Summary:
- Texas Capital Bancshares (TCBI, Financial) reported Q1 2025 net income of $47.0 million and an EPS of $0.92.
- Total deposits grew 9% to $26.05 billion and total loans increased 7% to $22.38 billion year-over-year.
- Net interest margin improved to 3.19% with net interest income at $236 million.
Texas Capital Bancshares (TCBI) announced its financial results for the first quarter of 2025, highlighting a net income of $47.0 million and earnings per diluted share of $0.92. The bank demonstrated significant growth with total deposits rising by 9% year-over-year to reach $26.05 billion, while total loans grew by 7% to $22.38 billion. Additionally, both book value and tangible book value per share rose by 11% over the past year.
The bank's net interest income stood at $236.0 million, resulting in a net interest margin of 3.19%. Despite the overall positive year-over-year growth, TCBI's provision for credit losses was $17.0 million, with net charge-offs amounting to $9.8 million. The increase in criticized loans was noted as a concern.
During the first quarter, TCBI repurchased 396,106 shares at an average price of $78.25 per share, totaling $31.2 million. This move reflects the company's active capital management strategy to enhance shareholder value.
In terms of capital ratios, TCBI maintained strong positions with a CET1 ratio of 11.6%, a tier 1 capital ratio of 13.1%, a total capital ratio of 15.6%, and a leverage ratio of 11.8%, all exceeding regulatory requirements. This strong capital base provides TCBI with the flexibility needed for future growth and maintaining shareholder returns.
While facing challenges in the current economic landscape, Texas Capital Bancshares continues to leverage its diversified product offerings and sound balance sheet to support client objectives, as highlighted by Chairman, President & CEO Rob C. Holmes. The bank remains focused on achieving its financial targets for the later half of the year.
