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Jun 30, 2020
Texas Capital Bancshares Q2 2020 Earnings Report
Texas Capital Bancshares reported a net loss for Q2 2020, driven by increased provision for credit losses and non-interest expenses, partially offset by higher non-interest income.
Key Takeaways
Texas Capital Bancshares reported a net loss of $34.3 million for the second quarter of 2020, compared to a net income of $77.8 million for the same period in 2019. The decline was primarily due to a $73.0 million increase in the provision for credit losses and an $80.6 million increase in non-interest expense, offset by a $46.1 million increase in non-interest income.
Reported a net loss of $34.3 million, or $0.73 per diluted share.
Took actions expected to decrease non-interest expenses, including workforce reduction and software asset write-offs.
Funded $717.5 million in loans under the Paycheck Protection Program.
Implemented a short-term loan modification program to provide temporary relief to certain borrowers.
Texas Capital Bancshares
Texas Capital Bancshares
Texas Capital Bancshares Revenue by Segment
Revenue by Segment
Net interest income Revenue
CapyFin.comNon-interest income Revenue
CapyFin.com Forward Guidance
Texas Capital Bancshares intends to operate with above-average liquidity and improve core earnings by reducing or replacing higher-cost funding sources and improving the earning asset mix.
Positive Outlook
- Focusing on protecting employees and clients during unprecedented times.
- Positioning the company for long-term, sustainable earnings growth.
- Significant investments in infrastructure and technology enabling cost realignment.
- Vigilant in managing credit.
- Selectively recruiting and acquiring frontline talent.
Challenges Ahead
- Continuing impact of the COVID-19 pandemic.
- Actions by governments resulting in high levels of uncertainty.
- Economic weakness and market volatility.
- Termination of merger agreement with Independent Bank Group, Inc.
- Volatility in oil and gas prices