Texas Capital Bancshares (TCBI) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $47.0 million, up from $26.1 million in Q1 2024 but down from $71.0 million in Q4 2024, with diluted EPS rising to $0.92 from $0.46 year-over-year.

• Tangible book value per share reached a record $67.97, up 2% sequentially and 11% year-over-year.

• Total deposits increased 9% and total loans grew 7% year-over-year, with non-interest-bearing deposits up 5% sequentially.

• Capital ratios remain strong, with CET1 at 11.63% and total capital at 15.61% as of March 31, 2025.

• Share repurchase program authorized for up to $200 million, with 396,106 shares repurchased for $31.2 million in Q1 2025.

Financial highlights

• Net interest income for Q1 2025 was $236.0 million, up from $215.0 million year-over-year, with net interest margin improving to 3.19%.

• Non-interest income increased year-over-year, mainly from higher service charges and trading income, but fell sequentially due to lower investment banking fees.

• Non-interest expense was $203.0 million, up $627,000 year-over-year and $30.9 million sequentially, driven by higher salaries and incentive accrual resets.

• Provision for credit losses was $17.0 million, down from $19.0 million year-over-year.

• Total loans held for investment were $22.4 billion, with commercial and CRE loan growth offsetting a decline in mortgage finance loans.

Outlook and guidance

• Guidance for 2025 calls for low double-digit percent growth in adjusted total revenue and high single-digit percent growth in adjusted non-interest expense.

• Targeting quarterly ROAA of 1.10% in the second half of 2025.

• CET1 ratio expected to remain above 11% for the year.

• Provision/average LHI (excluding mortgage finance) expected at 30–35bps.

• Management remains focused on achieving published financial targets in the second half of 2025, leveraging a diversified product suite and resilient balance sheet.