Quite a few banks with heavy Texas exposure took a beating in the market from the fall of 2015 through the spring of 2016, and Texas Capital Bancshares (NASDAQ:TCBI) took one of the heaviest beatings. But like Cullen/Frost (NYSE:CFR), Prosperity Bancshares (NYSE:PB), Comerica (NYSE:CMA), and BOK (NASDAQ:BOKF), Texas Capital has recouped a lot of that damage.
Texas Capital remains structured for significant growth, as loans continue to grow at a double-digit year-over-year clip, driving strong net interest income growth, while credit may be stabilizing. The question, then, is how much you want to pay for a very focused, growth-oriented Texas bank with ample room to expand. Banks like Bank of the Ozarks (NASDAQ:OZRK) underline some of the difficulties in valuing growth banks (they often, if not almost always, look expensive), and even mid-teens earnings growth isn't enough to generate a compelling fair value right now.
Continue reading here:
After A Post-Panic Rebound, It's Harder To Find Value In Texas Capital Bancshares