Adjusting TCBI Pre-Call

Texas Capital Bancshares Inc.'s (TCBI - Analyst Report) 1Q09 operating results were $0.17 per share versus $0.30 per share recorded in the prior-year period. Results came two cents above our expectation and four cents above consensus, aided by a lower-than-estimated provision for loan losses.

Total nonperforming assets continued to expand, though there was a slight improvement in the reserves to non-performing loan ratio.

Prior to the conference call, we are adjusting our FY09 earnings expectation to $0.80 per share from $0.85 per share, but maintaining our FY10 earnings expectation at $1.15 per share. With our six-month price target now at $11.75 per share, we continue to view the shares of TCBI as a Hold.