TSC Ratings' Updates: Texas Capital Bancshares

The change in net income from the same quarter one year ago has exceeded that of the commercial banks industry average, but is less than that of the S&P 500. The net income has significantly decreased by 30.7% when compared with the same quarter one year ago, falling from $8.21 million to $5.68 million.

TCBI had been rated a hold since December 28, 2007.

Huntington Bancshares (HBAN Quote) has been upgraded from sell to hold. Huntington Bancshares Incorporated operates as the holding company for The Huntington National Bank that provides commercial and consumer financial products and services. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenue rose by 33.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

The gross profit margin for HBAN is rather high; currently it is at 54.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.90% is above that of the industry average.

Net operating cash flow has significantly increased by 142.98% to $285.40 million when compared with the same quarter last year. Despite an increase in cash flow of 142.98%, HBAN is still growing at a significantly lower rate than the industry average of 307.99%