Texas Capital Bancshares, Inc. TCBI reported adjusted earnings per share of 76 cents per share in third-quarter 2021, missing the Zacks Consensus Estimate of $1.12. Results compare unfavorably with the prior-year quarter’s earnings of $1.08.Lower expenses were a positive. The firm’s credit quality witnessed an improvement. However, a fall in total revenues, along with margin pressure, were deterrents.Net income available to common stockholders for the reported quarter was $39.1 million compared with the prior-year quarter’s $54.7 million.Revenues Decline, Costs FallTotal revenues (net of interest expense) fell 19.7% year over year to $215.32 million in the third quarter on decline in both non-interest income and net interest income. Revenues lagged the Zacks Consensus Estimate of $222.3 million.Texas Capital’s net interest income came in at $194.1 million, down 6.5% year over year, as fall in total average loans and earning asset yields were partially offset by increases in average investment securities and loan fees and decline in cost of funds. Net interest margin contracted 7 basis points (bps) year over year to 2.15%.Non-interest income plummeted 65% to $21.2 million. This decline primarily resulted from a drop in net gain/(loss) on the sale of loans held for sale as well as brokered loan fees and servicing income.Non-interest expenses decreased 8% to $153 million from the prior-year quarter. This mainly resulted from decreases in the communication and technology expenses and servicing-related expenses, partially offset by an increase in salaries and employee benefits.As of Sep 30, 2021, total loans increased marginally on a sequential basis to $23.75 billion, while deposits increased 3.4% to $29.8 billion.Credit Quality StrengthensNon-performing assets totaled 0.37% of the loan portfolio plus other real estate-owned assets compared with the prior-year quarter’s figure of 0.64%. Total non-performing assets plunged 46% to $87.5 million compared with the prior-year quarter.Provision for credit losses aggregated $5 million compared to the year-ago quarter’s $30 million. The company’s net charge-offs were $3.1 million compared with $1.6 million as of Sep 30, 2020.Capital Ratios ImproveThe company’s capital ratios improved in the third quarter. Tangible common equity to total tangible assets came in at 7.8% compared with the year-earlier quarter’s 6.9%.Common equity Tier 1 ratio was 10.7%, up from the prior-year quarter’s 9.1%. Leverage ratio was 9% compared with 7.6% as of Sep 30, 2020.Stockholders’ equity was up 12% year over year to $3.2 billion as of Sep 30, 2021.ConclusionTexas Capital’s controlled expenses and a solid balance sheet during the September-end quarter look impressive. Apart from this, an improving economic situation is anticipated to help the company decrease the provision for credit losses and drive its performance in the days to come. However, lower revenues and margin pressure might erode its near-term profitability.Currently, Texas Capital carries a Zacks Rank #5 (Strong Sell).Texas Capital Bancshares, Inc. Price, Consensus and EPS Surprise Texas Capital Bancshares, Inc. price-consensus-eps-surprise-chart | Texas Capital Bancshares, Inc. QuoteYou can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksBank of America’s BAC third-quarter 2021 earnings of $1.03 per share handily beat the Zacks Consensus Estimate of 77 cents. The bottom line compared favorably with the 37 cents earned in the prior-year quarter.PNC Financial PNC pulled off a third-quarter earnings surprise of 42.4% on substantial reserve release. The adjusted earnings per share of $4.50 exceeded the Zacks Consensus Estimate of $3.16.Large reserve releases, solid investment banking performance and modest rise in loan demand drove JPMorgan’s JPM third-quarter 2021 earnings of $3.78 per share. The bottom line comfortably outpaced the Zacks Consensus Estimate of $3.05. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. 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