Latest news with #TCBI
Business Insider
18-07-2025
- Business
- Business Insider
Raymond James Sticks to Their Buy Rating for Texas Capital Bancshares (TCBI)
Raymond James analyst Michael Rose maintained a Buy rating on Texas Capital Bancshares today and set a price target of $96.00. The company's shares closed today at $89.47. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Rose is a 4-star analyst with an average return of 5.8% and a 47.93% success rate. Rose covers the Financial sector, focusing on stocks such as Comerica, Texas Capital Bancshares, and Axos Financial. The word on The Street in general, suggests a Hold analyst consensus rating for Texas Capital Bancshares with a $79.77 average price target, representing a -10.84% downside. In a report released on July 13, Bank of America Securities also maintained a Buy rating on the stock with a $94.00 price target. TCBI market cap is currently $3.9B and has a P/E ratio of 49.46. Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TCBI in relation to earlier this year. Most recently, in April 2025, Robert Stallings, a Director at TCBI bought 5,000.00 shares for a total of $338,800.00.
Yahoo
17-07-2025
- Business
- Yahoo
Texas Capital Bank (NASDAQ:TCBI) Beats Q2 EPS Estimates, Stock Soars 5.1%
Regional banking firm Texas Capital Bancshares (NASDAQ:TCBI) missed Wall Street's revenue expectations in Q2 CY2025, but sales rose 9.5% year on year to $292.5 million. Its GAAP profit of $1.58 per share was 23.5% above analysts' consensus estimates. Is now the time to buy Texas Capital Bank? Find out in our full research report. Texas Capital Bank (TCBI) Q2 CY2025 Highlights: Net Interest Income: $253.4 million vs analyst estimates of $246.7 million (17% year-on-year growth, 2.7% beat) Net Interest Margin: 3.4% vs analyst estimates of 3.2% (34 basis point year-on-year increase, 14.6 bps beat) Revenue: $292.5 million vs analyst estimates of $299.5 million (9.5% year-on-year growth, 2.3% miss) Efficiency Ratio: 61.9% vs analyst estimates of 66.6% (4.7 percentage point beat) EPS (GAAP): $1.58 vs analyst estimates of $1.28 (23.5% beat) Market Capitalization: $3.93 billion 'Our multi-year focus on building a differentiated, full-service financial services firm has strengthened our client franchise and consistently delivered high-quality outcomes across our platform, driving strong financial performance this quarter,' said Rob C. Holmes, Chairman, President & CEO. Company Overview Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ:TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond. Sales Growth From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Texas Capital Bank's demand was weak and its revenue declined by 1.5% per year. This was below our standards and is a rough starting point for our analysis. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Texas Capital Bank's recent performance shows its demand remained suppressed as its revenue has declined by 14.4% annually over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Texas Capital Bank's revenue grew by 9.5% year on year to $292.5 million, missing Wall Street's estimates. Net interest income made up 88% of the company's total revenue during the last five years, meaning Texas Capital Bank barely relies on non-interest income to drive its overall growth. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Our experience and research show the market cares primarily about a bank's net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Tangible Book Value Per Share (TBVPS) Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation. Texas Capital Bank's TBVPS grew at a solid 6.6% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10% annually over the last two years from $57.93 to $70.14 per share. Over the next 12 months, Consensus estimates call for Texas Capital Bank's TBVPS to grow by 7.9% to $75.71, decent growth rate. Key Takeaways from Texas Capital Bank's Q2 Results We were impressed by how significantly Texas Capital Bank blew past analysts' EPS expectations this quarter. We were also glad its net interest income outperformed Wall Street's estimates. Overall, this print had some key positives. The stock traded up 5.1% to $90 immediately after reporting. Sure, Texas Capital Bank had a solid quarter, but if we look at the bigger picture, is this stock a buy? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Texas Capital Bancshares, Inc. Announces Second Quarter 2025 Results
DALLAS, July 17, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the second quarter of 2025. 'Our multi-year focus on building a differentiated, full-service financial services firm has strengthened our client franchise and consistently delivered high-quality outcomes across our platform, driving strong financial performance this quarter,' said Rob C. Holmes, Chairman, President & CEO. 'The strategic actions we've taken have structurally enhanced our earnings power, and as we enter the second half of the year, the breadth of our capabilities and the strength of our balance sheet position us to deliver durable, through-cycle results for both clients and shareholders.' 2nd Quarter 1st Quarter 2nd Quarter (dollars in thousands except per share data) 2025 2025 2024 OPERATING RESULTS Net income $ 77,328 $ 47,047 $ 41,662 Net income available to common stockholders $ 73,016 $ 42,734 $ 37,350 Pre-provision net revenue(3) $ 117,188 $ 77,458 $ 78,597 Diluted earnings per common share $ 1.58 $ 0.92 $ 0.80 Diluted common shares 46,215,394 46,616,704 46,872,498 Return on average assets 0.99 % 0.61 % 0.56 % Return on average common equity 9.17 % 5.56 % 5.26 % OPERATING RESULTS, ADJUSTED(1) Net income $ 79,841 $ 47,047 $ 42,020 Net income available to common stockholders $ 75,529 $ 42,734 $ 37,708 Pre-provision net revenue(3) $ 120,475 $ 77,458 $ 79,059 Diluted earnings per common share $ 1.63 $ 0.92 $ 0.80 Diluted common shares 46,215,394 46,616,704 46,872,498 Return on average assets 1.02 % 0.61 % 0.57 % Return on average common equity 9.48 % 5.56 % 5.31 % BALANCE SHEET Loans held for investment $ 18,035,945 $ 17,654,243 $ 16,700,569 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,078,161 Total loans held for investment 23,925,534 22,379,784 21,778,730 Loans held for sale — — 36,785 Total assets 31,943,535 31,375,749 29,854,994 Non-interest bearing deposits 7,718,006 7,874,780 7,987,715 Total deposits 26,064,309 26,053,034 23,818,327 Stockholders' equity 3,510,070 3,429,774 3,175,601 (1) These adjusted measures are non-GAAP measures. Please refer to 'GAAP to Non-GAAP Reconciliations' for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.(2) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(3) Net interest income plus non-interest income, less non-interest expense. SECOND QUARTER 2025 COMPARED TO FIRST QUARTER 2025 For the second quarter of 2025, net income available to common stockholders was $73.0 million, or $1.58 per diluted share, compared to $42.7 million, or $0.92 per diluted share, for the first quarter of 2025. Provision for credit losses for the second quarter of 2025 was $15.0 million, compared to $17.0 million for the first quarter of 2025. The $15.0 million provision for credit losses recorded in the second quarter of 2025 resulted primarily from an increase in total loans held for investment ('LHI') and $13.0 million in net charge-offs, partially offset by a decrease in criticized loans. Net interest income was $253.4 million for the second quarter of 2025, compared to $236.0 million for the first quarter of 2025, primarily due to increases in average earning assets and earning asset yields, a decrease in average short-term borrowings and the impact of one additional day in the second quarter. Net interest margin for the second quarter of 2025 was 3.35%, an increase of 16 basis points from the first quarter of 2025. LHI, excluding mortgage finance, yields decreased 4 basis points from the first quarter of 2025 and LHI, mortgage finance, yields increased 49 basis points from the first quarter of 2025. Total cost of deposits was 2.65% for the second quarter of 2025, an 11 basis point decrease from the first quarter of 2025. Non-interest income for the second quarter of 2025 increased $9.6 million compared to the first quarter of 2025 primarily due to increases in investment banking and advisory fees and trading income, partially offset by a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025. Non-interest expense for the second quarter of 2025 decreased $12.7 million compared to the first quarter of 2025, primarily due to decreases in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, and legal and professional expense, partially offset by an increase in other non-interest expense. SECOND QUARTER 2025 COMPARED TO SECOND QUARTER 2024 Net income available to common stockholders was $73.0 million, or $1.58 per diluted share, for the second quarter of 2025, compared to $37.4 million, or $0.80 per diluted share, for the second quarter of 2024. The second quarter of 2025 included a $15.0 million provision for credit losses, reflecting an increase in total LHI and $13.0 million in net charge-offs, partially offset by a decline in criticized loans, compared to a $20.0 million provision for credit losses for the second quarter of 2024. Net interest income increased to $253.4 million for the second quarter of 2025, compared to $216.6 million for the second quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 34 basis points to 3.35% for the second quarter of 2025, as compared to the second quarter of 2024. LHI, excluding mortgage finance, yields decreased 44 basis points compared to the second quarter of 2024 and LHI, mortgage finance yields increased 48 basis points from the second quarter of 2024. Total cost of deposits decreased 34 basis points compared to the second quarter of 2024. Non-interest income for the second quarter of 2025 increased $3.6 million compared to the second quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by the loss on sale of available-for-sale debt securities mentioned above. Non-interest expense for the second quarter of 2025 increased $1.9 million compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in marketing expense. CREDIT QUALITY Net charge-offs of $13.0 million were recorded during the second quarter of 2025, compared to net charge-offs of $9.8 million and $12.0 million during the first quarter of 2025 and the second quarter of 2024, respectively. Criticized loans totaled $637.5 million at June 30, 2025, compared to $762.9 million at March 31, 2025 and $859.7 million at June 30, 2024. Non-accrual LHI totaled $113.6 million at June 30, 2025, compared to $93.6 million at March 31, 2025 and $85.0 million at June 30, 2024. The ratio of non-accrual LHI to total LHI for the second quarter of 2025 was 0.47%, compared to 0.42% for the first quarter of 2025 and 0.39% for the second quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.40% at June 30, 2025, compared to 1.48% and 1.44% at March 31, 2025 and June 30, 2024, respectively. REGULATORY RATIOS AND CAPITAL All regulatory ratios continue to be in excess of 'well capitalized' requirements as of June 30, 2025. CET1, tier 1 capital, total capital and leverage ratios were 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025, compared to 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025 and 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024. At June 30, 2025, our ratio of tangible common equity to total tangible assets was 10.1%, compared to 10.0% at March 31, 2025 and 9.6% at June 30, 2024. During the second quarter of 2025, the Company repurchased 317,860 shares of its common stock for an aggregate purchase price, including excise tax expense, of $21.0 million, at a weighted average price of $65.50 per Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank ('TCB'). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. This communication contains 'forward-looking statements' within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI's financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as 'believes,' 'projects,' 'expects,' 'may,' 'estimates,' 'should,' 'plans,' 'targets,' 'intends' 'could,' 'would,' 'anticipates,' 'potential,' 'confident,' 'optimistic' or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management's expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management's control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; TCBI's ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI's ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI's ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI's ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI's ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI's securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI's risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI's loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. TEXAS CAPITAL BANCSHARES, INC. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) (dollars in thousands except per share data) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 CONSOLIDATED STATEMENTS OF INCOME Interest income $ 439,567 $ 427,289 $ 437,571 $ 452,533 $ 422,068 Interest expense 186,172 191,255 207,964 212,431 205,486 Net interest income 253,395 236,034 229,607 240,102 216,582 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Net interest income after provision for credit losses 238,395 219,034 211,607 230,102 196,582 Non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Non-interest expense 190,276 203,020 172,159 195,324 188,409 Income/(loss) before income taxes 102,188 60,458 93,522 (79,993 ) 58,597 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Net income/(loss) 77,328 47,047 71,023 (61,319 ) 41,662 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) available to common stockholders $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350 Diluted earnings/(loss) per common share $ 1.58 $ 0.92 $ 1.43 $ (1.41 ) $ 0.80 Diluted common shares 46,215,394 46,616,704 46,770,961 46,608,742 46,872,498 CONSOLIDATED BALANCE SHEET DATA Total assets $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 Loans held for investment 18,035,945 17,654,243 17,234,492 16,764,512 16,700,569 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,215,574 5,529,659 5,078,161 Loans held for sale — — — 9,022 36,785 Interest bearing cash and cash equivalents 2,507,691 3,600,969 3,012,307 3,894,537 2,691,352 Investment securities 4,608,628 4,531,219 4,396,115 4,405,520 4,388,976 Non-interest bearing deposits 7,718,006 7,874,780 7,485,428 9,070,804 7,987,715 Total deposits 26,064,309 26,053,034 25,238,599 25,865,255 23,818,327 Short-term borrowings 1,250,000 750,000 885,000 1,035,000 1,675,000 Long-term debt 620,256 660,521 660,346 660,172 659,997 Stockholders' equity 3,510,070 3,429,774 3,367,936 3,354,044 3,175,601 End of period shares outstanding 45,746,836 46,024,933 46,233,812 46,207,757 46,188,078 Book value per share $ 70.17 $ 68.00 $ 66.36 $ 66.09 $ 62.26 Tangible book value per share(1) $ 70.14 $ 67.97 $ 66.32 $ 66.06 $ 62.23 SELECTED FINANCIAL RATIOS Net interest margin 3.35 % 3.19 % 2.93 % 3.16 % 3.01 % Return on average assets 0.99 % 0.61 % 0.88 % (0.78 )% 0.56 % Return on average assets, adjusted(4) 1.02 % 0.61 % 0.88 % 1.00 % 0.57 % Return on average common equity 9.17 % 5.56 % 8.50 % (8.87 )% 5.26 % Return on average common equity, adjusted(4) 9.48 % 5.56 % 8.50 % 10.04 % 5.31 % Efficiency ratio(2) 61.9 % 72.4 % 60.7 % 155.8 % 70.6 % Efficiency ratio, adjusted(2)(4) 61.1 % 72.4 % 60.7 % 62.3 % 70.4 % Non-interest income to average earning assets 0.72 % 0.60 % 0.69 % (1.52 )% 0.71 % Non-interest income to average earning assets, adjusted(4) 0.74 % 0.60 % 0.69 % 0.86 % 0.71 % Non-interest expense to average earning assets 2.52 % 2.75 % 2.21 % 2.59 % 2.65 % Non-interest expense to average earning assets, adjusted(4) 2.50 % 2.75 % 2.21 % 2.52 % 2.65 % Common equity to total assets 10.1 % 10.0 % 10.0 % 9.7 % 9.6 % Tangible common equity to total tangible assets(3) 10.1 % 10.0 % 10.0 % 9.7 % 9.6 % Common Equity Tier 1 11.4 % 11.6 % 11.4 % 11.2 % 11.6 % Tier 1 capital 12.9 % 13.1 % 12.8 % 12.6 % 13.1 % Total capital 15.3 % 15.6 % 15.4 % 15.2 % 15.7 % Leverage 11.8 % 11.8 % 11.3 % 11.4 % 12.2 % (1) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(2) Non-interest expense divided by the sum of net interest income and non-interest income.(3) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.(4) These adjusted measures are non-GAAP measures. Please refer to 'GAAP to Non-GAAP Reconciliations' for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure. TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands) June 30,2025 March 31,2025 December 31,2024 September 30,2024 June 30,2024 Assets Cash and due from banks $ 182,451 $ 201,504 $ 176,501 $ 297,048 $ 221,727 Interest bearing cash and cash equivalents 2,507,691 3,600,969 3,012,307 3,894,537 2,691,352 Available-for-sale debt securities 3,774,141 3,678,378 3,524,686 3,518,662 3,483,231 Held-to-maturity debt securities 761,907 779,354 796,168 812,432 831,513 Equity securities 68,692 71,679 75,261 74,426 74,232 Trading securities 3,888 1,808 — — — Investment securities 4,608,628 4,531,219 4,396,115 4,405,520 4,388,976 Loans held for sale — — — 9,022 36,785 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,215,574 5,529,659 5,078,161 Loans held for investment 18,035,945 17,654,243 17,234,492 16,764,512 16,700,569 Less: Allowance for credit losses on loans 277,648 278,379 271,709 273,143 267,297 Loans held for investment, net 23,647,886 22,101,405 22,178,357 22,021,028 21,511,433 Premises and equipment, net 86,831 84,575 85,443 81,577 69,464 Accrued interest receivable and other assets 908,552 854,581 881,664 919,071 933,761 Goodwill and intangibles, net 1,496 1,496 1,496 1,496 1,496 Total assets $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 Liabilities and Stockholders' Equity Liabilities: Non-interest bearing deposits $ 7,718,006 $ 7,874,780 $ 7,485,428 $ 9,070,804 $ 7,987,715 Interest bearing deposits 18,346,303 18,178,254 17,753,171 16,794,451 15,830,612 Total deposits 26,064,309 26,053,034 25,238,599 25,865,255 23,818,327 Accrued interest payable 14,120 25,270 23,680 18,679 23,841 Other liabilities 484,780 457,150 556,322 696,149 502,228 Short-term borrowings 1,250,000 750,000 885,000 1,035,000 1,675,000 Long-term debt 620,256 660,521 660,346 660,172 659,997 Total liabilities 28,433,465 27,945,975 27,363,947 28,275,255 26,679,393 Stockholders' equity: Preferred stock, $.01 par value, $1,000 liquidation value: Authorized shares - 10,000,000 Issued shares(1) 300,000 300,000 300,000 300,000 300,000 Common stock, $.01 par value: Authorized shares - 100,000,000 Issued shares(2) 517 517 515 515 515 Additional paid-in capital 1,065,083 1,060,028 1,056,719 1,054,614 1,050,114 Retained earnings 2,611,401 2,538,385 2,495,651 2,428,940 2,494,572 Treasury stock(3) (354,000 ) (332,994 ) (301,842 ) (301,868 ) (301,868 ) Accumulated other comprehensive loss, net of taxes (112,931 ) (136,162 ) (183,107 ) (128,157 ) (367,732 ) Total stockholders' equity 3,510,070 3,429,774 3,367,936 3,354,044 3,175,601 Total liabilities and stockholders' equity $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 (1) Preferred stock - issued shares 300,000 300,000 300,000 300,000 300,000 (2) Common stock - issued shares 51,747,305 51,707,542 51,520,315 51,494,260 51,474,581 (3) Treasury stock - shares at cost 6,000,469 5,682,609 5,286,503 5,286,503 5,286,503 TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest income Interest and fees on loans $ 364,358 $ 345,251 $ 698,508 $ 676,130 Investment securities 45,991 33,584 92,556 65,728 Interest bearing cash and cash equivalents 29,218 43,233 75,792 97,588 Total interest income 439,567 422,068 866,856 839,446 Interest expense Deposits 174,798 181,280 349,734 356,880 Short-term borrowings 3,444 12,749 11,690 25,532 Long-term debt 7,930 11,457 16,003 25,443 Total interest expense 186,172 205,486 377,427 407,855 Net interest income 253,395 216,582 489,429 431,591 Provision for credit losses 15,000 20,000 32,000 39,000 Net interest income after provision for credit losses 238,395 196,582 457,429 392,591 Non-interest income Service charges on deposit accounts 8,182 5,911 16,022 12,250 Wealth management and trust fee income 3,730 3,699 7,694 7,266 Brokered loan fees 2,398 2,131 4,347 4,042 Investment banking and advisory fees 24,109 25,048 40,587 43,472 Trading income 7,896 5,650 13,835 10,362 Available-for-sale debt securities losses (1,886 ) — (1,886 ) — Other 9,640 7,985 17,914 14,351 Total non-interest income 54,069 50,424 98,513 91,743 Non-interest expense Salaries and benefits 120,154 118,840 251,795 247,567 Occupancy expense 12,144 10,666 22,988 20,403 Marketing 3,624 5,996 8,633 12,032 Legal and professional 11,069 11,273 26,058 27,468 Communications and technology 24,314 22,013 47,956 43,127 Federal Deposit Insurance Corporation insurance assessment 5,096 5,570 10,437 13,991 Other 13,875 14,051 25,429 26,214 Total non-interest expense 190,276 188,409 393,296 390,802 Income before income taxes 102,188 58,597 162,646 93,532 Income tax expense 24,860 16,935 38,271 25,728 Net income 77,328 41,662 124,375 67,804 Preferred stock dividends 4,312 4,312 8,625 8,625 Net income available to common stockholders $ 73,016 $ 37,350 $ 115,750 $ 59,179 Basic earnings per common share $ 1.59 $ 0.80 $ 2.52 $ 1.26 Diluted earnings per common share $ 1.58 $ 0.80 $ 2.49 $ 1.25TEXAS CAPITAL BANCSHARES, INC. SUMMARY OF CREDIT LOSS EXPERIENCE (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 Allowance for credit losses on loans: Beginning balance $ 278,379 $ 271,709 $ 273,143 $ 267,297 $ 263,962 Allowance established for acquired purchase credit deterioration loans — — — 2,579 — Loans charged-off: Commercial 13,020 10,197 14,100 6,120 9,997 Commercial real estate 431 500 2,566 262 2,111 Consumer — — — 30 — Total charge-offs 13,451 10,697 16,666 6,412 12,108 Recoveries: Commercial 486 483 4,562 329 153 Commercial real estate — 413 18 — — Consumer — 4 15 — — Total recoveries 486 900 4,595 329 153 Net charge-offs 12,965 9,797 12,071 6,083 11,955 Provision for credit losses on loans 12,234 16,467 10,637 9,350 15,290 Ending balance $ 277,648 $ 278,379 $ 271,709 $ 273,143 $ 267,297 Allowance for off-balance sheet credit losses: Beginning balance $ 53,865 $ 53,332 $ 45,969 $ 45,319 $ 40,609 Provision for off-balance sheet credit losses 2,766 533 7,363 650 4,710 Ending balance $ 56,631 $ 53,865 $ 53,332 $ 45,969 $ 45,319 Total allowance for credit losses $ 334,279 $ 332,244 $ 325,041 $ 319,112 $ 312,616 Total provision for credit losses $ 15,000 $ 17,000 $ 18,000 $ 10,000 $ 20,000 Allowance for credit losses on loans to total loans held for investment 1.16 % 1.24 % 1.21 % 1.23 % 1.23 % Allowance for credit losses on loans to average total loans held for investment 1.19 % 1.29 % 1.22 % 1.24 % 1.27 % Net charge-offs to average total loans held for investment(1) 0.22 % 0.18 % 0.22 % 0.11 % 0.23 % Net charge-offs to average total loans held for investment for last 12 months(1) 0.18 % 0.18 % 0.19 % 0.20 % 0.22 % Total provision for credit losses to average total loans held for investment(1) 0.26 % 0.32 % 0.32 % 0.18 % 0.38 % Total allowance for credit losses to total loans held for investment 1.40 % 1.48 % 1.45 % 1.43 % 1.44 % (1) Interim period ratios are annualized. TEXAS CAPITAL BANCSHARES, INC. NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 NON-PERFORMING ASSETS Non-accrual loans held for investment $ 113,609 $ 93,565 $ 111,165 $ 88,960 $ 85,021 Non-accrual loans held for sale — — — — — Other real estate owned — — — — — Total non-performing assets $ 113,609 $ 93,565 $ 111,165 $ 88,960 $ 85,021 Non-accrual loans held for investment to total loans held for investment 0.47 % 0.42 % 0.50 % 0.40 % 0.39 % Total non-performing assets to total assets 0.36 % 0.30 % 0.36 % 0.28 % 0.28 % Allowance for credit losses on loans to non-accrual loans held for investment 2.4x 3.0x 2.4x 3.1x 3.1x Total allowance for credit losses to non-accrual loans held for investment 2.9x 3.6x 2.9x 3.6x 3.7x LOANS PAST DUE Loans held for investment past due 90 days and still accruing $ 2,068 $ 791 $ 4,265 $ 5,281 $ 286 Loans held for investment past due 90 days to total loans held for investment 0.01 % — % 0.02 % 0.02 % — % Loans held for sale past due 90 days and still accruing $ — $ — $ — $ — $ 64 CRITICIZED LOANS Criticized loans $ 637,462 $ 762,887 $ 713,951 $ 897,727 $ 859,671 Criticized loans to total loans held for investment 2.66 % 3.41 % 3.18 % 4.03 % 3.95 % Special mention loans $ 339,923 $ 484,165 $ 435,626 $ 579,802 $ 593,305 Special mention loans to total loans held for investment 1.42 % 2.16 % 1.94 % 2.60 % 2.72 %TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 Interest income Interest and fees on loans $ 364,358 $ 334,150 $ 340,388 $ 361,407 $ 345,251 Investment securities 45,991 46,565 44,102 38,389 33,584 Interest bearing deposits in other banks 29,218 46,574 53,081 52,737 43,233 Total interest income 439,567 427,289 437,571 452,533 422,068 Interest expense Deposits 174,798 174,936 189,061 190,255 181,280 Short-term borrowings 3,444 8,246 10,678 13,784 12,749 Long-term debt 7,930 8,073 8,225 8,392 11,457 Total interest expense 186,172 191,255 207,964 212,431 205,486 Net interest income 253,395 236,034 229,607 240,102 216,582 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Net interest income after provision for credit losses 238,395 219,034 211,607 230,102 196,582 Non-interest income Service charges on deposit accounts 8,182 7,840 6,989 6,307 5,911 Wealth management and trust fee income 3,730 3,964 4,009 4,040 3,699 Brokered loan fees 2,398 1,949 2,519 2,400 2,131 Investment banking and advisory fees 24,109 16,478 26,740 34,753 25,048 Trading income 7,896 5,939 5,487 5,786 5,650 Available-for-sale debt securities losses (1,886 ) — — (179,581 ) — Other 9,640 8,274 8,330 11,524 7,985 Total non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Non-interest expense Salaries and benefits 120,154 131,641 97,873 121,138 118,840 Occupancy expense 12,144 10,844 11,926 12,937 10,666 Marketing 3,624 5,009 4,454 5,863 5,996 Legal and professional 11,069 14,989 15,180 11,135 11,273 Communications and technology 24,314 23,642 24,007 25,951 22,013 Federal Deposit Insurance Corporation insurance assessment 5,096 5,341 4,454 4,906 5,570 Other 13,875 11,554 14,265 13,394 14,051 Total non-interest expense 190,276 203,020 172,159 195,324 188,409 Income/(loss) before income taxes 102,188 60,458 93,522 (79,993 ) 58,597 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Net income/(loss) 77,328 47,047 71,023 (61,319 ) 41,662 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) available to common shareholders $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350TEXAS CAPITAL BANCSHARES, INC. TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1) (dollars in thousands) 2nd Quarter 2025 1st Quarter 2025 2nd Quarter 2024 YTD June 30, 2025 YTD June 30, 2024 AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate Assets Investment securities(2) $ 4,573,164 $ 45,999 3.93 % $ 4,463,876 $ 46,565 4.10 % $ 4,427,023 $ 33,584 2.80 % $ 4,518,822 $ 92,564 4.01 % $ 4,363,195 $ 65,728 2.79 % Interest bearing cash and cash equivalents 2,661,037 29,218 4.40 % 4,255,796 46,574 4.44 % 3,273,069 43,233 5.31 % 3,454,011 75,792 4.43 % 3,662,348 97,588 5.36 % Loans held for sale — — — % 335 2 2.97 % 28,768 683 9.55 % 167 2 2.97 % 39,966 1,867 9.40 % Loans held for investment, mortgage finance 5,327,559 58,707 4.42 % 3,972,106 38,527 3.93 % 4,357,288 42,722 3.94 % 4,653,577 97,234 4.21 % 3,937,498 74,177 3.79 % Loans held for investment(3) 18,018,626 306,142 6.81 % 17,527,070 296,091 6.85 % 16,750,788 301,910 7.25 % 17,774,206 602,233 6.83 % 16,636,438 600,216 7.26 % Less: Allowance for credit losses on loans 278,035 — — % 272,758 — — 263,145 — — % 275,411 — — 256,541 — — Loans held for investment, net 23,068,150 364,849 6.34 % 21,226,418 334,618 6.39 % 20,844,931 344,632 6.65 % 22,152,372 699,467 6.37 % 20,317,395 674,393 6.68 % Total earning assets 30,302,351 440,066 5.80 % 29,946,425 427,759 5.76 % 28,573,791 422,132 5.86 % 30,125,372 867,825 5.78 % 28,382,904 839,576 5.87 % Cash and other assets 1,117,118 1,157,184 1,177,061 1,137,040 1,117,763 Total assets $ 31,419,469 $ 31,103,609 $ 29,750,852 $ 31,262,412 $ 29,500,667 Liabilities and Stockholders' Equity Transaction deposits $ 2,213,037 $ 13,731 2.49 % $ 2,163,250 $ 13,908 2.61 % $ 2,061,622 $ 16,982 3.31 % $ 2,188,282 $ 27,639 2.55 % $ 2,034,057 $ 33,840 3.35 % Savings deposits 13,727,095 134,272 3.92 % 13,357,243 133,577 4.06 % 11,981,668 143,173 4.81 % 13,543,190 267,849 3.99 % 11,695,673 279,963 4.81 % Time deposits 2,361,525 26,795 4.55 % 2,329,384 27,451 4.78 % 1,658,899 21,125 5.12 % 2,345,543 54,246 4.66 % 1,689,112 43,077 5.13 % Total interest bearing deposits 18,301,657 174,798 3.83 % 17,849,877 174,936 3.97 % 15,702,189 181,280 4.64 % 18,077,015 349,734 3.90 % 15,418,842 356,880 4.65 % Short-term borrowings 306,176 3,444 4.51 % 751,500 8,246 4.45 % 927,253 12,749 5.53 % 527,608 11,690 4.47 % 919,670 25,532 5.58 % Long-term debt 649,469 7,930 4.90 % 660,445 8,073 4.96 % 778,401 11,457 5.92 % 654,927 16,003 4.93 % 818,955 25,443 6.25 % Total interest bearing liabilities 19,257,302 186,172 3.88 % 19,261,822 191,255 4.03 % 17,407,843 205,486 4.75 % 19,259,550 377,427 3.95 % 17,157,467 407,855 4.78 % Non-interest bearing deposits 8,191,402 7,875,244 8,647,594 8,034,196 8,642,685 Other liabilities 475,724 552,154 537,754 513,728 523,520 Stockholders' equity 3,495,041 3,414,389 3,157,661 3,454,938 3,176,995 Total liabilities and stockholders' equity $ 31,419,469 $ 31,103,609 $ 29,750,852 $ 31,262,412 $ 29,500,667 Net interest income $ 253,894 $ 236,504 $ 216,646 $ 490,398 $ 431,721 Net interest margin 3.35 % 3.19 % 3.01 % 3.27 % 3.02 % (1) Taxable equivalent rates used where applicable.(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.(3) Average balances include non-accrual loans. GAAP TO NON-GAAP RECONCILIATIONS The following items are non-GAAP financial measures: adjusted non-interest income, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue ('PPNR'), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures. These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. Reconciliation of Non-GAAP Financial Measures (dollars in thousands except per share data) 2nd Quarter2025 1st Quarter2025 4th Quarter2024 3rd Quarter2024 2nd Quarter2024 Net interest income $ 253,395 $ 236,034 $ 229,607 $ 240,102 $ 216,582 Non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Available-for-sale debt securities losses, net 1,886 — — 179,581 — Non-interest income, adjusted 55,955 44,444 54,074 64,810 50,424 Non-interest expense 190,276 203,020 172,159 195,324 188,409 FDIC special assessment — — — 651 (462 ) Restructuring expenses (1,401 ) — — (5,923 ) — Non-interest expense, adjusted 188,875 203,020 172,159 190,052 187,947 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Tax effect of adjustments 774 — — 44,880 104 Income tax expense/(benefit), adjusted 25,634 13,411 22,499 26,206 17,039 Net income/(loss)(1) $ 77,328 $ 47,047 $ 71,023 $ (61,319 ) $ 41,662 Net income/(loss), adjusted(1) $ 79,841 $ 47,047 $ 71,023 $ 78,654 $ 42,020 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) to common stockholders(2) $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350 Net income/(loss) to common stockholders, adjusted(2) $ 75,529 $ 42,734 $ 66,711 $ 74,341 $ 37,708 PPNR(3) $ 117,188 $ 77,458 $ 111,522 $ (69,993 ) $ 78,597 PPNR(3), adjusted $ 120,475 $ 77,458 $ 111,522 $ 114,860 $ 79,059 Weighted average common shares outstanding, diluted 46,215,394 46,616,704 46,770,961 46,608,742 46,872,498 Diluted earnings/(loss) per common share $ 1.58 $ 0.92 $ 1.43 $ (1.41 ) $ 0.80 Diluted earnings/(loss) per common share, adjusted $ 1.63 $ 0.92 $ 1.43 $ 1.59 $ 0.80 Average total assets $ 31,419,469 $ 31,103,609 $ 32,212,087 $ 31,215,173 $ 29,750,852 Return on average assets 0.99 % 0.61 % 0.88 % (0.78 )% 0.56 % Return on average assets, adjusted 1.02 % 0.61 % 0.88 % 1.00 % 0.57 % Average common equity $ 3,195,041 $ 3,114,389 $ 3,120,933 $ 2,945,238 $ 2,857,661 Return on average common equity 9.17 % 5.56 % 8.50 % (8.87 )% 5.26 % Return on average common equity, adjusted 9.48 % 5.56 % 8.50 % 10.04 % 5.31 % Efficiency ratio(4) 61.9 % 72.4 % 60.7 % 155.8 % 70.6 % Efficiency ratio, adjusted(4) 61.1 % 72.4 % 60.7 % 62.3 % 70.4 % Average earning assets $ 30,302,351 $ 29,946,425 $ 31,033,803 $ 29,975,318 $ 28,573,791 Non-interest income to average earning assets 0.72 % 0.60 % 0.69 % (1.52 )% 0.71 % Non-interest income to average earning assets, adjusted 0.74 % 0.60 % 0.69 % 0.86 % 0.71 % Non-interest expense to average earning assets 2.52 % 2.75 % 2.21 % 2.59 % 2.65 % Non-interest expense to average earning assets, adjusted 2.50 % 2.75 % 2.21 % 2.52 % 2.65 % (1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted. CONTACT: INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 MEDIA CONTACT Julia Monter, 469.399.8425 in to access your portfolio
Yahoo
30-06-2025
- Business
- Yahoo
3 Reasons to Avoid TCBI and 1 Stock to Buy Instead
Since December 2024, Texas Capital Bank has been in a holding pattern, posting a small return of 1.6% while floating around $78.96. Is there a buying opportunity in Texas Capital Bank, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. We're swiping left on Texas Capital Bank for now. Here are three reasons why you should be careful with TCBI and a stock we'd rather own. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Texas Capital Bank's net interest income has grown at a 3.1% annualized rate over the last four years, worse than the broader bank industry. Its growth was driven by an increase in its net interest margin, which represents how much a bank earns in relation to its outstanding loans, as its loan book shrank throughout that period. Revenue is a fine reference point for banks, but net interest income and margin are better indicators of business quality for banks because they're balance sheet-driven businesses that leverage their assets to generate profits. Over the past two years, we can see that Texas Capital Bank's net interest margin averaged a subpar 3.1%. This metric is well below other banks, signaling its loans aren't very profitable. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Texas Capital Bank, its EPS declined by 21.5% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Texas Capital Bank isn't a terrible business, but it isn't one of our picks. That said, the stock currently trades at 1.1× forward P/B (or $78.96 per share). At this valuation, there's a lot of good news priced in - we think there are better stocks to buy right now. We'd recommend looking at a dominant Aerospace business that has perfected its M&A strategy. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Business News
08-05-2025
- Business
- Time Business News
Real Estate for Sale in Turkish Citizenship: Your Gateway to a New Life
Turkey has become a global hotspot for property investment, especially among international buyers seeking not just a dream home or a profitable asset but also a second passport. With the Turkish Citizenship by Investment Program (TCBI), real estate has become a powerful tool for unlocking full citizenship benefits in one of the world's most strategically located and culturally rich countries. In this article, we'll explore everything you need to know about Real Estate For Sale in Turkish citizenship from legal requirements and prime investment locations to the step-by-step acquisition process. Turkey bridges Europe and Asia, offering global access and a rich cultural tapestry. Its location provides an ideal base for travel, business, and residence. The Turkish property market has shown steady growth over the last decade. With strong demand in coastal and urban areas, investors can expect long-term capital appreciation and rental yields. The Turkish government has simplified its property ownership laws and introduced the citizenship-by-investment program to encourage foreign direct investment, particularly in real estate. Launched in 2017 and updated in 2018 and 2022, Turkey's Citizenship by Investment Program allows foreigners to obtain Turkish citizenship by purchasing real estate worth at least $400,000 (as of the latest update). The investment must be held for a minimum of three years. Minimum property purchase value: $400,000 Title deed must be registered under the applicant's name Property must not be sold for at least three years A valuation report from a certified expert is mandatory Apartments, villas, and houses across Turkey are eligible, provided they meet the valuation requirement. Offices, shops, and retail spaces are eligible and often offer higher rental income potential. Though allowed, purchasing undeveloped land comes with restrictions and may not always be ideal for citizenship applications. You may buy multiple properties to reach the $400,000 threshold, provided they are registered under the same name and the application is submitted simultaneously. Turkey's economic and cultural capital offers a mix of luxury apartments, modern condos, and prime commercial spaces. Districts like Başakşehir, Beylikdüzü, and Kadıköy are highly sought after. Famous for its beaches and resorts, Antalya attracts both tourists and expats. It's an ideal location for holiday homes or rental investments. As the capital city, Ankara offers stable property markets and good long-term returns, especially in neighborhoods like Çankaya and Keçiören. A blend of modernity and tradition, Izmir is Turkey's third-largest city with a fast-developing real estate sector, especially in areas like Alsancak and Karşıyaka. These cities offer scenic views and lower property prices, making it easier to meet the $400,000 requirement with multiple units. Work with a reputable agent or legal advisor who understands TCBI requirements and has experience handling foreign investors. Select a property or combination of properties that meet the $400,000 requirement. Get a pre-sale valuation from a government-approved appraiser. Once satisfied with the property and valuation, sign a notarized sales agreement and make the payment via a bank transfer from a Turkish bank. Register the title deed (Tapu) in your name and ensure the property is annotated with the restriction that it cannot be sold for three years. Submit your citizenship application to the General Directorate of Population and Citizenship Affairs. The process includes background checks and document verification. Once approved, you'll receive Turkish citizenship within 3–6 months. Spouses and dependent children under 18 are also eligible. Turkish passport holders enjoy visa-free or visa-on-arrival access to over 110 countries, including Japan, South Korea, and most Latin American nations. Turkey allows dual nationality, which means you can maintain your original citizenship while enjoying Turkish privileges. Turkish citizens have access to free public healthcare and affordable, high-quality education, including universities. Turkey offers favorable business conditions with access to both EU and Middle Eastern markets, making it ideal for entrepreneurs and investors. Expect to pay between 1%–3% of the property price for legal services, including due diligence and application filing. Property tax in Turkey ranges from 0.1% to 0.6% annually based on property type and location. Capital gains tax applies if you sell the property within five years. However, holding it beyond five years can exempt you from this tax. Turkey has structured inheritance laws and permits property transfer to legal heirs, even for foreigners. Some sellers inflate prices knowing foreign buyers need to meet the $400,000 threshold. Always get a valuation report. Ensure the property has a clean title and no pending debts or liens. Always hire a certified lawyer to avoid legal complications and ensure your investment qualifies for citizenship. Breaking the three-year holding requirement will revoke the citizenship process. Be sure to commit to the timeline. As Turkey continues to modernize its infrastructure and attract foreign capital, its real estate market remains a lucrative avenue. With Istanbul's mega projects like Kanal Istanbul and new metro lines, as well as Antalya's rising tourism and Izmir's growing tech scene, property values are expected to rise steadily. Additionally, Turkey is revisiting its citizenship policies and may raise the investment threshold further. Therefore, now is an opportune time to invest and secure citizenship before any changes are made. Investing in real estate for Turkish citizenship is not just about obtaining a passport—it's about unlocking a world of opportunity. From thriving metropolitan hubs to coastal retreats, Turkey offers something for every investor. By understanding the process, legalities, and best practices, you can make an informed decision that benefits both your lifestyle and financial future. TIME BUSINESS NEWS
