Texas Capital Bancshares has recently released its 10-Q report, which provides a detailed insight into the company's financial performance and operations. Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, offering a wide range of financial services to businesses, entrepreneurs, and individual customers. These services include commercial banking, consumer banking, investment banking solutions, wealth management services, deposit accounts, liquidity and investments, commercial real estate, and various other financial products.
In the Management's Discussion and Analysis of Financial Condition and Results of Operations, Texas Capital Bancshares reported net interest income of $216.6 million for the three months ended June 30, 2024, compared to $232.0 million for the same period in 2023. The company also reported a decrease in net income for the second quarter of 2024 compared to the same period in 2023, primarily due to a decrease in net interest income and an increase in provision for credit losses. For the six months ended June 30, 2024, the company reported net income of $67.8 million, compared to $107.3 million for the same period in 2023, with a decrease in net interest income and an increase in non-interest expense being the primary contributing factors.
The company's net interest margin for the three months ended June 30, 2024, was 3.01%, compared to 3.29% for the same period in 2023. The decrease in net interest margin was primarily due to an increase in funding costs, partially offset by an increase in yields on average earning assets. The yield on total loans held for investment increased to 6.65% for the three months ended June 30, 2024, compared to 6.56% for the same period in 2023.
The company's financial results indicate a challenging period with decreased net income and net interest income, as well as an increase in provision for credit losses and non-interest expense. These factors have contributed to a decrease in the company's overall financial performance compared to the same periods in 2023. Following these announcements, the company's shares moved -6.6%, and are now trading at a price of $66.04. For the full picture, make sure to review Texas Capital Bancshares's 10-Q report.
