What happened
Shares of Texas Capital Bancshares (TCBI -1.36%) had fallen roughly 10% as of 11:30 a.m. EDT after the company announced an updated strategic plan.
So what
Texas Capital, a $35 billion asset regional bank based in Dallas, announced a new strategic plan yesterday that will see the bank focus more on technology, bulk up hiring, invest further in treasury solutions, build on its private wealth business, and create a new investment banking division.
In tandem with the announcement, the bank also announced the hiring of Daniel Hoverman to lead the new investment banking division.
Image source: Getty Images.
"The strategic plan we are announcing today represents the culmination of more than seven months of work, including detailed reviews of each business line, our operating model, investment spend and our overall strategy," Rob C. Holmes, president and CEO of Texas Capital, said in a statement.
Holmes added, "...We have taken decisive actions to enhance our strategic objectives, deepen our client relationships and increase our capital flexibility, all of which have empowered us to create core, high‐growth opportunities and better achieve our goal of long‐term value creation for our shareholders."
Now what
While I wouldn't call the bank's past performance amazing, it wasn't necessarily terrible either, barring a tough year in 2020.
Investors may not think that the bank's current strategy is worth abandoning. They could also be concerned about rising expenses in the near term, as the plan calls for "one of the most aggressive hiring plans in the company's history," so the market will likely need to see progress before giving the bank its vote of confidence.
