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Mar 31, 2022
Texas Capital Bancshares Q1 2022 Earnings Report
Texas Capital Bancshares' first quarter 2022 earnings were announced, revealing a net income of $39.7 million, or $0.69 per diluted share.
Key Takeaways
Texas Capital Bancshares reported a net income of $39.7 million, or $0.69 per diluted share, for the first quarter of 2022. The results reflect a strategic shift to reduce reliance on the mortgage finance business, with growth in loans held for investment, excluding mortgage finance and PPP, increasing by $577.7 million, or 15% annualized.
Net income for Q1 2022 was $39.7 million, or $0.69 per diluted share.
Mortgage finance loans experienced declines due to rising interest rates.
Loans held for investment, excluding mortgage finance and PPP, increased by $577.7 million, representing a 15% annualized growth.
Net interest margin for the first quarter of 2022 was 2.23%.
Texas Capital Bancshares
Texas Capital Bancshares
Forward Guidance
Texas Capital Bancshares is progressing against its strategic plan, beginning to realize the benefits from focused investments in core product offerings and key talent acquisition. The company continues to take deliberate actions to position its asset-sensitive balance sheet to perform more favorably through the rate cycle.
Positive Outlook
- Focused growth initiatives across the platform
- Reducing reliance on Mortgage Finance franchise
- Investments in core product offerings
- Key talent acquisition
- Positioning asset-sensitive balance sheet
Challenges Ahead
- Impact from increase in long-term rates on Mortgage Finance business
- Decrease in net interest income driven by decrease in average loans held for investment
- Decrease in non-interest income related to decreases in investment banking and trading income
- Increase in non-interest expense due to increases in salaries and benefits expense
- Decline in brokered loan fees impacted by lower mortgage finance volumes