Texas Capital Bancshares Reports $65.6M Loss

Texas Capital Bancshares, Inc. has announced its third-quarter 2024 results, revealing significant changes in various financial metrics compared to the previous quarter and the same period last year.

Net loss available to common stockholders for the third quarter of 2024 was $65.6 million, or $1.41 net loss per diluted share, a substantial decline compared to the net income available to common stockholders of $37.4 million, or $0.80 net income per diluted share in the second quarter of 2024 and $57.4 million, or $1.18 per diluted share, in the third quarter of 2023.

The provision for credit losses for the third quarter of 2024 was $10.0 million, down from $20.0 million in the second quarter of 2024, and compared to an $18.0 million provision for the third quarter of 2023.

Net interest income saw an increase to $240.1 million for the third quarter of 2024, compared to $216.6 million for the second quarter of 2024 and $232.1 million for the third quarter of 2023. The net interest margin also increased to 3.16% for the third quarter of 2024, up from 3.01% in the second quarter of 2024 and 3.13% in the third quarter of 2023.

Non-interest income for the third quarter of 2024 decreased by $165.2 million compared to the second quarter of 2024, primarily due to a $179.6 million loss on the sale of available-for-sale debt securities, partially offset by increases in investment banking and advisory fees and other non-interest income.

Non-interest expense for the third quarter of 2024 increased by $6.9 million, or 4%, compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense, and communications and technology expense.

The regulatory ratios and capital also showed changes, with CET1, tier 1 capital, total capital, and leverage ratios at 11.2%, 12.6%, 15.2%, and 11.4%, respectively, at September 30, 2024, compared to 11.6%, 13.1%, 15.7%, and 12.2%, respectively, at June 30, 2024, and 12.7%, 14.3%, 17.1%, and 12.1%, respectively, at September 30, 2023.

As a result of these announcements, the company's shares have moved 1.5% on the market, and are now trading at a price of $79.6. Check out the company's full 8-K submission here.

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