Texas Capital Bancshares Reports Second Quarter 2024 Operating Results

Strategic Insights -

Texas Capital Bancshares, the parent company of Texas Capital Bank, released its second quarter 2024 operating results, showcasing a net income available to common stockholders of $37.4 million, or $0.80 per diluted share. This compares to $21.8 million, or $0.46 per diluted share, in the first quarter of 2024 and $64.3 million, or $1.33 per diluted share, in the second quarter of 2023. President and CEO Rob C. Holmes emphasized the company's strategic plan to build a platform resilient to market and rate cycles, delivering differentiated solutions for clients at a pace that exceeds observed market behavior.

Key Takeaways:

  • 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.
  • Provision for credit losses for the second quarter of 2024 was $20.0 million, resulting primarily from growth in total loans held for investment and $12.0 million in net charge-offs.
  • Net interest income was $216.6 million for the second quarter of 2024, an increase of $1.6 million, or 1%, compared to the first quarter of 2024, as a result of an increase in average earning assets and a decline in funding costs.
  • 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.
  • Regimental ratios, including CET1, tier 1 capital, total capital, and leverage ratios, were in excess of "well capitalized" requirements as of June 30, 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.

Statistics:

  • Net income available to common stockholders: $37.4 million for Q2 2024, $21.8 million for Q1 2024, and $64.3 million for Q2 2023.
  • Diluted earnings per share: $0.80 for Q2 2024, $0.46 for Q1 2024, and $1.33 for Q2 2023.
  • Provision for credit losses: $20.0 million for Q2 2024, $19.0 million for Q1 2024, and $7.0 million for Q2 2023.
  • Net interest income: $216.6 million for Q2 2024, $215.0 million for Q1 2024, and $232.0 million for Q2 2023.
  • Net interest margin: 3.01% for Q2 2024, a decrease of 2 basis points from Q1 2024.
  • Total cost of deposits: 2.99% for Q2 2024, a 2 basis point increase from Q1 2024.
  • Regulatory ratios: CET1, 11.6%; tier 1 capital, 13.1%; total capital, 15.7%; leverage ratio, 12.2%, all as of June 30, 2024.

Sources:

  • Texas Capital Bancshares, Inc. News Release, Second Quarter 2024 Operating Results.