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Sep 30, 2024
Texas Capital Bancshares Q3 2024 Earnings Report
Texas Capital Bancshares' Q3 2024 performance was marked by a net loss, influenced by strategic actions and restructuring expenses, alongside a record level of income in fee areas of focus.
Key Takeaways
Texas Capital Bancshares reported a net loss available to common stockholders of $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024. This was primarily due to a $179.6 million loss on the sale of available-for-sale debt securities and restructuring expenses, partially offset by a release of FDIC special assessment accrual. However, the company achieved record levels of income in fee areas of focus and maintained strong capital ratios.
Net loss available to common stockholders was $65.6 million, or $1.41 net loss per diluted share.
Included a $179.6 million loss on sale of available-for-sale debt securities and restructuring expense of $5.9 million.
Partially offset by a $651,000 release of Federal Deposit Insurance Corporation special assessment accrual.
Book Value and Tangible Book Value per share both increased 14% year over year, reaching record levels.
Texas Capital Bancshares
Texas Capital Bancshares
Forward Guidance
This communication contains forward-looking statements regarding TCBI’s financial condition, results of operations, business plans and future performance. These statements are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict.
Positive Outlook
- TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses
- TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations
- TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services
- TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches
- The effectiveness of TCBI’s risk management processes strategies and monitoring
Challenges Ahead
- Economic or business conditions in Texas, the United States or globally that impact TCBI or its customers
- Negative credit quality developments arising from the foregoing or other factors
- The extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes
- Elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities
- Fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans