{"id":152725,"date":"2025-08-17T09:01:16","date_gmt":"2025-08-17T09:01:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/152725\/"},"modified":"2025-08-17T09:01:16","modified_gmt":"2025-08-17T09:01:16","slug":"texas-capital-basks-in-dallas-fort-worth-economys-swagger-downplays-need-for-deals","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/152725\/","title":{"rendered":"Texas Capital basks in Dallas-Fort Worth economy\u2019s swagger, downplays need for deals"},"content":{"rendered":"

Texas Capital Bancshares<\/a> has managed to put together a string of wins<\/a> in an economy that epitomizes the word unpredictable.<\/p>\n

Overall, regional banks are facing multiple competitive headwinds<\/a>, but the Dallas-based bank has managed to buck the trend \u2014 given ballast by a North Texas economy that\u2019s outperforming most other regions<\/a> around the country. <\/p>\n

Although it retraced some of its move up to a 52-week high near $95 per share, the firm\u2019s resurgent stock<\/a> is still up over 30% over the last year.<\/p>\n

The second quarter was a victory lap of sorts for Texas Capital, which wowed investors with its healthy balance sheet and high double-digit growth in both net income and earnings per share. <\/p>\n

Business Briefing<\/p>\n

Become a business insider with the latest news.<\/p>\n

Meanwhile, its adjusted return on average assets, a key indicator of bank profitability<\/a>, is within striking distance of the firm\u2019s stated target of 1.1%; the rough industry average for FDIC-insured institutions<\/a> is 1%.<\/p>\n

Considering trends like high interest rates and remote work that have turned the commercial real estate sector<\/a> into something resembling The Hunger Games, that\u2019s an accomplishment.<\/p>\n

Related:NYSE, Nasdaq place big bets on \u2018Y\u2019all Street,\u2019 but TXSE has an ace up its sleeve<\/a><\/p>\n

\u201cA good quarter implies that it\u2019s one and done. There\u2019s a\u2026 dramatic structural change to the earnings power of the firm created over the last four years,\u201d Rob Holmes, Texas Capital\u2019s chairman, president and CEO, told The Dallas Morning News in a wide-ranging interview in the bank\u2019s offices on McKinney Avenue in Uptown Dallas.<\/p>\n

While not quite having a \u201cfortress balance sheet<\/a>\u201d \u2014 a term used in the vernacular to describe bulge-bracket firms like JPMorgan Chase, Bank of America and others \u2014 Texas Capital is adding to its head count and building out new offerings, plus its securities arm is planning expansions in Los Angeles and Chicago<\/a>. <\/p>\n

In fact, the bank has done \u201can extraordinary amount of hiring for the last four years. About 90% of the people at this firm are new,\u201d Holmes said, explaining that as Texas Capital has grown, it\u2019s outperformed the bigger players in the industry in terms of retaining new hires.<\/p>\n

In other words, Texas Capital doesn\u2019t have a poaching<\/a> or loyalty problem \u2014 the same of which can\u2019t be said for certain marquee Wall Street firms<\/a>. <\/p>\n

\u201cSo there\u2019s a lot of [recent graduates] that want to come to Texas and want to come to a platform like this,\u201d Holmes tells The News. \u201cWe have two and a half times the number of front-line bankers that we had when we started.\u201d<\/p>\n

Deals a luxury, not a \u2018necessity\u2019<\/p>\n

Consolidation, the rise of financial technology and nonbanking institutions have contributed to a dwindling number of FDIC-insured<\/a> banks that play a role in everyday transactions.<\/p>\n

With indexes near record highs<\/a> and market sentiment improving, some banks have taken to mergers, which recently hit their highest levels since December 2021 in terms of monthly aggregate deal value, according to S&P Global data<\/a>. <\/p>\n

In July, Veritex Holdings \u2014 another Dallas-based bank \u2014 agreed to a buyout from Huntington Bancshares, a Midwest regional powerhouse with ambitions to deepen its Texas footprint.<\/p>\n

Holmes, however, suggested Texas Capital had no immediate interest in joining the fray. <\/p>\n

\"Texas<\/p>\n

Texas Capital Bancshares in the Uptown section of Dallas.<\/p>\n

Texas Capital<\/p>\n

\u201cUp until now, we didn\u2019t feel like we had earned the right to do M&A because of our financial performance,\u201d he said in response to a question from The News about whether Texas Capital would consider a deal of its own.<\/p>\n

\u201cAnd now with our financial performance and continued strength, capital, liquidity\u2026 we have earned the right to do M&A, and while it is an option for us to do, it\u2019s not necessary to do so,\u201d Holmes added.<\/p>\n

\u201cWe feel like the transformation is actually better [than] an M&A deal, and now we can scale that in a very advantageous way,\u201d he added.<\/p>\n

The booming Dallas-Fort Worth economy, with its emphasis on big real estate deals<\/a>, tells much of the story about Texas Capital\u2019s financials. <\/p>\n

The bank\u2019s clientele consists mainly of business and commercial borrowers, plus a growing coterie of high-net-worth individuals that the firm sees as an integral part of its future. <\/p>\n

One thing that bulge brackets and regional institutions alike have to be mindful of is interest rate risk. Slowing growth and sticky inflation have stoked a debate about whether the Federal Reserve needs to cut interest rates to support softening labor markets<\/a> and economic activity. <\/p>\n

While acknowledging that \u201cthe cost of capital is real, and that rates were artificially low for a very long time,\u201d Holmes said he feels that rates at current levels aren\u2019t restrictive enough to warrant a cut. <\/p>\n

\u201cI\u2019ve also been on record for like, two years saying I did not think the Fed was going to cut, so I\u2019ve been right for a long time,\u201d he said. <\/p>\n

\u201cAnd I think what people need to remember is when the Fed does cut, it\u2019s because something\u2019s going wrong, and I\u2019m not sure why anybody wants anything to go wrong,\u201d the CEO added. <\/p>\n

\u201cThe economy\u2019s rolling along just fine about second gear, and whether you like or dislike the Big, Beautiful Bill,<\/a> it\u2019s a growth bill. So I think it\u2019ll help the economy for sure,\u201d Holmes added.<\/p>\n","protected":false},"excerpt":{"rendered":"Texas Capital Bancshares has managed to put together a string of wins in an economy that epitomizes the…\n","protected":false},"author":3,"featured_media":152726,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5138],"tags":[5229,8392,12611,1596,7371,7372,8396,358,3187,67,586,132,5230,68,2969],"class_list":{"0":"post-152725","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fort-worth","8":"tag-america","9":"tag-banking","10":"tag-commercial-real-estate","11":"tag-dallas","12":"tag-fort-worth","13":"tag-fortworth","14":"tag-mergers-and-acquisitions","15":"tag-texas","16":"tag-tx","17":"tag-united-states","18":"tag-united-states-of-america","19":"tag-unitedstates","20":"tag-unitedstatesofamerica","21":"tag-us","22":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115043296226302327","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/152725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=152725"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/152725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/152726"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=152725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=152725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=152725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}