0.71% 0.59% 0.43% 0.64% 0.66%
Efficiency ratio(2) 70.6% 79.0% 81.9% 64.5% 65.3%
Non-interest expense to average earning assets 2.65% 2.89% 2.79% 2.46% 2.61%
Common equity to total assets 9.6% 9.8% 10.2% 9.4% 9.6%
Tangible common equity to total tangible assets(3) 9.6% 9.8% 10.2% 9.4% 9.6%
Common Equity Tier 1 11.6% 12.4% 12.6% 12.7% 12.2%
Tier 1 capital 13.1% 13.9% 14.2% 14.3% 13.7%
Total capital 15.7% 16.6% 17.1% 17.1% 16.4%
Leverage 12.2% 12.4% 12.2% 12.1% 12.4%
 
(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) Non-interest expense divided by the sum of net interest income and non-interest income.
(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
 

        

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
 June 30, 2024June 30, 2023% Change
Assets   
Cash and due from banks$221,727 $260,314 (15)%
Interest bearing cash and cash equivalents 2,691,352  2,587,131 4 %
Available-for-sale debt securities 3,483,231  3,292,478 6 %
Held-to-maturity debt securities 831,513  900,315 (8)%
Equity securities 74,232  33,860 119 %
Investment securities 4,388,976  4,226,653 4 %
Loans held for sale 36,785  29,097 26 %
Loans held for investment, mortgage finance 5,078,161  5,098,812  %
Loans held for investment 16,700,569  16,227,203 3 %
Less: Allowance for credit losses on loans 267,297  237,343 13 %
Loans held for investment, net 21,511,433  21,088,672 2 %
Premises and equipment, net 69,464  26,096 166 %
Accrued interest receivable and other assets 933,761  757,085 23 %
Goodwill and intangibles, net 1,496  1,496  %
Total assets$29,854,994 $28,976,544 3 %
    
Liabilities and Stockholders’ Equity   
Liabilities:   
Non-interest bearing deposits$7,987,715 $9,429,352 (15)%
Interest bearing deposits 15,830,612  13,888,888 14 %
Total deposits 23,818,327  23,318,240 2 %
Accrued interest payable 23,841  29,658 (20)%
Other liabilities 502,228  338,924 48 %
Short-term borrowings 1,675,000  1,350,000 24 %
Long-term debt 659,997  857,795 (23)%
Total liabilities 26,679,393  25,894,617 3%
    
Stockholders’ equity:   
Preferred stock, $.01 par value, $1,000 liquidation value:   
Authorized shares - 10,000,000   
Issued shares - 300,000 shares issued at June 30, 2024 and 2023 300,000  300,000 %
Common stock, $.01 par value:   
Authorized shares - 100,000,000   
Issued shares - 51,474,581 and 51,087,965 at June 30, 2024 and 2023, respectively 515  511 1 %
Additional paid-in capital 1,050,114  1,035,063 1 %
Retained earnings 2,494,572  2,362,189 6 %
Treasury stock - 5,286,503 and 3,095,444 shares at cost at June 30, 2024 and 2023, respectively (301,868) (175,528)72 %
Accumulated other comprehensive loss, net of taxes (367,732) (440,308)(16)%
Total stockholders’ equity 3,175,601  3,081,927 3 %
Total liabilities and stockholders’ equity$29,854,994 $28,976,544 3 %
 


TEXAS CAPITAL BANCSHARES, INC.    
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)    
(dollars in thousands except per share data)    
 Three Months Ended June 30,Six Months Ended June 30,
  2024 2023 2024 2023
Interest income    
Interest and fees on loans$345,251$332,867$676,130$630,305
Investment securities 33,584 27,478 65,728 52,770
Interest bearing cash and cash equivalents 43,233 41,571 97,588 104,007
Total interest income 422,068 401,916 839,446 787,082
Interest expense    
Deposits 181,280 137,391 356,880 257,485
Short-term borrowings 12,749 18,253 25,532 32,997
Long-term debt 11,457 14,282 25,443 29,265
Total interest expense 205,486 169,926 407,855 319,747
Net interest income 216,582 231,990 431,591 467,335
Provision for credit losses 20,000 7,000 39,000 35,000
Net interest income after provision for credit losses 196,582 224,990 392,591 432,335
Non-interest income    
Service charges on deposit accounts 5,911 5,158 12,250 10,180
Wealth management and trust fee income 3,699 3,715 7,266 7,144
Brokered loan fees 2,131 2,415 4,042 4,310
Investment banking and advisory fees 25,048 19,101 43,472 33,665
Trading income 5,650 8,397 10,362 12,601
Other 7,985 7,225 14,351 15,514
Total non-interest income 50,424 46,011 91,743 83,414
Non-interest expense    
Salaries and benefits 118,840 113,050 247,567 241,720
Occupancy expense 10,666 9,482 20,403 19,101
Marketing 5,996 6,367 12,032 15,411
Legal and professional 11,273 15,669 27,468 30,183
Communications and technology 22,013 20,525 43,127 38,048
Federal Deposit Insurance Corporation insurance assessment 5,570 3,693 13,991 5,863
Other 14,051 12,858 26,214 25,345
Total non-interest expense 188,409 181,644 390,802 375,671
Income before income taxes 58,597 89,357 93,532 140,078
Income tax expense 16,935 20,706 25,728 32,766
Net income 41,662 68,651 67,804 107,312
Preferred stock dividends 4,312 4,312 8,625 8,625
Net income available to common stockholders$37,350$64,339$59,179$98,687
     
Basic earnings per common share$0.80$1.34$1.26$2.05
Diluted earnings per common share$0.80$1.33$1.25$2.02
 


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter
 20242024202320232023
Allowance for credit losses on loans:     
Beginning balance$263,962 $249,973 $244,902 $237,343 $260,928 
Loans charged-off:     
Commercial 9,997  7,544  8,356  13,246  8,852 
Commercial real estate 2,111  3,325  5,500     
Consumer       41   
Total charge-offs 12,108  10,869  13,856  13,287  8,852 
Recoveries:     
Commercial 153  105  15  4,346  611 
Commercial real estate     4     
Consumer         2 
Total recoveries 153  105  19  4,346  613 
Net charge-offs 11,955  10,764  13,837  8,941  8,239 
Provision for credit losses on loans 15,290  24,753  18,908  16,500  (15,346)
Ending balance$267,297 $263,962 $249,973 $244,902 $237,343 
      
Allowance for off-balance sheet credit losses:     
Beginning balance$40,609 $46,362 $46,270 $44,770 $22,424 
Provision for off-balance sheet credit losses 4,710  (5,753) 92  1,500  22,346 
Ending balance$45,319 $40,609 $46,362 $46,270 $44,770 
      
Total allowance for credit losses$312,616 $304,571 $296,335 $291,172 $282,113 
Total provision for credit losses$20,000 $19,000 $19,000 $18,000 $7,000 
      
Allowance for credit losses on loans to total loans held for investment 1.23% 1.27% 1.23% 1.19% 1.11%
Allowance for credit losses on loans to average total loans held for investment 1.27% 1.32% 1.24% 1.17% 1.15%
Net charge-offs to average total loans held for investment(1) 0.23% 0.22% 0.27% 0.17% 0.16%
Net charge-offs to average total loans held for investment for last 12 months(1) 0.22% 0.20% 0.25% 0.26% 0.23%
Total provision for credit losses to average total loans held for investment(1) 0.38% 0.38% 0.37% 0.34% 0.14%
Total allowance for credit losses to total loans held for investment 1.44% 1.46% 1.46% 1.41% 1.32%
 
(1) Interim period ratios are annualized.
 


TEXAS CAPITAL BANCSHARES, INC.     
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS   
(dollars in thousands)     
 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter
 20242024202320232023
Non-accrual loans held for investment$85,021 $92,849 $81,398 $63,129 $81,039 
Non-accrual loans held for sale(1)   9,250       
Other real estate owned          
Total non-performing assets$85,021 $102,099 $81,398 $63,129 $81,039 
      
Non-accrual loans held for investment to total loans held for investment 0.39% 0.45% 0.40% 0.31% 0.38%
Total non-performing assets to total assets 0.28% 0.35% 0.29% 0.21% 0.28%
Allowance for credit losses on loans to non-accrual loans held for investment 3.1x 2.8x 3.1x 3.9x 2.9x
Total allowance for credit losses to non-accrual loans held for investment 3.7x 3.3x 3.6x 4.6x 3.5x
      
Loans held for investment past due 90 days and still accruing$286 $3,674 $19,523 $4,602 $64 
Loans held for investment past due 90 days to total loans held for investment % 0.02% 0.10% 0.02% %
Loans held for sale past due 90 days and still accruing$64 $147 $ $ $ 
 
(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.
 


 
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)
      
 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter
 20242024202320232023
Interest income     
Interest and fees on loans$345,251$330,879$325,210$345,138$332,867
Investment securities 33,584 32,144 28,454 27,070 27,478
Interest bearing deposits in other banks 43,233 54,355 63,408 53,561 41,571
Total interest income 422,068 417,378 417,072 425,769 401,916
Interest expense     
Deposits 181,280 175,600 170,173 160,117 137,391
Short-term borrowings 12,749 12,783 18,069 19,576 18,253
Long-term debt 11,457 13,986 14,113 14,005 14,282
Total interest expense 205,486 202,369 202,355 193,698 169,926
Net interest income 216,582 215,009 214,717 232,071 231,990
Provision for credit losses 20,000 19,000 19,000 18,000 7,000
Net interest income after provision for credit losses 196,582 196,009 195,717 214,071 224,990
Non-interest income     
Service charges on deposit accounts 5,911 6,339 5,397 5,297 5,158
Wealth management and trust fee income 3,699 3,567 3,302 3,509 3,715
Brokered loan fees 2,131 1,911 2,076 2,532 2,415
Investment banking and advisory fees 25,048 18,424 6,906 23,099 19,101
Trading income 5,650 4,712 3,819 6,092 8,397
Other 7,985 6,366 9,633 6,343 7,225
Total non-interest income 50,424 41,319 31,133 46,872 46,011
Non-interest expense     
Salaries and benefits 118,840 128,727 107,970 110,010 113,050
Occupancy expense 10,666 9,737 9,483 9,910 9,482
Marketing 5,996 6,036 5,686 4,757 6,367
Legal and professional 11,273 16,195 17,127 17,614 15,669
Communications and technology 22,013 21,114 23,607 19,607 20,525
Federal Deposit Insurance Corporation insurance assessment 5,570 8,421 25,143 5,769 3,693
Other 14,051 12,163 12,369 12,224 12,858
Total non-interest expense 188,409 202,393 201,385 179,891 181,644
Income before income taxes 58,597 34,935 25,465 81,052 89,357
Income tax expense 16,935 8,793 5,315 19,373 20,706
Net income 41,662 26,142 20,150 61,679 68,651
Preferred stock dividends 4,312 4,313 4,312 4,313 4,312
Net income available to common shareholders$37,350$21,829$15,838$57,366$64,339
 


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
 
 2nd Quarter 2024 1st Quarter 2024 4th Quarter 2023 3rd Quarter 2023 2nd Quarter 2023
 Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
 Average
Balance
Income/
Expense
Yield/
Rate
Assets                   
Investment securities(2)$4,427,023$33,5842.80% $4,299,368$32,1442.77% $4,078,975$28,4542.48% $4,204,749$27,0702.33% $4,306,881$27,4782.36%
Interest bearing cash and cash equivalents 3,273,069 43,2335.31%  4,051,627 54,3555.40%  4,637,374 63,4085.42%  3,965,045 53,5615.36%  3,286,091 41,5715.07%
Loans held for sale 28,768 6839.55%  51,164 1,1849.31%  29,071 6729.17%  31,878 6478.06%  28,414 5998.46%
Loans held for investment, mortgage finance(4) 4,357,288 42,7223.94%  3,517,707 31,4553.60%  3,946,280 33,7093.39%  4,697,702 50,8134.29%  4,376,235 49,4254.53%
Loans held for investment(3)(4) 16,750,788 301,9107.25%  16,522,089 298,3067.26%  16,164,233 290,8977.14%  16,317,324 293,7507.14%  16,217,314 282,9567.00%
Less: Allowance for credit losses on loans 263,145    249,936    244,287    238,883    261,027  
Loans held for investment, net 20,844,931 344,6326.65%  19,789,860 329,7616.70%  19,866,226 324,6066.48%  20,776,143 344,5636.58%  20,332,522 332,3816.56%
Total earning assets 28,573,791 422,1325.86%  28,192,019 417,4445.88%  28,611,646 417,1405.69%  28,977,815 425,8415.75%  27,953,908 402,0295.69%
Cash and other assets 1,177,061    1,058,463    1,120,354    1,106,031    1,049,145  
Total assets$29,750,852   $29,250,482   $29,732,000   $30,083,846   $29,003,053  
                    
Liabilities and Stockholders’ Equity                   
Transaction deposits$2,061,622$16,9823.31% $2,006,493$16,8583.38% $1,972,324$15,6133.14% $1,755,451$13,6273.08% $1,345,742$9,4682.82%
Savings deposits 11,981,668 143,1734.81%  11,409,677 136,7904.82%  11,043,155 132,8014.77%  10,858,306 127,3234.65%  10,590,558 114,2754.33%
Time deposits 1,658,899 21,1255.12%  1,719,325 21,9525.14%  1,716,812 21,7595.03%  1,610,235 19,1674.72%  1,531,922 13,6483.57%
Total interest bearing deposits 15,702,189 181,2804.64%  15,135,495 175,6004.67%  14,732,291 170,1734.58%  14,223,992 160,1174.47%  13,468,222 137,3914.09%
Short-term borrowings 927,253 12,7495.53%  912,088 12,7835.64%  1,257,609 18,0695.70%  1,393,478 19,5765.57%  1,397,253 18,2535.24%
Long-term debt 778,401 11,4575.92%  859,509 13,9866.54%  858,858 14,1136.52%  858,167 14,0056.47%  883,871 14,2826.48%
Total interest bearing liabilities 17,407,843 205,4864.75%  16,907,092 202,3694.81%  16,848,758 202,3554.76%  16,475,637 193,6984.66%  15,749,346 169,9264.33%
Non-interest bearing deposits 8,647,594    8,637,775    9,247,491    10,016,579    9,749,105  
Other liabilities 537,754    509,286    541,162    474,869    389,155  
Stockholders’ equity 3,157,661    3,196,329    3,094,589    3,116,761    3,115,447  
Total liabilities and stockholders’ equity$29,750,852   $29,250,482   $29,732,000   $30,083,846   $29,003,053  
Net interest income $216,646   $215,075   $214,785   $232,143   $232,103 
Net interest margin  3.01%   3.03%   2.93%   3.13%   3.29%
 
(1) Taxable equivalent rates used where applicable.
(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.
(3) Average balances include non-accrual loans.
(4) In the first quarter of 2024, enhancements were made to our methodology for applying relationship pricing credits to mortgage client loans. To conform to the current period presentation, certain prior period interest income amounts have been reclassified from loans held for investment, mortgage finance to loans held for investment and related yields have been adjusted accordingly.
 

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