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Texas Capital Bancshares, Inc. Announces Second Quarter 2025 Results

1. Second quarter 2025 net income rose 86% year-over-year. 2. Earnings per share increased by 98% to $1.58. 3. Loans increased by 10% year-over-year, showing solid growth. 4. Total deposits grew, enhancing TCBI's financial strength. 5. Credit quality improved with a decrease in criticized loans.

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Why Very Bullish?

With strong earnings growth and improving credit quality, TCBI is well-positioned for future gains, similar to its past performance which led to consistent stock appreciation following strong quarterly reports.

How important is it?

The reported financial results highlight TCBI's robust growth and operational efficiency, making it likely to attract investor confidence and drive stock price increases.

Why Short Term?

Current financial performance metrics are expected to drive stock performance in the short term, especially following quarterly earnings announcements that typically influence immediate market responses.

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Second quarter 2025 net income of $77.3 million and net income available to common stockholders of $73.0 million, up 86% and 95%, respectively, year-over-year Second quarter 2025 EPS of $1.58 per diluted share and adjusted EPS(1) of $1.63 per diluted share, up 98% and 104%, respectively, year-over-year Strong balance sheet growth with total loans increasing 7% quarter-over-quarter and 10% year-over-year Book Value and Tangible Book Value(2) per share both increasing 13% year-over-year, reaching record levels DALLAS, July 17, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the second quarter of 2025. “Our multi-year focus on building a differentiated, full-service financial services firm has strengthened our client franchise and consistently delivered high-quality outcomes across our platform, driving strong financial performance this quarter,” said Rob C. Holmes, Chairman, President & CEO. “The strategic actions we’ve taken have structurally enhanced our earnings power, and as we enter the second half of the year, the breadth of our capabilities and the strength of our balance sheet position us to deliver durable, through-cycle results for both clients and shareholders.”  2nd Quarter 1st Quarter 2nd Quarter(dollars in thousands except per share data) 2025   2025   2024 OPERATING RESULTS     Net income$77,328  $47,047  $41,662 Net income available to common stockholders$73,016  $42,734  $37,350 Pre-provision net revenue(3)$117,188  $77,458  $78,597 Diluted earnings per common share$1.58  $0.92  $0.80 Diluted common shares 46,215,394   46,616,704   46,872,498 Return on average assets 0.99%  0.61%  0.56%Return on average common equity 9.17%  5.56%  5.26%      OPERATING RESULTS, ADJUSTED(1)     Net income$79,841  $47,047  $42,020 Net income available to common stockholders$75,529  $42,734  $37,708 Pre-provision net revenue(3)$120,475  $77,458  $79,059 Diluted earnings per common share$1.63  $0.92  $0.80 Diluted common shares 46,215,394   46,616,704   46,872,498 Return on average assets 1.02%  0.61%  0.57%Return on average common equity 9.48%  5.56%  5.31%      BALANCE SHEET     Loans held for investment$18,035,945  $17,654,243  $16,700,569 Loans held for investment, mortgage finance 5,889,589   4,725,541   5,078,161 Total loans held for investment 23,925,534   22,379,784   21,778,730 Loans held for sale —   —   36,785 Total assets 31,943,535   31,375,749   29,854,994 Non-interest bearing deposits 7,718,006   7,874,780   7,987,715 Total deposits 26,064,309   26,053,034   23,818,327 Stockholders’ equity 3,510,070   3,429,774   3,175,601        (1) 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.(2) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(3) Net interest income plus non-interest income, less non-interest expense. SECOND QUARTER 2025 COMPARED TO FIRST QUARTER 2025 For the second quarter of 2025, net income available to common stockholders was $73.0 million, or $1.58 per diluted share, compared to $42.7 million, or $0.92 per diluted share, for the first quarter of 2025. Provision for credit losses for the second quarter of 2025 was $15.0 million, compared to $17.0 million for the first quarter of 2025. The $15.0 million provision for credit losses recorded in the second quarter of 2025 resulted primarily from an increase in total loans held for investment (“LHI”) and $13.0 million in net charge-offs, partially offset by a decrease in criticized loans. Net interest income was $253.4 million for the second quarter of 2025, compared to $236.0 million for the first quarter of 2025, primarily due to increases in average earning assets and earning asset yields, a decrease in average short-term borrowings and the impact of one additional day in the second quarter. Net interest margin for the second quarter of 2025 was 3.35%, an increase of 16 basis points from the first quarter of 2025. LHI, excluding mortgage finance, yields decreased 4 basis points from the first quarter of 2025 and LHI, mortgage finance, yields increased 49 basis points from the first quarter of 2025. Total cost of deposits was 2.65% for the second quarter of 2025, an 11 basis point decrease from the first quarter of 2025. Non-interest income for the second quarter of 2025 increased $9.6 million compared to the first quarter of 2025 primarily due to increases in investment banking and advisory fees and trading income, partially offset by a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025. Non-interest expense for the second quarter of 2025 decreased $12.7 million compared to the first quarter of 2025, primarily due to decreases in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, and legal and professional expense, partially offset by an increase in other non-interest expense. SECOND QUARTER 2025 COMPARED TO SECOND QUARTER 2024 Net income available to common stockholders was $73.0 million, or $1.58 per diluted share, for the second quarter of 2025, compared to $37.4 million, or $0.80 per diluted share, for the second quarter of 2024. The second quarter of 2025 included a $15.0 million provision for credit losses, reflecting an increase in total LHI and $13.0 million in net charge-offs, partially offset by a decline in criticized loans, compared to a $20.0 million provision for credit losses for the second quarter of 2024. Net interest income increased to $253.4 million for the second quarter of 2025, compared to $216.6 million for the second quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 34 basis points to 3.35% for the second quarter of 2025, as compared to the second quarter of 2024. LHI, excluding mortgage finance, yields decreased 44 basis points compared to the second quarter of 2024 and LHI, mortgage finance yields increased 48 basis points from the second quarter of 2024. Total cost of deposits decreased 34 basis points compared to the second quarter of 2024. Non-interest income for the second quarter of 2025 increased $3.6 million compared to the second quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by the loss on sale of available-for-sale debt securities mentioned above. Non-interest expense for the second quarter of 2025 increased $1.9 million compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in marketing expense. CREDIT QUALITY Net charge-offs of $13.0 million were recorded during the second quarter of 2025, compared to net charge-offs of $9.8 million and $12.0 million during the first quarter of 2025 and the second quarter of 2024, respectively. Criticized loans totaled $637.5 million at June 30, 2025, compared to $762.9 million at March 31, 2025 and $859.7 million at June 30, 2024. Non-accrual LHI totaled $113.6 million at June 30, 2025, compared to $93.6 million at March 31, 2025 and $85.0 million at June 30, 2024. The ratio of non-accrual LHI to total LHI for the second quarter of 2025 was 0.47%, compared to 0.42% for the first quarter of 2025 and 0.39% for the second quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.40% at June 30, 2025, compared to 1.48% and 1.44% at March 31, 2025 and June 30, 2024, respectively. REGULATORY RATIOS AND CAPITAL All regulatory ratios continue to be in excess of “well capitalized” requirements as of June 30, 2025. CET1, tier 1 capital, total capital and leverage ratios were 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025, compared to 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025 and 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024. At June 30, 2025, our ratio of tangible common equity to total tangible assets was 10.1%, compared to 10.0% at March 31, 2025 and 9.6% at June 30, 2024. During the second quarter of 2025, the Company repurchased 317,860 shares of its common stock for an aggregate purchase price, including excise tax expense, of $21.0 million, at a weighted average price of $65.50 per share. 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. 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 recent trade policies and their impact on our customers; 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 and new products and services and potential strategic 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, 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; the failure to identify, attract and retain key personnel and other employees; 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; 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) 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter  2025  2025  2024  2024  2024 CONSOLIDATED STATEMENTS OF INCOME     Interest income$439,567 $427,289 $437,571 $452,533 $422,068 Interest expense 186,172  191,255  207,964  212,431  205,486 Net interest income 253,395  236,034  229,607  240,102  216,582 Provision for credit losses 15,000  17,000  18,000  10,000  20,000 Net interest income after provision for credit losses 238,395  219,034  211,607  230,102  196,582 Non-interest income 54,069  44,444  54,074  (114,771) 50,424 Non-interest expense 190,276  203,020  172,159  195,324  188,409 Income/(loss) before income taxes 102,188  60,458  93,522  (79,993) 58,597 Income tax expense/(benefit) 24,860  13,411  22,499  (18,674) 16,935 Net income/(loss) 77,328  47,047  71,023  (61,319) 41,662 Preferred stock dividends 4,312  4,313  4,312  4,313  4,312 Net income/(loss) available to common stockholders$73,016 $42,734 $66,711 $(65,632)$37,350 Diluted earnings/(loss) per common share$1.58 $0.92 $1.43 $(1.41)$0.80 Diluted common shares 46,215,394  46,616,704  46,770,961  46,608,742  46,872,498 CONSOLIDATED BALANCE SHEET DATA     Total assets$31,943,535 $31,375,749 $30,731,883 $31,629,299 $29,854,994 Loans held for investment 18,035,945  17,654,243  17,234,492  16,764,512  16,700,569 Loans held for investment, mortgage finance 5,889,589  4,725,541  5,215,574  5,529,659  5,078,161 Loans held for sale —  —  —  9,022  36,785 Interest bearing cash and cash equivalents 2,507,691  3,600,969  3,012,307  3,894,537  2,691,352 Investment securities 4,608,628  4,531,219  4,396,115  4,405,520  4,388,976 Non-interest bearing deposits 7,718,006  7,874,780  7,485,428  9,070,804  7,987,715 Total deposits 26,064,309  26,053,034  25,238,599  25,865,255  23,818,327 Short-term borrowings 1,250,000  750,000  885,000  1,035,000  1,675,000 Long-term debt 620,256  660,521  660,346  660,172  659,997 Stockholders’ equity 3,510,070  3,429,774  3,367,936  3,354,044  3,175,601       End of period shares outstanding 45,746,836  46,024,933  46,233,812  46,207,757  46,188,078 Book value per share$70.17 $68.00 $66.36 $66.09 $62.26 Tangible book value per share(1)$70.14 $67.97 $66.32 $66.06 $62.23 SELECTED FINANCIAL RATIOS     Net interest margin 3.35% 3.19% 2.93% 3.16% 3.01%Return on average assets 0.99% 0.61% 0.88%(0.78)% 0.56%Return on average assets, adjusted(4) 1.02% 0.61% 0.88% 1.00% 0.57%Return on average common equity 9.17% 5.56% 8.50%(8.87)% 5.26%Return on average common equity, adjusted(4) 9.48% 5.56% 8.50% 10.04% 5.31%Efficiency ratio(2) 61.9% 72.4% 60.7% 155.8% 70.6%Efficiency ratio, adjusted(2)(4) 61.1% 72.4% 60.7% 62.3% 70.4%Non-interest income to average earning assets 0.72% 0.60% 0.69%(1.52)% 0.71%Non-interest income to average earning assets, adjusted(4) 0.74% 0.60% 0.69% 0.86% 0.71%Non-interest expense to average earning assets 2.52% 2.75% 2.21% 2.59% 2.65%Non-interest expense to average earning assets, adjusted(4) 2.50% 2.75% 2.21% 2.52% 2.65%Common equity to total assets 10.1% 10.0% 10.0% 9.7% 9.6%Tangible common equity to total tangible assets(3) 10.1% 10.0% 10.0% 9.7% 9.6%Common Equity Tier 1 11.4% 11.6% 11.4% 11.2% 11.6%Tier 1 capital 12.9% 13.1% 12.8% 12.6% 13.1%Total capital 15.3% 15.6% 15.4% 15.2% 15.7%Leverage 11.8% 11.8% 11.3% 11.4% 12.2% (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) June 30,2025March 31,2025December 31,2024September 30,2024June 30,2024Assets     Cash and due from banks$182,451 $201,504 $176,501 $297,048 $221,727 Interest bearing cash and cash equivalents 2,507,691  3,600,969  3,012,307  3,894,537  2,691,352 Available-for-sale debt securities 3,774,141  3,678,378  3,524,686  3,518,662  3,483,231 Held-to-maturity debt securities 761,907  779,354  796,168  812,432  831,513 Equity securities 68,692  71,679  75,261  74,426  74,232 Trading securities 3,888  1,808  —  —  — Investment securities 4,608,628  4,531,219  4,396,115  4,405,520  4,388,976 Loans held for sale —  —  —  9,022  36,785 Loans held for investment, mortgage finance 5,889,589  4,725,541  5,215,574  5,529,659  5,078,161 Loans held for investment 18,035,945  17,654,243  17,234,492  16,764,512  16,700,569 Less: Allowance for credit losses on loans 277,648  278,379  271,709  273,143  267,297 Loans held for investment, net 23,647,886  22,101,405  22,178,357  22,021,028  21,511,433 Premises and equipment, net 86,831  84,575  85,443  81,577  69,464 Accrued interest receivable and other assets 908,552  854,581  881,664  919,071  933,761 Goodwill and intangibles, net 1,496  1,496  1,496  1,496  1,496 Total assets$31,943,535 $31,375,749 $30,731,883 $31,629,299 $29,854,994       Liabilities and Stockholders’ Equity     Liabilities:     Non-interest bearing deposits$7,718,006 $7,874,780 $7,485,428 $9,070,804 $7,987,715 Interest bearing deposits 18,346,303  18,178,254  17,753,171  16,794,451  15,830,612 Total deposits 26,064,309  26,053,034  25,238,599  25,865,255  23,818,327 Accrued interest payable 14,120  25,270  23,680  18,679  23,841 Other liabilities 484,780  457,150  556,322  696,149  502,228 Short-term borrowings 1,250,000  750,000  885,000  1,035,000  1,675,000 Long-term debt 620,256  660,521  660,346  660,172  659,997 Total liabilities 28,433,465  27,945,975  27,363,947  28,275,255  26,679,393       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) 517  517  515  515  515 Additional paid-in capital 1,065,083  1,060,028  1,056,719  1,054,614  1,050,114 Retained earnings 2,611,401  2,538,385  2,495,651  2,428,940  2,494,572 Treasury stock(3) (354,000) (332,994) (301,842) (301,868) (301,868)Accumulated other comprehensive loss, net of taxes (112,931) (136,162) (183,107) (128,157) (367,732)Total stockholders’ equity 3,510,070  3,429,774  3,367,936  3,354,044  3,175,601 Total liabilities and stockholders’ equity$31,943,535 $31,375,749 $30,731,883 $31,629,299 $29,854,994       (1) Preferred stock - issued shares 300,000  300,000  300,000  300,000  300,000 (2) Common stock - issued shares 51,747,305  51,707,542  51,520,315  51,494,260  51,474,581 (3) Treasury stock - shares at cost 6,000,469  5,682,609  5,286,503  5,286,503  5,286,503  TEXAS CAPITAL BANCSHARES, INC.    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)    (dollars in thousands except per share data)     Three Months Ended June 30,Six Months Ended June 30,  2025 2024 2025 2024Interest income    Interest and fees on loans$364,358 $345,251$698,508 $676,130Investment securities 45,991  33,584 92,556  65,728Interest bearing cash and cash equivalents 29,218  43,233 75,792  97,588Total interest income 439,567  422,068 866,856  839,446Interest expense    Deposits 174,798  181,280 349,734  356,880Short-term borrowings 3,444  12,749 11,690  25,532Long-term debt 7,930  11,457 16,003  25,443Total interest expense 186,172  205,486 377,427  407,855Net interest income 253,395  216,582 489,429  431,591Provision for credit losses 15,000  20,000 32,000  39,000Net interest income after provision for credit losses 238,395  196,582 457,429  392,591Non-interest income    Service charges on deposit accounts 8,182  5,911 16,022  12,250Wealth management and trust fee income 3,730  3,699 7,694  7,266Brokered loan fees 2,398  2,131 4,347  4,042Investment banking and advisory fees 24,109  25,048 40,587  43,472Trading income 7,896  5,650 13,835  10,362Available-for-sale debt securities losses (1,886) — (1,886) —Other 9,640  7,985 17,914  14,351Total non-interest income 54,069  50,424 98,513  91,743Non-interest expense    Salaries and benefits 120,154  118,840 251,795  247,567Occupancy expense 12,144  10,666 22,988  20,403Marketing 3,624  5,996 8,633  12,032Legal and professional 11,069  11,273 26,058  27,468Communications and technology 24,314  22,013 47,956  43,127Federal Deposit Insurance Corporation insurance assessment 5,096  5,570 10,437  13,991Other 13,875  14,051 25,429  26,214Total non-interest expense 190,276  188,409 393,296  390,802Income before income taxes 102,188  58,597 162,646  93,532Income tax expense 24,860  16,935 38,271  25,728Net income 77,328  41,662 124,375  67,804Preferred stock dividends 4,312  4,312 8,625  8,625Net income available to common stockholders$73,016 $37,350$115,750 $59,179     Basic earnings per common share$1.59 $0.80$2.52 $1.26Diluted earnings per common share$1.58 $0.80$2.49 $1.25 TEXAS CAPITAL BANCSHARES, INC.SUMMARY OF CREDIT LOSS EXPERIENCE(dollars in thousands) 2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter  2025  2025  2024  2024  2024 Allowance for credit losses on loans:     Beginning balance$278,379 $271,709 $273,143 $267,297 $263,962 Allowance established for acquired purchase credit deterioration loans —  —  —  2,579  — Loans charged-off:     Commercial 13,020  10,197  14,100  6,120  9,997 Commercial real estate 431  500  2,566  262  2,111 Consumer —  —  —  30  — Total charge-offs 13,451  10,697  16,666  6,412  12,108 Recoveries:     Commercial 486  483  4,562  329  153 Commercial real estate —  413  18  —  — Consumer —  4  15  —  — Total recoveries 486  900  4,595  329  153 Net charge-offs 12,965  9,797  12,071  6,083  11,955 Provision for credit losses on loans 12,234  16,467  10,637  9,350  15,290 Ending balance$277,648 $278,379 $271,709 $273,143 $267,297       Allowance for off-balance sheet credit losses:     Beginning balance$53,865 $53,332 $45,969 $45,319 $40,609 Provision for off-balance sheet credit losses 2,766  533  7,363  650  4,710 Ending balance$56,631 $53,865 $53,332 $45,969 $45,319       Total allowance for credit losses$334,279 $332,244 $325,041 $319,112 $312,616 Total provision for credit losses$15,000 $17,000 $18,000 $10,000 $20,000       Allowance for credit losses on loans to total loans held for investment 1.16% 1.24% 1.21% 1.23% 1.23%Allowance for credit losses on loans to average total loans held for investment 1.19% 1.29% 1.22% 1.24% 1.27%Net charge-offs to average total loans held for investment(1) 0.22% 0.18% 0.22% 0.11% 0.23%Net charge-offs to average total loans held for investment for last 12 months(1) 0.18% 0.18% 0.19% 0.20% 0.22%Total provision for credit losses to average total loans held for investment(1) 0.26% 0.32% 0.32% 0.18% 0.38%Total allowance for credit losses to total loans held for investment 1.40% 1.48% 1.45% 1.43% 1.44% (1) Interim period ratios are annualized. TEXAS CAPITAL BANCSHARES, INC.      NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS   (dollars in thousands)      2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter  2025  2025  2024  2024  2024 NON-PERFORMING ASSETS     Non-accrual loans held for investment$113,609 $93,565 $111,165 $88,960 $85,021 Non-accrual loans held for sale —  —  —  —  — Other real estate owned —  —  —  —  — Total non-performing assets$113,609 $93,565 $111,165 $88,960 $85,021       Non-accrual loans held for investment to total loans held for investment 0.47% 0.42% 0.50% 0.40% 0.39%Total non-performing assets to total assets 0.36% 0.30% 0.36% 0.28% 0.28%Allowance for credit losses on loans to non-accrual loans held for investment2.4x3.0x2.4x3.1x3.1xTotal allowance for credit losses to non-accrual loans held for investment2.9x3.6x2.9x3.6x3.7x      LOANS PAST DUE     Loans held for investment past due 90 days and still accruing$2,068 $791 $4,265 $5,281 $286 Loans held for investment past due 90 days to total loans held for investment 0.01% —% 0.02% 0.02% —%Loans held for sale past due 90 days and still accruing$— $— $— $— $64       CRITICIZED LOANS     Criticized loans$637,462 $762,887 $713,951 $897,727 $859,671 Criticized loans to total loans held for investment 2.66% 3.41% 3.18% 4.03% 3.95%Special mention loans$339,923 $484,165 $435,626 $579,802 $593,305 Special mention loans to total loans held for investment 1.42% 2.16% 1.94% 2.60% 2.72% TEXAS CAPITAL BANCSHARES, INC.CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(dollars in thousands)       2nd Quarter1st Quarter4th Quarter3rd Quarter2nd Quarter  2025 20252024 2024 2024Interest income     Interest and fees on loans$364,358 $334,150$340,388$361,407 $345,251Investment securities 45,991  46,565 44,102 38,389  33,584Interest bearing deposits in other banks 29,218  46,574 53,081 52,737  43,233Total interest income 439,567  427,289 437,571 452,533  422,068Interest expense     Deposits 174,798  174,936 189,061 190,255  181,280Short-term borrowings 3,444  8,246 10,678 13,784  12,749Long-term debt 7,930  8,073 8,225 8,392  11,457Total interest expense 186,172  191,255 207,964 212,431  205,486Net interest income 253,395  236,034 229,607 240,102  216,582Provision for credit losses 15,000  17,000 18,000 10,000  20,000Net interest income after provision for credit losses 238,395  219,034 211,607 230,102  196,582Non-interest income     Service charges on deposit accounts 8,182  7,840 6,989 6,307  5,911Wealth management and trust fee income 3,730  3,964 4,009 4,040  3,699Brokered loan fees 2,398  1,949 2,519 2,400  2,131Investment banking and advisory fees 24,109  16,478 26,740 34,753  25,048Trading income 7,896  5,939 5,487 5,786  5,650Available-for-sale debt securities losses (1,886) — — (179,581) —Other 9,640  8,274 8,330 11,524  7,985Total non-interest income 54,069  44,444 54,074 (114,771) 50,424Non-interest expense     Salaries and benefits 120,154  131,641 97,873 121,138  118,840Occupancy expense 12,144  10,844 11,926 12,937  10,666Marketing 3,624  5,009 4,454 5,863  5,996Legal and professional 11,069  14,989 15,180 11,135  11,273Communications and technology 24,314  23,642 24,007 25,951  22,013Federal Deposit Insurance Corporation insurance assessment 5,096  5,341 4,454 4,906  5,570Other 13,875  11,554 14,265 13,394  14,051Total non-interest expense 190,276  203,020 172,159 195,324  188,409Income/(loss) before income taxes 102,188  60,458 93,522 (79,993) 58,597Income tax expense/(benefit) 24,860  13,411 22,499 (18,674) 16,935Net income/(loss) 77,328  47,047 71,023 (61,319) 41,662Preferred stock dividends 4,312  4,313 4,312 4,313  4,312Net income/(loss) available to common shareholders$73,016 $42,734$66,711$(65,632)$37,350 TEXAS CAPITAL BANCSHARES, INC.TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)(dollars in thousands) 2nd Quarter 2025 1st Quarter 2025 2nd Quarter 2024 YTD June 30, 2025 YTD June 30, 2024 AverageBalanceIncome/ExpenseYield/Rate AverageBalanceIncome/ExpenseYield/Rate AverageBalanceIncome/ExpenseYield/Rate AverageBalanceIncome/ExpenseYield/Rate AverageBalanceIncome/ExpenseYield/RateAssets                   Investment securities(2)$4,573,164$45,9993.93% $4,463,876$46,5654.10% $4,427,023$33,5842.80% $4,518,822$92,5644.01% $4,363,195$65,7282.79%Interest bearing cash and cash equivalents 2,661,037 29,2184.40%  4,255,796 46,5744.44%  3,273,069 43,2335.31%  3,454,011 75,7924.43%  3,662,348 97,5885.36%Loans held for sale — ——%  335 22.97%  28,768 6839.55%  167 22.97%  39,966 1,8679.40%Loans held for investment, mortgage finance 5,327,559 58,7074.42%  3,972,106 38,5273.93%  4,357,288 42,7223.94%  4,653,577 97,2344.21%  3,937,498 74,1773.79%Loans held for investment(3) 18,018,626 306,1426.81%  17,527,070 296,0916.85%  16,750,788 301,9107.25%  17,774,206 602,2336.83%  16,636,438 600,2167.26%Less: Allowance for credit losses on loans 278,035 ——%  272,758 ——   263,145 ——%  275,411 ——   256,541 —— Loans held for investment, net 23,068,150 364,8496.34%  21,226,418 334,6186.39%  20,844,931 344,6326.65%  22,152,372 699,4676.37%  20,317,395 674,3936.68%Total earning assets 30,302,351 440,0665.80%  29,946,425 427,7595.76%  28,573,791 422,1325.86%  30,125,372 867,8255.78%  28,382,904 839,5765.87%Cash and other assets 1,117,118    1,157,184    1,177,061    1,137,040    1,117,763  Total assets$31,419,469   $31,103,609   $29,750,852   $31,262,412   $29,500,667                      Liabilities and Stockholders’ Equity                   Transaction deposits$2,213,037$13,7312.49% $2,163,250$13,9082.61% $2,061,622$16,9823.31% $2,188,282$27,6392.55% $2,034,057$33,8403.35%Savings deposits 13,727,095 134,2723.92%  13,357,243 133,5774.06%  11,981,668 143,1734.81%  13,543,190 267,8493.99%  11,695,673 279,9634.81%Time deposits 2,361,525 26,7954.55%  2,329,384 27,4514.78%  1,658,899 21,1255.12%  2,345,543 54,2464.66%  1,689,112 43,0775.13%Total interest bearing deposits 18,301,657 174,7983.83%  17,849,877 174,9363.97%  15,702,189 181,2804.64%  18,077,015 349,7343.90%  15,418,842 356,8804.65%Short-term borrowings 306,176 3,4444.51%  751,500 8,2464.45%  927,253 12,7495.53%  527,608 11,6904.47%  919,670 25,5325.58%Long-term debt 649,469 7,9304.90%  660,445 8,0734.96%  778,401 11,4575.92%  654,927 16,0034.93%  818,955 25,4436.25%Total interest bearing liabilities 19,257,302 186,1723.88%  19,261,822 191,2554.03%  17,407,843 205,4864.75%  19,259,550 377,4273.95%  17,157,467 407,8554.78%Non-interest bearing deposits 8,191,402    7,875,244    8,647,594    8,034,196    8,642,685  Other liabilities 475,724    552,154    537,754    513,728    523,520  Stockholders’ equity 3,495,041    3,414,389    3,157,661    3,454,938    3,176,995  Total liabilities and stockholders’ equity$31,419,469   $31,103,609   $29,750,852   $31,262,412   $29,500,667  Net interest income $253,894   $236,504   $216,646   $490,398   $431,721 Net interest margin  3.35%   3.19%   3.01%   3.27%   3.02% (1) Taxable equivalent rates used where applicable.(2) Yields on investment securities are calculated using available-for-sale 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 non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings/(loss) 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)2nd Quarter20251st Quarter20254th Quarter20243rd Quarter20242nd Quarter2024Net interest income$253,395 $236,034 $229,607 $240,102 $216,582       Non-interest income 54,069  44,444  54,074  (114,771) 50,424 Available-for-sale debt securities losses, net 1,886  —  —  179,581  — Non-interest income, adjusted 55,955  44,444  54,074  64,810  50,424       Non-interest expense 190,276  203,020  172,159  195,324  188,409 FDIC special assessment —  —  —  651  (462)Restructuring expenses (1,401) —  —  (5,923) — Non-interest expense, adjusted 188,875  203,020  172,159  190,052  187,947       Provision for credit losses 15,000  17,000  18,000  10,000  20,000       Income tax expense/(benefit) 24,860  13,411  22,499  (18,674) 16,935 Tax effect of adjustments 774  —  —  44,880  104 Income tax expense/(benefit), adjusted 25,634  13,411  22,499  26,206  17,039       Net income/(loss)(1)$77,328 $47,047 $71,023 $(61,319)$41,662 Net income/(loss), adjusted(1)$79,841 $47,047 $71,023 $78,654 $42,020       Preferred stock dividends 4,312  4,313  4,312  4,313  4,312       Net income/(loss) to common stockholders(2)$73,016 $42,734 $66,711 $(65,632)$37,350 Net income/(loss) to common stockholders, adjusted(2)$75,529 $42,734 $66,711 $74,341 $37,708       PPNR(3)$117,188 $77,458 $111,522 $(69,993)$78,597 PPNR(3), adjusted$120,475 $77,458 $111,522 $114,860 $79,059       Weighted average common shares outstanding, diluted 46,215,394  46,616,704  46,770,961  46,608,742  46,872,498 Diluted earnings/(loss) per common share$1.58 $0.92 $1.43 $(1.41)$0.80 Diluted earnings/(loss) per common share, adjusted$1.63 $0.92 $1.43 $1.59 $0.80       Average total assets$31,419,469 $31,103,609 $32,212,087 $31,215,173 $29,750,852 Return on average assets 0.99% 0.61% 0.88%(0.78)% 0.56%Return on average assets, adjusted 1.02% 0.61% 0.88% 1.00% 0.57%      Average common equity$3,195,041 $3,114,389 $3,120,933 $2,945,238 $2,857,661 Return on average common equity 9.17% 5.56% 8.50%(8.87)% 5.26%Return on average common equity, adjusted 9.48% 5.56% 8.50% 10.04% 5.31%      Efficiency ratio(4) 61.9% 72.4% 60.7% 155.8% 70.6%Efficiency ratio, adjusted(4) 61.1% 72.4% 60.7% 62.3% 70.4%      Average earning assets$30,302,351 $29,946,425 $31,033,803 $29,975,318 $28,573,791 Non-interest income to average earning assets 0.72% 0.60% 0.69%(1.52)% 0.71%Non-interest income to average earning assets, adjusted 0.74% 0.60% 0.69% 0.86% 0.71%Non-interest expense to average earning assets 2.52% 2.75% 2.21% 2.59% 2.65%Non-interest expense to average earning assets, adjusted 2.50% 2.75% 2.21% 2.52% 2.65% (1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). 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/(benefit), adjusted.(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), 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, adjusted, 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, adjusted.

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