Initiation of quarterly common stock cash dividend of $0.20 per share
First quarter 2026 net income available to common stockholders of $69.5 million, up 63% year-over-year
Book Value and Tangible Book Value(4) per share both increased 11% year-over-year
Capital ratios continue to be strong, achieving 12.0% CET1 and 15.9% Total Capital
DALLAS, April 23, 2026 (GLOBE NEWSWIRE) -- “Our first quarter results reflect the increasing relevance of our platform and the breadth of capabilities we can now deliver for clients across our markets,” said Rob C. Holmes, Chairman, President & CEO. “The diversification of our revenue base continues to accelerate, with fee-generating businesses contributing a meaningfully larger share of total revenue and reinforcing the durability of the operating model we have built. Supported by sustainable earnings generation, strong capital levels and proven strategic positioning, we are pleased to announce the initiation of the first quarterly common stock dividend in Texas Capital’s history at $0.20 per share.”
1st Quarter 4th Quarter 1st Quarter(dollars in thousands except per share data) 2026 2025 2025 Summary Income Statement Net interest income$254,719 $267,437 $236,034 Non-interest income 69,266 60,046 44,444 Total revenue 323,985 327,483 280,478 Non-interest expense 213,568 184,198 203,020 Pre-provision net revenue(1) 110,417 143,285 77,458 Provision for credit losses 16,000 11,000 17,000 Net income available to common stockholders 69,475 96,347 42,734 Non-interest income, adjusted(2)$69,266 $60,046 $44,444 Total revenue, adjusted(2) 323,985 327,483 280,478 Non-interest expense, adjusted(2) 212,167 186,440 203,020 Pre-provision net revenue, adjusted(1)(2) 111,818 141,043 77,458 Net income to common stockholders, adjusted(2) 70,537 94,631 42,734 Key Metrics Diluted earnings per common share$1.56 $2.12 $0.92 Diluted earnings per common shares, adjusted(2)$1.58 $2.08 $0.92 Return on average assets 0.95% 1.22% 0.61%Return on average assets, adjusted(2) 0.97% 1.20% 0.61%Return on average common equity 8.35% 11.18% 5.56%Return on average common equity, adjusted(2) 8.48% 10.98% 5.56%Efficiency ratio(3) 65.9% 56.2% 72.4%Efficiency ratio, adjusted(2)(3) 65.5% 56.9% 72.4%Net interest margin 3.43% 3.38% 3.19%Book value per share$75.71 $75.28 $68.00 Tangible book value per share(4)$75.67 $75.25 $67.97 Common Equity Tier 1 ratio 12.0% 12.1% 11.6% Balance Sheet Total assets$33,486,484 $31,540,274 $31,375,749 Loans held for investment 18,217,976 17,976,183 17,654,243 Loans held for investment, mortgage finance 6,961,686 6,064,019 4,725,541 Total deposits 28,516,688 26,448,767 26,053,034 Stockholders’ equity 3,606,207 3,631,382 3,429,774FIRST QUARTER 2026 COMPARED TO FOURTH QUARTER 2025
For the first quarter of 2026, net income available to common stockholders was $69.5 million, or $1.56 per diluted share, compared to $96.3 million, or $2.12 per diluted share, for the fourth quarter of 2025.
Provision for credit losses for the first quarter of 2026 was $16.0 million, compared to $11.0 million for the fourth quarter of 2025. The $16.0 million provision for credit losses recorded in the first quarter of 2026 resulted primarily from an increase in criticized loans and $17.4 million in net charge-offs.
Net interest income was $254.7 million for the first quarter of 2026, compared to $267.4 million for the fourth quarter of 2025, primarily due to decreases in average earning assets and earning asset yields, partially offset by a decrease in funding costs. Net interest margin for the first quarter of 2026 was 3.43%, an increase of 5 basis points from the fourth quarter of 2025. Loans held for investment (“LHI”), excluding mortgage finance, yields decreased 6 basis points from the fourth quarter of 2025 and LHI, mortgage finance, yields decreased 14 basis points from the fourth quarter of 2025. Total cost of deposits was 2.38% for the first quarter of 2026, a 3 basis point decrease from the fourth quarter of 2025.
Non-interest income for the first quarter of 2026 increased $9.2 million compared to the fourth quarter of 2025 primarily due to increases in investment banking and advisory fees, trading income and other non-interest income.
Non-interest expense for the first quarter of 2026 increased $29.4 million compared to the fourth quarter of 2025, primarily due to an increase in salaries and benefits, primarily as a result of the effect of seasonal payroll expenses that peak in the first quarter.
FIRST QUARTER 2026 COMPARED TO FIRST QUARTER 2025
Net income available to common stockholders was $69.5 million, or $1.56 per diluted share, for the first quarter of 2026, compared to $42.7 million, or $0.92 per diluted share, for the first quarter of 2025.
The first quarter of 2026 included a $16.0 million provision for credit losses, reflecting a linked quarter increase in criticized loans and $17.4 million in net charge-offs, compared to a $17.0 million provision for credit losses for the first quarter of 2025.
Net interest income increased to $254.7 million for the first quarter of 2026, compared to $236.0 million for the first quarter of 2025, primarily due to an increase in average earning assets and a decrease in funding costs. Net interest margin increased 24 basis points to 3.43% for the first quarter of 2026, as compared to the first quarter of 2025. LHI, excluding mortgage finance, yields decreased 21 basis points compared to the first quarter of 2025 and LHI, mortgage finance yields increased 6 basis points from the first quarter of 2025. Total cost of deposits decreased 38 basis points compared to the first quarter of 2025.
Non-interest income for the first quarter of 2026 increased $24.8 million compared to the first 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 first quarter of 2026 increased $10.5 million compared to the first quarter of 2025, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in legal and professional expense.
CREDIT QUALITY
Net charge-offs of $17.4 million were recorded during the first quarter of 2026, compared to net charge-offs of $10.7 million and $9.8 million during the fourth quarter of 2025 and the first quarter of 2025, respectively. Criticized loans totaled $650.6 million at March 31, 2026, compared to $634.9 million at December 31, 2025 and $762.9 million at March 31, 2025. Non-accrual LHI totaled $144.9 million at March 31, 2026, compared to $116.9 million at December 31, 2025 and $93.6 million at March 31, 2025. The ratio of non-accrual LHI to total LHI for the first quarter of 2026 was 0.58%, compared to 0.49% for the fourth quarter of 2025 and 0.42% for the first quarter of 2025. The ratio of total allowance for credit losses to total LHI was 1.32% at March 31, 2026, compared to 1.38% and 1.48% at December 31, 2025 and March 31, 2025, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of March 31, 2026. CET1, tier 1 capital, total capital and leverage ratios were 12.0%, 13.4%, 15.9% and 12.1%, respectively, at March 31, 2026, compared to 12.1%, 13.6%, 16.1% and 11.7%, respectively, at December 31, 2025 and 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025. At March 31, 2026, our ratio of tangible common equity to total tangible assets was 9.9%, compared to 10.6% at December 31, 2025 and 10.0% at March 31, 2025.
During the first quarter of 2026, the Company repurchased 770,423 shares of its common stock for an aggregate purchase price, including excise tax expense, of $75.1 million, at a weighted average price of $96.82 per share.
PREFERRED AND COMMON DIVIDEND
Texas Capital Bancshares, Inc. and its board of directors declared and announced 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 NASDAQ under the symbol “TCBIO.” The dividend is payable on June 15, 2026, to holders of record at the close of business on June 1, 2026.
Texas Capital Bancshares, Inc. and its board of directors declared and announced a cash dividend of $0.20 per common share. The common shares are traded on the NASDAQ under the symbol “TCBI.” The dividend is payable on June 15, 2026, to holders of record at the close of business on June 1, 2026.
About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ®: 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; 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 SEC. 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) 1st Quarter4th Quarter3rd Quarter2nd Quarter1st Quarter 2026 2025 2025 2025 2025 CONSOLIDATED STATEMENTS OF INCOME Interest income$419,094 $444,314 $460,615 $439,567 $427,289 Interest expense 164,375 176,877 188,844 186,172 191,255 Net interest income 254,719 267,437 271,771 253,395 236,034 Provision for credit losses 16,000 11,000 12,000 15,000 17,000 Net interest income after provision for credit losses 238,719 256,437 259,771 238,395 219,034 Non-interest income 69,266 60,046 68,583 54,069 44,444 Non-interest expense 213,568 184,198 190,575 190,276 203,020 Income before income taxes 94,417 132,285 137,779 102,188 60,458 Income tax expense 20,629 31,626 32,569 24,860 13,411 Net income 73,788 100,659 105,210 77,328 47,047 Preferred stock dividends 4,313 4,312 4,313 4,312 4,313 Net income available to common stockholders$69,475 $96,347 $100,897 $73,016 $42,734 Diluted earnings per common share$1.56 $2.12 $2.18 $1.58 $0.92 Diluted common shares 44,601,129 45,509,370 46,233,167 46,215,394 46,616,704 CONSOLIDATED BALANCE SHEET DATA Total assets$33,486,484 $31,540,274 $32,536,980 $31,943,535 $31,375,749 Loans held for investment 18,217,976 17,976,183 18,134,059 18,035,945 17,654,243 Loans held for investment, mortgage finance 6,961,686 6,064,019 6,057,804 5,889,589 4,725,541 Loans held for sale 21,333 4,361 — — — Interest bearing cash and cash equivalents 2,702,183 1,897,803 2,852,387 2,507,691 3,600,969 Debt and equity securities 4,673,355 4,723,099 4,601,654 4,608,628 4,531,219 Non-interest bearing deposits 7,634,618 6,959,097 7,689,598 7,718,006 7,874,780 Total deposits 28,516,688 26,448,767 27,505,398 26,064,309 26,053,034 Short-term borrowings — 330,000 275,000 1,250,000 750,000 Long-term debt 878,293 620,575 620,416 620,256 660,521 Stockholders’ equity 3,606,207 3,631,382 3,637,098 3,510,070 3,429,774 End of period shares outstanding 43,671,305 44,253,688 45,679,863 45,746,836 46,024,933 Book value per share$75.71 $75.28 $73.05 $70.17 $68.00 Tangible book value per share(1)$75.67 $75.25 $73.02 $70.14 $67.97 SELECTED FINANCIAL RATIOS Net interest margin 3.43% 3.38% 3.47% 3.35% 3.19%Return on average assets 0.95% 1.22% 1.30% 0.99% 0.61%Return on average assets, adjusted(4) 0.97% 1.20% 1.30% 1.02% 0.61%Return on average common equity 8.35% 11.18% 12.04% 9.17% 5.56%Return on average common equity, adjusted(4) 8.48% 10.98% 12.04% 9.48% 5.56%Efficiency ratio(2) 65.9% 56.2% 56.0% 61.9% 72.4%Efficiency ratio, adjusted(2)(4) 65.5% 56.9% 56.0% 61.1% 72.4%Non-interest income to average earning assets 0.93% 0.76% 0.88% 0.72% 0.60%Non-interest income to average earning assets, adjusted(4) 0.93% 0.76% 0.88% 0.74% 0.60%Non-interest expense to average earning assets 2.87% 2.33% 2.44% 2.52% 2.75%Non-interest expense to average earning assets, adjusted(4) 2.85% 2.35% 2.44% 2.50% 2.75%Common equity to total assets 9.9% 10.6% 10.3% 10.1% 10.0%Tangible common equity to total tangible assets(3) 9.9% 10.6% 10.3% 10.1% 10.0%Common Equity Tier 1 ratio 12.0% 12.1% 12.1% 11.4% 11.6%Tier 1 capital ratio 13.4% 13.6% 13.6% 12.9% 13.1%Total capital ratio 15.9% 16.1% 16.1% 15.3% 15.6%Leverage ratio 12.1% 11.7% 11.9% 11.8% 11.8%2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Assets Cash and due from banks$254,428 $201,315 $212,438 $182,451 $201,504 Interest bearing cash and cash equivalents 2,702,183 1,897,803 2,852,387 2,507,691 3,600,969 Available-for-sale debt securities 3,913,855 3,951,455 3,801,261 3,774,141 3,678,378 Held-to-maturity debt securities 709,594 725,722 743,120 761,907 779,354 Equity securities 42,024 41,998 55,054 68,692 71,679 Trading debt securities 7,882 3,924 2,219 3,888 1,808 Debt and equity securities 4,673,355 4,723,099 4,601,654 4,608,628 4,531,219 Loans held for sale 21,333 4,361 — — — Loans held for investment, mortgage finance 6,961,686 6,064,019 6,057,804 5,889,589 4,725,541 Loans held for investment 18,217,976 17,976,183 18,134,059 18,035,945 17,654,243 Less: Allowance for credit losses on loans 270,441 270,557 274,026 277,648 278,379 Loans held for investment, net 24,909,221 23,769,645 23,917,837 23,647,886 22,101,405 Premises and equipment, net 85,698 88,003 88,348 86,831 84,575 Accrued interest receivable and other assets 838,770 854,552 862,820 908,552 854,581 Goodwill and intangibles, net 1,496 1,496 1,496 1,496 1,496 Total assets$33,486,484 $31,540,274 $32,536,980 $31,943,535 $31,375,749 Liabilities and Stockholders’ Equity Liabilities: Non-interest bearing deposits$7,634,618 $6,959,097 $7,689,598 $7,718,006 $7,874,780 Interest bearing deposits 20,882,070 19,489,670 19,815,800 18,346,303 18,178,254 Total deposits 28,516,688 26,448,767 27,505,398 26,064,309 26,053,034 Accrued interest payable 9,420 6,716 9,360 14,120 25,270 Other liabilities 475,876 502,834 489,708 484,780 457,150 Short-term borrowings — 330,000 275,000 1,250,000 750,000 Long-term debt 878,293 620,575 620,416 620,256 660,521 Total liabilities 29,880,277 27,908,892 28,899,882 28,433,465 27,945,975 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) 520 518 518 517 517 Additional paid-in capital 1,077,139 1,074,496 1,069,582 1,065,083 1,060,028 Retained earnings 2,878,120 2,808,645 2,712,298 2,611,401 2,538,385 Treasury stock(3) (562,833) (487,692) (361,076) (354,000) (332,994)Accumulated other comprehensive loss, net of taxes (86,739) (64,585) (84,224) (112,931) (136,162)Total stockholders’ equity 3,606,207 3,631,382 3,637,098 3,510,070 3,429,774 Total liabilities and stockholders’ equity$33,486,484 $31,540,274 $32,536,980 $31,943,535 $31,375,749 (1) Preferred stock - issued shares 300,000 300,000 300,000 300,000 300,000 (2) Common stock - issued shares 51,974,496 51,786,456 51,767,419 51,747,305 51,707,542 (3) Treasury stock - shares at cost 8,303,191 7,532,768 6,087,556 6,000,469 5,682,609
20264th Quarter
20253rd Quarter
20252nd Quarter
20251st Quarter
2025Interest income Interest and fees on loans$348,020$367,481$379,017$364,358 $334,150Debt and equity securities 49,590 47,012 49,396 45,991 46,565Interest bearing cash and cash equivalents 21,484 29,821 32,202 29,218 46,574Total interest income 419,094 444,314 460,615 439,567 427,289Interest expense Deposits 153,904 167,259 180,779 174,798 174,936Short-term borrowings 2,360 2,153 534 3,444 8,246Long-term debt 8,111 7,465 7,531 7,930 8,073Total interest expense 164,375 176,877 188,844 186,172 191,255Net interest income 254,719 267,437 271,771 253,395 236,034Provision for credit losses 16,000 11,000 12,000 15,000 17,000Net interest income after provision for credit losses 238,719 256,437 259,771 238,395 219,034Non-interest income Service charges on deposit accounts 9,223 8,411 8,111 8,182 7,840Wealth management and trust fee income 4,388 4,216 3,989 3,730 3,964Brokered loan fees 2,006 2,467 2,419 2,398 1,949Investment banking and advisory fees 32,016 30,015 33,985 24,109 16,478Trading income 10,251 6,020 7,238 7,896 5,939Available-for-sale debt securities gains/(losses), net — — — (1,886) —Other 11,382 8,917 12,841 9,640 8,274Total non-interest income 69,266 60,046 68,583 54,069 44,444Non-interest expense Salaries and benefits 139,347 108,851 119,856 120,154 131,641Occupancy expense 12,405 12,803 11,828 12,144 10,844Marketing 4,972 5,404 3,412 3,624 5,009Legal and professional 11,980 11,580 12,474 11,069 14,989Communications and technology 27,172 26,303 24,594 24,314 23,642Federal Deposit Insurance Corporation insurance assessment 4,877 2,276 5,198 5,096 5,341Other 12,815 16,981 13,213 13,875 11,554Total non-interest expense 213,568 184,198 190,575 190,276 203,020Income before income taxes 94,417 132,285 137,779 102,188 60,458Income tax expense 20,629 31,626 32,569 24,860 13,411Net income 73,788 100,659 105,210 77,328 47,047Preferred stock dividends 4,313 4,312 4,313 4,312 4,313Net income available to common stockholders$69,475$96,347$100,897$73,016 $42,734 Basic earnings per common share$1.58$2.14$2.21$1.59 $0.93Diluted earnings per common share$1.56$2.12$2.18$1.58 $0.92
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
RateAssets Debt and equity securities(2)$4,635,471$49,5984.30% $4,629,242$47,0253.98% $4,463,876$46,5654.10%Interest bearing cash and cash equivalents 2,419,518 21,4843.60% 2,994,417 29,8213.95% 4,255,796 46,5744.44%Loans held for sale(3) 3,096 ——% 47 ——% 335 22.97%Loans held for investment, mortgage finance 5,239,103 51,5733.99% 5,890,991 61,3194.13% 3,972,106 38,5273.93%Loans held for investment(3) 18,172,432 297,3526.64% 18,177,312 307,0536.70% 17,527,070 296,0916.85%Less: Allowance for credit losses on loans 268,422 ——% 278,315 —— 272,758 ——%Loans held for investment, net 23,143,113 348,9256.11% 23,789,988 368,3726.14% 21,226,418 334,6186.39%Total earning assets 30,201,198 420,0075.63% 31,413,694 445,2185.61% 29,946,425 427,7595.76%Cash and other assets 1,173,895 1,192,624 1,157,184 Total assets$31,375,093 $32,606,318 $31,103,609 Liabilities and Stockholders’ Equity Transaction deposits$2,605,884$14,9802.33% $2,470,262$13,4682.16% $2,163,250$13,9082.61%Savings deposits 14,148,034 118,6953.40% 14,453,912 130,5363.58% 13,357,243 133,5774.06%Time deposits 2,020,757 20,2294.06% 2,207,631 23,2554.18% 2,329,384 27,4514.78%Total interest bearing deposits 18,774,675 153,9043.32% 19,131,805 167,2593.47% 17,849,877 174,9363.97%Short-term borrowings 257,989 2,3603.71% 221,250 2,1533.86% 751,500 8,2464.45%Long-term debt 675,780 8,1114.87% 620,505 7,4654.77% 660,445 8,0734.96%Total interest bearing liabilities 19,708,444 164,3753.38% 19,973,560 176,8773.51% 19,261,822 191,2554.03%Non-interest bearing deposits 7,489,751 8,455,034 7,875,244 Other liabilities 503,038 457,757 552,154 Stockholders’ equity 3,673,860 3,719,967 3,414,389 Total liabilities and stockholders’ equity$31,375,093 $32,606,318 $31,103,609 Net interest income $255,632 $268,341 $236,504 Net interest margin 3.43% 3.38% 3.19% (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 income, adjusted total revenue, 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 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 Texas Capital Bancshares, Inc. 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)1st Quarter20264th Quarter
20253rd Quarter
20252nd Quarter
20251st Quarter
2025Net interest income$254,719 $267,437 $271,771 $253,395 $236,034 Non-interest income 69,266 60,046 68,583 54,069 44,444 Available-for-sale debt securities losses, net — — — 1,886 — Non-interest income, adjusted 69,266 60,046 68,583 55,955 44,444 Total revenue(1) 323,985 327,483 340,354 307,464 280,478 Total revenue, adjusted(1) 323,985 327,483 340,354 309,350 280,478 Non-interest expense 213,568 184,198 190,575 190,276 203,020 FDIC special assessment — 2,242 — — — Restructuring expenses (1,401) — — (1,401) — Non-interest expense, adjusted 212,167 186,440 190,575 188,875 203,020 Provision for credit losses 16,000 11,000 12,000 15,000 17,000 Income tax expense 20,629 31,626 32,569 24,860 13,411 Tax effect of adjustments 339 (526) — 774 — Income tax expense, adjusted 20,968 31,100 32,569 25,634 13,411 Net income(2)$73,788 $100,659 $105,210 $77,328 $47,047 Net income, adjusted(2)$74,850 $98,943 $105,210 $79,841 $47,047 Preferred stock dividends 4,313 4,312 4,313 4,312 4,313 Net income to common stockholders(3)$69,475 $96,347 $100,897 $73,016 $42,734 Net income to common stockholders, adjusted(3)$70,537 $94,631 $100,897 $75,529 $42,734 PPNR(4)$110,417 $143,285 $149,779 $117,188 $77,458 PPNR, adjusted(4)$111,818 $141,043 $149,779 $120,475 $77,458 Weighted average common shares outstanding, diluted 44,601,129 45,509,370 46,233,167 46,215,394 46,616,704 Diluted earnings per common share$1.56 $2.12 $2.18 $1.58 $0.92 Diluted earnings per common share, adjusted$1.58 $2.08 $2.18 $1.63 $0.92 Average total assets$31,375,093 $32,606,318 $32,162,709 $31,419,469 $31,103,609 Return on average assets 0.95% 1.22% 1.30% 0.99% 0.61%Return on average assets, adjusted 0.97% 1.20% 1.30% 1.02% 0.61% Average common equity$3,373,860 $3,419,967 $3,324,184 $3,195,041 $3,114,389 Return on average common equity 8.35% 11.18% 12.04% 9.17% 5.56%Return on average common equity, adjusted 8.48% 10.98% 12.04% 9.48% 5.56% Efficiency ratio(5) 65.9% 56.2% 56.0% 61.9% 72.4%Efficiency ratio, adjusted(5) 65.5% 56.9% 56.0% 61.1% 72.4% Average earning assets$30,201,198 $31,413,694 $31,003,701 $30,302,351 $29,946,425 Non-interest income to average earning assets 0.93% 0.76% 0.88% 0.72% 0.60%Non-interest income to average earning assets, adjusted 0.93% 0.76% 0.88% 0.74% 0.60%Non-interest expense to average earning assets 2.87% 2.33% 2.44% 2.52% 2.75%Non-interest expense to average earning assets, adjusted 2.85% 2.35% 2.44% 2.50% 2.75%
(1) Net interest income plus non-interest income. On an adjusted basis, net interest income plus non-interest income, adjusted.
(2) 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, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense, adjusted.
(3) Net income, less preferred stock dividends. On an adjusted basis, net income, adjusted, less preferred stock dividends.
(4) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.
(5) 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, adjusted.