Texas Capital Bancshares Q4 EPS Beats Expectations, Revenue Up 15.4% YoY
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Strong Earnings Performance: Texas Capital Bancshares reported a Q4 GAAP EPS of $2.12, beating expectations by $0.35, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The bank's Q4 revenue reached $327.48 million, a 15.4% year-over-year increase that exceeded market expectations by $4.19 million, indicating sustained business expansion and strong market demand.
- Robust Capital Ratios: Texas Capital Bancshares achieved a CET1 ratio of 12.1% and a total capital ratio of 16.1%, demonstrating a solid capital structure that supports future business growth.
- Changes in Credit Loss Provisions: The provision for credit losses in Q4 was $11.0 million, down from $12.0 million in Q3, primarily due to an increase in criticized loans and $10.7 million in net charge-offs, highlighting the company's ongoing focus on risk management.
Analyst Views on TCBI
Wall Street analysts forecast TCBI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TCBI is 98.13 USD with a low forecast of 86.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
4 Hold
2 Sell
Hold
Current: 97.290
Low
86.00
Averages
98.13
High
105.00
Current: 97.290
Low
86.00
Averages
98.13
High
105.00
About TCBI
Texas Capital Bancshares, Inc. is a bank holding company and a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The Company's business activities are conducted through its subsidiary, Texas Capital Bank. It offers a range of products and services for its business customers, including commercial loans; real estate term and construction loans; mortgage warehouse lending and mortgage finance services; treasury management services, including online banking, foreign exchange and debit and credit card services; investment banking and advisory services, and letters of credit. It also provides banking services for its individual customers, including personal wealth management and trust services; certificates of deposit; interest-bearing and non-interest-bearing checking accounts; traditional money market and savings accounts; loans; online and mobile banking; investment banking and advisory services, and Bask Bank.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
