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Mar 31, 2020

Texas Capital Bancshares Q1 2020 Earnings Report

Reported a net loss due to a significant provision for credit losses driven by CECL adoption and the COVID-19 pandemic.

Key Takeaways

Texas Capital Bancshares, Inc. reported a net loss of $16.7 million for Q1 2020, primarily due to a $96.0 million provision for credit losses related to CECL adoption and the COVID-19 pandemic. The company focused on maintaining a strong balance sheet with increased liquidity and reserves.

Strong balance sheet positioning with deliberate increases in liquidity and funding sources.

Over 90% of employees working virtually since early March with little to no impact on client experience.

Net loss of $16.7 million or $0.38 per share was reported.

The results reflected increases in charge-offs and criticized loans related to the COVID-19 pandemic, MSR impairment, and merger-related expenses.

Total Revenue
$240M
Previous year: $266M
-9.6%
EPS
$1.39
Previous year: $1.6
-13.1%
Net Interest Margin
2.78%
Return on Avg. Assets
-0.2%
Return on Avg. Equity
-2.85%
Cash and Equivalents
$9.66B
Previous year: $2.33B
+314.4%
Free Cash Flow
$1.78B
Previous year: $162M
+1004.9%
Total Assets
$35.9B
Previous year: $28.4B
+26.4%

Texas Capital Bancshares

Texas Capital Bancshares

Forward Guidance

This communication may be deemed to include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of TCBI.