Texas Capital Bancshares Inc (NASDAQ:TCBI), the parent company of Texas Capital Bank, stock rose 2.38% (As on January 19, 11:32:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 22. For the fourth quarter of 2022, net income available to common stockholders was $212.9 million compared to $37.1 million for the third quarter of 2022. Net interest income increased to $247.6 million for the fourth quarter of 2022, compared to $194.0 million for the fourth quarter of 2021, primarily due to an increase in yields on average earning assets, partially offset by an increase in funding costs. Net interest margin increased 114 basis points to 3.26% for the fourth quarter of 2022, as compared to the fourth quarter of 2021. LHI, excluding mortgage finance, yields increased 251 basis points compared to the fourth quarter of 2021 and LHI, mortgage finance yields increased 114 basis points from the fourth quarter of 2021. Net interest margin increased 114 basis points to 3.26% for the fourth quarter of 2022, as compared to the fourth quarter of 2021.

TCBI in the fourth quarter of FY 22 has reported the adjusted earnings per share of 87 cents, missing the analysts’ estimates for the adjusted earnings per share of 98 cents. The company had reported the adjusted revenue of $525.3 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $272.3 million.

Moreover, net charge-offs of $15.0 million were recorded during the fourth quarter of 2022, as expected losses on certain legacy credits have moved closer to resolution, compared to net charge-offs of $2.7 million and $1.0 million during the third quarter of 2022 and the fourth quarter of 2021, respectively. The CET 1, tier 1 capital, total capital and leverage ratios were 13.0%, 14.7%, 17.7% and 11.5%, respectively, at December 31, 2022, compared to 11.1%, 12.6%, 15.2% and 10.7%, respectively, at September 30, 2022 and 11.1%, 12.6%, 15.3% and 9.0% at December 31, 2021.

Additionally, during the fourth quarter of 2022, the Company repurchased 1,141,239 shares of its common stock for an aggregate purchase price of $65.3 million, at a weighted average price of $57.20 per share. On January 18, 2023, the Company had authorized a new share repurchase program under which the Company may repurchase up to $150.0 million in shares of the outstanding common stock.