Texas Capital Bancshares, Inc. Announces Quarterly Dividend for Preferred Stock

Rhea-AI Summary

Texas Capital Bancshares, Inc. declares a cash dividend of $14.375 per share of the 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, equivalent to $0.359375 per depositary share. The dividend is payable on March 15, 2024, to holders of record at the close of business on March 1, 2024.

Insights

Financial Analyst

From a financial perspective, the declaration of a cash dividend on Texas Capital Bancshares' Series B Preferred Stock is a significant event for current shareholders and potential investors. The dividend yield, calculated by annualizing the quarterly payout and dividing by the price of the depositary shares, offers insight into the potential return on investment. The fixed rate of 5.75% is particularly attractive in a low-interest-rate environment, although it is essential to compare this yield against the current market rates and other financial instruments to assess competitiveness.

Moreover, the impact on the company's cash reserves and payout ratio should be examined. A consistent ability to pay dividends can be indicative of stable cash flows and financial health, which may enhance investor confidence. However, it is crucial to balance dividend payments with the need to reinvest in the company for long-term growth and to maintain a buffer against economic downturns.

Market Research Analyst

Understanding the market dynamics surrounding Texas Capital Bancshares' preferred stock is essential. The trading symbol 'TCBIO' represents the depositary shares on NASDAQ, which are a more accessible means for investors to hold preferred stock. Preferred shares tend to be less volatile than common stock and offer a fixed dividend, which could appeal to income-focused investors.

Investor reaction to the dividend announcement could influence the stock's liquidity and price. It is important to track the historical performance of these shares and the volume of trade post-announcement to gauge market sentiment. Additionally, the overall performance of the banking sector and interest rate forecasts could affect the attractiveness of such fixed-income investments.

DALLAS, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, and its board of directors declared a cash dividend of $14.375 per share of the 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), equivalent to $0.359375 per depositary share, each representing a 1/40th interest in a share of the Series B Preferred Stock. The depositary shares are traded on the NASDAQ under the symbol “TCBIO.” The Series B Preferred Stock dividend is payable on March 15, 2024, to holders of record at the close of business on March 1, 2024.

ABOUT TEXAS CAPITAL BANCSHARES, INC.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000 ® Index and the S&P MidCap 400®, is the holding company of Texas Capital, a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the firm 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. For more information, please visit www.texascapitalbank.com.

FAQ

What is the cash dividend declared by Texas Capital Bancshares, Inc.?

The cash dividend declared is $14.375 per share of the 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, equivalent to $0.359375 per depositary share.

When is the dividend payable to the shareholders?

The dividend is payable on March 15, 2024.

What is the ticker symbol for the depositary shares?

The depositary shares are traded on the NASDAQ under the symbol 'TCBIO.'