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Sep 30, 2020

Texas Capital Bancshares Q3 2020 Earnings Report

Reported improved operating results due to actions taken during the second quarter.

Key Takeaways

Texas Capital Bancshares reported a net income of $57.1 million for Q3 2020, a significant increase from the previous quarter's net loss. This improvement was primarily driven by a decrease in the provision for credit losses and a decrease in non-interest expense.

Net income of $57.1 million ($1.08 per share) reported for the third quarter of 2020, an increase of $91.4 million on a linked quarter basis and a decrease of $31.0 million from the third quarter of 2019.

Total mortgage finance loans, including mortgage correspondent aggregation ("MCA") loans held for sale ("LHS"), increased 6% on a linked quarter basis (increasing 6% on an average basis) and decreased 6% from the third quarter of 2019 (decreasing 10% on an average basis).

Demand deposits increased 14% and total deposits increased 6% on a linked quarter basis (increasing 12% and 4%, respectively, on an average basis), and increased 20% and 17%, respectively, from the third quarter of 2019 (increasing 22% and 21%, respectively, on an average basis).

Loans held for investment ("LHI"), excluding mortgage finance loans, decreased 5% on a linked quarter basis (decreasing 4% on an average basis) and decreased 6% from the third quarter of 2019 (decreasing 4% on an average basis).

Total Revenue
$268M
Previous year: $272M
-1.7%
EPS
$1.08
Previous year: $1.7
-36.5%
Net Interest Margin
2.22%
Return on Avg. Assets
0.59%
Return on Avg. Equity
8.24%
Cash and Equivalents
$10.6B
Previous year: $5.21B
+104.4%
Free Cash Flow
-$83.3M
Previous year: -$1.46B
-94.3%
Total Assets
$38.4B
Previous year: $33.5B
+14.6%

Texas Capital Bancshares

Texas Capital Bancshares