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HomeBank CapitalTexas Capital Bancshares, Inc. Announces Operating Results

Texas Capital Bancshares, Inc. Announces Operating Results

DALLAS, April 21, 2021 (GLOBE NEWSWIRE) — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2021.

“In my first 90 days as CEO, we have achieved momentum in establishing the foundation from which we can move forward,” said Rob C. Holmes, President and CEO. “In the first quarter alone, we were able to execute the largest capital raise in our history and close on our first warehouse lending credit risk transfer transaction, both of which position TCBI for future growth. Looking ahead, we will continue to supplement our workforce with new talent, take steps to drive shareholder value and develop our fulsome long-term strategy. As promised, I look forward to sharing it with you in the third quarter.”

  • Net income of $71.9 million ($1.33 per diluted share) reported for the first quarter of 2021, an increase of $11.8 million on a linked quarter basis and an increase of $88.6 million from the first quarter of 2020.
  • Total mortgage finance loans, including mortgage correspondent aggregation (“MCA”) loans held for sale (“LHS”), decreased 2% on a linked quarter basis (decreasing 15% on an average basis) and increased 10% from the first quarter of 2020 (decreasing 17% on an average basis).
  • Demand deposits increased 19% and total deposits increased 8% on a linked quarter basis (increasing 9% and 2%, respectively, on an average basis), and increased 61% and 23%, respectively, from the first quarter of 2020 (increasing 44% and 21%, respectively, on an average basis).
  • Loans held for investment (“LHI”), excluding mortgage finance loans, were flat on a linked quarter basis (decreasing 1% on an average basis) and decreased 9% from the first quarter of 2020 (decreasing 7% on an average basis).
  • Issuance of $300.0 million in 5.75% fixed rate non-cumulative perpetual preferred stock, completed in the first quarter of 2021, providing additional equity to be used for general corporate purchases, including funding regulatory capital infusions into the Bank. We also intend to use a portion of the net proceeds to redeem, subject to all applicable regulatory approvals, our existing 6.5% fixed rate non-cumulative perpetual preferred stock.
  • Issuance of $275.0 million senior unsecured credit-linked notes in the first quarter of 2021. The net proceeds of this offering will be used to expand the Bank’s warehouse lending program and better serve our clients in all market environments.

FINANCIAL SUMMARY

(dollars and shares in thousands) Q1 2021   Q1 2020   % Change
QUARTERLY OPERATING RESULTS          
Net income $ 71,938      $ (16,687 )     (531 ) %
Net income available to common stockholders $ 68,159      $ (19,125 )     (456 ) %
Diluted earnings per common share $ 1.33      $ (0.38 )     (450 ) %
Diluted common shares 51,070      50,475          %
ROA 0.73  %   (0.20 ) %    
ROE 10.08  %   (2.85 ) %    
BALANCE SHEET          
LHS $ 176,286      $ 774,064        (77 ) %
LHI, mortgage finance 9,009,081      7,588,803        19  Source link

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