On October 19, 2023, Texas Capital Bancshares Inc (TCBI, Financial) released its third-quarter earnings for 2023. The company reported a net income of $61.7 million, a decrease from the second quarter's $68.7 million. Net income available to common stockholders was $57.4 million, or $1.18 per diluted share, compared to $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.
Financial Performance
Despite the decrease in net income, TCBI maintained strong capital ratios, including a CET1 ratio of 12.7% and a Total Capital ratio of 17.1%. The company's loans held for investment totalled $16.18 billion, a slight decrease from the $16.23 billion reported in the second quarter of 2023.
“Our quarterly results demonstrate the power of the platform we built over the last two years,” said Rob C. Holmes, President and CEO. “Our capability and expertise to provide solutions for our clients extends well beyond traditional lending products and is complimented by near record levels of capital and liquidity.”
Balance Sheet and Income Statement Highlights
TCBI's total assets stood at $29.63 billion, a decrease from the $28.98 billion reported in the second quarter of 2023. The company's non-interest bearing deposits totalled $9.35 billion, while total deposits stood at $23.88 billion. The company's stockholders' equity was reported at $3.08 billion.
On the income statement, TCBI reported a net interest income of $232.1 million for the third quarter of 2023, relatively flat compared to the second quarter of 2023. Non-interest income for the third quarter of 2023 increased by $861,000 or 2%, primarily due to an increase in investment banking and trading income.
Year-over-Year Comparison
Compared to the third quarter of 2022, net income available to common stockholders increased from $37.1 million, or $0.74 per diluted share, to $57.4 million, or $1.18 per diluted share, in the third quarter of 2023. Net interest income decreased to $232.1 million for the third quarter of 2023, compared to $239.1 million for the third quarter of 2022. However, non-interest income for the third quarter of 2023 increased by $21.5 million, or 85%, compared to the third quarter of 2022.
Looking Ahead
Despite the challenges, TCBI remains committed to delivering customized solutions to its clients, backed by strong capital and liquidity levels. The company's performance in the third quarter of 2023 demonstrates its resilience and adaptability in a dynamic financial landscape.
