the company reported a 21% increase in total assets to $12.1 billion, including a $2 billion improvement in total deposits. But net income fell 15% to $28.3 million and adjusted earnings per share plunged 25% to 60 cents compared to the same period one year earlier. Return on assets, a crucial metric for measuring banking success, dropped to 1.01% from 1.38%.
Analysts had expected profit of 73 cents a share. The company cited a public offering of 1.9 million shares of common stock completed in January as a reason for the EPS decline.
The stock was down 12.1% to $56.76 at 3:40 p.m. on Thursday.
Separately, TheStreet Ratings team rates TEXAS CAPITAL BANCSHARES INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEXAS CAPITAL BANCSHARES INC (TCBI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."