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1. Company Snapshot

1.a. 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 commercial banking, consumer banking, investment banking, and wealth management services.


It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as information, wire transfer initiation, ACH initiation, account transfer, and service integration services; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit.The company also provides commercial loans for general corporate purposes comprising financing working capital, internal growth, acquisitions, and business insurance premiums, as well as consumer loans; loans to exploration and production companies; mortgage finance loans; commercial real estate and residential homebuilder finance loans; first and second lien loans for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings; and real estate loans originated through a small business administration program, as well as equipment finance and leasing services, and letters of credit.In addition, it offers online and mobile banking, and debit and credit card services; escrow services; personal wealth management and trust services; and depositors American Airlines AAdvantage miles.


It operates in Austin, Fort Worth, Dallas, Houston, and San Antonio metropolitan areas of Texas.Texas Capital Bancshares, Inc.was incorporated in 1996 and is headquartered in Dallas, Texas.

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1.b. Last Insights on TCBIO

Recent developments affecting Texas Capital Bancshares, Inc. include a price target reduction to $88 from $90 by RBC Capital, citing changes in the rate environment and economic outlook. Additionally, Barclays raised its price target to $71 from $60, but maintains an Underweight rating, highlighting differences in fixed rate asset repricing dynamics. The company is expected to release Q4 2024 operating results on January 23, 2025.

1.c. Company Highlights

2. Texas Capital Bancshares' 2025 Earnings: A Year of Record Financial Performance

Texas Capital Bancshares reported a strong financial performance in 2025, achieving record adjusted total revenue of $1.3 billion, record adjusted net income to common stockholders of $314 million, and record adjusted earnings per share of $6.8. The company's Q4 2025 ROAA was 1.2%, and the full-year adjusted ROAA was 1.04%, a 30 basis point improvement versus 2024. The actual EPS for the quarter was $2.12, beating analyst estimates of $1.77.

Publication Date: Jan -23

📋 Highlights
  • Record Profitability:: Achieved 1.2% ROAA in Q4 2025 and 1.04% full-year, a 30 bps improvement over 2024.
  • Revenue & Earnings Growth:: Generated $1.3B adjusted total revenue and $6.8 adjusted EPS, with $314M net income to common stockholders.
  • Capital Strength:: Tangible common equity to assets hit 10.56%, and CET1 ratio at 12.13%, with 4.9% share repurchases in 2025.
  • 2026 Outlook:: Projects mid-to-high single-digit revenue growth, $265–$290M noninterest income, and 35–40 bps provision outlook.
  • Credit Quality:: Criticized loans at a 2021 low, 1.82% reserve ratio (excluding mortgage), and $5M in charge-offs over 36 months.

Revenue Growth and Profitability

The company's revenue growth was driven by industry-leading client adoption and continued growth in fee income areas of focus. For 2026, Texas Capital Bancshares expects total revenue growth in the mid to high single-digit range, with full-year noninterest revenue expected to reach $265 to $290 million. Analysts estimate revenue growth at 7.3% for next year, indicating a continued upward trajectory.

Capital Management and Shareholder Returns

The company has a strong capital position, with a CET1 ratio of 12.13%. Texas Capital Bancshares has been active on the buyback front, purchasing 5% of the company's shares. The company's tangible book value per share was $75.25, a record level. With a P/TBV ratio of 1.29, the stock appears reasonably valued relative to its book value.

Loan Growth and Credit Trends

Loan growth is expected to be mid-to-high single-digit in 2026, driven by strong C and I growth, offsetting contracting commercial real estate balances. The mortgage finance business is expected to drive about a 15% increase in full-year average mortgage finance balances. Credit trends have been positive, with a ratio of criticized loans to LHI at the best level since 2021.

Outlook and Valuation

The company expects a stable NIM in 2026, with a mid-3.30 range guidance. With a P/E ratio of 15.55 and an ROE of 8.46%, the stock appears to be reasonably valued relative to its earnings. The company's focus on utilizing shareholder capital for their benefit and its strategic objective of being financially resilient to market and rate cycles are positives. Overall, Texas Capital Bancshares' strong financial performance and growth prospects make it an attractive investment opportunity in the banking sector.

3. NewsRoom

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Texas Capital Bancshares (NASDAQ:TCBIO) Shares Up 0.3% – Here’s Why

Feb -19

Source: defenseworld.net

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Texas Capital Bancshares (NASDAQ:TCBIO) Trading Down 0% – Time to Sell?

Dec -16

Source: defenseworld.net

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Texas Capital Bancshares (NASDAQ:TCBIO) Shares Up 0.8% – Time to Buy?

Nov -22

Source: defenseworld.net

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Texas Capital Bank, S&T Bancorp, Hope Bancorp, First Busey, and Community Bank Shares Skyrocket, What You Need To Know

Nov -21

Source:

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Texas Capital (TCBI) Up 0.4% Since Last Earnings Report: Can It Continue?

Nov -21

Source:

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Texas Capital Announces the Liquidation of the Texas Small Cap Equity Index ETF

Nov -19

Source:

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Strong Q3 Results and Rising Yields Might Change the Case for Investing in Texas Capital (TCBI)

Nov -19

Source:

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Assessing Texas Capital Bancshares (TCBI)'s Valuation After Strong Quarterly Profitability and Operational Gains

Nov -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Banking and Related Activities

Expected Growth: 5.5%

Growing demand for commercial banking services, increasing adoption of digital banking, and a strong Texas economy driven by the energy and technology sectors are expected to drive growth for Texas Capital Bancshares, Inc.

7. Detailed Products

Commercial Banking

Provides a range of commercial banking services, including cash management, treasury management, and commercial lending to businesses and corporations.

Wealth Management

Offers investment management, trust services, and wealth planning to individuals, families, and institutions.

Mortgage Banking

Provides mortgage lending services to individuals and businesses, including construction loans, permanent loans, and mortgage servicing.

Treasury Management

Offers cash management and treasury services to help businesses optimize their financial operations and manage risk.

Capital Markets

Provides investment banking and capital markets services, including debt and equity capital raising, mergers and acquisitions advisory, and restructuring advisory.

8. Texas Capital Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Texas Capital Bancshares, Inc. is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers for Texas Capital Bancshares, Inc. is low due to the lack of concentration in the banking industry and the presence of many small and medium-sized businesses.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Texas Capital Bancshares, Inc. is low due to the presence of many suppliers and the lack of concentration in the industry.

Threat Of New Entrants

The threat of new entrants for Texas Capital Bancshares, Inc. is high due to the low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Texas Capital Bancshares, Inc. is high due to the presence of many competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.44%
Debt Cost 9.79%
Equity Weight 57.56%
Equity Cost 9.79%
WACC 9.79%
Leverage 73.74%

11. Quality Control: Texas Capital Bancshares, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Texas Capital Bancshares

A-Score: 6.7/10

Value: 7.2

Growth: 5.2

Quality: 7.2

Yield: 5.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Huntington Bancshares

A-Score: 6.4/10

Value: 6.7

Growth: 4.8

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Citizens Business Bank

A-Score: 6.1/10

Value: 6.1

Growth: 4.9

Quality: 7.9

Yield: 8.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Bank of Hawaii

A-Score: 6.0/10

Value: 6.0

Growth: 3.7

Quality: 7.5

Yield: 8.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Old National

A-Score: 5.7/10

Value: 5.7

Growth: 5.6

Quality: 5.7

Yield: 6.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Pinnacle Financial Partners

A-Score: 5.4/10

Value: 7.0

Growth: 7.4

Quality: 7.7

Yield: 2.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.3$

Current Price

22.3$

Potential

-0.00%

Expected Cash-Flows