Texas Capital Bancshares : TCBI Q1 2025 Earnings Presentation

Published: 2025-05-14 09:51:07 ET TCBI

Published on 05/14/2025 at 09:51

Q1-2025 Earnings

April 17, 2025

Foundational Tenants of Value Creation in Place

Flagship

Proactive, disciplined engagement with the best clients in our markets to

Structurally higher, more sustainable earnings driving greater performance and

Commitment to financial resilience allowing us to serve clients, access

Consistent communication, enhanced accountability, and a bias for action ensure

Results

provide the talent, products,

lower annual variability

markets, and support

execution and delivery

and offerings they need

communities through all

through their entire life-cycles

cycles

Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns

Performance Metrics

2020

2024

2025

Return on Average Assets

0.18%

0.25%

0.61%

>1.10%

Return on Average Tangible Common Equity3

2.1%

2.0%

5.6%

>12.5%

Adj. Return on Average Assets4

0.33%

0.74%

0.61%

>1.10%

Adj. Return on Average Tangible Common Equity3

4.2%

7.1%

5.6%

>12.5%

CET1

9.4%

11.4%

11.6%

>10%

2021 Strategic Performance Drivers

Income Statement

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

YTD 2025

Estab. in '21

Investment Banking and Trading Income

(% of Total Revenue)

2.2%

2.7%

2.9%

8.0%

13.6%

8.0%

~10%

Treasury Product Fees1

(% of Total Revenue)

1.4%

2.5%

2.4%

2.8%

3.8%

~5%

Non-Interest Income

(% of Total Revenue)

19.3%

15.2%

28.5%

15.0%

3.3%

15.8%

15%-20%

Adj. Non-Interest Income2

(% of Adj. Total Revenue2)

11.2%

13.4%

10.3%

15.0%

18.9%

15.8%

15%-20%

Average Cash & Securities

(% of Total Average Assets)

29%

38%

30%

28%

29%

>20%

Average Indexed Deposits

(% of Total Deposits)

36%

27%

16%

<15%

Treasury Solutions

Financial Performance

Q1 '24

Q2 '24

Q3 '24

Q4 '24

Q1 '25

YoY Growth

Assets Under Management5($bn)

$4.0

$4.1

$4.0

$3.8

(4%)

Treasury Product Fees1($mm)

$8.7

$8.5

$9.1

$9.5

$10.6

22%

Wealth Management & Trust Fee Income ($mm)

$3.6

$3.7

$4.0

11%

Investment Banking & Trading Income ($mm)

$23.1

$30.7

$40.5

$32.2

$22.4

(3%)

Income from Areas of Focus ($mm)

$35.4

$42.9

$53.7

$45.7

$37.0

Third consecutive quarter of record fees, surpassing $10mm for the first time; continued quarterly YoY growth of 22%

Sustained success winning core operating accounts; non-interest bearing, excl. mortgage finance deposits up 7% QoQ

Private Wealth

Enhanced platform resulting in improved product penetration, including cash management

Stable fees despite market volatility; expect accelerated client adoption through the year

Investment Banking

Q1 results impacted by heightened market uncertainty; significant and growing pipelines across offerings

Recent talent buildout focused on Equity Research, Sales and Trading and Investment Banking Coverage

Financial Highlights ($mm)

Adjusted (Non-GAAP4)

2024

Q1 2024

Q4 2024

Q1 2025

Net Interest Income

901.3

215.0

229.6

236.0

Non-Interest Revenue

31.0

210.6

41.3

54.1

44.4

Total Revenue

932.3

1,111.9

256.3

283.7

280.5

Non-Interest Expense

758.3

742.5

202.4

192.4

172.2

203.0

PPNR6

174.1

369.4

53.9

64.0

111.5

77.5

Provision for Credit Losses

67.0

19.0

18.0

17.0

Income Tax Expense

29.6

76.8

8.8

11.1

22.5

13.4

Net Income

77.5

225.6

26.1

33.9

71.0

47.0

Preferred Stock Dividends

17.3

4.3

Net Income to Common

60.3

208.3

21.8

29.6

66.7

42.7

Financial Performance // Income Statement

Non-Interest Expense, Adj. 192.4

FDIC Special Assessment Restructuring Expenses Legal Settlement

(3.0)

Non-GAAP4 Adjustments ($mm)

2024

Non-Interest Income 31.0

Non-GAAP4 Adjustments ($mm)

Q1 2024

Non-Interest Expense 202.4

Performance Metrics

Return on Average Assets

0.25%

0.74%

0.36%

0.47%

0.88%

0.61%

PPNR6 / Average Assets

0.57%

1.21%

0.74%

0.88%

1.38%

1.01%

Efficiency Ratio7

81.3%

66.8%

79.0%

75.1%

60.7%

72.4%

Return on Average Common Equity

2.0%

7.0%

3.0%

4.1%

8.5%

5.6%

Earnings Per Share

$1.28

$4.43

$0.46

$0.62

$1.43

$0.92

Loss on AFS Securities Sale

179.6

Non-Interest Income, Adj.

210.6

Non-Interest Expense

758.3

FDIC Special Assessment

(2.8)

Restructuring Expenses

(7.9)

Legal Settlement

(5.0)

Non-Interest Expense, Adj.

742.5

(2.0)

(5.0)

Disclaimer

Texas Capital Bancshares Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 13:50 UTC.