Overview

• U.S. commercial bank's Q1 revenue and adjusted EPS beat analyst expectations

• Company initiated first-ever quarterly common stock dividend of $0.20 per share

• Q1 net income attributable to common stockholders rose 63% yr/yr, driven by higher non-interest income

Outlook

• Texas Capital Bancshares did not issue specific financial guidance

Result Drivers

• NON-INTEREST INCOME GROWTH - Higher non-interest income, led by investment banking and advisory fees, trading income, and service charges, drove results

• NET INTEREST INCOME - Year-over-year increase in net interest income, mainly due to higher average earning assets and lower funding costs

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

Company press release: ID:nGNXbwypgV

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$324 mln	$318.65 mln (9 Analysts)
Q1 Adjusted EPS	Beat	$1.58	$1.40 (13 Analysts)
Q1 EPS		$1.56
Q1 Net Income Attributable to Common Stockholders		$69.48 mln
Q1 Net Interest Income		$254.72 mln
Q1 Credit Loss Provision		$16 mln
Q1 Net Interest Margin		3.43%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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 is $107.00, about 4.3% above its April 22 closing price of $102.54

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

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