[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4471 followers Created: 2025-07-20 16:55:04 UTC $TCBI Texas Capital Bancshares, Inc. Earnings Call Key Highlights: (2/2) 📉 Expense Management and Operational Efficiency Adjusted noninterest expense decreased $XXXX million sequentially, with year-over-year increase limited to $XXXXXXX despite capability expansion. Expense outlook for 2025 reduced to mid- to high-single-digit growth from prior high-single-digit guidance, reflecting structural efficiencies. Platform investments focused on scalable, fee-based areas, with continued cost discipline in legacy operations. Expected Q3 and Q4 noninterest expense to be in the mid-to-high $XXX million range, with salaries and benefits in the low to mid-$120 million area. 🧾 Credit Quality and Reserve Strength Provision expense of $XX million supported loan growth and cautious macro assumptions, resulting in a $X million increase in ACL to $XXX million. Reserve coverage remains strong at XXXX% of LHI (ex-mortgage finance), in the top decile of peers. Criticized loans fell by XX% year-over-year, driven by a XX% reduction in criticized CRE loans, reaching the lowest level since 2022. Nonaccrual loans rose modestly by $XX million but remain within historical norms, with reserve coverage at 2.9x NPLs. 📚 Capital Position and Shareholder Returns CET1 ratio stood at 11.45%, down XX basis points sequentially due to strong loan growth but still industry-leading. Tangible common equity to tangible assets improved to 10.04%, with tangible book value per share hitting a record $XXXXX. Repurchased XXXXXXX shares in Q2 at an average price of $65.50, totaling $XX million, or XX% of prior-month TBVPS. XX% of the mortgage finance portfolio now under enhanced credit structures; another XX% expected to convert in Q3, improving capital efficiency. 📈 Strategic Outlook and Guidance Full-year revenue growth guidance reaffirmed at low double digits; upside likely if noninterest income trends hold and NII momentum continues. Provision expense guidance maintained at 30–35 bps of average LHI (ex-mortgage finance), enabling robust reserve levels while supporting growth. NII expected to increase another $XX million in Q3 driven by favorable funding trends and CD repricing, even with flat rates. ROAA target of XXX% expected to be achieved in H2 2025; management views this as a milestone, not a peak, with further improvements ahead. 💼 Wealth Management and Platform Expansion Wealth platform migration completed in Q4 2024, enhancing the client journey and advisor effectiveness. Business remains a strategic priority, with ramp-up expected as newly onboarded commercial and investment banking clients are integrated. Management emphasizes quality over volume, with a focus on long-term durability and client alignment. Platform now better positioned to scale wealth management alongside the bank's broader commercial and capital markets capabilities. 🏗️ Transformation Milestones and Strategic Vision Management emphasized the success of its four-year transformation strategy focused on agility, client-centricity, and platform diversification. Integrated operating model with investment banking and treasury services is delivering higher-value, less rate-sensitive relationships. Strategy underpinned by disciplined capital allocation, risk management, and consistent execution across business lines. Leadership remains confident in the trajectory toward structurally higher earnings and sustainable value creation. XXX engagements  **Related Topics** [quarterly earnings](/topic/quarterly-earnings) [$tcbi](/topic/$tcbi) [Post Link](https://x.com/LongYield/status/1946977167675392238)
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LongYield @LongYield on x 4471 followers
Created: 2025-07-20 16:55:04 UTC
$TCBI Texas Capital Bancshares, Inc. Earnings Call Key Highlights: (2/2)
📉 Expense Management and Operational Efficiency
Adjusted noninterest expense decreased $XXXX million sequentially, with year-over-year increase limited to $XXXXXXX despite capability expansion.
Expense outlook for 2025 reduced to mid- to high-single-digit growth from prior high-single-digit guidance, reflecting structural efficiencies.
Platform investments focused on scalable, fee-based areas, with continued cost discipline in legacy operations.
Expected Q3 and Q4 noninterest expense to be in the mid-to-high $XXX million range, with salaries and benefits in the low to mid-$120 million area.
🧾 Credit Quality and Reserve Strength
Provision expense of $XX million supported loan growth and cautious macro assumptions, resulting in a $X million increase in ACL to $XXX million.
Reserve coverage remains strong at XXXX% of LHI (ex-mortgage finance), in the top decile of peers.
Criticized loans fell by XX% year-over-year, driven by a XX% reduction in criticized CRE loans, reaching the lowest level since 2022.
Nonaccrual loans rose modestly by $XX million but remain within historical norms, with reserve coverage at 2.9x NPLs.
📚 Capital Position and Shareholder Returns
CET1 ratio stood at 11.45%, down XX basis points sequentially due to strong loan growth but still industry-leading.
Tangible common equity to tangible assets improved to 10.04%, with tangible book value per share hitting a record $XXXXX.
Repurchased XXXXXXX shares in Q2 at an average price of $65.50, totaling $XX million, or XX% of prior-month TBVPS.
XX% of the mortgage finance portfolio now under enhanced credit structures; another XX% expected to convert in Q3, improving capital efficiency.
📈 Strategic Outlook and Guidance
Full-year revenue growth guidance reaffirmed at low double digits; upside likely if noninterest income trends hold and NII momentum continues.
Provision expense guidance maintained at 30–35 bps of average LHI (ex-mortgage finance), enabling robust reserve levels while supporting growth.
NII expected to increase another $XX million in Q3 driven by favorable funding trends and CD repricing, even with flat rates.
ROAA target of XXX% expected to be achieved in H2 2025; management views this as a milestone, not a peak, with further improvements ahead.
💼 Wealth Management and Platform Expansion
Wealth platform migration completed in Q4 2024, enhancing the client journey and advisor effectiveness.
Business remains a strategic priority, with ramp-up expected as newly onboarded commercial and investment banking clients are integrated.
Management emphasizes quality over volume, with a focus on long-term durability and client alignment.
Platform now better positioned to scale wealth management alongside the bank's broader commercial and capital markets capabilities.
🏗️ Transformation Milestones and Strategic Vision
Management emphasized the success of its four-year transformation strategy focused on agility, client-centricity, and platform diversification.
Integrated operating model with investment banking and treasury services is delivering higher-value, less rate-sensitive relationships.
Strategy underpinned by disciplined capital allocation, risk management, and consistent execution across business lines.
Leadership remains confident in the trajectory toward structurally higher earnings and sustainable value creation.
XXX engagements
Related Topics quarterly earnings $tcbi