Q1 2025 Texas Capital Bancshares Inc Earnings Call Transcript
Key Points
- Texas Capital Bancshares Inc (TCBI) reported a 9% year-over-year revenue growth, with a 21% increase in adjusted pre-provision net revenue.
- The company achieved a record high in intangible book value per share, growing by 11%.
- Noninterest-bearing deposits, excluding mortgage finance, grew 7% in the quarter, marking the largest quarterly increase since 2021.
- Treasury product fees increased by 22% year-over-year, reaching a record high for the firm.
- The firm maintained strong capital levels with a tangible common equity to tangible assets ratio of 10%.
- Total noninterest expense increased by $30.9 million quarter over quarter, driven by seasonal payroll and compensation expenses.
- Linked quarter total revenue declined by $3.2 million or 1%, due to a decline in fee revenue amid capital markets uncertainty.
- Provision expense of $17 million was recorded due to growth in loans held for investment and net charge-offs against problem credits.
- The firm remains cautious on the mortgage outlook for the remainder of 2025 due to ongoing rate volatility.
- Investment banking fees have been delayed due to economic uncertainty, impacting the fee income outlook.
Hello, everyone, and welcome to the Texas Capital Bancshares, Inc.'s Q1 2025 earnings call. My name is Ezra, and I will be your coordinator today. (Operator Instructions)
I will now hand over to Jocelyn Kukulka, Head of Investor Relations, to begin. Please go ahead.
Good morning, and thank you for joining us for TCBI's first-quarter 2025 earnings conference call. I'm Jocelyn Kukulka, Head of Investor Relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events. Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements.
Our forward-looking statements are as of the date of this call, and we do not assume any obligation to update or revise them. Statements made on this call should be come together with the cautionary statements and other information contained in today's
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