Texas Capital Bancshares, Inc. reports strong financial performance in Q1 2025
From GlobeNewswire: 2025-04-17 06:00:00
In the first quarter of 2025, Texas Capital Bancshares, Inc. reported a net income of $47.0 million, with net income available to common stockholders at $42.7 million, or $0.92 per diluted share. Total deposits increased by 9% and total loans grew by 7% year-over-year. Capital ratios remained strong, with CET1 at 11.6% and Total Capital at 15.6%.
The company’s strong balance sheet growth led to Book Value and Tangible Book Value per share both increasing by 11% year-over-year, reaching record levels. Operating results for the first quarter of 2025 showed significant improvements in key financial and operating metrics. CEO Rob C. Holmes highlighted the focus on achieving financial targets in the second half of the year.
Comparing the first quarter of 2025 to the fourth quarter of 2024, net income available to common stockholders decreased to $42.7 million, or $0.92 per diluted share. The provision for credit losses was $17.0 million, primarily due to an increase in criticized loans and $9.8 million in net charge-offs.
Net interest income for the first quarter of 2025 was $236.0 million, with a net interest margin of 3.19%, an increase of 26 basis points from the fourth quarter of 2024. Non-interest income decreased by $9.6 million compared to the previous quarter, mainly due to a decline in investment banking and advisory fees.
Non-interest expense for the first quarter of 2025 increased by $30.9 million, primarily due to higher salaries and benefits. The company also repurchased 396,106 shares of its common stock during the quarter for $31.2 million. Overall, Texas Capital Bancshares maintained strong regulatory ratios and capital levels.
Credit quality remained stable, with net charge-offs of $9.8 million in the first quarter of 2025. Criticized loans totaled $762.9 million, with non-accrual loans at $93.6 million. The company’s regulatory ratios exceeded “well-capitalized” requirements, with CET1 at 11.6% and Total Capital at 15.6% as of March 31, 2025.
Read more at GlobeNewswire:: Texas Capital Bancshares, Inc. Announces First Quarter 2025