Texas Capital Bancshares: A Steady Stream of Dividends

Texas Capital Bancshares, Inc. (TCBI) has announced a quarterly dividend for its preferred stock, continuing its tradition of providing a steady stream of income to its shareholders. As an investor, you might be wondering how this dividend compares to the company's historical payouts and what factors contributed to the increase in income from fee areas of focus. Let's dive into the details and explore the implications for the company's financial stability and dividend sustainability.



TCBI's dividend history shows a consistent and stable payout over the past few years, with a slight increase from $14.00 in 2021 to $14.375 in 2025. The dividend yield has fluctuated over time, with a high of 6.50% in 2021 and a low of 5.80% in 2023. The dividend payout ratio has been consistent, ranging between 40% and 50% of earnings per share. This stability in dividends indicates that TCBI is committed to returning capital to its shareholders while maintaining a strong financial position.

The chart illustrates the steady increase in the dividend per share over the past decade, with a few minor fluctuations. The dividend yield has been relatively stable, with a slight downward trend in recent years. This consistency in dividends is a testament to TCBI's ability to generate profits and reinvest them into the business, strengthening its financial position.

The increase in income from fee areas of focus can be attributed to several factors:

1. Growth in service charges on deposit accounts: The bank experienced a 13% increase in total deposits year-over-year, which likely contributed to an increase in service charges on these accounts.
2. Increased wealth management and trust fee income: As the bank's assets under management (AUM) grew, so did the fees generated from wealth management and trust services.
3. Expansion in investment banking and advisory services: The bank's investment banking division may have secured more deals, leading to higher advisory fees and trading income.
4. Improved client adoption trends: The bank's strategic milestones and client adoption trends contributed to the overall growth in fee income.

The sustainability of this growth in the long term depends on several factors, including market conditions, competition, regulatory environment, and operational efficiency. Given TCBI's strong balance sheet, continued growth in deposits and loans, and the realization of client adoption trends, it is likely that the growth in fee income can be sustained in the long term.



TCBI's balance sheet has evolved significantly over the past year, with positive implications for its financial stability and dividend sustainability. Total assets increased from $28.36 billion at the end of 2023 to $30.73 billion at the end of 2024, a 8.4% increase. Total loans held for investment grew from $20.34 billion in 2023 to $22.45 billion in 2024, a 10.4% increase. Total deposits increased from $22.37 billion in 2023 to $25.24 billion in 2024, a 13% increase. Stockholders' equity increased from $3.19 billion in 2023 to $3.37 billion in 2024, an 8% increase. These improvements in the balance sheet indicate that TCBI has a strong financial foundation, which is crucial for navigating economic uncertainties and sustaining its dividend payments.

In conclusion, Texas Capital Bancshares, Inc. (TCBI) has announced a quarterly dividend for its preferred stock, continuing its tradition of providing a steady stream of income to its shareholders. The company's dividend history and balance sheet evolution demonstrate its commitment to returning capital to shareholders while maintaining a strong financial position. The increase in income from fee areas of focus is sustainable in the long term, given the bank's strong balance sheet, continued growth in deposits and loans, and the realization of client adoption trends. As an investor, you can be confident in TCBI's ability to sustain its dividend payments and continue to grow its business.