Texas Capital Bancshares: No Common Dividend, But A Preferred Dividend
Summarize this article with:
The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryTexas Capital Bancshares delivered strong 2025 results, with net income of $330 million and EPS of $6.86, supporting robust capital levels.Net interest income rose 14% to $1.03 billion, aided by a 10% drop in interest expenses and reduced loan loss provisions, enhancing earnings quality.TCBI completed a $200 million share buyback and launched another, while tangible book value climbed to $75 per share, keeping valuation attractive at <1.3x TBV.My focus remains on TCBIO preferreds, offering a 6.5% yield and strong risk/reward, supported by ample common equity and prudent capital management.Looking for a portfolio of ideas like this one? Members of European Small-Cap Ideas get exclusive access to our subscriber-only portfolios. Learn More » Lone Star Stock/iStock via Getty Images Introduction Texas Capital Bancshares (TCBI) is a Texas-based company and the holding company of the Texas Capital Bank, which ended 2025 with an excess of $31.5 billion in assets on its balance sheet. In a previous article, IThis article was written byThe Investment Doctor23.68K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.