Texas Capital Bancshares (TCBI)
NASDAQ:TCBI
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Texas Capital Bancshares
(NASDAQ:TCBI)
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Rating:77Outperform
Price Target:
$118.00
▲(12.83% Upside)
Action:Reiterated
Date:04/24/26
TCBI scores well primarily on improving financial performance (stronger profitability/ROE, healthier leverage, and strong cash conversion) and a positive earnings-call setup with reiterated growth guidance and strengthening fee diversification alongside new shareholder returns. Technicals add support with a clear uptrend. The main restraint is limited usability of the provided valuation inputs (P/E shown as 0.000 and dividend yield missing).
Positive Factors
Fee diversification / record fee income
A sustained shift toward fee revenue reduces reliance on net interest income and interest-rate sensitivity. Record, broad-based fee growth (investment banking, treasury, wealth) suggests scalable, higher‑margin businesses that can stabilize earnings and improve revenue resilience over multiple quarters.
Negative Factors
Concentrated credit workouts and charge-offs
Persisting workouts and several reserved credits imply ongoing provisioning and elevated credit monitoring. Concentrated commercial problem credits can sap capital and earnings for multiple quarters, limit risk appetite for new exposures, and increase uncertainty around future credit costs and ROI from lending activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee diversification / record fee income
A sustained shift toward fee revenue reduces reliance on net interest income and interest-rate sensitivity. Record, broad-based fee growth (investment banking, treasury, wealth) suggests scalable, higher‑margin businesses that can stabilize earnings and improve revenue resilience over multiple quarters.
Read all positive factors
Texas Capital Bancshares Key Performance Indicators (KPIs)
Texas Capital Bancshares (TCBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.24B
Dividend YieldN/A
Average Volume (3M)487.74K
Price to Earnings (P/E)14.5
Beta (1Y)0.93
Revenue Growth3.26%
EPS Growth329.26%
CountryUS
Employees1,818
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)7.52
Shares Outstanding43,670,940
10 Day Avg. Volume452,694
30 Day Avg. Volume487,738
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.12
Price to Sales (P/S)2.04
P/FCF Ratio11.73
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda4.42
Forecast
1Y Price Target
$106.00Price Target Upside1.36% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)7.65
Revenue Forecast (FY)$1.35B
Texas Capital Bancshares Business Overview & Revenue Model
Company Description
Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers com...
How the Company Makes Money
Texas Capital Bancshares makes money primarily through its banking subsidiary by generating (1) net interest income and (2) noninterest income.
1) Net interest income (core earnings driver): The bank earns interest and fees on loans and on intere...
Texas Capital Bancshares Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: materially higher adjusted EPS, double‑digit revenue growth, record fee income across multiple businesses, rising tangible book value, strong capital ratios, and the initiation of a dividend. Headwinds are present but manageable — notably CRE paydowns and isolated workout credits, mortgage finance funding mix and seasonal NII pressure, and modest expense inflation tied to strategic investments. Management communicated disciplined capital allocation, confidence in earnings momentum, and unchanged full‑year guidance, supporting a constructive outlook.Positive Updates
Strong Earnings and EPS Growth
Adjusted EPS increased 72% year‑over‑year to $1.58 and GAAP EPS rose ~70% to $1.56, driven by broad revenue strength and share repurchases.
Negative Updates
Credit Charges and Net Charge‑Offs
Net charge‑offs were $17.4 million (30 basis points of LHI), tied to previously identified commercial credits that remain in workout, contributing to an uptick in NPAs.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings and EPS Growth
Adjusted EPS increased 72% year‑over‑year to $1.58 and GAAP EPS rose ~70% to $1.56, driven by broad revenue strength and share repurchases.
Read all positive updates
Company Guidance
Management reiterated full-year 2026 guidance of mid- to high-single-digit total revenue growth (assuming one Fed cut to a 3.5% funds rate by year-end), with full-year noninterest revenue of $265–$290 million and noninterest expense growth in the mid-single-digits; they also reiterated a provision outlook of 35–40 basis points of average LHI excluding mortgage finance. For Q2 they expect noninterest income of $65–$70 million (investment banking and sales & trading contributing ~$40–$45 million), net interest income of $260–$265 million and net interest margin of 3.35%–3.40%. Mortgage finance guidance: Q2 average warehouse balances of about $6.0 billion, period-end around $7.2 billion, average mortgage deposits ~$4.5 billion, a self-funding ratio targeting 70%–80% (about 75%), mortgage finance yield rising from 3.99% to ~4.05%, non-mortgage loan yield ~6.65% and blended loan yield in the mid‑to‑high 5.90s. Quarterly operating expectations include roughly $125 million of salaries & benefits and $75 million of other noninterest expense, and capital actions include a new quarterly dividend of $0.20 per share and ~$125 million of remaining share repurchase authorization.Texas Capital Bancshares Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.02B | 2.00B | 1.76B | 1.79B | 1.25B | 987.05M |
| Gross Profit | 1.26B | 1.21B | 865.35M | 1.00B | 910.76M | 909.30M |
| EBITDA | 517.56M | 480.00M | 161.29M | 287.07M | 477.04M | 431.46M |
| Net Income | 356.99M | 330.24M | 77.51M | 189.14M | 332.48M | 253.94M |
Balance Sheet | ||||||
| Total Assets | 33.49B | 31.54B | 30.73B | 28.36B | 28.41B | 34.73B |
| Cash, Cash Equivalents and Short-Term Investments | 2.96B | 2.10B | 3.37B | 6.47B | 7.63B | 11.53B |
| Total Debt | 878.29M | 950.58M | 1.55B | 2.36B | 2.13B | 3.13B |
| Total Liabilities | 29.88B | 27.91B | 27.36B | 25.16B | 25.36B | 31.52B |
| Stockholders Equity | 3.61B | 3.63B | 3.37B | 3.20B | 3.06B | 3.21B |
Cash Flow | ||||||
| Free Cash Flow | 883.98M | 347.58M | 416.28M | 357.36M | 136.70M | 653.19M |
| Operating Cash Flow | 885.59M | 360.15M | 481.12M | 373.74M | 147.97M | 657.32M |
| Investing Cash Flow | -3.02B | -1.85B | -2.48B | -1.76B | 3.31B | 1.23B |
| Financing Cash Flow | -1.56B | 404.27M | 1.94B | -387.67M | -6.39B | -3.15B |
Texas Capital Bancshares Technical Analysis
Positive
104.58
Price Trends
97.80
Positive
96.60
Positive
90.80
Positive
Market Momentum
2.20
Negative
71.80
Negative
88.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBI, the sentiment is Positive. The current price of 104.58 is above the 20-day moving average (MA) of 97.76, above the 50-day MA of 97.80, and above the 200-day MA of 90.80, indicating a bullish trend. The MACD of 2.20 indicates Negative momentum. The RSI at 71.80 is Negative, neither overbought nor oversold. The STOCH value of 88.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCBI.
Texas Capital Bancshares Risk Analysis
Texas Capital Bancshares disclosed 37 risk factors in its most recent earnings report. Texas Capital Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Texas Capital Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.91B | 11.25 | 9.41% | 3.02% | 4.20% | 29.58% | |
77 Outperform | $4.24B | 14.47 | 9.93% | ― | 3.26% | 329.26% | |
75 Outperform | $3.66B | 9.59 | 5.94% | 2.47% | 43.39% | -25.06% | |
71 Outperform | $4.02B | 9.64 | 11.45% | 3.52% | -0.24% | 23.07% | |
71 Outperform | $3.71B | 11.52 | 7.01% | 3.05% | 27.40% | 13.49% | |
68 Neutral | $3.34B | 13.72 | 9.13% | 5.24% | -5.29% | 45.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TCBI
Texas Capital Bancshares
97.11
20.42
26.63%
FIBK
First Interstate Bancsystem
34.34
8.16
31.15%
FULT
Fulton Financial
21.01
3.41
19.35%
INDB
Independent Bank
76.92
14.31
22.85%
RNST
Renasant
39.62
4.87
14.02%
UCB
United Community Banks
32.66
3.84
13.32%
Texas Capital Bancshares Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Texas Capital Bancshares Posts Strong Q1, Initiates Dividend
Positive
Apr 23, 2026
Texas Capital Bancshares named Managing Director and Chief Administrative Officer John Cummings as Chief Operating Officer, effective April 16, 2026, reinforcing its senior leadership bench as the bank continues to build out its platform. At the A...
Business Operations and Strategy
Texas Capital Bancshares Announces Redemption of Subordinated Notes
Positive
Mar 9, 2026
On March 9, 2026, Texas Capital Bancshares, Inc. announced that it had notified holders of its 4.000% Fixed-to-Fixed Rate Subordinated Notes due 2031 that all $375 million of the outstanding notes will be redeemed. The redemption will occur on May...
Business Operations and StrategyPrivate Placements and Financing
Texas Capital Bancshares Completes $400 Million Senior Notes Offering
Positive
Feb 27, 2026
On February 27, 2026, Texas Capital Bancshares completed a $400 million public offering of 5.301% fixed-to-floating rate senior notes due 2032, underwritten by a syndicate led by Goldman Sachs, Morgan Stanley, and its affiliate Texas Capital Secur...
Business Operations and StrategyRegulatory Filings and Compliance
Texas Capital Bancshares Simplifies Capital Structure via Elimination
Neutral
Feb 20, 2026
On February 20, 2026, Texas Capital Bancshares, Inc. eliminated a previously authorized but unused class of Series A-1 Nonvoting Common Stock by filing a Certificate of Elimination in Delaware, confirming that no shares were outstanding and that n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.