Texas Capital Bancshares, Inc. reported a significant decline in its financial performance for the year ended December 31, 2024, with net income falling to $77.5 million, down from $189.1 million in 2023. This resulted in earnings per share dropping to $1.28 from $3.54 in the previous year. The decrease in profitability was primarily attributed to a substantial loss of $179.6 million on the sale of available-for-sale debt securities, which was part of a strategic balance sheet repositioning. The company's net interest income also decreased slightly to $901.3 million from $914.1 million, reflecting increased costs associated with interest-bearing liabilities.
In terms of operational metrics, Texas Capital Bancshares experienced a notable increase in its loan portfolio, which grew to $22.5 billion as of December 31, 2024, compared to $20.4 billion a year earlier. This growth was driven by a $332 million acquisition of a commercial loan portfolio during the third quarter of 2024. The company’s allowance for credit losses increased to $271.7 million, reflecting the growth in loans and a proactive approach to managing credit risk amid changing economic conditions. The ratio of non-accrual loans to total loans held for investment rose to 0.50% from 0.40% in the previous year.
Strategically, Texas Capital Bancshares has focused on expanding its product offerings and enhancing its service capabilities. The company has continued to develop its digital banking platform, Bask Bank, which offers unique deposit products, including the option to earn American Airlines AAdvantage® miles. The bank's geographic footprint remains concentrated in Texas, but it has also built a network of clients across the country, which helps mitigate geographic concentration risks.
Looking ahead, the company expressed cautious optimism regarding its growth prospects, emphasizing the importance of effective risk management and strategic execution in navigating the current economic landscape. The management highlighted ongoing efforts to enhance liquidity and capital positions, as well as to adapt to evolving market conditions and regulatory requirements. The company’s capital ratios remained above the regulatory minimums, indicating a solid foundation for future growth despite the challenges faced in 2024.
About TEXAS CAPITAL BANCSHARES INC/TX
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