Texas Capital Bancshares, Inc. Announces Third Quarter 2026 Results

Third quarter 2026 net income available to common stockholders of $99.4 million

Record-level net interest income of $275.0 million

Record-level fee income⁽⁵⁾, up 14% year-over-year

Capital ratios continue to be strong, achieving 12.2% CET1 and 14.8% Total Capital

DALLAS, Oct. 21, 2026 (GLOBE NEWSWIRE) -- “Third quarter results exemplify a steadily improving, and increasingly diversified earnings profile, supported by a business model intentionally built to be resilient to market and rate cycles,” said Rob C. Holmes, Chairman, President & CEO. “We continue to effectively serve and grow our client base, leveraging our unique capabilities to support sustained momentum across the platform, despite the challenging economic backdrop.”

	3rd Quarter			2nd Quarter			3rd Quarter
(dollars in thousands except per share data)	2026			2026			2025
Summary Income Statement
Net interest income	$	274,983		$	260,377		$	271,771
Non-interest income		81,643			75,118			68,583
Total revenue		356,626			335,495			340,354
Non-interest expense		203,924			205,493			190,575
Pre-provision net revenue⁽¹⁾	$	152,702		$	130,002		$	149,779

Provision for credit losses	$	17,000		$	18,000		$	12,000

Net income available to common stockholders	$	99,392		$	80,636		$	100,897

Non-interest expense, adjusted⁽²⁾	$	199,581		$	202,772		$	190,575
Pre-provision net revenue, adjusted⁽¹⁾⁽²⁾		157,045			132,723			149,779
Net income available to common stockholders, adjusted⁽²⁾		102,700			82,698			100,897

Key Metrics
Diluted earnings per common share	$	2.28		$	1.83		$	2.18
Diluted earnings per common share, adjusted⁽²⁾	$	2.35		$	1.88		$	2.18
Return on average assets		1.25	%		1.03	%		1.30	%
Return on average assets, adjusted⁽²⁾		1.29	%		1.06	%		1.30	%
Return on average common equity		11.57	%		9.56	%		12.04	%
Return on average common equity, adjusted⁽²⁾		11.95	%		9.80	%		12.04	%
Efficiency ratio⁽³⁾		57.2	%		61.3	%		56.0	%
Efficiency ratio, adjusted⁽²⁾⁽³⁾		56.0	%		60.4	%		56.0	%
Net interest margin		3.44	%		3.28	%		3.47	%
Book value per share	$	75.13		$	77.01		$	73.05
Tangible book value per share⁽⁴⁾	$	75.09		$	76.98		$	73.02
Common Equity Tier 1 ratio		12.2	%		12.1	%		12.1	%

Balance Sheet
Total assets	$	32,345,107		$	33,913,361		$	32,536,980
Loans held for investment		18,641,301			18,563,845			18,134,059
Loans held for investment, mortgage finance		5,441,689			6,383,381			6,057,804
Total deposits		27,715,655			28,911,388			27,505,398
Stockholders’ equity		3,487,590			3,647,707			3,637,098

(1)	Net interest income plus non-interest income, less non-interest expense.
(2)	These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
(3)	Non-interest expense divided by the sum of net interest income and non-interest income.
(4)	Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(5)	Includes service charges on deposit accounts, wealth management and trust fee income, investment banking and advisory fees and trading income.

THIRD QUARTER 2026 COMPARED TO SECOND QUARTER 2026

For the third quarter of 2026, Texas Capital Bancshares, Inc. (the “Company”) reported net income available to common stockholders of $99.4 million, or $2.28 per diluted share, compared to $80.6 million, or $1.83 per diluted share, for the second quarter of 2026.

Provision for credit losses for the third quarter of 2026 was $17.0 million, compared to $18.0 million for the second quarter of 2026. The $17.0 million provision for credit losses recorded in the third quarter of 2026 resulted primarily from an increase in criticized loans and $14.5 million in net charge-offs.

Net interest income increased to $275.0 million for the third quarter of 2026, compared to $260.4 million for the second quarter of 2026, primarily due to an increase in average earning asset yields and decreases in short-term and long-term borrowings, partially offset by an increase in funding costs. Net interest margin for the third quarter of 2026 was 3.44%, an increase of 16 basis points from the second quarter of 2026. Loans held for investment (“LHI”), excluding mortgage finance, yields increased 14 basis points from the second quarter of 2026 and LHI, mortgage finance, yields increased 10 basis points from the second quarter of 2026. Total cost of deposits was 2.45% for the third quarter of 2026, a 5 basis point increase from the second quarter of 2026.

Non-interest income for the third quarter of 2026 increased $6.5 million compared to the second quarter of 2026 primarily due to increases in investment banking and advisory fees and other non-interest income.

Non-interest expense for the third quarter of 2026 decreased $1.6 million compared to the second quarter of 2026, primarily due to decreases in salaries and benefits, legal and professional and other non-interest expense, partially offset by an increase in communications and technology expense primarily resulting from restructuring expenses recognized in the third quarter of 2026.

THIRD QUARTER 2026 COMPARED TO THIRD QUARTER 2025

Net income available to common stockholders was $99.4 million, or $2.28 per diluted share, for the third quarter of 2026, compared to $100.9 million, or $2.18 per diluted share, for the third quarter of 2025.

The third quarter of 2026 included a $17.0 million provision for credit losses, reflecting a linked-quarter increase in criticized loans and $14.5 million in net charge-offs, compared to a $12.0 million provision for credit losses for the third quarter of 2025.

Net interest income increased to $275.0 million for the third quarter of 2026, compared to $271.8 million for the third quarter of 2025, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing deposits. Net interest margin decreased 3 basis points to 3.44% for the third quarter of 2026, as compared to the third quarter of 2025. LHI, excluding mortgage finance, yields decreased 19 basis points compared to the third quarter of 2025 and LHI, mortgage finance yields decreased 16 basis points from the third quarter of 2025. Total cost of deposits decreased 17 basis points to 2.45%, as compared to the third quarter of 2025.

Non-interest income for the third quarter of 2026 increased $13.1 million compared to the third quarter of 2025 primarily due to increases in service charges on deposit accounts, investment banking and advisory fees, trading income and other non-interest income.

Non-interest expense for the third quarter of 2026 increased $13.3 million compared to the third quarter of 2025, primarily due to increases in salaries and benefits, occupancy and communications and technology expense, primarily as a result of the restructuring expenses discussed above, as well as an increase in other non-interest expense.

CREDIT QUALITY

Net charge-offs of $14.5 million were recorded during the third quarter of 2026, compared to net charge-offs of $16.1 million and $13.7 million during the second quarter of 2026 and the third quarter of 2025, respectively. Criticized loans totaled $782.4 million at September 30, 2026, compared to $696.3 million at June 30, 2026 and $529.7 million at September 30, 2025. Non-accrual LHI totaled $122.3 million at September 30, 2026, compared to $124.0 million at June 30, 2026 and $96.1 million at September 30, 2025. The ratio of non-accrual LHI to total LHI for the third quarter of 2026 was 0.51%, compared to 0.50% for the second quarter of 2026 and 0.40% for the third quarter of 2025. The ratio of total allowance for credit losses to total LHI was 1.39% at September 30, 2026, compared to 1.34% and 1.37% at June 30, 2026 and September 30, 2025, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2026. CET1, tier 1 capital, total capital and leverage ratios were 12.2%, 13.7%, 14.8% and 11.7%, respectively, at September 30, 2026, compared to 12.1%, 13.5%, 14.7% and 11.6%, respectively, at June 30, 2026 and 12.1%, 13.6%, 16.1% and 11.9%, respectively, at September 30, 2025. At September 30, 2026, the Company’s ratio of tangible common equity to total tangible assets was 9.9%, compared to 9.9% at June 30, 2026 and 10.3% at September 30, 2025.

During the third quarter of 2026, the Company repurchased 1,051,660 shares of its common stock for an aggregate purchase price, including excise tax expense, of $103.0 million, at a weighted average price of $96.99 per share.

Effective October 20, 2026, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $200.0 million in shares of its outstanding common stock through October 31, 2027. Remaining repurchase authorization under the December 12, 2025 share repurchase program was terminated upon authorization of this new program.

PREFERRED AND COMMON DIVIDENDS

The Company’s 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 Texas Stock Exchange LLC (“TXSE”) under the symbol “TCBI PRB.” The dividend is payable on December 15, 2026, to holders of record at the close of business on December 1, 2026.

The Company’s board of directors declared a cash dividend of $0.20 per common share. The common shares are traded on the TXSE under the symbol “TCBI.” The dividend is payable on December 15, 2026, to holders of record at the close of business on December 1, 2026.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (TXSE®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution 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. All services are subject to applicable laws, regulations and service terms. Deposit and lending products and services are offered by TCB. For deposit products, member FDIC. For more information, please visit www.texascapital.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including trade policies, geopolitical conflicts, inflation, including increased energy costs, unemployment rates and interest rates; TCBI’s ability to innovate, to anticipate the needs of our current and future customers and to manage increased or expanded competition from banks and other financial service providers in TCBI’s markets; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business, products and services; risks related to potential strategic acquisitions, including the risk that TCBI may not be able to consummate acquisitions on favorable terms, if at all, and the risk that TCBI may not realize the anticipated benefits from acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third-party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes, strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; TCBI’s ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning; the transfer of the listing of TCBI’s securities to TXSE, a newly operational exchange, and its effect on the trading market, liquidity and price of TCBI’s securities; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the Securities and Exchange Commission. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2026			2026			2026			2025			2025
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	457,160		$	439,930		$	419,094		$	444,314		$	460,615
Interest expense		182,177			179,553			164,375			176,877			188,844
Net interest income		274,983			260,377			254,719			267,437			271,771
Provision for credit losses		17,000			18,000			16,000			11,000			12,000
Net interest income after provision for credit losses		257,983			242,377			238,719			256,437			259,771
Non-interest income		81,643			75,118			69,266			60,046			68,583
Non-interest expense		203,924			205,493			213,568			184,198			190,575
Income before income taxes		135,702			112,002			94,417			132,285			137,779
Income tax expense		31,997			27,054			20,629			31,626			32,569
Net income		103,705			84,948			73,788			100,659			105,210
Preferred stock dividends		4,313			4,312			4,313			4,312			4,313
Net income available to common stockholders	$	99,392		$	80,636		$	69,475		$	96,347		$	100,897
Diluted earnings per common share	$	2.28		$	1.83		$	1.56		$	2.12		$	2.18
Diluted common shares		43,614,271			44,062,419			44,601,129			45,509,370			46,233,167
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	32,345,107		$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980
Loans held for investment		18,641,301			18,563,845			18,217,976			17,976,183			18,134,059
Loans held for investment, mortgage finance		5,441,689			6,383,381			6,961,686			6,064,019			6,057,804
Loans held for sale		28,676			—			21,333			4,361			—
Interest bearing cash and cash equivalents		2,479,073			3,488,756			2,702,183			1,897,803			2,852,387
Debt and equity securities		4,810,743			4,564,584			4,673,355			4,723,099			4,601,654
Non-interest bearing deposits		7,006,314			7,573,788			7,634,618			6,959,097			7,689,598
Total deposits		27,715,655			28,911,388			28,516,688			26,448,767			27,505,398
Short-term borrowings		—			350,000			—			330,000			275,000
Long-term debt		487,270			500,859			878,293			620,575			620,416
Stockholders’ equity		3,487,590			3,647,707			3,606,207			3,631,382			3,637,098

End of period shares outstanding		42,429,657			43,470,167			43,671,305			44,253,688			45,679,863
Book value per share	$	75.13		$	77.01		$	75.71		$	75.28		$	73.05
Tangible book value per share⁽¹⁾	$	75.09		$	76.98		$	75.67		$	75.25		$	73.02
SELECTED FINANCIAL RATIOS
Net interest margin		3.44	%		3.28	%		3.43	%		3.38	%		3.47	%
Return on average assets		1.25	%		1.03	%		0.95	%		1.22	%		1.30	%
Return on average assets, adjusted⁽⁴⁾		1.29	%		1.06	%		0.97	%		1.20	%		1.30	%
Return on average common equity		11.57	%		9.56	%		8.35	%		11.18	%		12.04	%
Return on average common equity, adjusted⁽⁴⁾		11.95	%		9.80	%		8.48	%		10.98	%		12.04	%
Efficiency ratio⁽²⁾		57.2	%		61.3	%		65.9	%		56.2	%		56.0	%
Efficiency ratio, adjusted⁽²⁾⁽⁴⁾		56.0	%		60.4	%		65.5	%		56.9	%		56.0	%
Non-interest income to average earning assets		1.02	%		0.95	%		0.93	%		0.76	%		0.88	%
Non-interest expense to average earning assets		2.55	%		2.59	%		2.87	%		2.33	%		2.44	%
Non-interest expense to average earning assets, adjusted⁽⁴⁾		2.49	%		2.55	%		2.85	%		2.35	%		2.44	%
Common equity to total assets		9.9	%		9.9	%		9.9	%		10.6	%		10.3	%
Tangible common equity to total tangible assets⁽³⁾		9.9	%		9.9	%		9.9	%		10.6	%		10.3	%
Common Equity Tier 1 ratio		12.2	%		12.1	%		12.0	%		12.1	%		12.1	%
Tier 1 capital ratio		13.7	%		13.5	%		13.4	%		13.6	%		13.6	%
Total capital ratio		14.8	%		14.7	%		15.9	%		16.1	%		16.1	%
Leverage ratio		11.7	%		11.6	%		12.1	%		11.7	%		11.9	%

(1)	Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2)	Non-interest expense divided by the sum of net interest income and non-interest income.
(3)	Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
(4)	These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Assets
Cash and due from banks	$	195,086		$	209,512		$	254,428		$	201,315		$	212,438
Interest bearing cash and cash equivalents		2,479,073			3,488,756			2,702,183			1,897,803			2,852,387
Available-for-sale debt securities		4,095,855			3,826,284			3,913,855			3,951,455			3,801,261
Held-to-maturity debt securities		672,881			692,332			709,594			725,722			743,120
Equity securities		42,007			43,429			42,024			41,998			55,054
Trading debt securities		—			2,539			7,882			3,924			2,219
Debt and equity securities		4,810,743			4,564,584			4,673,355			4,723,099			4,601,654
Loans held for sale		28,676			—			21,333			4,361			—
Loans held for investment, mortgage finance		5,441,689			6,383,381			6,961,686			6,064,019			6,057,804
Loans held for investment		18,641,301			18,563,845			18,217,976			17,976,183			18,134,059
Less: Allowance for credit losses on loans		270,333			268,268			270,441			270,557			274,026
Loans held for investment, net		23,812,657			24,678,958			24,909,221			23,769,645			23,917,837
Premises and equipment, net		89,012			91,852			85,698			88,003			88,348
Accrued interest receivable and other assets		928,364			878,203			838,770			854,552			862,820
Goodwill and intangibles, net		1,496			1,496			1,496			1,496			1,496
Total assets	$	32,345,107		$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	7,006,314		$	7,573,788		$	7,634,618		$	6,959,097		$	7,689,598
Interest bearing deposits		20,709,341			21,337,600			20,882,070			19,489,670			19,815,800
Total deposits		27,715,655			28,911,388			28,516,688			26,448,767			27,505,398
Accrued interest payable		8,556			19,291			9,420			6,716			9,360
Other liabilities		646,036			484,116			475,876			502,834			489,708
Short-term borrowings		—			350,000			—			330,000			275,000
Long-term debt		487,270			500,859			878,293			620,575			620,416
Total liabilities		28,857,517			30,265,654			29,880,277			27,908,892			28,899,882

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares⁽¹⁾		300,000			300,000			300,000			300,000			300,000
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares⁽²⁾		520			520			520			518			518
Additional paid-in capital		1,086,246			1,082,419			1,077,139			1,074,496			1,069,582
Retained earnings		3,040,853			2,950,049			2,878,120			2,808,645			2,712,298
Treasury stock⁽³⁾		(689,410	)		(586,401	)		(562,833	)		(487,692	)		(361,076	)
Accumulated other comprehensive loss, net of taxes		(250,619	)		(98,880	)		(86,739	)		(64,585	)		(84,224	)
Total stockholders’ equity		3,487,590			3,647,707			3,606,207			3,631,382			3,637,098
Total liabilities and stockholders’ equity	$	32,345,107		$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980

⁽¹⁾ Preferred stock - issued shares		300,000			300,000			300,000			300,000			300,000
⁽²⁾ Common stock - issued shares		52,023,856			52,012,706			51,974,496			51,786,456			51,767,419
⁽³⁾ Treasury stock - shares at cost		9,594,199			8,542,539			8,303,191			7,532,768			6,087,556

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)

	3rd Quarter 2026		2nd Quarter 2026		1st Quarter 2026		4th Quarter 2025		3rd Quarter 2025		3rd Quarter YTD 2026		3rd Quarter YTD 2025
Interest income
Interest and fees on loans	$	379,297	$	368,416	$	348,020	$	367,481	$	379,017	$	1,095,733	$	1,077,525
Debt and equity securities		50,927		46,307		49,590		47,012		49,396		146,824		141,952
Interest bearing cash and cash equivalents		26,936		25,207		21,484		29,821		32,202		73,627		107,994
Total interest income		457,160		439,930		419,094		444,314		460,615		1,316,184		1,327,471
Interest expense
Deposits		174,517		167,027		153,904		167,259		180,779		495,448		530,513
Short-term borrowings		84		3,552		2,360		2,153		534		5,996		12,224
Long-term debt		7,576		8,974		8,111		7,465		7,531		24,661		23,534
Total interest expense		182,177		179,553		164,375		176,877		188,844		526,105		566,271
Net interest income		274,983		260,377		254,719		267,437		271,771		790,079		761,200
Provision for credit losses		17,000		18,000		16,000		11,000		12,000		51,000		44,000
Net interest income after provision for credit losses		257,983		242,377		238,719		256,437		259,771		739,079		717,200
Non-interest income
Service charges on deposit accounts		9,418		8,853		9,223		8,411		8,111		27,494		24,133
Wealth management and trust fee income		4,562		5,136		4,388		4,216		3,989		14,086		11,683
Brokered loan fees		2,075		2,103		2,006		2,467		2,419		6,184		6,766
Investment banking and advisory fees		35,294		31,522		32,016		30,015		33,985		98,832		74,572
Trading income		11,417		11,313		10,251		6,020		7,238		32,981		21,073
Available-for-sale debt securities gains/(losses), net		—		—		—		—		—		—		(1,886	)
Other		18,877		16,191		11,382		8,917		12,841		46,450		30,755
Total non-interest income		81,643		75,118		69,266		60,046		68,583		226,027		167,096
Non-interest expense
Salaries and benefits		121,625		123,339		139,347		108,851		119,856		384,311		371,651
Occupancy expense		13,230		12,359		12,405		12,803		11,828		37,994		34,816
Marketing		4,266		4,786		4,972		5,404		3,412		14,024		12,045
Legal and professional		12,000		14,700		11,980		11,580		12,474		38,680		38,532
Communications and technology		32,029		28,494		27,172		26,303		24,594		87,695		72,550
Federal Deposit Insurance Corporation insurance assessment		5,234		4,586		4,877		2,276		5,198		14,697		15,635
Other		15,540		17,229		12,815		16,981		13,213		45,584		38,642
Total non-interest expense		203,924		205,493		213,568		184,198		190,575		622,985		583,871
Income before income taxes		135,702		112,002		94,417		132,285		137,779		342,121		300,425
Income tax expense		31,997		27,054		20,629		31,626		32,569		79,680		70,840
Net income		103,705		84,948		73,788		100,659		105,210		262,441		229,585
Preferred stock dividends		4,313		4,312		4,313		4,312		4,313		12,938		12,938
Net income available to common stockholders	$	99,392	$	80,636	$	69,475	$	96,347	$	100,897	$	249,503	$	216,647

Basic earnings per common share	$	2.30	$	1.85	$	1.58	$	2.14	$	2.21	$	5.72	$	4.72
Diluted earnings per common share	$	2.28	$	1.83	$	1.56	$	2.12	$	2.18	$	5.66	$	4.67

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2026			2026			2026			2025			2025
Allowance for credit losses on loans:
Beginning balance	$	268,268		$	270,441		$	270,557		$	274,026		$	277,648
Loans charged-off:
Commercial		14,851			9,998			17,489			14,417			13,794
Commercial real estate		—			7,098			—			524			—
Total charge-offs		14,851			17,096			17,489			14,941			13,794
Recoveries:
Commercial		313			822			131			4,202			50
Commercial real estate		—			184			—			—			—
Consumer		—			7			—			12			4
Total recoveries		313			1,013			131			4,214			54
Net charge-offs		14,538			16,083			17,358			10,727			13,740
Provision for credit losses on loans		16,603			13,910			17,242			7,258			10,118
Ending balance	$	270,333		$	268,268		$	270,441		$	270,557		$	274,026

Allowance for off-balance sheet credit losses:
Beginning balance	$	65,103		$	61,013		$	62,255		$	58,513		$	56,631
Provision for off-balance sheet credit losses		397			4,090			(1,242	)		3,742			1,882
Ending balance	$	65,500		$	65,103		$	61,013		$	62,255		$	58,513

Total allowance for credit losses	$	335,833		$	333,371		$	331,454		$	332,812		$	332,539
Total provision for credit losses	$	17,000		$	18,000		$	16,000		$	11,000		$	12,000

Allowance for credit losses on loans to total loans held for investment		1.12	%		1.08	%		1.07	%		1.13	%		1.13	%
Allowance for credit losses on loans to average total loans held for investment		1.10	%		1.08	%		1.16	%		1.12	%		1.15	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.24	%		0.26	%		0.30	%		0.18	%		0.23	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.24	%		0.24	%		0.23	%		0.20	%		0.21	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.27	%		0.29	%		0.28	%		0.18	%		0.20	%
Total allowance for credit losses to total loans held for investment		1.39	%		1.34	%		1.32	%		1.38	%		1.37	%

(1)	Interim period ratios are annualized.

TEXAS CAPITAL BANCSHARES, INC.
NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2026			2026			2026			2025			2025
NON-PERFORMING ASSETS
Non-accrual loans held for investment	$	122,337		$	123,981		$	144,947		$	116,880		$	96,084
Non-accrual loans held for sale⁽¹⁾		—			—			21,333			4,361			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	122,337		$	123,981		$	166,280		$	121,241		$	96,084

Non-accrual loans held for investment to total loans held for investment		0.51	%		0.50	%		0.58	%		0.49	%		0.40	%
Total non-performing assets to total assets		0.38	%		0.37	%		0.50	%		0.38	%		0.30	%
Allowance for credit losses on loans to non-accrual loans held for investment	2.2x			2.2x			1.9x			2.3x			2.9x
Total allowance for credit losses to non-accrual loans held for investment	2.7x			2.7x			2.3x			2.8x			3.5x

LOANS PAST DUE
Loans held for investment past due 90 days and still accruing	$	53,207		$	451		$	18,030		$	19,353		$	126
Loans held for investment past due 90 days to total loans held for investment		0.22	%		—	%		0.07	%		0.08	%		—	%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	—		$	—

CRITICIZED LOANS
Criticized loans	$	782,408		$	696,326		$	650,615		$	634,919		$	529,732
Criticized loans to total loans held for investment		3.25	%		2.79	%		2.58	%		2.64	%		2.19	%
Special mention loans	$	526,290		$	479,341		$	366,422		$	346,643		$	249,592
Special mention loans to total loans held for investment		2.19	%		1.92	%		1.46	%		1.44	%		1.03	%

(1)	First quarter 2026 and fourth quarter 2025 includes non-accrual loans previously reported in loans held for investment that were transferred at fair value to held for sale as of March 31, 2026 and December 31, 2025, respectively.

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	3rd Quarter 2026						2nd Quarter 2026						3rd Quarter 2025						YTD September 30, 2026						YTD September 30, 2025
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Debt and equity securities⁽²⁾	$	4,582,191	$	50,936	4.31	%	$	4,544,249	$	46,317	4.03	%	$	4,635,066	$	49,401	4.14	%	$	4,587,108	$	146,851	4.22	%	$	4,557,996	$	141,965	4.05	%
Interest bearing cash and cash equivalents		2,905,372		26,936	3.68	%		2,777,654		25,207	3.64	%		2,920,102		32,202	4.38	%		2,702,628		73,627	3.64	%		3,274,086		107,994	4.41	%
Loans held for sale⁽³⁾		11,434		213	7.39	%		3,080		4	0.54	%		—		—	—	%		5,901		217	4.92	%		110		2	2.97	%
Loans held for investment, mortgage finance		5,769,930		60,493	4.16	%		6,309,596		63,862	4.06	%		5,472,467		59,604	4.32	%		5,774,820		175,928	4.07	%		4,929,539		156,838	4.25	%
Loans held for investment⁽³⁾		18,759,118		319,511	6.76	%		18,490,750		305,403	6.62	%		18,253,451		319,921	6.95	%		18,476,249		922,266	6.67	%		17,935,710		922,154	6.87	%
Less: Allowance for credit losses on loans		267,448		—	—	%		271,925		—	—			277,385		—	—	%		269,261		—	—			276,076		—	—
Loans held for investment, net		24,261,600		380,004	6.21	%		24,528,421		369,265	6.04	%		23,448,533		379,525	6.42	%		23,981,808		1,098,194	6.12	%		22,589,173		1,078,992	6.39	%
Total earning assets		31,760,597		458,089	5.70	%		31,853,404		440,793	5.54	%		31,003,701		461,128	5.88	%		31,277,445		1,318,889	5.63	%		30,421,365		1,328,953	5.82	%
Cash and other assets		1,171,805						1,190,251						1,159,008						1,178,643						1,144,443
Total assets	$	32,932,402					$	33,043,655					$	32,162,709					$	32,456,088					$	31,565,808

Liabilities and Stockholders’ Equity
Transaction deposits	$	3,830,036	$	27,428	2.84	%	$	2,762,965	$	16,865	2.45	%	$	2,251,217	$	13,987	2.46	%	$	3,070,779	$	59,273	2.58	%	$	2,209,490	$	41,626	2.52	%
Savings deposits		14,159,289		123,103	3.45	%		13,902,996		118,592	3.42	%		14,650,152		143,327	3.88	%		14,070,148		360,390	3.42	%		13,916,232		411,176	3.95	%
Time deposits		2,396,968		23,986	3.97	%		3,172,354		31,570	3.99	%		2,158,228		23,465	4.31	%		2,531,404		75,785	4.00	%		2,282,419		77,711	4.55	%
Total interest bearing deposits		20,386,293		174,517	3.40	%		19,838,315		167,027	3.38	%		19,059,597		180,779	3.76	%		19,672,331		495,448	3.37	%		18,408,141		530,513	3.85	%
Short-term borrowings		8,804		84	3.75	%		378,022		3,552	3.77	%		44,022		534	4.82	%		214,026		5,996	3.75	%		364,641		12,224	4.48	%
Long-term debt		497,635		7,576	6.04	%		642,689		8,974	5.60	%		620,348		7,531	4.82	%		604,715		24,661	5.45	%		643,274		23,534	4.89	%
Total interest bearing liabilities		20,892,732		182,177	3.46	%		20,859,026		179,553	3.45	%		19,723,967		188,844	3.80	%		20,491,072		526,105	3.43	%		19,416,056		566,271	3.90	%
Non-interest bearing deposits		7,875,652						8,058,149						8,351,524						7,809,264						8,141,135
Other liabilities		454,891						442,543						463,034						466,648						496,644
Stockholders’ equity		3,709,127						3,683,937						3,624,184						3,689,104						3,511,973
Total liabilities and stockholders’ equity	$	32,932,402					$	33,043,655					$	32,162,709					$	32,456,088					$	31,565,808
Net interest income			$	275,912					$	261,240					$	272,284					$	792,784					$	762,682
Net interest margin					3.44	%					3.28	%					3.47	%					3.38	%					3.34	%

(1)	Taxable equivalent rates used where applicable.
(2)	Yields are calculated using available-for-sale debt securities at amortized cost.
(3)	Average balances include non-accrual loans.

GAAP TO NON-GAAP RECONCILIATIONS

The following items are non-GAAP financial measures: adjusted non-interest expense, adjusted income tax expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about the Company to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands except per share data)	3rd Quarter 2026			2nd Quarter 2026			1st Quarter 2026			4th Quarter 2025			3rd Quarter 2025
Net interest income	$	274,983		$	260,377		$	254,719		$	267,437		$	271,771
Non-interest income		81,643			75,118			69,266			60,046			68,583
Total revenue		356,626			335,495			323,985			327,483			340,354

Non-interest expense		203,924			205,493			213,568			184,198			190,575
FDIC special assessment		—			—			—			2,242			—
Restructuring expenses		(4,343	)		(564	)		(1,401	)		—			—
Debt extinguishment expense		—			(2,157	)		—			—			—
Non-interest expense, adjusted		199,581			202,772			212,167			186,440			190,575

Provision for credit losses		17,000			18,000			16,000			11,000			12,000

Income tax expense		31,997			27,054			20,629			31,626			32,569
Tax effect of adjustments		1,035			659			339			(526	)		—
Income tax expense, adjusted		33,032			27,713			20,968			31,100			32,569

Net income⁽¹⁾	$	103,705		$	84,948		$	73,788		$	100,659		$	105,210
Net income, adjusted⁽¹⁾	$	107,013		$	87,010		$	74,850		$	98,943		$	105,210

Preferred stock dividends		4,313			4,312			4,313			4,312			4,313

Net income available to common stockholders⁽²⁾	$	99,392		$	80,636		$	69,475		$	96,347		$	100,897
Net income available to common stockholders, adjusted⁽²⁾	$	102,700		$	82,698		$	70,537		$	94,631		$	100,897

PPNR⁽³⁾	$	152,702		$	130,002		$	110,417		$	143,285		$	149,779
PPNR, adjusted⁽³⁾	$	157,045		$	132,723		$	111,818		$	141,043		$	149,779

Weighted average common shares outstanding, diluted		43,614,271			44,062,419			44,601,129			45,509,370			46,233,167
Diluted earnings per common share	$	2.28		$	1.83		$	1.56		$	2.12		$	2.18
Diluted earnings per common share, adjusted	$	2.35		$	1.88		$	1.58		$	2.08		$	2.18

Average total assets	$	32,932,402		$	33,043,655		$	31,375,093		$	32,606,318		$	32,162,709
Return on average assets		1.25	%		1.03	%		0.95	%		1.22	%		1.30	%
Return on average assets, adjusted		1.29	%		1.06	%		0.97	%		1.20	%		1.30	%

Average common equity	$	3,409,127		$	3,383,937		$	3,373,860		$	3,419,967		$	3,324,184
Return on average common equity		11.57	%		9.56	%		8.35	%		11.18	%		12.04	%
Return on average common equity, adjusted		11.95	%		9.80	%		8.48	%		10.98	%		12.04	%

Efficiency ratio⁽⁴⁾		57.2	%		61.3	%		65.9	%		56.2	%		56.0	%
Efficiency ratio, adjusted⁽⁴⁾		56.0	%		60.4	%		65.5	%		56.9	%		56.0	%

Average earning assets	$	31,760,597		$	31,853,404		$	30,201,198		$	31,413,694		$	31,003,701
Non-interest income to average earning assets		1.02	%		0.95	%		0.93	%		0.76	%		0.88	%
Non-interest income to average earning assets, adjusted		1.02	%		0.95	%		0.93	%		0.76	%		0.88	%
Non-interest expense to average earning assets		2.55	%		2.59	%		2.87	%		2.33	%		2.44	%
Non-interest expense to average earning assets, adjusted		2.49	%		2.55	%		2.85	%		2.35	%		2.44	%

(1)	Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense. On an adjusted basis, net interest income plus non-interest income less non-interest expense, adjusted, provision for credit losses and income tax expense, adjusted.
(2)	Net income, less preferred stock dividends. On an adjusted basis, net income, adjusted, less preferred stock dividends.
(3)	Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, less non-interest expense, adjusted.
(4)	Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income.

INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapital.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.