Key Takeaways OWLT delivers an average four-quarter positive earnings surprise of 87.8% after passing the efficiency screen.TCBI posts a 15.1% average four-quarter earnings surprise while serving major Texas metro clients.WDC develops NAND flash and HDD storage solutions and shows an 11.2% average four-quarter earnings surprise.The efficiency ratio is an indication of a company’s financial health. It analyzes how efficiently a company uses its assets and liabilities internally.However, at times, it becomes ...

Texas Capital (TCBI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The po ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - DA Davidson raised the price target on Texas Capital (TCBI) to $104 from $94 while maintaining a Neutral rating on the shares, indicating a positive outlook for the company despite the neutral rating [1] Financial Performance - Texas Capital delivered a strong quarterly performance, exceeding consensus estimates with a return on assets (ROA) of 1.20%, surpassing its target of 1.1% for the second consecutive quarter [1] - The management did not set a new ROA target, but it is suggested that the 1.1% ROA is now a baseline due to a favorable earnings outlook for 2026 [1]

Texas Capital Bancshares (NASDAQ:TCBI) reported better-than-expected earnings for the fourth quarter on Thursday.The company posted quarterly earnings of $2.08 per share which beat the analyst consensus estimate of $1.77 per share. The company reported quarterly sales of $327.483 million which beat the analyst consensus estimate of $324.621 million.“Consecutive strong quarters to close 2025 validate our multi-year transformation strategy and demonstrate the resilience of our business model in a complex mark ...

Core Insights - Texas Capital Bancshares reported fourth-quarter earnings of $2.08 per share, exceeding the analyst consensus estimate of $1.77 per share [1] - The company achieved quarterly sales of $327.483 million, surpassing the analyst consensus estimate of $324.621 million [1] Company Performance - The Chairman, President & CEO, Rob C. Holmes, highlighted the company's multi-year transformation strategy and the resilience of its business model in a complex market environment [2] - The company surpassed its long-term Return on Average Assets goal of 1.1% in the last two quarters, indicating the effectiveness of its disciplined approach [2] - Texas Capital Bancshares shares fell 2% to trade at $100.25 following the earnings announcement [2] Analyst Ratings and Price Targets - Piper Sandler analyst Stephen Scouten maintained a Neutral rating and raised the price target from $86 to $96 [4] - Barclays analyst Jared Shaw maintained an Underweight rating and raised the price target from $90 to $100 [4] - DA Davidson analyst Peter Winter maintained a Neutral rating and raised the price target from $94 to $104 [4] - RBC Capital analyst Jon G. Arfstrom maintained a Sector Perform rating and raised the price target from $105 to $110 [4]

Core Insights - Texas Capital Bancshares, Inc. (TCBI) reported strong fourth-quarter 2025 adjusted earnings per share (EPS) of $2.08, exceeding the Zacks Consensus Estimate of $1.78 and up from $1.43 in the same quarter last year [1][2][8] - The company's performance was driven by increased net interest income (NII) and non-interest income, although it faced challenges from higher expenses and declining loan balances [1][5][11] Financial Performance - Adjusted EPS for the full year 2025 was $6.80, surpassing the Zacks Consensus Estimate of $6.50 and significantly higher than $4.43 in 2024 [2] - Net income available to common shareholders (GAAP basis) for Q4 2025 was $96.3 million, a 44% increase from $66.7 million in Q4 2024 [2] - Total quarterly revenues rose 15.4% year over year to $327.5 million, exceeding the Zacks Consensus Estimate by 1.4% [3] - For the full year 2025, revenues increased 34.6% year over year to $1.26 billion, also surpassing the Zacks Consensus Estimate of $1.25 billion [3] Income Sources - NII reached $267.4 million, a 16.5% increase year over year, driven by growth in average earning assets and lower funding costs [4] - Net interest margin (NIM) expanded by 45 basis points year over year to 3.38% [4] - Non-interest income grew 11.0% year over year to $60.0 million, primarily due to higher service charges and increased investment banking and advisory fees [4] Expense Management - Non-interest expenses rose 7.0% year over year to $184.2 million, mainly due to higher salaries, benefits, and technology expenses [5] - The increase in expenses was partially offset by lower legal and professional expenses [5] Loan and Deposit Trends - As of December 31, 2025, loans held for investment totaled $17.9 billion, down from $18.1 billion as of September 30, 2025 [6] - Total deposits decreased to $26.4 billion from $27.5 billion in the prior quarter [6] Credit Quality - Net charge-offs were $10.7 million in Q4 2025, down from $12.1 million in the same quarter last year [7] - Provision for credit losses was $11.0 million, a decline from $18.0 million in Q4 2024 [7] - Total non-performing assets increased to $121.2 million from $111.2 million year over year, with a non-accrual loans ratio of 0.49% compared to 0.50% in Q4 2024 [7] Capital Position - As of December 31, 2025, the common equity tier 1 (CET1) ratio was 12.1%, up from 11.4% in the previous year [9] - The total capital ratio stood at 16.1%, and the leverage ratio was 11.7%, compared to 11.3% as of December 31, 2024 [9] - Tangible common equity to total tangible assets improved to 10.6% from 10.0% year over year [9] Share Repurchase Activity - During Q4 2025, the company repurchased 1.45 million shares for a total of $126.6 million [10] - A new share repurchase program of up to $200 million was authorized by TCBI's board, effective through December 31, 2026 [10]

Core Viewpoint - Texas Capital Bancshares, Inc. (NASDAQ: TCBI) has seen a significant increase in analyst confidence, reflected in the rising consensus price target, indicating a positive outlook for the company's future performance and growth potential [1][2][5]. Price Target Trends - The average price target for TCBI has risen to $105, up from $95.4 three months ago, marking an increase of $9.6 over the quarter and $18.58 from a year ago when it was $86.42 [2][3][4]. - Despite the positive sentiment, analyst Brad Milsaps from Piper Sandler has set a lower price target of $75, suggesting a more cautious outlook amidst the overall bullish trend [2][4]. Stock Performance - Since the last earnings report, TCBI's stock has only increased modestly by 0.4%, indicating that while analysts are optimistic, the market performance has not fully reflected this sentiment [3][6]. - The upcoming earnings report is anticipated to show growth, but there are concerns that the company may lack the necessary factors for an earnings beat [4][5].

Financial Data and Key Metrics Changes - The company achieved a record adjusted total revenue of $1.3 billion, with a 13% year-over-year increase in full-year adjusted total revenue to $1.26 billion [7][12] - Full-year adjusted net income to common stockholders reached $314 million, a 53% improvement over 2024 levels, with adjusted earnings per share of $6.80 [7][14] - The adjusted return on average assets (ROAA) for the full year was 1.04%, reflecting a 30 basis point improvement compared to 2024 [5][11] Business Line Data and Key Metrics Changes - Commercial loan growth was $1.1 billion, or 10%, year-over-year, with total gross loans increasing by $1.6 billion, or 7% [7][15] - Fee income from strategic areas of focus generated $192 million in 2025, indicating substantial growth opportunities ahead [9][22] - Adjusted non-interest income grew 8% to $229 million, marking a record for the firm [22] Market Data and Key Metrics Changes - The company reported a full-year deposit growth of $1.2 billion, or 5%, driven by effective client relationship management [17][18] - Average mortgage finance loans increased 8% late in the quarter to $5.9 billion, with a 12% growth for the full year [16][17] - The commercial real estate loan balances are expected to decline approximately 10% year-over-year, reflecting ongoing market dynamics [16][96] Company Strategy and Development Direction - The company is focused on consistent execution and realizing the full potential of its investments, emphasizing operational excellence and high-value client segments [5][9] - The strategic focus includes enhancing fee income as a percentage of total revenue, which is expected to drive profitability and reduce earnings volatility [9][28] - The company aims to maintain a strong capital position while pursuing growth opportunities in targeted client segments [41][46] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the macroeconomic environment, moderating the full-year provision outlook to 35-40 basis points of average loans held for investment (LHI) [28][68] - The company anticipates total revenue growth in the mid to high single-digit range for 2026, driven by client adoption and fee income growth [28][90] - Management highlighted the importance of maintaining financial resilience and prudent risk management in the current economic climate [68][92] Other Important Information - The company repurchased 2.2 million shares, or 4.9% of prior year shares outstanding, at approximately 114% of prior month's tangible book value per share [8][27] - The tangible common equity to tangible assets ratio finished at 10.6%, ranking first among the largest banks in the country [27][25] - The total allowance for credit loss remains near an all-time high, reflecting a conservative approach to credit risk management [24][81] Q&A Session Summary Question: Investment banking and trading outlook - Management reported arranging about $49 billion of debt for clients in 2025, with Q4 transaction volume up about 40% [33][34] Question: Capital management and buyback strategy - The company increased CET1 to 12.13% while growing loans and buying back shares, indicating a strong capital management strategy [41][42] Question: Expense outlook and hiring plans - The company plans to focus on growth in salaries and benefits, with expected increases in technology investments to enhance productivity [51][52] Question: Credit trends and provision guidance - A modest increase in special mention loans was noted, primarily related to a few multi-family properties under pressure [68][78] Question: Mortgage finance activity - The sequential increase in average balances was driven by lower rates and longer dwell times, supporting higher originations [75][76]