Texas Capital Bancshares Q2 net income rises as average earning assets increase

Overview

• US regional bank's Q2 net income rose 10% yr/yr, with record fee income

• Adjusted diluted EPS for Q2 increased to $1.88 from $1.63 a year earlier

• Company repurchased $23.6 mln in stock during the quarter

Outlook

• Company did not provide specific guidance for the current qtr or full yr

Result Drivers

• FEE INCOME GROWTH - Higher wealth management, investment banking, trading and other non-interest income drove record fee income

• NET INTEREST INCOME - Increase in average earning assets and lower funding costs boosted net interest income, partially offset by lower asset yields and higher deposit costs

• CREDIT COSTS - Higher provision for credit losses due to increased criticized loans and net charge-offs

Company press release: ID:nGNX6DHsKB

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Texas Capital Bancshares Inc is $110.50, about 6.6% above its July 21 closing price of $103.65

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 21 - Hancock Whitney Q2 profit rises as net interest income grows

• July 21 - KeyCorp quarterly profit rises on interest income strength

• July 21 - Western Alliance Bancorp Q2 net income rises on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)