What caused TCBI's drastic Q3 2024 EPS miss?

**Texas Capital Bancshares (TCBI) experienced a significant decrease in income for Q3 2024, with the income dropping from $240.1 million in Q3 2023 to -$61.32 million in Q3 2024**, raising the question of what caused this drastic miss in expected earnings per share (EPS).

1. **Provision for Credit Losses**: The provision for credit losses for Q3 2024 was $10.0. This indicates that the bank set aside funds to cover potential credit losses, which could have impacted its net income, contributing to the decrease in EPS.
2. **Net Interest Income (NII)**: The bank's NII for Q3 2024 was $232.07 million, compared to $240.1 million in the same period of the previous year. This slight decline might not be the sole reason for the EPS miss but could be a contributing factor.
3. **Revenue Decline**: Texas Capital Bancshares experienced a 56% year-over-year decline in revenue, with revenue reaching $125.33 million in Q3 2024. This substantial revenue decrease, coupled with the provision for credit losses, likely led to the negative net income and EPS.
4. **Strategic Transformation**: The bank has been undergoing a strategic transformation since 2021, which could have impacted its financial performance in the short term. Such transformations often involve restructuring costs or changes in business strategy that might affect profitability.

In conclusion, the combination of a provision for credit losses, a slight decline in net interest income, a significant revenue drop, and strategic transformation efforts likely contributed to Texas Capital Bancshares' drastic Q3 2024 EPS miss.