Overview

* Texas Capital Q3 net income hits record $105.2 mln, with EPS at $2.18

* Net interest income for Q3 rises to $271.8 mln, driven by higher earning assets

* Company's CET1 ratio improves to 12.1%, reflecting strong capital position

Outlook

* Company did not provide specific financial guidance for future quarters or full year in its press release

Result Drivers

* STRATEGIC INITIATIVES - Co attributes record net income and EPS to strategic and financial outcomes set in its Strategic Update

* HIGHER EARNING ASSETS - Net interest income rose due to increases in average earning assets and asset yields

* CREDIT LOSS PROVISION - Provision for credit losses decreased, influenced by increased loans and net charge-offs, offset by reduced criticized and non-accrual loans

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $2.18

Q3 Net $105.21

Income mln

Q3 Net $271.77

Interest mln

Income

Q3 $12 mln

Credit

Loss

Provisio

n

Q3 Net 3.47%

Interest

Margin

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 3 "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 ( TCBI ) is $96.00, about 14.9% above its October 21 closing price of $81.69

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

Press Release:

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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.)