UBS analyst Brock Vandelvliet upgraded Texas Capital (TCBI) to Neutral from Sell with a price target of $58, up from $54. The analyst notes that the credit quality deterioration and lower net interest income that drove his prior downgrade last August has been priced in, and the company's downsizing of its mortgage finance business represents a "major strategic shift". Vandelvliet also believes that Texas Capital's merger with Independent Bank of Texas (IBTX) should result in a "more profitable and less volatile franchise over time".

Reports Q1 NII $103.0M vs. $127.9M last year. "For the first quarter, we maintained exceptional credit quality while continuing to reprice our maturing fixed-rate loans upward. While growth was seasonally slow during the first quarter, we were able to reduce our borrowings to the lowest level in over a year and grow our total capital and TCE ratios. This positions us well to capitalize on new opportunities such as our expansion into the San Antonio, Texas, market, which gained momentum this quarter when we opened our first full-service branch there on March 6th," said Independent Bank Group Chairman & CEO David R. Brooks. "I remain very encouraged by the discipline of our teams across Texas and Colorado as we execute our strategy to win business and serve our communities across four of the strongest metropolitan markets in the country."