Texas Capital Bancshares Q4 2024: Discrepancies in Fee Income, Loan Growth, and Deposit Costs

Strong Financial Performance:
- Texas Capital Bancshares, Inc. (TCBI) reported a record ROAA of 0.74% in 2024 and a 15% increase in full-year earnings per share.
- The growth was driven by a 30% increase in fee revenue, 9% growth in pre-provision net revenue, and strategic client acquisition across various industries.

Client Growth and Fee Revenue:
- The company onboarding nearly 40% more new significant clients in 2024 compared to 2023, leading to a 47% increase in investment banking and trading income.
- The growth in fee revenue was supported by increased client adoption of treasury solutions and private wealth services, contributing to improved financial results.

Capital and Liquidity Management:
- TCBI maintained industry-leading capital and liquidity positions with a tangible common equity ratio of 10% and cash and securities of 25%.
- This strong capital position was highlighted by a 15% increase in tangible book value per share and a 30% increase in the allowance for credit loss.

Deposit Growth and Diversification:
- Total deposits expanded by $2.9 billion, representing a 13% increase for the year, driven by increased core operating relationships.
- The growth in noninterest-bearing deposits, excluding mortgage finance, was 4% year-over-year, indicating a shift towards higher-quality funding sources.