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Mar 31

Texas Capital Bancshares Q1 2025 Earnings Report

reported solid first-quarter results with net income and EPS significantly higher year over year.

Key Takeaways

Texas Capital Bancshares delivered a strong Q1 2025 performance, driven by improved net interest income, expanding margins, and record book value per share. Despite increased operating expenses, profitability and capital strength remained robust.

Net income available to common stockholders more than doubled YoY to $42.7M.

EPS rose to $0.92 from $0.46 in Q1 2024.

Book value and tangible book value per share both rose 11% YoY to record highs.

Total deposits increased 9% YoY while loans grew 7%.

Total Revenue
$280M
Previous year: $256M
+9.4%
EPS
$0.92
Previous year: $0.62
+48.4%
Net Interest Margin
3.19%
Previous year: 3.03%
+5.3%
Return on Avg. Assets
0.61%
Previous year: 0.36%
+69.4%
Return on Avg. Equity
5.56%
Previous year: 3.03%
+83.5%
Cash and Equivalents
$3.6B
Previous year: $3.15B
+14.4%
Total Assets
$31.4B
Previous year: $29.2B
+7.5%

Texas Capital Bancshares

Texas Capital Bancshares

Texas Capital Bancshares Revenue by Segment

Texas Capital Bancshares Revenue by Geographic Location

Forward Guidance

Texas Capital expects to meet its financial targets in the latter half of 2025, supported by a resilient balance sheet and diversified offerings.

Positive Outlook

  • Improved net interest margin indicates stronger asset yield dynamics.
  • Robust capital ratios across all regulatory categories.
  • Loan and deposit growth year over year.
  • Book value and tangible book value per share reached record levels.
  • Management reaffirmed focus on delivering 2025 financial targets.

Challenges Ahead

  • Net income declined QoQ from Q4 2024.
  • Increase in criticized loans reflecting credit risk concerns.
  • Provision for credit losses remains elevated at $17M.
  • Non-interest expense rose by $30.9M QoQ due to seasonal payroll.
  • Non-interest income dropped $9.6M QoQ due to lower advisory fees.