8-K
TEXAS CAPITAL BANCSHARES INC/TX (TCBI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2026
TEXAS CAPITAL BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-34657 | 75-2679109 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification Number) |
2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A.
(Address of principal executive offices)
75201
(Zip Code)
Registrant’s telephone number, including area code: (214) 932-6600
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | TCBI | The Nasdaq Stock Market |
| 5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share | TCBIO | The Nasdaq Stock Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 22, 2026, Texas Capital Bancshares, Inc. issued a press release and made available presentation slides regarding its operating and financial results for its fiscal quarter and year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.
The information in Item 2.02 of this report (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release, dated January 22, 2026announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter and year ended December 31, 2025
99.2 Presentation dated January 22, 2026discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter and year ended December 31, 2025
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | January 22, 2026 | TEXAS CAPITAL BANCSHARES, INC. | |
|---|---|---|---|
| By: | /s/ J. Matthew Scurlock | ||
| J. Matthew Scurlock<br>Chief Financial Officer |
Document
Exhibit 99.1
| INVESTOR CONTACT | |
|---|---|
| Jocelyn Kukulka, 469.399.8544 | |
| jocelyn.kukulka@texascapitalbank.com |
Dallas, TX - January 22, 2026
TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS
Fourth quarter 2025 net income available to common stockholders of $96.3 million, up 44% year-over-year
Reaching record-levels, Book Value and Tangible Book Value(4) per share both increased 13% year-over-year
Capital ratios continue to be strong, achieving 12.1% CET1 and 16.1% Total Capital
“Consecutive strong quarters to close 2025 validate our multi-year transformation strategy and demonstrate the resilience of our business model in a complex market environment,” said Rob C. Holmes, Chairman, President & CEO. “Surpassing our long-term Return on Average Assets goal of 1.1% in the final two quarters underscores the effectiveness of our deliberate, disciplined approach. We are now positioned to capitalize on our increasingly differentiated platform, executing seamlessly for clients, delivering comprehensive solutions across market events and driving meaningful, sustainable value for our investors.”
| 4th Quarter | 3rd Quarter | 4th Quarter | Full Year | Full Year | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| Summary Income Statement | |||||||||||||||
| Net interest income | $ | 267,437 | $ | 271,771 | $ | 229,607 | $ | 1,028,637 | $ | 901,300 | |||||
| Non-interest income | 60,046 | 68,583 | 54,074 | 227,142 | 31,046 | ||||||||||
| Total revenue | 327,483 | 340,354 | 283,681 | 1,255,779 | 932,346 | ||||||||||
| Non-interest expense | 184,198 | 190,575 | 172,159 | 768,069 | 758,285 | ||||||||||
| Pre-provision net revenue(1) | 143,285 | 149,779 | 111,522 | 487,710 | 174,061 | ||||||||||
| Provision for credit losses | 11,000 | 12,000 | 18,000 | 55,000 | 67,000 | ||||||||||
| Net income available to common stockholders | 96,347 | 100,897 | 66,711 | 312,994 | 60,258 | ||||||||||
| Non-interest income, adjusted(2) | $ | 60,046 | $ | 68,583 | $ | 54,074 | $ | 229,028 | $ | 210,627 | |||||
| Total revenue, adjusted(2) | 327,483 | 340,354 | 283,681 | 1,257,665 | 1,111,927 | ||||||||||
| Non-interest expense, adjusted(2) | 186,440 | 190,575 | 172,159 | 768,910 | 742,533 | ||||||||||
| Pre-provision net revenue, adjusted(1)(2) | 141,043 | 149,779 | 111,522 | 488,755 | 369,394 | ||||||||||
| Net income to common stockholders, adjusted(2) | 94,631 | 100,897 | 66,711 | 313,791 | 208,345 | ||||||||||
| Key Metrics | |||||||||||||||
| Diluted earnings per common share | $ | 2.12 | $ | 2.18 | $ | 1.43 | $ | 6.79 | $ | 1.28 | |||||
| Diluted earnings per common shares, adjusted(2) | $ | 2.08 | $ | 2.18 | $ | 1.43 | $ | 6.80 | $ | 4.43 | |||||
| Return on average assets | 1.22 | % | 1.30 | % | 0.88 | % | 1.04 | % | 0.25 | % | |||||
| Return on average assets, adjusted(2) | 1.20 | % | 1.30 | % | 0.88 | % | 1.04 | % | 0.74 | % | |||||
| Return on average common equity | 11.18 | % | 12.04 | % | 8.50 | % | 9.59 | % | 2.04 | % | |||||
| Return on average common equity, adjusted(2) | 10.98 | % | 12.04 | % | 8.50 | % | 9.61 | % | 7.05 | % | |||||
| Efficiency ratio(3) | 56.2 | % | 56.0 | % | 60.7 | % | 61.2 | % | 81.3 | % | |||||
| Efficiency ratio, adjusted(2)(3) | 56.9 | % | 56.0 | % | 60.7 | % | 61.1 | % | 66.8 | % | |||||
| Net interest margin | 3.38 | % | 3.47 | % | 2.93 | % | 3.35 | % | 3.03 | % | |||||
| Book value per share | $ | 75.28 | 73.05 | $ | 66.36 | $ | 75.28 | $ | 66.36 | ||||||
| Tangible book value per share(4) | $ | 75.25 | 73.02 | $ | 66.32 | $ | 75.25 | $ | 66.32 | ||||||
| CET1 ratio | 12.1 | % | 12.1 | % | 11.4 | % | 12.1 | % | 11.4 | % | |||||
| Balance Sheet | |||||||||||||||
| Total assets | $ | 31,540,274 | $ | 32,536,980 | $ | 30,731,883 | |||||||||
| Loans held for investment | 17,976,183 | 18,134,059 | 17,234,492 | ||||||||||||
| Loans held for investment, mortgage finance | 6,064,019 | 6,057,804 | 5,215,574 | ||||||||||||
| Total deposits | 26,448,767 | 27,505,398 | 25,238,599 | ||||||||||||
| Stockholders’ equity | 3,631,382 | 3,637,098 | 3,367,936 |
(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.
FOURTH QUARTER 2025 COMPARED TO THIRD QUARTER 2025
For the fourth quarter of 2025, net income available to common stockholders was $96.3 million, or $2.12 per diluted share, compared to $100.9 million, or $2.18 per diluted share, for the third quarter of 2025.
Provision for credit losses for the fourth quarter of 2025 was $11.0 million, compared to $12.0 million for the third quarter of 2025. The $11.0 million provision for credit losses recorded in the fourth quarter of 2025 resulted primarily from an increase in criticized loans and $10.7 million in net charge-offs.
Net interest income was $267.4 million for the fourth quarter of 2025, compared to $271.8 million for the third quarter of 2025, primarily due to a decrease in earning asset yields, partially offset by a decrease in funding costs. Net interest margin for the fourth quarter of 2025 was 3.38%, a decrease of 9 basis points from the third quarter of 2025. Loans Held for Investment (“LHI”), excluding mortgage finance, yields decreased 25 basis points from the third quarter of 2025 and LHI, mortgage finance, yields decreased 19 basis points from the third quarter of 2025. Total cost of deposits was 2.41% for the fourth quarter of 2025, a 21 basis point decrease from the third quarter of 2025.
Non-interest income for the fourth quarter of 2025 decreased $8.5 million compared to the third quarter of 2025 primarily due to decreases in investment banking and advisory fees, trading income and other non-interest income.
Non-interest expense for the fourth quarter of 2025 decreased $6.4 million compared to the third quarter of 2025, primarily due to decreases in salaries and benefits and FDIC insurance assessment expense, partially offset by increases in marketing expense, communications and technology expense and other non-interest expense. During the fourth quarter of 2025, the FDIC determined that the special assessment extended collection period was no longer necessary, resulting in the release of related accruals.
FOURTH QUARTER 2025 COMPARED TO FOURTH QUARTER 2024
Net income available to common stockholders was $96.3 million, or $2.12 per diluted share, for the fourth quarter of 2025, compared to $66.7 million, or $1.43 per diluted share, for the fourth quarter of 2024.
The fourth quarter of 2025 included a $11.0 million provision for credit losses, reflecting a linked quarter increase in criticized loans and $10.7 million in net charge-offs, compared to a $18.0 million provision for credit losses for the fourth quarter of 2024.
Net interest income increased to $267.4 million for the fourth quarter of 2025, compared to $229.6 million for the fourth 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 45 basis points to 3.38% for the fourth quarter of 2025, as compared to the fourth quarter of 2024. LHI, excluding mortgage finance, yields decreased 12 basis points compared to the fourth quarter of 2024 and LHI, mortgage finance yields increased 40 basis points from the fourth quarter of 2024. Total cost of deposits decreased 40 basis points compared to the fourth quarter of 2024.
Non-interest income for the fourth quarter of 2025 increased $6.0 million compared to the fourth quarter of 2024 primarily due to increases in service charges on deposit accounts and investment banking and advisory fee income.
Non-interest expense for the fourth quarter of 2025 increased $12.0 million compared to the fourth quarter of 2024, primarily due to increases in salaries and benefits, communications and technology expense and other non-interest expense, partially offset by decreases in legal and professional expense and FDIC insurance assessment expense.
CREDIT QUALITY
Net charge-offs of $10.7 million were recorded during the fourth quarter of 2025, compared to net charge-offs of $13.7 million and $12.1 million during the third quarter of 2025 and the fourth quarter of 2024, respectively. Criticized loans totaled $634.9 million at December 31, 2025, compared to $529.7 million at September 30, 2025 and $714.0 million at December 31, 2024. Non-accrual LHI totaled $116.9 million at December 31, 2025, compared to $96.1 million at September 30, 2025 and $111.2 million at December 31, 2024. The ratio of non-accrual LHI to total LHI for the fourth quarter of 2025 was 0.49%, compared to 0.40% for the third quarter of 2025 and 0.50% for the fourth quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.38% at December 31, 2025, compared to 1.37% and 1.45% at September 30, 2025 and December 31, 2024, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of December 31, 2025. CET1, tier 1 capital, total capital and leverage ratios were 12.1%, 13.6%, 16.1% and 11.7%, respectively, at December 31, 2025, compared to 12.1%, 13.6%, 16.1% and 11.9%, respectively, at September 30, 2025 and 11.4%, 12.8%, 15.4% and 11.3%, respectively, at December 31, 2024. At December 31, 2025, our ratio of tangible common equity to total tangible assets was 10.6%, compared to 10.3% at September 30, 2025 and 10.0% at December 31, 2024.
Effective December 12, 2025, 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 December 31, 2026. Remaining repurchase authorization under the January 22, 2025 share repurchase program was terminated upon authorization of this new program.
During the fourth quarter of 2025, the Company repurchased 1,445,212 shares of its common stock for an aggregate purchase price, including excise tax expense, of $126.6 million, at a weighted average price of $86.76 per share. All shares were repurchased under the January 22, 2025 shares repurchase program.
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, inflation, 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) | |||||||||||||||
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| Interest income | $ | 444,314 | $ | 460,615 | $ | 439,567 | $ | 427,289 | $ | 437,571 | |||||
| Interest expense | 176,877 | 188,844 | 186,172 | 191,255 | 207,964 | ||||||||||
| Net interest income | 267,437 | 271,771 | 253,395 | 236,034 | 229,607 | ||||||||||
| Provision for credit losses | 11,000 | 12,000 | 15,000 | 17,000 | 18,000 | ||||||||||
| Net interest income after provision for credit losses | 256,437 | 259,771 | 238,395 | 219,034 | 211,607 | ||||||||||
| Non-interest income | 60,046 | 68,583 | 54,069 | 44,444 | 54,074 | ||||||||||
| Non-interest expense | 184,198 | 190,575 | 190,276 | 203,020 | 172,159 | ||||||||||
| Income before income taxes | 132,285 | 137,779 | 102,188 | 60,458 | 93,522 | ||||||||||
| Income tax expense | 31,626 | 32,569 | 24,860 | 13,411 | 22,499 | ||||||||||
| Net income | 100,659 | 105,210 | 77,328 | 47,047 | 71,023 | ||||||||||
| Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | ||||||||||
| Net income available to common stockholders | $ | 96,347 | $ | 100,897 | $ | 73,016 | $ | 42,734 | $ | 66,711 | |||||
| Diluted earnings per common share | $ | 2.12 | $ | 2.18 | $ | 1.58 | $ | 0.92 | $ | 1.43 | |||||
| Diluted common shares | 45,509,370 | 46,233,167 | 46,215,394 | 46,616,704 | 46,770,961 | ||||||||||
| CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
| Total assets | $ | 31,540,274 | $ | 32,536,980 | $ | 31,943,535 | $ | 31,375,749 | $ | 30,731,883 | |||||
| Loans held for investment | 17,976,183 | 18,134,059 | 18,035,945 | 17,654,243 | 17,234,492 | ||||||||||
| Loans held for investment, mortgage finance | 6,064,019 | 6,057,804 | 5,889,589 | 4,725,541 | 5,215,574 | ||||||||||
| Loans held for sale | 4,361 | — | — | — | — | ||||||||||
| Interest bearing cash and cash equivalents | 1,897,803 | 2,852,387 | 2,507,691 | 3,600,969 | 3,012,307 | ||||||||||
| Investment securities | 4,723,099 | 4,601,654 | 4,608,628 | 4,531,219 | 4,396,115 | ||||||||||
| Non-interest bearing deposits | 6,959,097 | 7,689,598 | 7,718,006 | 7,874,780 | 7,485,428 | ||||||||||
| Total deposits | 26,448,767 | 27,505,398 | 26,064,309 | 26,053,034 | 25,238,599 | ||||||||||
| Short-term borrowings | 330,000 | 275,000 | 1,250,000 | 750,000 | 885,000 | ||||||||||
| Long-term debt | 620,575 | 620,416 | 620,256 | 660,521 | 660,346 | ||||||||||
| Stockholders’ equity | 3,631,382 | 3,637,098 | 3,510,070 | 3,429,774 | 3,367,936 | ||||||||||
| End of period shares outstanding | 44,253,688 | 45,679,863 | 45,746,836 | 46,024,933 | 46,233,812 | ||||||||||
| Book value per share | $ | 75.28 | $ | 73.05 | $ | 70.17 | $ | 68.00 | $ | 66.36 | |||||
| Tangible book value per share(1) | $ | 75.25 | $ | 73.02 | $ | 70.14 | $ | 67.97 | $ | 66.32 | |||||
| SELECTED FINANCIAL RATIOS | |||||||||||||||
| Net interest margin | 3.38 | % | 3.47 | % | 3.35 | % | 3.19 | % | 2.93 | % | |||||
| Return on average assets | 1.22 | % | 1.30 | % | 0.99 | % | 0.61 | % | 0.88 | % | |||||
| Return on average assets, adjusted(4) | 1.20 | % | 1.30 | % | 1.02 | % | 0.61 | % | 0.88 | % | |||||
| Return on average common equity | 11.18 | % | 12.04 | % | 9.17 | % | 5.56 | % | 8.50 | % | |||||
| Return on average common equity, adjusted(4) | 10.98 | % | 12.04 | % | 9.48 | % | 5.56 | % | 8.50 | % | |||||
| Efficiency ratio(2) | 56.2 | % | 56.0 | % | 61.9 | % | 72.4 | % | 60.7 | % | |||||
| Efficiency ratio, adjusted(2)(4) | 56.9 | % | 56.0 | % | 61.1 | % | 72.4 | % | 60.7 | % | |||||
| Non-interest income to average earning assets | 0.76 | % | 0.88 | % | 0.72 | % | 0.60 | % | 0.69 | % | |||||
| Non-interest income to average earning assets, adjusted(4) | 0.76 | % | 0.88 | % | 0.74 | % | 0.60 | % | 0.69 | % | |||||
| Non-interest expense to average earning assets | 2.33 | % | 2.44 | % | 2.52 | % | 2.75 | % | 2.21 | % | |||||
| Non-interest expense to average earning assets, adjusted(4) | 2.35 | % | 2.44 | % | 2.50 | % | 2.75 | % | 2.21 | % | |||||
| Common equity to total assets | 10.6 | % | 10.3 | % | 10.1 | % | 10.0 | % | 10.0 | % | |||||
| Tangible common equity to total tangible assets(3) | 10.6 | % | 10.3 | % | 10.1 | % | 10.0 | % | 10.0 | % | |||||
| Common Equity Tier 1 | 12.1 | % | 12.1 | % | 11.4 | % | 11.6 | % | 11.4 | % | |||||
| Tier 1 capital | 13.6 | % | 13.6 | % | 12.9 | % | 13.1 | % | 12.8 | % | |||||
| Total capital | 16.1 | % | 16.1 | % | 15.3 | % | 15.6 | % | 15.4 | % | |||||
| Leverage | 11.7 | % | 11.9 | % | 11.8 | % | 11.8 | % | 11.3 | % |
(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,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | ||||||
| Assets | |||||||||
| Cash and due from banks | 201,315 | $ | 212,438 | $ | 182,451 | $ | 201,504 | $ | 176,501 |
| Interest bearing cash and cash equivalents | 2,852,387 | 2,507,691 | 3,600,969 | 3,012,307 | |||||
| Available-for-sale debt securities | 3,801,261 | 3,774,141 | 3,678,378 | 3,524,686 | |||||
| Held-to-maturity debt securities | 743,120 | 761,907 | 779,354 | 796,168 | |||||
| Equity securities | 55,054 | 68,692 | 71,679 | 75,261 | |||||
| Trading securities | 2,219 | 3,888 | 1,808 | — | |||||
| Investment securities | 4,601,654 | 4,608,628 | 4,531,219 | 4,396,115 | |||||
| Loans held for sale | — | — | — | — | |||||
| Loans held for investment, mortgage finance | 6,057,804 | 5,889,589 | 4,725,541 | 5,215,574 | |||||
| Loans held for investment | 18,134,059 | 18,035,945 | 17,654,243 | 17,234,492 | |||||
| Less: Allowance for credit losses on loans | 274,026 | 277,648 | 278,379 | 271,709 | |||||
| Loans held for investment, net | 23,917,837 | 23,647,886 | 22,101,405 | 22,178,357 | |||||
| Premises and equipment, net | 88,348 | 86,831 | 84,575 | 85,443 | |||||
| Accrued interest receivable and other assets | 862,820 | 908,552 | 854,581 | 881,664 | |||||
| Goodwill and intangibles, net | 1,496 | 1,496 | 1,496 | 1,496 | |||||
| Total assets | 31,540,274 | $ | 32,536,980 | $ | 31,943,535 | $ | 31,375,749 | $ | 30,731,883 |
| Liabilities and Stockholders’ Equity | |||||||||
| Liabilities: | |||||||||
| Non-interest bearing deposits | 6,959,097 | $ | 7,689,598 | $ | 7,718,006 | $ | 7,874,780 | $ | 7,485,428 |
| Interest bearing deposits | 19,815,800 | 18,346,303 | 18,178,254 | 17,753,171 | |||||
| Total deposits | 27,505,398 | 26,064,309 | 26,053,034 | 25,238,599 | |||||
| Accrued interest payable | 9,360 | 14,120 | 25,270 | 23,680 | |||||
| Other liabilities | 489,708 | 484,780 | 457,150 | 556,322 | |||||
| Short-term borrowings | 275,000 | 1,250,000 | 750,000 | 885,000 | |||||
| Long-term debt | 620,416 | 620,256 | 660,521 | 660,346 | |||||
| Total liabilities | 28,899,882 | 28,433,465 | 27,945,975 | 27,363,947 | |||||
| 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 | |||||
| Common stock, .01 par value: | |||||||||
| Authorized shares - 100,000,000 | |||||||||
| Issued shares(2) | 518 | 517 | 517 | 515 | |||||
| Additional paid-in capital | 1,069,582 | 1,065,083 | 1,060,028 | 1,056,719 | |||||
| Retained earnings | 2,712,298 | 2,611,401 | 2,538,385 | 2,495,651 | |||||
| Treasury stock(3) | (361,076) | (354,000) | (332,994) | (301,842) | |||||
| Accumulated other comprehensive loss, net of taxes | (84,224) | (112,931) | (136,162) | (183,107) | |||||
| Total stockholders’ equity | 3,637,098 | 3,510,070 | 3,429,774 | 3,367,936 | |||||
| Total liabilities and stockholders’ equity | 31,540,274 | $ | 32,536,980 | $ | 31,943,535 | $ | 31,375,749 | $ | 30,731,883 |
| (1) Preferred stock - issued shares | 300,000 | 300,000 | 300,000 | 300,000 | |||||
| (2) Common stock - issued shares | 51,767,419 | 51,747,305 | 51,707,542 | 51,520,315 | |||||
| (3) Treasury stock - shares at cost | 6,087,556 | 6,000,469 | 5,682,609 | 5,286,503 |
All values are in US Dollars.
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
| (dollars in thousands except per share data) | |||||||||||||||
| 4th Quarter<br>2025 | 3rd Quarter<br>2025 | 2nd Quarter<br>2025 | 1st Quarter<br>2025 | 4th Quarter<br>2024 | 4th Quarter YTD 2025 | 4th Quarter YTD 2024 | |||||||||
| Interest income | |||||||||||||||
| Interest and fees on loans | $ | 367,481 | $ | 379,017 | $ | 364,358 | $ | 334,150 | $ | 340,388 | $ | 1,445,006 | $ | 1,377,925 | |
| Investment securities | 47,012 | 49,396 | 45,991 | 46,565 | 44,102 | 188,964 | 148,219 | ||||||||
| Interest bearing cash and cash equivalents | 29,821 | 32,202 | 29,218 | 46,574 | 53,081 | 137,815 | 203,406 | ||||||||
| Total interest income | 444,314 | 460,615 | 439,567 | 427,289 | 437,571 | 1,771,785 | 1,729,550 | ||||||||
| Interest expense | |||||||||||||||
| Deposits | 167,259 | 180,779 | 174,798 | 174,936 | 189,061 | 697,772 | 736,196 | ||||||||
| Short-term borrowings | 2,153 | 534 | 3,444 | 8,246 | 10,678 | 14,377 | 49,994 | ||||||||
| Long-term debt | 7,465 | 7,531 | 7,930 | 8,073 | 8,225 | 30,999 | 42,060 | ||||||||
| Total interest expense | 176,877 | 188,844 | 186,172 | 191,255 | 207,964 | 743,148 | 828,250 | ||||||||
| Net interest income | 267,437 | 271,771 | 253,395 | 236,034 | 229,607 | 1,028,637 | 901,300 | ||||||||
| Provision for credit losses | 11,000 | 12,000 | 15,000 | 17,000 | 18,000 | 55,000 | 67,000 | ||||||||
| Net interest income after provision for credit losses | 256,437 | 259,771 | 238,395 | 219,034 | 211,607 | 973,637 | 834,300 | ||||||||
| Non-interest income | |||||||||||||||
| Service charges on deposit accounts | 8,411 | 8,111 | 8,182 | 7,840 | 6,989 | 32,544 | 25,546 | ||||||||
| Wealth management and trust fee income | 4,216 | 3,989 | 3,730 | 3,964 | 4,009 | 15,899 | 15,315 | ||||||||
| Brokered loan fees | 2,467 | 2,419 | 2,398 | 1,949 | 2,519 | 9,233 | 8,961 | ||||||||
| Investment banking and advisory fees | 30,015 | 33,985 | 24,109 | 16,478 | 26,740 | 104,587 | 104,965 | ||||||||
| Trading income | 6,020 | 7,238 | 7,896 | 5,939 | 5,487 | 27,093 | 21,635 | ||||||||
| Available-for-sale debt securities gains/(losses), net | — | — | (1,886) | — | — | (1,886) | (179,581) | ||||||||
| Other | 8,917 | 12,841 | 9,640 | 8,274 | 8,330 | 39,672 | 34,205 | ||||||||
| Total non-interest income | 60,046 | 68,583 | 54,069 | 44,444 | 54,074 | 227,142 | 31,046 | ||||||||
| Non-interest expense | |||||||||||||||
| Salaries and benefits | 108,851 | 119,856 | 120,154 | 131,641 | 97,873 | 480,502 | 466,578 | ||||||||
| Occupancy expense | 12,803 | 11,828 | 12,144 | 10,844 | 11,926 | 47,619 | 45,266 | ||||||||
| Marketing | 5,404 | 3,412 | 3,624 | 5,009 | 4,454 | 17,449 | 22,349 | ||||||||
| Legal and professional | 11,580 | 12,474 | 11,069 | 14,989 | 15,180 | 50,112 | 53,783 | ||||||||
| Communications and technology | 26,303 | 24,594 | 24,314 | 23,642 | 24,007 | 98,853 | 93,085 | ||||||||
| Federal Deposit Insurance Corporation insurance assessment | 2,276 | 5,198 | 5,096 | 5,341 | 4,454 | 17,911 | 23,351 | ||||||||
| Other | 16,981 | 13,213 | 13,875 | 11,554 | 14,265 | 55,623 | 53,873 | ||||||||
| Total non-interest expense | 184,198 | 190,575 | 190,276 | 203,020 | 172,159 | 768,069 | 758,285 | ||||||||
| Income before income taxes | 132,285 | 137,779 | 102,188 | 60,458 | 93,522 | 432,710 | 107,061 | ||||||||
| Income tax expense | 31,626 | 32,569 | 24,860 | 13,411 | 22,499 | 102,466 | 29,553 | ||||||||
| Net income | 100,659 | 105,210 | 77,328 | 47,047 | 71,023 | 330,244 | 77,508 | ||||||||
| Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | 17,250 | 17,250 | ||||||||
| Net income available to common stockholders | $ | 96,347 | $ | 100,897 | $ | 73,016 | $ | 42,734 | $ | 66,711 | $ | 312,994 | $ | 60,258 | |
| Basic earnings per common share | $ | 2.14 | $ | 2.21 | $ | 1.59 | $ | 0.93 | $ | 1.44 | $ | 6.86 | $ | 1.29 | |
| Diluted earnings per common share | $ | 2.12 | $ | 2.18 | $ | 1.58 | $ | 0.92 | $ | 1.43 | $ | 6.79 | $ | 1.28 | |
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SUMMARY OF CREDIT LOSS EXPERIENCE | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||
| Allowance for credit losses on loans: | |||||||||||||||
| Beginning balance | $ | 274,026 | $ | 277,648 | $ | 278,379 | $ | 271,709 | $ | 273,143 | |||||
| Loans charged-off: | |||||||||||||||
| Commercial | 14,417 | 13,794 | 13,020 | 10,197 | 14,100 | ||||||||||
| Commercial real estate | 524 | — | 431 | 500 | 2,566 | ||||||||||
| Total charge-offs | 14,941 | 13,794 | 13,451 | 10,697 | 16,666 | ||||||||||
| Recoveries: | |||||||||||||||
| Commercial | 4,202 | 50 | 486 | 483 | 4,562 | ||||||||||
| Commercial real estate | — | — | — | 413 | 18 | ||||||||||
| Consumer | 12 | 4 | — | 4 | 15 | ||||||||||
| Total recoveries | 4,214 | 54 | 486 | 900 | 4,595 | ||||||||||
| Net charge-offs | 10,727 | 13,740 | 12,965 | 9,797 | 12,071 | ||||||||||
| Provision for credit losses on loans | 7,258 | 10,118 | 12,234 | 16,467 | 10,637 | ||||||||||
| Ending balance | $ | 270,557 | $ | 274,026 | $ | 277,648 | $ | 278,379 | $ | 271,709 | |||||
| Allowance for off-balance sheet credit losses: | |||||||||||||||
| Beginning balance | $ | 58,513 | $ | 56,631 | $ | 53,865 | $ | 53,332 | $ | 45,969 | |||||
| Provision for off-balance sheet credit losses | 3,742 | 1,882 | 2,766 | 533 | 7,363 | ||||||||||
| Ending balance | $ | 62,255 | $ | 58,513 | $ | 56,631 | $ | 53,865 | $ | 53,332 | |||||
| Total allowance for credit losses | $ | 332,812 | $ | 332,539 | $ | 334,279 | $ | 332,244 | $ | 325,041 | |||||
| Total provision for credit losses | $ | 11,000 | $ | 12,000 | $ | 15,000 | $ | 17,000 | $ | 18,000 | |||||
| Allowance for credit losses on loans to total loans held for investment | 1.13 | % | 1.13 | % | 1.16 | % | 1.24 | % | 1.21 | % | |||||
| Allowance for credit losses on loans to average total loans held for investment | 1.12 | % | 1.15 | % | 1.19 | % | 1.29 | % | 1.22 | % | |||||
| Net charge-offs to average total loans held for investment(1) | 0.18 | % | 0.23 | % | 0.22 | % | 0.18 | % | 0.22 | % | |||||
| Net charge-offs to average total loans held for investment for last 12 months(1) | 0.20 | % | 0.21 | % | 0.18 | % | 0.18 | % | 0.19 | % | |||||
| Total provision for credit losses to average total loans held for investment(1) | 0.18 | % | 0.20 | % | 0.26 | % | 0.32 | % | 0.32 | % | |||||
| Total allowance for credit losses to total loans held for investment | 1.38 | % | 1.37 | % | 1.40 | % | 1.48 | % | 1.45 | % |
(1)Interim period ratios are annualized.
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Non-accrual loans held for investment | $ | 116,880 | $ | 96,084 | $ | 113,609 | $ | 93,565 | $ | 111,165 | |||||
| Non-accrual loans held for sale(1) | 4,361 | — | — | — | — | ||||||||||
| Other real estate owned | — | — | — | — | — | ||||||||||
| Total non-performing assets | $ | 121,241 | $ | 96,084 | $ | 113,609 | $ | 93,565 | $ | 111,165 | |||||
| Non-accrual loans held for investment to total loans held for investment | 0.49 | % | 0.40 | % | 0.47 | % | 0.42 | % | 0.50 | % | |||||
| Total non-performing assets to total assets | 0.38 | % | 0.30 | % | 0.36 | % | 0.30 | % | 0.36 | % | |||||
| Allowance for credit losses on loans to non-accrual loans held for investment | 2.3x | 2.9x | 2.4x | 3.0x | 2.4x | ||||||||||
| Total allowance for credit losses to non-accrual loans held for investment | 2.8x | 3.5x | 2.9x | 3.6x | 2.9x | ||||||||||
| LOANS PAST DUE | |||||||||||||||
| Loans held for investment past due 90 days and still accruing | $ | 19,353 | $ | 126 | $ | 2,068 | $ | 791 | $ | 4,265 | |||||
| Loans held for investment past due 90 days to total loans held for investment | 0.08 | % | — | % | 0.01 | % | — | % | 0.02 | % | |||||
| Loans held for sale past due 90 days and still accruing | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| CRITICIZED LOANS | |||||||||||||||
| Criticized loans | $ | 634,919 | $ | 529,732 | $ | 637,462 | $ | 762,887 | $ | 713,951 | |||||
| Criticized loans to total loans held for investment | 2.64 | % | 2.19 | % | 2.66 | % | 3.41 | % | 3.18 | % | |||||
| Special mention loans | $ | 346,643 | $ | 249,592 | $ | 339,923 | $ | 484,165 | $ | 435,626 | |||||
| Special mention loans to total loans held for investment | 1.44 | % | 1.03 | % | 1.42 | % | 2.16 | % | 1.94 | % |
(1)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 December 31, 2025.
| TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1) | ||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| 4th Quarter 2025 | 3rd Quarter 2025 | 4th Quarter 2024 | YTD December 31, 2025 | YTD December 31, 2024 | ||||||||||||||||||||||||||
| Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | ||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||
| Investment securities(2) | $ | 4,629,242 | $ | 47,025 | 3.98 | % | $ | 4,635,066 | $ | 49,401 | 4.14 | % | $ | 4,504,101 | $ | 44,102 | 3.79 | % | $ | 4,575,954 | $ | 188,990 | 4.03 | % | $ | 4,386,458 | $ | 148,219 | 3.17 | % |
| Interest bearing cash and cash equivalents | 2,994,417 | 29,821 | 3.95 | % | 2,920,102 | 32,202 | 4.38 | % | 4,472,772 | 53,081 | 4.72 | % | 3,203,594 | 137,815 | 4.30 | % | 3,940,590 | 203,406 | 5.16 | % | ||||||||||
| Loans held for sale(3) | 47 | — | — | % | — | — | — | % | — | — | — | % | 95 | 2 | 2.60 | % | 25,855 | 2,432 | 9.41 | % | ||||||||||
| Loans held for investment, mortgage finance | 5,890,991 | 61,319 | 4.13 | % | 5,472,467 | 59,604 | 4.32 | % | 5,409,980 | 50,685 | 3.73 | % | 5,171,878 | 218,157 | 4.22 | % | 4,612,994 | 179,233 | 3.89 | % | ||||||||||
| Loans held for investment(3) | 18,177,312 | 307,053 | 6.70 | % | 18,253,451 | 319,921 | 6.95 | % | 16,919,925 | 289,916 | 6.82 | % | 17,996,607 | 1,229,207 | 6.83 | % | 16,746,912 | 1,196,673 | 7.15 | % | ||||||||||
| Less: Allowance for credit losses on loans | 278,315 | — | — | % | 277,385 | — | — | 272,975 | — | — | % | 276,641 | — | — | 263,279 | — | — | |||||||||||||
| Loans held for investment, net | 23,789,988 | 368,372 | 6.14 | % | 23,448,533 | 379,525 | 6.42 | % | 22,056,930 | 340,601 | 6.14 | % | 22,891,844 | 1,447,364 | 6.32 | % | 21,096,627 | 1,375,906 | 6.52 | % | ||||||||||
| Total earning assets | 31,413,694 | 445,218 | 5.61 | % | 31,003,701 | 461,128 | 5.88 | % | 31,033,803 | 437,784 | 5.59 | % | 30,671,487 | 1,774,171 | 5.76 | % | 29,449,530 | 1,729,963 | 5.82 | % | ||||||||||
| Cash and other assets | 1,192,624 | 1,159,008 | 1,178,284 | 1,156,587 | 1,163,665 | |||||||||||||||||||||||||
| Total assets | $ | 32,606,318 | $ | 32,162,709 | $ | 32,212,087 | $ | 31,828,074 | $ | 30,613,195 | ||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||
| Transaction deposits | $ | 2,470,262 | $ | 13,468 | 2.16 | % | $ | 2,251,217 | $ | 13,987 | 2.46 | % | $ | 2,141,739 | $ | 15,403 | 2.86 | % | $ | 2,275,219 | $ | 55,094 | 2.42 | % | $ | 2,049,720 | $ | 65,215 | 3.18 | % |
| Savings deposits | 14,453,912 | 130,536 | 3.58 | % | 14,650,152 | 143,327 | 3.88 | % | 12,932,458 | 144,393 | 4.44 | % | 14,051,757 | 541,712 | 3.86 | % | 12,143,539 | 572,126 | 4.71 | % | ||||||||||
| Time deposits | 2,207,631 | 23,255 | 4.18 | % | 2,158,228 | 23,465 | 4.31 | % | 2,331,009 | 29,265 | 4.99 | % | 2,263,568 | 100,966 | 4.46 | % | 1,946,341 | 98,855 | 5.08 | % | ||||||||||
| Total interest bearing deposits | 19,131,805 | 167,259 | 3.47 | % | 19,059,597 | 180,779 | 3.76 | % | 17,405,206 | 189,061 | 4.32 | % | 18,590,544 | 697,772 | 3.75 | % | 16,139,600 | 736,196 | 4.56 | % | ||||||||||
| Short-term borrowings | 221,250 | 2,153 | 3.86 | % | 44,022 | 534 | 4.82 | % | 883,326 | 10,678 | 4.81 | % | 328,499 | 14,377 | 4.38 | % | 933,896 | 49,994 | 5.35 | % | ||||||||||
| Long-term debt | 620,505 | 7,465 | 4.77 | % | 620,348 | 7,531 | 4.82 | % | 660,270 | 8,225 | 4.96 | % | 637,535 | 30,999 | 4.86 | % | 739,136 | 42,060 | 5.69 | % | ||||||||||
| Total interest bearing liabilities | 19,973,560 | 176,877 | 3.51 | % | 19,723,967 | 188,844 | 3.80 | % | 18,948,802 | 207,964 | 4.37 | % | 19,556,578 | 743,148 | 3.80 | % | 17,812,632 | 828,250 | 4.65 | % | ||||||||||
| Non-interest bearing deposits | 8,455,034 | 8,351,524 | 9,319,711 | 8,220,254 | 9,013,038 | |||||||||||||||||||||||||
| Other liabilities | 457,757 | 463,034 | 522,641 | 486,843 | 532,058 | |||||||||||||||||||||||||
| Stockholders’ equity | 3,719,967 | 3,624,184 | 3,420,933 | 3,564,399 | 3,255,467 | |||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 32,606,318 | $ | 32,162,709 | $ | 32,212,087 | $ | 31,828,074 | $ | 30,613,195 | ||||||||||||||||||||
| Net interest income | $ | 268,341 | $ | 272,284 | $ | 229,820 | $ | 1,031,023 | $ | 901,713 | ||||||||||||||||||||
| Net interest margin | 3.38 | % | 3.47 | % | 2.93 | % | 3.35 | % | 3.03 | % |
(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 total revenue, adjusted non-interest 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) | 4th Quarter<br>2025 | 3rd Quarter<br>2025 | 2nd Quarter<br>2025 | 1st Quarter<br>2025 | 4th Quarter<br>2024 | Full Year 2025 | Full Year 2024 | ||||||||||||||
| Net interest income | $ | 267,437 | $ | 271,771 | $ | 253,395 | $ | 236,034 | $ | 229,607 | $ | 1,028,637 | $ | 901,300 | |||||||
| Non-interest income | 60,046 | 68,583 | 54,069 | 44,444 | 54,074 | 227,142 | 31,046 | ||||||||||||||
| Available-for-sale debt securities losses, net | — | — | 1,886 | — | — | 1,886 | 179,581 | ||||||||||||||
| Non-interest income, adjusted | 60,046 | 68,583 | 55,955 | 44,444 | 54,074 | 229,028 | 210,627 | ||||||||||||||
| Total revenue(1) | 327,483 | 340,354 | 307,464 | 280,478 | 283,681 | 1,255,779 | 932,346 | ||||||||||||||
| Total revenue, adjusted(1) | 327,483 | 340,354 | 309,350 | 280,478 | 283,681 | 1,257,665 | 1,111,927 | ||||||||||||||
| Non-interest expense | 184,198 | 190,575 | 190,276 | 203,020 | 172,159 | 768,069 | 758,285 | ||||||||||||||
| FDIC special assessment | 2,242 | — | — | — | — | 2,242 | (2,811) | ||||||||||||||
| Restructuring expenses | — | — | (1,401) | — | — | (1,401) | (7,941) | ||||||||||||||
| Legal Settlement | — | — | — | — | — | — | (5,000) | ||||||||||||||
| Non-interest expense, adjusted | 186,440 | 190,575 | 188,875 | 203,020 | 172,159 | 768,910 | 742,533 | ||||||||||||||
| Provision for credit losses | 11,000 | 12,000 | 15,000 | 17,000 | 18,000 | 55,000 | 67,000 | ||||||||||||||
| Income tax expense | 31,626 | 32,569 | 24,860 | 13,411 | 22,499 | 102,466 | 29,553 | ||||||||||||||
| Tax effect of adjustments | (526) | — | 774 | — | — | 248 | 47,246 | ||||||||||||||
| Income tax expense, adjusted | 31,100 | 32,569 | 25,634 | 13,411 | 22,499 | 102,714 | 76,799 | ||||||||||||||
| Net income(2) | $ | 100,659 | $ | 105,210 | $ | 77,328 | $ | 47,047 | $ | 71,023 | $ | 330,244 | $ | 77,508 | |||||||
| Net income, adjusted(2) | $ | 98,943 | $ | 105,210 | $ | 79,841 | $ | 47,047 | $ | 71,023 | $ | 331,041 | $ | 225,595 | |||||||
| Preferred stock dividends | 4,312 | 4,313 | 4,312 | 4,313 | 4,312 | 17,250 | 17,250 | ||||||||||||||
| Net income to common stockholders(3) | $ | 96,347 | $ | 100,897 | $ | 73,016 | $ | 42,734 | $ | 66,711 | $ | 312,994 | $ | 60,258 | |||||||
| Net income to common stockholders, adjusted(3) | $ | 94,631 | $ | 100,897 | $ | 75,529 | $ | 42,734 | $ | 66,711 | $ | 313,791 | $ | 208,345 | |||||||
| PPNR(4) | $ | 143,285 | $ | 149,779 | $ | 117,188 | $ | 77,458 | $ | 111,522 | $ | 487,710 | $ | 174,061 | |||||||
| PPNR, adjusted(4) | $ | 141,043 | $ | 149,779 | $ | 120,475 | $ | 77,458 | $ | 111,522 | $ | 488,755 | $ | 369,394 | |||||||
| Weighted average common shares outstanding, diluted | 45,509,370 | 46,233,167 | 46,215,394 | 46,616,704 | 46,770,961 | 46,127,375 | 46,989,204 | ||||||||||||||
| Diluted earnings per common share | $ | 2.12 | $ | 2.18 | $ | 1.58 | $ | 0.92 | $ | 1.43 | $ | 6.79 | $ | 1.28 | |||||||
| Diluted earnings per common share, adjusted | $ | 2.08 | $ | 2.18 | $ | 1.63 | $ | 0.92 | $ | 1.43 | $ | 6.80 | $ | 4.43 | |||||||
| Average total assets | $ | 32,606,318 | $ | 32,162,709 | $ | 31,419,469 | $ | 31,103,609 | $ | 32,212,087 | $ | 31,828,074 | $ | 30,613,195 | |||||||
| Return on average assets | 1.22 | % | 1.30 | % | 0.99 | % | 0.61 | % | 0.88 | % | 1.04 | % | 0.25 | % | |||||||
| Return on average assets, adjusted | 1.20 | % | 1.30 | % | 1.02 | % | 0.61 | % | 0.88 | % | 1.04 | % | 0.74 | % | |||||||
| Average common equity | $ | 3,419,967 | $ | 3,324,184 | $ | 3,195,041 | $ | 3,114,389 | $ | 3,120,933 | $ | 3,264,399 | $ | 2,955,467 | |||||||
| Return on average common equity | 11.18 | % | 12.04 | % | 9.17 | % | 5.56 | % | 8.50 | % | 9.59 | % | 2.04 | % | |||||||
| Return on average common equity, adjusted | 10.98 | % | 12.04 | % | 9.48 | % | 5.56 | % | 8.50 | % | 9.61 | % | 7.05 | % | |||||||
| Efficiency ratio(5) | 56.2 | % | 56.0 | % | 61.9 | % | 72.4 | % | 60.7 | % | 61.2 | % | 81.3 | % | |||||||
| Efficiency ratio, adjusted(5) | 56.9 | % | 56.0 | % | 61.1 | % | 72.4 | % | 60.7 | % | 61.1 | % | 66.8 | % | |||||||
| Average earning assets | $ | 31,413,694 | $ | 31,003,701 | $ | 30,302,351 | $ | 29,946,425 | $ | 31,033,803 | $ | 30,671,487 | $ | 29,449,530 | |||||||
| Non-interest income to average earning assets | 0.76 | % | 0.88 | % | 0.72 | % | 0.60 | % | 0.69 | % | 0.74 | % | 0.11 | % | |||||||
| Non-interest income to average earning assets, adjusted | 0.76 | % | 0.88 | % | 0.74 | % | 0.60 | % | 0.69 | % | 0.75 | % | 0.72 | % | |||||||
| Non-interest expense to average earning assets | 2.33 | % | 2.44 | % | 2.52 | % | 2.75 | % | 2.21 | % | 2.50 | % | 2.57 | % | |||||||
| Non-interest expense to average earning assets, adjusted | 2.35 | % | 2.44 | % | 2.50 | % | 2.75 | % | 2.21 | % | 2.51 | % | 2.52 | % |
(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.
10
a4q2025_earningsxpresent
© 2026 Texas Capital Bank Member FDIC January 22, 2026 Q4-2025 Earnings
2 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; 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 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.
3 Full Year 2025 Highlights (Compared to Full Year 20241) Net Income to Common ($mm) GAAP $313.0 +$252.7 or 419% Adjusted2 $313.8 +$105.4 or 51% Net Interest Margin PPNR3 ($mm) GAAP $487.7 +$313.6 or 180% Adjusted2 $488.8 +$119.4 or 32% Capital Common Equity / Total Assets 10.56% +58bps Tangible Common Equity / Tangible Assets4 10.56% +58bps Fee Income From Areas of Focus ($mm) Investment Banking, Private Wealth, and Treasury Product Fees5 $191.9 +$14.2 or 8% Book Value per Share Book Value per Share $75.28 +$8.92 or 13% Tangible Book Value per Share6 $75.25 +$8.93 or 13% Credit Quality Balance Sheet & Capital Financial Results Adjusted net income to common2 increased $105mm or 51%, with adjusted EPS2 increasing 53% Adjusted pre-provision net revenue2,3 increased 32% to $488.8, a record high for the Firm 2025 adjusted return on average assets2 of 1.04%, a 30bps improvement compared to 2024 Commercial loan balances increased $1.1bn or 10%, supporting total loan growth of $1.6bn Tangible common equity to tangible assets4 ended the year at 10.56%, a record high for the Firm Repurchased 2.2mm shares or 4.9% of prior year shares outstanding at a weighted average price of approximately 114% of prior month tangible book value per share6 Criticized LHI declined $79mm or 11% YoY, with the percentage of total LHI declining 54bps to 2.64% Full year net charge-offs totaled $47.2mm or 20bps of average LHI 2025 provision expense as a percentage of average LHI excl. mortgage finance of 31bps 3.35% +32bps FY 2025 Key Metrics EPS ROAA ROACE $6.80 +$2.37 or 53% 1.04% +30bps 9.6% +256bps 61.1% -564bps Efficiency Ratio8 $6.79 +$5.51 or 430% 1.04% +79bps 9.6% +755bps 61.2% -2,017bps GAAP Adjusted2 ROATCE7 9.6% +256bps 9.6% +755bps Record high in the history of the firm
4 Q4 2025 Highlights (Compared to Q4 20249) GAAP $96.3 +$29.6 or +44% Adjusted2 $94.6 +$27.9 or +42% GAAP $143.3 +$31.8 or +28% Adjusted2 $141.0 +$29.5 or +26% Investment Banking, Private Wealth, and Treasury Product Fees5 $51.3 +$5.6 or +12% Book Value per Share $75.28 +$8.92 or 13% Tangible Book Value per Share6 $75.25 +$8.93 or 13% Credit Quality Balance Sheet & Capital Financial Results 3.38% +45bps Adjusted quarterly earnings per share2 grew $0.65 or 45% YoY to $2.08 Adjusted pre-provision net revenue2, 3 grew $29.5mm or 26% YoY, remaining near all-time highs Q4 2025 adjusted return on average assets2 of 1.20%, a second consecutive quarter exceeding the 1.10% ROAA target Tangible book value per share6 grew 13% YoY to $75.25, an all-time high for the Firm Interest bearing deposits, excluding brokered and indexed, increased $1.7bn or 10% YoY Quarterly interest bearing deposits cost declined 85bps YoY, supporting a 45bps improvement in net interest margin over the same period Total ACL as a percentage of LHI of 1.38% and 1.82% when excluding mortgage finance Net charge-offs for the quarter totaled $10.7mm or 18bps of average LHI Non-performing assets remained near historical lows at 38bps of total assets Net Income to Common ($mm) Net Interest Margin Capital Fee Income From Areas of Focus ($mm) Book Value per Share Common Equity / Total Assets 10.56% +58bps Tangible Common Equity / Tangible Assets4 10.56% +58bps PPNR3 ($mm) $2.12 +$0.69 or 48% 1.22% +34bps 11.2% +267bps 56.2% -444bps $2.08 +$0.65 or 45% 1.20% +32bps 11.0% +247bps 56.9% -376bps EPS ROAA ROACE Efficiency Ratio8 Q4 2025 Key Metrics GAAP Adjusted2 11.2% +267bps 11.0% +248bps ROATCE7 Record high in the history of the firm
5 Q4 2025Non-GAAP2 Adjustments ($mm) 184.2 Non-Interest Expense 2.2FDIC Special Assessment 0.0Restructuring Expenses 0.0Legal Settlement 186.4Non-Interest Expense, Adj. Financial Performance // Income Statement Adjusted (Non-GAAP2) Adjusted (Non-GAAP2) Adjusted (Non-GAAP2)Financial Highlights ($mm) Q4 2025Q4 2025Q3 2025Q4 20242025202520242024 267.4 267.4 271.8 229.6 1,028.6 1,028.6 901.3 901.3 Net Interest Income 60.0 60.0 68.6 54.1 229.0 227.1 210.6 31.0 Non-Interest Revenue 327.5 327.5 340.4 283.7 1,257.7 1,255.8 1,111.9 932.3 Total Revenue 186.4 184.2 190.6 172.2 768.9 768.1 742.5 758.3 Non-Interest Expense 141.0 143.3 149.8 111.5 488.8 487.7 369.4 174.1 PPNR3 11.0 11.0 12.0 18.0 55.0 55.0 67.0 67.0 Provision for Credit Losses 31.1 31.6 32.6 22.5 102.7 102.5 76.8 29.6 Income Tax Expense 98.9 100.7 105.2 71.0 331.0 330.2 225.6 77.5 Net Income 4.3 4.3 4.3 4.3 17.3 17.3 17.3 17.3 Preferred Stock Dividends 94.6 96.3 100.9 66.7 313.8 313.0 208.3 60.3 Net Income to Common Q4 2025Q4 2025Q3 2025Q4 20242025202520242024Performance Metrics 1.20% 1.22% 1.30% 0.88% 1.04% 1.04% 0.74% 0.25% Return on Average Assets 1.72% 1.74% 1.85% 1.38% 1.54% 1.53% 1.21% 0.57% PPNR3 / Average Assets 56.9% 56.2% 56.0% 60.7% 61.1% 61.2% 66.8% 81.3% Efficiency Ratio8 11.0% 11.2% 12.0% 8.5% 9.6% 9.6% 7.0% 2.0% Return on Average Common Equity $2.08 $2.12 $2.18 $1.43 $6.80 $6.79 $4.43 $1.28 Earnings Per Share 20252024Non-GAAP2 Adjustments ($mm) 227.1 31.0Non-Interest Income 1.9179.6Loss on AFS Securities Sale 229.0 210.6Non-Interest Income, Adj. 768.1 758.3Non-Interest Expense 2.2(2.8)FDIC Special Assessment (1.4)(7.9)Restructuring Expenses 0.0(5.0)Legal Settlement 768.9 742.5Non-Interest Expense, Adj.
6 Balance Sheet Highlights ($mm) Ending Balances YoYQoQQ4 2025Q3 2025Q4 2024 Assets (34%)(32%)2,099 3,065 3,189 Cash and Equivalents 7% 3% 4,723 4,602 4,396 Total Securities 10% 2% 12,253 11,999 11,146 Commercial Loans (4%)(5%)5,396 5,697 5,616 CRE Loans (23%)(20%)434 540 565 Consumer Loans 16% 0% 6,064 6,058 5,216 Mortgage Finance Loans 7% (1%)24,147 24,294 22,543 Gross LHI (0%)(1%)(271)(274)(272)Allowance for Credit Losses on Loans 3% (3%)31,540 32,537 30,732 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Q4 2025Q3 2025Q4 2024Performance Metrics 22% 24% 25% Cash & Securities % of Assets 51% 49% 49% Commercial Loans % of Gross LHI (333)(333)(325)Total Allowance for Credit Losses ($mm) 1.38% 1.37% 1.45% Total ACL / Total LHI YoYQoQQ4 2025Q3 2025Q4 2024 Liabilities (7%)(9%)6,959 7,690 7,485 Non-Interest Bearing Deposits 10% (2%)19,490 19,816 17,753 Interest Bearing Deposits 5% (4%)26,449 27,505 25,239 Total Deposits (63%)20% 330 275 885 Short-Term Borrowings 2% (3%)27,909 28,900 27,364 Total Liabilities Equity 4% (1%)3,396 3,421 3,251 Common Equity, Excl. AOCI (65%)(23%)(65)(84)(183)AOCI 8% (0%)3,631 3,637 3,368 Total Shareholder’s Equity (4%)(3%)44,253,688 45,679,863 46,233,812 Common Shares Outstanding Q4 2025Q3 2025Q4 2024 91% 88% 89% Total LHI % of Deposits 26% 28% 30% Non-Interest Bearing % of Deposits $75.28 $73.05 $66.36 Book Value Per Share $75.25 $73.02 $66.32 Tangible Book Value Per Share6
7 $3.5 $4.4 $5.2 $5.4 $4.0 $5.3 $5.5 $5.9 4% 15% 29% 54% 59% $4.2 $5.1 $5.5 $5.2 $4.7 $5.9 $6.1 $6.1 $5.6 $5.8 $5.7 $5.7 $5.4 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 $11.1 $11.4 $11.9 $12.0 $12.3 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total LHI increased $1.6bn or 7% YoY Ending period commercial loans increased $1.1bn or 10% YoY Broad based growth driven by sustained client onboarding Ending period commercial loans increased $254mm QoQ or 8% annualized Commercial real estate loans declined $221mm or 4% YoY as persistently high payoff rates and limited new volumes are expected to pressure portfolio balances through 2026 Multifamily comprises $2.2bn or 40% of CRE loans Full year average mortgage finance loan balances increased 12% to $5.2bn Average mortgage finance loans increased 8% QoQ as declining mortgage rates supported balances Linked quarter period end balances flat, breaking from historical Q4 trends of lower end of period balances than average At quarter end, 59% of the Firm’s mortgage finance loan balances were in enhanced credit structures, up from 54% at end of Q3 Loan Portfolio Composition Mortgage Finance Loans ($bn) Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Average Period End Enhanced Credit Structures % of Period End
8 2.81% 2.76% 2.65% 2.62% 2.41% 2.61% 2.54% 2.41% 2.36% 2.18% 4.32% 3.97% 3.83% 3.76% 3.47% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 $3.5 $3.4 $3.4 $3.4 $3.5 $3.3 $5.8 $4.5 $4.8 $4.9 $5.0 $3.7 $16.9 $17.4 $18.0 $19.0 $19.1 $18.8 $0.5 $0.5 $0.3 $0.0 $0.0 $0.7 $26.7 $25.7 $26.5 $27.4 $27.6 $26.4 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2025 Q4 2025 EOP Deposit and Funding Composition Total deposit balances increased $1.2bn or 5% YoY as interest bearing deposit growth continued Total deposit balances decreased $1.1bn QoQ driven by predictable, seasonal mortgage finance deposit reductions related to escrow accounts Non-interest bearing, excl. MF10 deposits increased $233mm or 8% QoQ to $3.3bn Average MF10 non-interest bearing deposits increased $78mm linked quarter to $5.0bn, representing 85% of average mortgage finance loans in Q4 2025 compared to 107% in Q4 of last year End of period deposit balances decreased by $963mm or 21% consistent with historical seasonal trends in the fourth quarter The majority of MF10 non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield Average cost of interest bearing deposits declined 29bps to 3.47% Cumulative beta of 67% since the beginning of the easing cycle inclusive of the late quarter rate cut Average Deposit Trends ($bn) Mortgage Finance Self Funding Ratio Funding Costs Avg Cost of Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Non-Interest Bearing, Excl. MF10 MF10 Non-Interest Bearing Interest Bearing Interest Bearing Brokered YoY Change Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 ($0.8)$5.0 $4.9 $4.8 $4.5 $5.8 Average MF10 Non-Interest Bearing Deposits ($bn) $0.5 $5.9 $5.5 $5.3 $4.0 $5.4 Average MF10 Loans ($bn) (22%)85% 90% 91% 113% 107% MF10 Self Funding Ratio
9 (12.5%) (12.9%) (6.4%) (6.7%) 4.0% 3.6% 7.7% 6.8% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q3 2025 Q4 2025 -200bps Shock -100bps Shock +100bps Shock +200bps Shock Net Interest Income Sensitivity Standard Model Assumptions11 100bp & 200bp Parallel Shocks Loan Balances: Static Deposit Balances: Static Loan Spreads: Current Levels Up Scenario Int. Bearing Deposit Beta: ~80% Down Scenario Int. Bearing Deposit Beta: ~60% Investment Portfolio: Ratio held constant Net Interest Income Sensitivity – Static Balance Sheet ($mm) $1,009mm$1,059mmBase NII12 Q4 2025Q3 2025 YieldBalance ($mm)YieldBalance ($mm) 3.95% $2,994 4.38% $2,920 Interest Bearing Cash and Equivalents 3.98% 4,629 4.14% 4,635 Securities 6.70% 18,177 6.95% 18,253 LHI Excl. Mortgage Finance LHI 4.13% 5,891 4.32% 5,472 Mortgage Finance LHI --(278)--(277)ACL on Loans 5.61% $31,414 5.88% $31,004 Earning Assets 94% of LHI excl. mortgage finance LHI is variable rate $1.1bn of loans are fixed rate with 13% maturing or repricing in the next 12 months Duration of the securities portfolio is approx. 4 years with Q4 cash flows of $181mm Added $700mm of 2 year receiving fixed swaps with a weighted average receive rate of 3.34% against 1-month SOFR during the quarter, and an additional $400mm at 3.32% starting in 1Q Impacts of Mortgage Finance Mortgage finance LHI represents 14% of the average total LHI portfolio with the majority tied to 1-month SOFR which declined 44bps in Q4 Given the current outlook and observed seasonality, the average mortgage finance self funding ratio is expected to remain near 85% in Q1 Firm’s overall net interest income sensitivity (per the chart above) is inclusive of mortgage finance NII impact on a flat balance sheet and does not account for changes in warehouse volumes in either a lower or higher rate environment $81 $43 ($68) ($133) $69 $37 ($68) ($130) Receive Rate Average Notional Balance ($bn) 3.52%1.1Q4 2025 3.46%1.9Q1 2026 3.47%1.7Q2 2026 3.47%1.7Q3 2026 3.47%1.7Q4 2026 3.47%1.7Q1 2027 3.47%1.7Q2 2027 Hedging Profile Earning Assets Profile (Average)
10 $97.9 $131.6 $118.8 $119.9 $108.9 $74.3 $71.4 $70.1 $70.7 $77.6 $1.4 ($2.2) $172.2 $203.0 $190.3 $190.6 $184.2 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 $229.6 $236.0 $253.4 $271.8 $267.4 $54.1 $44.4 $54.1 $68.6 $60.0 $1.9$283.7 $280.5 $307.5 $340.4 $327.5 2.93% 3.19% 3.35% 3.47% 3.38% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 $271.8 ($1.2) ($13.0) $4.4 ($2.6) $0.9 ($4.8) ($0.6) $14.1 ($1.6) $267.4 Q3 2025 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Yield Loan Fees Investment Securities & Cash Interest Bearing Deposits Volume Interest Bearing Deposit Cost Borrowings Q4 2025 57% 65% 62% 63% Q4-2025 Earnings Overview Net Interest Income ($mm) Total Revenue ($mm) Non-Interest Expense ($mm) 59% 10 10 10 10 42% 35% 37% Salaries & Benefits Other NIE Non-Recurring Items2Net Interest Income Non-Recurring Items2 43% 37% 1% (1%) Non-Interest Income Net Interest Margin Net interest income declined 1.6% QoQ driven by seasonal warehouse factors and known timing differences between loan and deposit betas Quarterly net interest margin improved 45bps YoY Full year non-interest income of $227.1mm, up $196.1mm, with adjusted non-interest income2 of $229.0mm, rising $18.4mm or 9% to record levels Adjusted non-interest expense2 grew 8% YoY driven by higher salaries and benefits expense aligned to focused areas of investment
11 60% Investment Banking & Trading 7% Wealth 18% Treasury5 15% Other 58% Investment Banking & Trading 7% Wealth 20% Treasury5 16% Other (1%) Non-Recurring Fee Income Non-Interest Income Annual GrowthFY 2025FY 2024Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024 7%$4.2 $4.0 $4.2 $4.2 $4.1 $3.8 $4.0 Assets Under Management13 ($bn) 4%$15.9 $15.3 $4.2 $4.0 $3.7 $4.0 $4.0 Wealth Management & Trust Fee Income ($mm) 24%$44.4$35.8 $11.1$11.1 $11.6 $10.6 $9.5 Treasury Product Fees5 ($mm) 4%$131.7 $126.6 $36.0 $41.2 $32.0 $22.4 $32.2 Investment Banking & Trading Income ($mm) 8%$191.9 $177.7 $51.3 $56.3 $47.3 $37.0 $45.7 Income from Areas of Focus ($mm) $54.1 $44.4 $54.1 $68.6 $60.0 $56.0 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Non-Interest Income ($mm) % of Total Revenue, Adj.2 19% 16% 18% 20% 18% Non-Interest Income Non-Interest Income, Adj.2 Non-Interest Income Composition Q4 2025 FY 2025 Fee income from areas of focus grew 8% in 2025 to $191.9mm, a record high for the Firm Assets Under Management13 rose 7% YoY, supporting full year Wealth Management & Trust Fee growth of 4% Full year Treasury Product Fees5 increased $8.6mm or 24% in 2025 Gross PxV expanded 12% in 2025, exceeding 10% growth in 4 of the last 5 years Quarterly Treasury Product Fees5 up 16% or $1.5mm YoY IB Transaction volume across capital markets, capital solutions, and syndications increased nearly 40% YoY as platform scales
12 79% 80% 92% 91% 84% 20% 20% 8% 9% 16% 1% $278.3 $278.7 $297.5 $280.1 $288.3 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 70% 71% 64% 51% 40% 30% 28% 34% 48% 60% 1% 2% 1% $435.6 $484.2 $339.9 $249.6 $346.6 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2.9x 3.5x 2.8x 1.45% 1.37% 1.38% 1.87% 1.79% 1.82% Q4 2024 Q3 2025 Q4 2025 0.36% 0.30% 0.36% 0.30% 0.38% 0.22% 0.18% 0.22% 0.23% 0.18% 3.18% 3.41% 2.66% 2.19% 2.64% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $10.7 $13.7 $13.0 $9.8 $12.1 Net Charge-Offs ($mm) Total ACL / Non- accrual Loans HFI Total ACL increased to $332.8mm Total ACL, excl. MF10 increased $2.8mm QoQ to $326.6mm Total ACL, excl. MF10 to LHI, excl. MF10 in the top decile among Peers14 Total ACL to LHI ratio $10.7mm of quarterly net charge-offs, 0.18% of average LHI, primarily related to previously identified problem credits Quarterly provision expense as a percentage of average LHI of 18bps and FY 2025 provision expense as a percentage of average LHI of 24bps Quarterly provision expense as a percentage of average LHI excl. MF10 of 24bps FY 2025 provision expense as a percentage of average LHI excl. MF10 of 31bps Criticized LHI declined $79mm or 11% YoY, with the percentage of total LHI declining 54bps to 2.64% Special mention LHI declined $89mm or 20% YoY QoQ increase in special mention related to select multifamily credits requiring ongoing rental concessions to gain or maintain occupancy, impacting net operating income in spite of strong sponsor supportCommercial Mortgage Finance Real Estate ConsumerCommercial Mortgage Finance Real Estate Consumer Total ACL / LHI Total ACL, Excl. MF10 / LHI Excl. MF10 Q4 2024 Q3 2025 Q4 2025 Criticized / LHI NPAs / Total Assets NCOs / Avg. LHI
13 11.38% 11.63% 11.45% 12.14% 12.13% >11.00% 1.44% 1.46% 1.41% 1.46% 1.47% 2.55% 2.51% 2.44% 2.50% 2.52% 15.37% 15.61% 15.30% 16.10% 16.12% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2026 Guidance 9.98 9.97 10.04 10.25 10.56 9.98 9.98 10.05 10.26 10.56 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 66.32 67.97 70.14 73.02 75.25 66.36 68.00 70.17 73.05 75.28 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Tangible Common Equity / Tangible Assets4 Common Equity / Total Assets 2026 Guidance Capital Position and Trends Delivered strong improvement in capital ratios, with CET1 improving 75bps and tangible common equity to tangible assets improving 58bps YoY, reflecting disciplined balance sheet management and earnings momentum Tangible common equity to tangible assets4 ended the quarter at 10.56%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle Tangible common equity to tangible assets4 in top quintile of peer group14 Tangible book value per share6 expanded $2.23 or 3% QoQ as a result of income generated and AOCI improvement TBVPS6 of $75.25 is an all-time high for the Firm Repurchased 1.4mm shares in Q4 for a total of $125mm at a weighted average price of approximately 117% of prior month tangible book value per share6 2025 share repurchases total 4.9% of prior year shares outstanding at a weighted average price of approximately 114% of prior month tangible book value per share6 Authorized share repurchase program of up to $200mm for 2026 Regulatory Capital Levels Tangible Common Equity / Tangible Assets4 (%) Period End AOCI ($mm) (65)(84)(113)(136)(183) AOCI per Share ($) (1.46)(1.84)(2.47)(2.96)(3.96) Peer14 Tangible Common Equity / Tangible Assets4 (%) 8.558.468.258.10 CET1 Tier 1 Capital Tier 2 Capital Tangible Book Value per Share6 Book Value per Share Tangible Book Value per Share6 ($)
14 Full Year 2026 Guidance Full Year 2025 Adjusted (Non-GAAP2) Mid to high single-digit % growth$1,257.7mmTotal Revenue, Adjusted2 Mid single-digit % growth$768.9mmNon-Interest Expense, Adjusted2 35bps - 40bps31bpsProvision / Avg LHI, Excl. Mortgage Finance LHI >11%12.13%CET1 Ratio Full Year 2026 Guidance Forward curve15 assumes 25bps cuts in June and October with an exit rate of 3.25% at year end 2026 Tax rate expected to be approximately 25% for the full year in 2026 Guidance Commentary
15 1. Comparisons vs. FY 2024 GAAP and adjusted metrics unless otherwise noted 2. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 3. “PPNR” used as an abbreviation for Pre-Provision Net Revenue which is the sum of net interest income and non-interest income, less non-interest expense 4. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 5. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $10.2mm for FY 2024, and $11.8mm for FY 2025 and $2.5mm, $2.8mm, $3.4mm, $3.0mm, and $2.6mm for Q4 2024, Q1 2025, Q2 2025, Q3 2025, and Q4 2025 respectively 6. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 7. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 8. Non-interest expense divided by the sum of net interest income and non-interest income 9. Comparisons vs. Q4 2024 GAAP and adjusted metrics unless otherwise noted 10. “MF” used as abbreviation for Mortgage Finance 11. Model assumptions are only for Q4 2025; See prior TCBI Earnings Materials for prior model assumptions 12. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 13. Assets Under Management includes non-discretionary brokerage assets that the Firm earns wealth management and trust fee income on 14. Major exchange traded US peer banks with $20-100bn in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; peer data as of Q3 2025 15. Forward curve as of January 5, 2026 Appendix // Footnotes
16 Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios YoY Change20252024YoY ChangeQ4 2025Q4 2024 Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported ($mm, unless noted otherwise) $105.4 $252.7 $313.8 $313.0 $208.3 $60.3 $27.9 $29.6 $94.6 $96.3 $66.7 $66.7 Net Income to Common $308.9 $308.9 $3,264.4 $3,264.4 $2,955.5 $2,955.5 $299.1 $299.1 $3,420.0 $3,420.0 $3,120.9 $3,120.9 Average Common Equity 0.0 0.0 1.5 1.5 1.5 1.5 0.0 0.0 1.5 1.5 1.5 1.5 Less: Average Goodwill & Intangibles $308.9 $308.9 $3,262.9 $3,262.9 $2,954.0 $2,954.0 $299.1 $299.1 $3,418.5 $3,418.5 $3,119.4 $3,119.4 Average Tangible Common Equity 2.6%7.5%9.6%9.6%7.0%2.0%2.5%2.7%11.0%11.2%8.5%8.5%ROACE 2.6%7.6%9.6%9.6%7.1%2.0%2.5%2.7%11.0%11.2%8.5%8.5%ROATCE
17 Non-GAAP Reconciliation // Adjusted Earnings & Ratios YoY ChangeFY 2025 FY 2024 YoY Change Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 ($mm, except per share) $127.3 $1,028.6 $901.3 $37.8 $267.4 $271.8 $253.4 $236.0 $229.6 Net Interest Income 196.1 227.1 31.0 6.0 60.0 68.6 54.1 44.4 54.1 Non-Interest Revenue Adjustments for Non-Recurring Items: (177.7)1.9 179.6 ---1.9 --Loss on AFS Securities Sale 18.4 229.0 210.6 6.0 60.0 68.6 56.0 44.4 54.1 Non-Interest Revenue, Adjusted 323.4 1,255.8 932.3 43.8 327.5 340.4 307.5 280.5 283.7 Total Revenue1 145.7 1,257.7 1,111.9 43.8 327.5 340.4 309.4 280.5 283.7 Total Revenue, Adjusted1 9.8 768.1 758.3 12.0 184.2 190.6 190.3 203.0 172.2 Non-Interest Expense Adjustments: 6.5 (1.4)(7.9)---(1.4)--Restructuring Expense 5.0 -(5.0)------Legal Settlement 5.1 2.2 (2.8)2.2 2.2 ----FDIC Special Assessment 26.4 768.9 742.5 14.3 186.4 190.6 188.9 203.0 172.2 Non-Interest Expense, Adjusted 313.6 487.7 174.1 31.8 143.3 149.8 117.2 77.5 111.5 PPNR2 119.4 488.8 369.4 29.5 141.0 149.8 120.5 77.5 111.5 PPNR, Adjusted2 (12.0)55.0 67.0 (7.0)11.0 12.0 15.0 17.0 18.0 Provision for Credit Losses 72.9 102.5 29.6 9.1 31.6 32.6 24.9 13.4 22.5 Income Tax Expenses (47.0)0.2 47.2 (0.5)(0.5)-0.8 --Tax Impact of Adjustments Above 25.9 102.7 76.8 8.6 31.1 32.6 25.6 13.4 22.5 Income Tax Expenses, Adjusted 252.7 330.2 77.5 29.6 100.7 105.2 77.3 47.0 71.0 Net Income3 105.4 331.0 225.6 27.9 98.9 105.2 79.8 47.0 71.0 Net Income, Adjusted3 -17.3 17.3 -4.3 4.3 4.3 4.3 4.3 Preferred Stock Dividends 252.7 313.0 60.3 29.6 96.3 100.9 73.0 42.7 66.7 Net Income to Common4 105.4 313.8 208.3 27.9 94.6 100.9 75.5 42.7 66.7 Net Income to Common, Adjusted4 $1,214.9 $31,828.1 $30,613.2 $394.2 $32,606.3 $32,162.7 $31,419.5 $31,103.6 $32,212.1 Average Assets 0.79% 1.04% 0.25% 0.34% 1.22% 1.30% 0.99% 0.61% 0.88% Return on Average Assets 0.30% 1.04% 0.74% 0.32% 1.20% 1.30% 1.02% 0.61% 0.88% Return on Average Assets, Adjusted 0.96% 1.53% 0.57% 0.36% 1.74% 1.85% 1.50% 1.01% 1.38% PPNR2 / Average Assets 0.33% 1.54% 1.21% 0.34% 1.72% 1.85% 1.54% 1.01% 1.38% PPNR, Adjusted2 / Average Assets $308.9 $3,264.4 $2,955.5 $299.0 $3,420.0 $3,324.2 $3,195.0 $3,114.4 $3,120.9 Average Common Equity 7.55% 9.59% 2.04% 2.68% 11.18% 12.04% 9.17% 5.56% 8.50% Return on Average Common Equity 2.56% 9.61% 7.05% 2.47% 10.98% 12.04% 9.48% 5.56% 8.50% Return on Average Common Equity, Adjusted (861,829)46,127,375 46,989,204 (1,261,591)45,509,370 46,233,167 46,215,394 46,616,704 46,770,961 Diluted Common Shares $5.51 $6.79 $1.28 $0.69 $2.12 $2.18 $1.58 $0.92 $1.43 Earnings per Share $2.37 $6.80 $4.43 $0.65 $2.08 $2.18 $1.63 $0.92 $1.43 Earnings per Share, Adjusted (20.2%)61.2%81.3%(4.4%)56.2%56.0%61.9%72.4%60.7%Efficiency Ratio5 (5.6%)61.1%66.8%(3.8%)56.9%56.0%61.1%72.4%60.7%Efficiency Ratio, Adjusted5 Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments. 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. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted 3. 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 4. Net income, less preferred stock dividends. On an adjusted basis, net income, adjusted, less preferred stock dividends 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 noninterest income, adjusted