FBR Capital Reduces Estimates on Texas Capital Bancshares (TCBI); Q1 NIM Improves, but Will Loan Growth Follow?

FBR Capital reiterates a 'Market Perform' on Texas Capital Bancshares (NASDAQ: TCBI), PT $25.

FBR analyst says, "Additionally, we are revising our FY11 EPS estimate to $1.49 from $1.50 and our FY11 EPS estimate to $1.84 from $1.95 on our expectations for slightly lower HFI loan growth and mortgage warehouse volume headwinds which we expect to be offset by an improving NIM. We maintain our positive outlook on TCBI given its attractive growth prospects, improving asset quality, and improving capital levels. While CD repricings are expected to benefit the NIM through 3Q11, we believe investors are looking for HFI loan growth to drive earnings and expand TCBI's P/E multiple. While we find TCBI's growth attributes a significant differentiator among community banks, we would await a better entry point to acquire shares."

For more ratings news on Texas Capital Bancshares click here and for the rating history of Texas Capital Bancshares click here.

Shares of Texas Capital Bancshares closed at $25.32 yesterday.

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