With some exceptions, bank stock investors have to choose between companies with strong leverage to higher rates (like M&T Bank (MTB) and Comerica (CMA)) and those with stronger loan growth. In many cases, “both” is not an option, which makes Texas Capital Bancshares (TCBI) a pretty exceptional growth story right now.
Deposit costs are rising and Texas Capital’s lending portfolio isn’t exactly low-risk, but I expect above-average growth from this lender to continue, particularly as it expands its national lending opportunities. Valuation is a difficult call; more traditional valuation