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): April 17, 2025
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 April 17, 2025, Texas Capital Bancshares, Inc. (the “Company”) issued a press release and made available presentation slides regarding its operating and financial results for its fiscal quarter ended March 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 5.07. Submission of Matters to a Vote of Security Holders.
On April 15, 2025, the Company held its Annual Meeting. The matters voted on at the Annual Meeting and final voting results are summarized below.
Proposal 1 - A Company proposal to elect thirteen (13) directors each to serve until the next annual meeting of stockholders or until their successors are elected and qualified:
| Number of Shares | |||
|---|---|---|---|
| Nominee | Voted For | Votes Withheld | Broker Non-Votes |
| Paola M. Arbour | 41,238,378 | 211,279 | 2,192,649 |
| Jonathan E. Baliff | 41,334,710 | 114,947 | 2,192,649 |
| Ranjana B. Clark | 41,387,707 | 61,950 | 2,192,649 |
| Rob C. Holmes | 40,312,596 | 1,137,061 | 2,192,649 |
| David S. Huntley | 37,175,533 | 4,274,124 | 2,192,649 |
| Charles S. Hyle | 40,744,313 | 705,344 | 2,192,649 |
| Thomas E. Long | 35,276,224 | 6,173,433 | 2,192,649 |
| Mark W. Midkiff | 41,236,518 | 213,139 | 2,192,649 |
| Elysia Holt Ragusa | 36,058,273 | 5,391,384 | 2,192,649 |
| Steven P. Rosenberg | 36,789,643 | 4,660,014 | 2,192,649 |
| Robert W. Stallings | 41,041,798 | 407,859 | 2,192,649 |
| Dale W. Tremblay | 37,103,225 | 4,346,432 | 2,192,649 |
| Laura L. Whitley | 37,599,720 | 3,849,937 | 2,192,649 |
Each of the thirteen director nominees was elected to serve until the next annual meeting of stockholders or until their successors are elected and qualified.
Proposal 2 - A Company proposal to ratify the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2025:
| Number of Shares | |||
|---|---|---|---|
| Voted For | Voted Against | Abstentions | Broker Non-Votes |
| 42,440,861 | 1,189,348 | 12,097 | — |
The appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2025 was ratified.
Proposal 3 - A Company proposal to approve, on an advisory basis, the 2024 compensation of the Company's named executive officers as disclosed in the Proxy Statement:
| Number of Shares | |||
|---|---|---|---|
| Voted For | Voted Against | Abstentions | Broker Non-Votes |
| 19,371,896 | 21,790,636 | 287,125 | 2,192,649 |
The 2024 compensation of the Company’s named executive officers was not approved by our stockholders on a non-binding advisory basis.
Proposal 4 - A Company proposal to approve the 2022 Long-Term Incentive Plan, as amended and restated, as described in the Proxy Statement.
| Number of Shares | |||
|---|---|---|---|
| Voted For | Voted Against | Abstentions | Broker Non-Votes |
| 39,715,473 | 1,434,524 | 299,660 | 2,192,649 |
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release, datedApril 17, 2025announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarterendedMarch 31, 2025
99.2 Presentation datedApril 17, 2025discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarterendedMarch 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: | April 17, 2025 | 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 |
| MEDIA CONTACT |
| Julia Monter, 469.399.8425 |
| julia.monter@texascapitalbank.com |
TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS
First quarter 2025 net income of $47.0 million and net income available to common
stockholders of $42.7 million, or $0.92 per diluted share
Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year
Book Value and Tangible Book Value(1) per share both increasing 11% year-over-year, reaching record levels
Capital ratios continue to be strong, including 11.6% CET1 and 15.6% Total Capital
DALLAS - April 17, 2025 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2025.
“We continue to leverage our diversified product suite and financially resilient balance sheet to effectively support our clients’ objectives,” said Rob C. Holmes, Chairman, President & CEO. “With significant year-over-year improvements to many key financial and operating metrics, we remain focused on achieving published financial targets in the back-half of this year.”
| 1st Quarter | 4th Quarter | 1st Quarter | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands except per share data) | 2025 | 2024 | 2024 | ||||||
| OPERATING RESULTS | |||||||||
| Net income | $ | 47,047 | $ | 71,023 | $ | 26,142 | |||
| Net income available to common stockholders | $ | 42,734 | $ | 66,711 | $ | 21,829 | |||
| Pre-provision net revenue(3) | $ | 77,458 | $ | 111,522 | $ | 53,935 | |||
| Diluted earnings per common share | $ | 0.92 | $ | 1.43 | $ | 0.46 | |||
| Diluted common shares | 46,616,704 | 46,770,961 | 47,711,192 | ||||||
| Return on average assets | 0.61 | % | 0.88 | % | 0.36 | % | |||
| Return on average common equity | 5.56 | % | 8.50 | % | 3.03 | % | |||
| OPERATING RESULTS, ADJUSTED(2) | |||||||||
| Net income | $ | 47,047 | $ | 71,023 | $ | 33,898 | |||
| Net income available to common stockholders | $ | 42,734 | $ | 66,711 | $ | 29,585 | |||
| Pre-provision net revenue(3) | $ | 77,458 | $ | 111,522 | $ | 63,953 | |||
| Diluted earnings per common share | $ | 0.92 | $ | 1.43 | $ | 0.62 | |||
| Diluted common shares | 46,616,704 | 46,770,961 | 47,711,192 | ||||||
| Return on average assets | 0.61 | % | 0.88 | % | 0.47 | % | |||
| Return on average common equity | 5.56 | % | 8.50 | % | 4.11 | % | |||
| BALANCE SHEET | |||||||||
| Loans held for investment | $ | 17,654,243 | $ | 17,234,492 | $ | 16,677,691 | |||
| Loans held for investment, mortgage finance | 4,725,541 | 5,215,574 | 4,153,313 | ||||||
| Total loans held for investment | 22,379,784 | 22,450,066 | 20,831,004 | ||||||
| Loans held for sale | — | — | 37,750 | ||||||
| Total assets | 31,375,749 | 30,731,883 | 29,180,585 | ||||||
| Non-interest bearing deposits | 7,874,780 | 7,485,428 | 8,478,215 | ||||||
| Total deposits | 26,053,034 | 25,238,599 | 23,954,037 | ||||||
| Stockholders’ equity | 3,429,774 | 3,367,936 | 3,170,662 |
(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(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) Net interest income plus non-interest income, less non-interest expense.
FIRST QUARTER 2025 COMPARED TO FOURTH QUARTER 2024
For the first quarter of 2025, net income available to common stockholders was $42.7 million, or $0.92 per diluted share, compared to $66.7 million, or $1.43 per diluted share, for the fourth quarter of 2024.
Provision for credit losses for the first quarter of 2025 was $17.0 million, compared to $18.0 million for the fourth quarter of 2024. The $17.0 million provision for credit losses recorded in the first quarter of 2025 resulted primarily from an increase in criticized loans and $9.8 million in net charge-offs, as well as uncertainty in the economic outlook.
Net interest income was $236.0 million for the first quarter of 2025, compared to $229.6 million for the fourth quarter of 2024, as a decrease in funding costs was partially offset by a decrease in average earning assets. Net interest margin for the first quarter of 2025 was 3.19%, an increase of 26 basis points from the fourth quarter of 2024. LHI, excluding mortgage finance, yields increased 3 basis points from the fourth quarter of 2024 and LHI, mortgage finance, yields increased 20 basis points from the fourth quarter of 2024. Total cost of deposits was 2.76% for the first quarter of 2025, a 5 basis point decrease from the fourth quarter of 2024.
Non-interest income for the first quarter of 2025 decreased $9.6 million compared to the fourth quarter of 2024 primarily due to a decrease in investment banking and advisory fees.
Non-interest expense for the first quarter of 2025 increased $30.9 million, or 18%, compared to the fourth quarter of 2024, primarily due to an increase in salaries and benefits, primarily as a result of the effect of seasonal payroll expenses that peak in the first quarter.
FIRST QUARTER 2025 COMPARED TO FIRST QUARTER 2024
Net income available to common stockholders was $42.7 million, or $0.92 per diluted share, for the first quarter of 2025, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024.
The first quarter of 2025 included a $17.0 million provision for credit losses, reflecting an increase in criticized loans, $9.8 million in net charge-offs and uncertainty in the economic outlook, compared to a $19.0 million provision for credit losses for the first quarter of 2024.
Net interest income increased to $236.0 million for the first quarter of 2025, compared to $215.0 million for the first quarter of 2024, primarily due to an increase in average total LHI and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities and a decrease in earning asset yields. Net interest margin increased 16 basis points to 3.19% for the first quarter of 2025, as compared to the first quarter of 2024. LHI, excluding mortgage finance, yields decreased 41 basis points compared to the first quarter of 2024 and LHI, mortgage finance yields increased 33 basis points from the first quarter of 2024. Total cost of deposits decreased 21 basis points compared to the first quarter of 2024.
Non-interest income for the first quarter of 2025 increased $3.1 million compared to the first quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by a decrease in investment banking and advisory fees.
Non-interest expense for the first quarter of 2025 increased $627,000 compared to the first quarter of 2024, primarily due to increases in salaries and benefits and communications and technology expense, partially offset by a decrease in Federal Deposit Insurance Corporation (“FDIC”) expense. The first quarter of 2024 included $3.0 million in additional FDIC special assessment expense.
CREDIT QUALITY
Net charge-offs of $9.8 million were recorded during the first quarter of 2025, compared to net charge-offs of $12.1 million and $10.8 million during the fourth quarter of 2024 and the first quarter of 2024, respectively. Criticized loans totaled $762.9 million at March 31, 2025, compared to $714.0 million at December 31, 2024 and $859.5 million at March 31, 2024. Non-accrual LHI totaled $93.6 million at March 31, 2025, compared to $111.2 million at December 31, 2024 and $92.8 million at March 31, 2024. The ratio of non-accrual LHI to total LHI for the first quarter of 2025 was 0.42%, compared to 0.50% for the fourth quarter of 2024 and 0.45% for the first quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.48% at March 31, 2025, compared to 1.45% and 1.46% at December 31, 2024 and March 31, 2024, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of March 31, 2025. CET1, tier 1 capital, total capital and leverage ratios were 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025, compared to 11.4%, 12.8%, 15.4% and 11.3%, respectively, at December 31, 2024 and 12.4%, 13.9%, 16.6% and 12.4%, respectively, at March 31, 2024. At March 31, 2025, our ratio of tangible common equity to total tangible assets was 10.0%, compared to 10.0% at December 31, 2024 and 9.8% at March 31, 2024.
During the first quarter of 2025, the Company repurchased 396,106 shares of its common stock for an aggregate purchase price, including excise tax expense, of $31.2 million, at a weighted average price of $78.25 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 conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||
| (dollars in thousands except per share data) | |||||||||||||||
| 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| Interest income | $ | 427,289 | $ | 437,571 | $ | 452,533 | $ | 422,068 | $ | 417,378 | |||||
| Interest expense | 191,255 | 207,964 | 212,431 | 205,486 | 202,369 | ||||||||||
| Net interest income | 236,034 | 229,607 | 240,102 | 216,582 | 215,009 | ||||||||||
| Provision for credit losses | 17,000 | 18,000 | 10,000 | 20,000 | 19,000 | ||||||||||
| Net interest income after provision for credit losses | 219,034 | 211,607 | 230,102 | 196,582 | 196,009 | ||||||||||
| Non-interest income | 44,444 | 54,074 | (114,771) | 50,424 | 41,319 | ||||||||||
| Non-interest expense | 203,020 | 172,159 | 195,324 | 188,409 | 202,393 | ||||||||||
| Income/(loss) before income taxes | 60,458 | 93,522 | (79,993) | 58,597 | 34,935 | ||||||||||
| Income tax expense/(benefit) | 13,411 | 22,499 | (18,674) | 16,935 | 8,793 | ||||||||||
| Net income/(loss) | 47,047 | 71,023 | (61,319) | 41,662 | 26,142 | ||||||||||
| Preferred stock dividends | 4,313 | 4,312 | 4,313 | 4,312 | 4,313 | ||||||||||
| Net income/(loss) available to common stockholders | $ | 42,734 | $ | 66,711 | $ | (65,632) | $ | 37,350 | $ | 21,829 | |||||
| Diluted earnings/(loss) per common share | $ | 0.92 | $ | 1.43 | $ | (1.41) | $ | 0.80 | $ | 0.46 | |||||
| Diluted common shares | 46,616,704 | 46,770,961 | 46,608,742 | 46,872,498 | 47,711,192 | ||||||||||
| CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
| Total assets | $ | 31,375,749 | $ | 30,731,883 | $ | 31,629,299 | $ | 29,854,994 | $ | 29,180,585 | |||||
| Loans held for investment | 17,654,243 | 17,234,492 | 16,764,512 | 16,700,569 | 16,677,691 | ||||||||||
| Loans held for investment, mortgage finance | 4,725,541 | 5,215,574 | 5,529,659 | 5,078,161 | 4,153,313 | ||||||||||
| Loans held for sale | — | — | 9,022 | 36,785 | 37,750 | ||||||||||
| Interest bearing cash and cash equivalents | 3,600,969 | 3,012,307 | 3,894,537 | 2,691,352 | 3,148,157 | ||||||||||
| Investment securities | 4,531,219 | 4,396,115 | 4,405,520 | 4,388,976 | 4,414,280 | ||||||||||
| Non-interest bearing deposits | 7,874,780 | 7,485,428 | 9,070,804 | 7,987,715 | 8,478,215 | ||||||||||
| Total deposits | 26,053,034 | 25,238,599 | 25,865,255 | 23,818,327 | 23,954,037 | ||||||||||
| Short-term borrowings | 750,000 | 885,000 | 1,035,000 | 1,675,000 | 750,000 | ||||||||||
| Long-term debt | 660,521 | 660,346 | 660,172 | 659,997 | 859,823 | ||||||||||
| Stockholders’ equity | 3,429,774 | 3,367,936 | 3,354,044 | 3,175,601 | 3,170,662 | ||||||||||
| End of period shares outstanding | 46,024,933 | 46,233,812 | 46,207,757 | 46,188,078 | 46,986,275 | ||||||||||
| Book value per share | $ | 68.00 | $ | 66.36 | $ | 66.09 | $ | 62.26 | $ | 61.10 | |||||
| Tangible book value per share(1) | $ | 67.97 | $ | 66.32 | $ | 66.06 | $ | 62.23 | $ | 61.06 | |||||
| SELECTED FINANCIAL RATIOS | |||||||||||||||
| Net interest margin | 3.19 | % | 2.93 | % | 3.16 | % | 3.01 | % | 3.03 | % | |||||
| Return on average assets | 0.61 | % | 0.88 | % | (0.78) | % | 0.56 | % | 0.36 | % | |||||
| Return on average assets, adjusted(4) | 0.61 | % | 0.88 | % | 1.00 | % | 0.57 | % | 0.47 | % | |||||
| Return on average common equity | 5.56 | % | 8.50 | % | (8.87) | % | 5.26 | % | 3.03 | % | |||||
| Return on average common equity, adjusted(4) | 5.56 | % | 8.50 | % | 10.04 | % | 5.31 | % | 4.11 | % | |||||
| Efficiency ratio(2) | 72.4 | % | 60.7 | % | 155.8 | % | 70.6 | % | 79.0 | % | |||||
| Efficiency ratio, adjusted(2)(4) | 72.4 | % | 60.7 | % | 62.3 | % | 70.4 | % | 75.1 | % | |||||
| Non-interest income to average earning assets | 0.60 | % | 0.69 | % | (1.52) | % | 0.71 | % | 0.59 | % | |||||
| Non-interest income to average earning assets, adjusted(4) | 0.60 | % | 0.69 | % | 0.86 | % | 0.71 | % | 0.59 | % | |||||
| Non-interest expense to average earning assets | 2.75 | % | 2.21 | % | 2.59 | % | 2.65 | % | 2.89 | % | |||||
| Non-interest expense to average earning assets, adjusted(4) | 2.75 | % | 2.21 | % | 2.52 | % | 2.65 | % | 2.74 | % | |||||
| Common equity to total assets | 10.0 | % | 10.0 | % | 9.7 | % | 9.6 | % | 9.8 | % | |||||
| Tangible common equity to total tangible assets(3) | 10.0 | % | 10.0 | % | 9.7 | % | 9.6 | % | 9.8 | % | |||||
| Common Equity Tier 1 | 11.6 | % | 11.4 | % | 11.2 | % | 11.6 | % | 12.4 | % | |||||
| Tier 1 capital | 13.1 | % | 12.8 | % | 12.6 | % | 13.1 | % | 13.9 | % | |||||
| Total capital | 15.6 | % | 15.4 | % | 15.2 | % | 15.7 | % | 16.6 | % | |||||
| Leverage | 11.8 | % | 11.3 | % | 11.4 | % | 12.2 | % | 12.4 | % |
(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) | |||||||||
| December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 | ||||||
| Assets | |||||||||
| Cash and due from banks | 201,504 | $ | 176,501 | $ | 297,048 | $ | 221,727 | $ | 167,985 |
| Interest bearing cash and cash equivalents | 3,012,307 | 3,894,537 | 2,691,352 | 3,148,157 | |||||
| Available-for-sale debt securities | 3,524,686 | 3,518,662 | 3,483,231 | 3,491,510 | |||||
| Held-to-maturity debt securities | 796,168 | 812,432 | 831,513 | 849,283 | |||||
| Equity securities | 75,261 | 74,426 | 74,232 | 73,487 | |||||
| Trading securities | — | — | — | — | |||||
| Investment securities | 4,396,115 | 4,405,520 | 4,388,976 | 4,414,280 | |||||
| Loans held for sale | — | 9,022 | 36,785 | 37,750 | |||||
| Loans held for investment, mortgage finance | 5,215,574 | 5,529,659 | 5,078,161 | 4,153,313 | |||||
| Loans held for investment | 17,234,492 | 16,764,512 | 16,700,569 | 16,677,691 | |||||
| Less: Allowance for credit losses on loans | 271,709 | 273,143 | 267,297 | 263,962 | |||||
| Loans held for investment, net | 22,178,357 | 22,021,028 | 21,511,433 | 20,567,042 | |||||
| Premises and equipment, net | 85,443 | 81,577 | 69,464 | 49,899 | |||||
| Accrued interest receivable and other assets | 881,664 | 919,071 | 933,761 | 793,976 | |||||
| Goodwill and intangibles, net | 1,496 | 1,496 | 1,496 | 1,496 | |||||
| Total assets | 31,375,749 | $ | 30,731,883 | $ | 31,629,299 | $ | 29,854,994 | $ | 29,180,585 |
| Liabilities and Stockholders’ Equity | |||||||||
| Liabilities: | |||||||||
| Non-interest bearing deposits | 7,874,780 | $ | 7,485,428 | $ | 9,070,804 | $ | 7,987,715 | $ | 8,478,215 |
| Interest bearing deposits | 17,753,171 | 16,794,451 | 15,830,612 | 15,475,822 | |||||
| Total deposits | 25,238,599 | 25,865,255 | 23,818,327 | 23,954,037 | |||||
| Accrued interest payable | 23,680 | 18,679 | 23,841 | 32,352 | |||||
| Other liabilities | 556,322 | 696,149 | 502,228 | 413,711 | |||||
| Short-term borrowings | 885,000 | 1,035,000 | 1,675,000 | 750,000 | |||||
| Long-term debt | 660,346 | 660,172 | 659,997 | 859,823 | |||||
| Total liabilities | 27,363,947 | 28,275,255 | 26,679,393 | 26,009,923 | |||||
| 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) | 515 | 515 | 515 | 514 | |||||
| Additional paid-in capital | 1,056,719 | 1,054,614 | 1,050,114 | 1,044,669 | |||||
| Retained earnings | 2,495,651 | 2,428,940 | 2,494,572 | 2,457,222 | |||||
| Treasury stock(3) | (301,842) | (301,868) | (301,868) | (251,857) | |||||
| Accumulated other comprehensive loss, net of taxes | (183,107) | (128,157) | (367,732) | (379,886) | |||||
| Total stockholders’ equity | 3,367,936 | 3,354,044 | 3,175,601 | 3,170,662 | |||||
| Total liabilities and stockholders’ equity | 31,375,749 | $ | 30,731,883 | $ | 31,629,299 | $ | 29,854,994 | $ | 29,180,585 |
| (1) Preferred stock - issued shares | 300,000 | 300,000 | 300,000 | 300,000 | |||||
| (2) Common stock - issued shares | 51,520,315 | 51,494,260 | 51,474,581 | 51,420,680 | |||||
| (3) Treasury stock - shares at cost | 5,286,503 | 5,286,503 | 5,286,503 | 4,434,405 |
All values are in US Dollars.
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
| (dollars in thousands except per share data) | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Interest income | |||||||||||||||
| Interest and fees on loans | $ | 334,150 | $ | 330,879 | |||||||||||
| Investment securities | 46,565 | 32,144 | |||||||||||||
| Interest bearing cash and cash equivalents | 46,574 | 54,355 | |||||||||||||
| Total interest income | 427,289 | 417,378 | |||||||||||||
| Interest expense | |||||||||||||||
| Deposits | 174,936 | 175,600 | |||||||||||||
| Short-term borrowings | 8,246 | 12,783 | |||||||||||||
| Long-term debt | 8,073 | 13,986 | |||||||||||||
| Total interest expense | 191,255 | 202,369 | |||||||||||||
| Net interest income | 236,034 | 215,009 | |||||||||||||
| Provision for credit losses | 17,000 | 19,000 | |||||||||||||
| Net interest income after provision for credit losses | 219,034 | 196,009 | |||||||||||||
| Non-interest income | |||||||||||||||
| Service charges on deposit accounts | 7,840 | 6,339 | |||||||||||||
| Wealth management and trust fee income | 3,964 | 3,567 | |||||||||||||
| Brokered loan fees | 1,949 | 1,911 | |||||||||||||
| Investment banking and advisory fees | 16,478 | 18,424 | |||||||||||||
| Trading income | 5,939 | 4,712 | |||||||||||||
| Other | 8,274 | 6,366 | |||||||||||||
| Total non-interest income | 44,444 | 41,319 | |||||||||||||
| Non-interest expense | |||||||||||||||
| Salaries and benefits | 131,641 | 128,727 | |||||||||||||
| Occupancy expense | 10,844 | 9,737 | |||||||||||||
| Marketing | 5,009 | 6,036 | |||||||||||||
| Legal and professional | 14,989 | 16,195 | |||||||||||||
| Communications and technology | 23,642 | 21,114 | |||||||||||||
| Federal Deposit Insurance Corporation insurance assessment | 5,341 | 8,421 | |||||||||||||
| Other | 11,554 | 12,163 | |||||||||||||
| Total non-interest expense | 203,020 | 202,393 | |||||||||||||
| Income before income taxes | 60,458 | 34,935 | |||||||||||||
| Income tax expense | 13,411 | 8,793 | |||||||||||||
| Net income | 47,047 | 26,142 | |||||||||||||
| Preferred stock dividends | 4,313 | 4,313 | |||||||||||||
| Net income available to common stockholders | $ | 42,734 | $ | 21,829 | |||||||||||
| Basic earnings per common share | $ | 0.93 | $ | 0.46 | |||||||||||
| Diluted earnings per common share | $ | 0.92 | $ | 0.46 | |||||||||||
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SUMMARY OF CREDIT LOSS EXPERIENCE | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Allowance for credit losses on loans: | |||||||||||||||
| Beginning balance | $ | 271,709 | $ | 273,143 | $ | 267,297 | $ | 263,962 | $ | 249,973 | |||||
| Allowance established for acquired purchase credit deterioration loans | — | — | 2,579 | — | — | ||||||||||
| Loans charged-off: | |||||||||||||||
| Commercial | 10,197 | 14,100 | 6,120 | 9,997 | 7,544 | ||||||||||
| Commercial real estate | 500 | 2,566 | 262 | 2,111 | 3,325 | ||||||||||
| Consumer | — | — | 30 | — | — | ||||||||||
| Total charge-offs | 10,697 | 16,666 | 6,412 | 12,108 | 10,869 | ||||||||||
| Recoveries: | |||||||||||||||
| Commercial | 483 | 4,562 | 329 | 153 | 105 | ||||||||||
| Commercial real estate | 413 | 18 | — | — | — | ||||||||||
| Consumer | 4 | 15 | — | — | — | ||||||||||
| Total recoveries | 900 | 4,595 | 329 | 153 | 105 | ||||||||||
| Net charge-offs | 9,797 | 12,071 | 6,083 | 11,955 | 10,764 | ||||||||||
| Provision for credit losses on loans | 16,467 | 10,637 | 9,350 | 15,290 | 24,753 | ||||||||||
| Ending balance | $ | 278,379 | $ | 271,709 | $ | 273,143 | $ | 267,297 | $ | 263,962 | |||||
| Allowance for off-balance sheet credit losses: | |||||||||||||||
| Beginning balance | $ | 53,332 | $ | 45,969 | $ | 45,319 | $ | 40,609 | $ | 46,362 | |||||
| Provision for off-balance sheet credit losses | 533 | 7,363 | 650 | 4,710 | (5,753) | ||||||||||
| Ending balance | $ | 53,865 | $ | 53,332 | $ | 45,969 | $ | 45,319 | $ | 40,609 | |||||
| Total allowance for credit losses | $ | 332,244 | $ | 325,041 | $ | 319,112 | $ | 312,616 | $ | 304,571 | |||||
| Total provision for credit losses | $ | 17,000 | $ | 18,000 | $ | 10,000 | $ | 20,000 | $ | 19,000 | |||||
| Allowance for credit losses on loans to total loans held for investment | 1.24 | % | 1.21 | % | 1.23 | % | 1.23 | % | 1.27 | % | |||||
| Allowance for credit losses on loans to average total loans held for investment | 1.29 | % | 1.22 | % | 1.24 | % | 1.27 | % | 1.32 | % | |||||
| Net charge-offs to average total loans held for investment(1) | 0.18 | % | 0.22 | % | 0.11 | % | 0.23 | % | 0.22 | % | |||||
| Net charge-offs to average total loans held for investment for last 12 months(1) | 0.18 | % | 0.19 | % | 0.20 | % | 0.22 | % | 0.20 | % | |||||
| Total provision for credit losses to average total loans held for investment(1) | 0.32 | % | 0.32 | % | 0.18 | % | 0.38 | % | 0.38 | % | |||||
| Total allowance for credit losses to total loans held for investment | 1.48 | % | 1.45 | % | 1.43 | % | 1.44 | % | 1.46 | % |
(1)Interim period ratios are annualized.
| TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Non-accrual loans held for investment | $ | 93,565 | $ | 111,165 | $ | 88,960 | $ | 85,021 | $ | 92,849 | |||||
| Non-accrual loans held for sale(1) | — | — | — | — | 9,250 | ||||||||||
| Other real estate owned | — | — | — | — | — | ||||||||||
| Total non-performing assets | $ | 93,565 | $ | 111,165 | $ | 88,960 | $ | 85,021 | $ | 102,099 | |||||
| Non-accrual loans held for investment to total loans held for investment | 0.42 | % | 0.50 | % | 0.40 | % | 0.39 | % | 0.45 | % | |||||
| Total non-performing assets to total assets | 0.30 | % | 0.36 | % | 0.28 | % | 0.28 | % | 0.35 | % | |||||
| Allowance for credit losses on loans to non-accrual loans held for investment | 3.0x | 2.4x | 3.1x | 3.1x | 2.8x | ||||||||||
| Total allowance for credit losses to non-accrual loans held for investment | 3.6x | 2.9x | 3.6x | 3.7x | 3.3x | ||||||||||
| LOANS PAST DUE | |||||||||||||||
| Loans held for investment past due 90 days and still accruing | $ | 791 | $ | 4,265 | $ | 5,281 | $ | 286 | $ | 3,674 | |||||
| Loans held for investment past due 90 days to total loans held for investment | — | % | 0.02 | % | 0.02 | % | — | % | 0.02 | % | |||||
| Loans held for sale past due 90 days and still accruing | $ | — | $ | — | $ | — | $ | 64 | $ | 147 | |||||
| CRITICIZED LOANS | |||||||||||||||
| Criticized loans | $ | 762,887 | $ | 713,951 | $ | 897,727 | $ | 859,671 | $ | 859,539 | |||||
| Criticized loans to total loans held for investment | 3.41 | % | 3.18 | % | 4.03 | % | 3.95 | % | 4.13 | % | |||||
| Special mention loans | $ | 484,165 | $ | 435,626 | $ | 579,802 | $ | 593,305 | $ | 584,528 | |||||
| Special mention loans to total loans held for investment | 2.16 | % | 1.94 | % | 2.60 | % | 2.72 | % | 2.81 | % |
(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.
| TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||
| Interest income | ||||||||||||||||||
| Interest and fees on loans | $ | 334,150 | $ | 340,388 | $ | 361,407 | $ | 345,251 | $ | 330,879 | ||||||||
| Investment securities | 46,565 | 44,102 | 38,389 | 33,584 | 32,144 | |||||||||||||
| Interest bearing deposits in other banks | 46,574 | 53,081 | 52,737 | 43,233 | 54,355 | |||||||||||||
| Total interest income | 427,289 | 437,571 | 452,533 | 422,068 | 417,378 | |||||||||||||
| Interest expense | ||||||||||||||||||
| Deposits | 174,936 | 189,061 | 190,255 | 181,280 | 175,600 | |||||||||||||
| Short-term borrowings | 8,246 | 10,678 | 13,784 | 12,749 | 12,783 | |||||||||||||
| Long-term debt | 8,073 | 8,225 | 8,392 | 11,457 | 13,986 | |||||||||||||
| Total interest expense | 191,255 | 207,964 | 212,431 | 205,486 | 202,369 | |||||||||||||
| Net interest income | 236,034 | 229,607 | 240,102 | 216,582 | 215,009 | |||||||||||||
| Provision for credit losses | 17,000 | 18,000 | 10,000 | 20,000 | 19,000 | |||||||||||||
| Net interest income after provision for credit losses | 219,034 | 211,607 | 230,102 | 196,582 | 196,009 | |||||||||||||
| Non-interest income | ||||||||||||||||||
| Service charges on deposit accounts | 7,840 | 6,989 | 6,307 | 5,911 | 6,339 | |||||||||||||
| Wealth management and trust fee income | 3,964 | 4,009 | 4,040 | 3,699 | 3,567 | |||||||||||||
| Brokered loan fees | 1,949 | 2,519 | 2,400 | 2,131 | 1,911 | |||||||||||||
| Investment banking and advisory fees | 16,478 | 26,740 | 34,753 | 25,048 | 18,424 | |||||||||||||
| Trading income | 5,939 | 5,487 | 5,786 | 5,650 | 4,712 | |||||||||||||
| Available-for-sale debt securities losses, net | — | — | (179,581) | — | — | |||||||||||||
| Other | 8,274 | 8,330 | 11,524 | 7,985 | 6,366 | |||||||||||||
| Total non-interest income | 44,444 | 54,074 | (114,771) | 50,424 | 41,319 | |||||||||||||
| Non-interest expense | ||||||||||||||||||
| Salaries and benefits | 131,641 | 97,873 | 121,138 | 118,840 | 128,727 | |||||||||||||
| Occupancy expense | 10,844 | 11,926 | 12,937 | 10,666 | 9,737 | |||||||||||||
| Marketing | 5,009 | 4,454 | 5,863 | 5,996 | 6,036 | |||||||||||||
| Legal and professional | 14,989 | 15,180 | 11,135 | 11,273 | 16,195 | |||||||||||||
| Communications and technology | 23,642 | 24,007 | 25,951 | 22,013 | 21,114 | |||||||||||||
| Federal Deposit Insurance Corporation insurance assessment | 5,341 | 4,454 | 4,906 | 5,570 | 8,421 | |||||||||||||
| Other | 11,554 | 14,265 | 13,394 | 14,051 | 12,163 | |||||||||||||
| Total non-interest expense | 203,020 | 172,159 | 195,324 | 188,409 | 202,393 | |||||||||||||
| Income/(loss) before income taxes | 60,458 | 93,522 | (79,993) | 58,597 | 34,935 | |||||||||||||
| Income tax expense/(benefit) | 13,411 | 22,499 | (18,674) | 16,935 | 8,793 | |||||||||||||
| Net income/(loss) | 47,047 | 71,023 | (61,319) | 41,662 | 26,142 | |||||||||||||
| Preferred stock dividends | 4,313 | 4,312 | 4,313 | 4,312 | 4,313 | |||||||||||||
| Net income/(loss) available to common shareholders | $ | 42,734 | $ | 66,711 | $ | (65,632) | $ | 37,350 | $ | 21,829 | ||||||||
| TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1) | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| 1st Quarter 2025 | 4th Quarter 2024 | 1st Quarter 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 | ||||||||||
| Assets | ||||||||||||||||||
| Investment securities(2) | $ | 4,463,876 | $ | 46,565 | 4.10 | % | $ | 4,504,101 | $ | 44,102 | 3.79 | % | $ | 4,299,368 | $ | 32,144 | 2.77 | % |
| Interest bearing cash and cash equivalents | 4,255,796 | 46,574 | 4.44 | % | 4,472,772 | 53,081 | 4.72 | % | 4,051,627 | 54,355 | 5.40 | % | ||||||
| Loans held for sale | 335 | 2 | 2.97 | % | — | — | — | % | 51,164 | 1,184 | 9.31 | % | ||||||
| Loans held for investment, mortgage finance | 3,972,106 | 38,527 | 3.93 | % | 5,409,980 | 50,685 | 3.73 | % | 3,517,707 | 31,455 | 3.60 | % | ||||||
| Loans held for investment(3) | 17,527,070 | 296,091 | 6.85 | % | 16,919,925 | 289,916 | 6.82 | % | 16,522,089 | 298,306 | 7.26 | % | ||||||
| Less: Allowance for credit losses on loans | 272,758 | — | — | % | 272,975 | — | — | 249,936 | — | — | % | |||||||
| Loans held for investment, net | 21,226,418 | 334,618 | 6.39 | % | 22,056,930 | 340,601 | 6.14 | % | 19,789,860 | 329,761 | 6.70 | % | ||||||
| Total earning assets | 29,946,425 | 427,759 | 5.76 | % | 31,033,803 | 437,784 | 5.59 | % | 28,192,019 | 417,444 | 5.88 | % | ||||||
| Cash and other assets | 1,157,184 | 1,178,284 | 1,058,463 | |||||||||||||||
| Total assets | $ | 31,103,609 | $ | 32,212,087 | $ | 29,250,482 | ||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Transaction deposits | $ | 2,163,250 | $ | 13,908 | 2.61 | % | $ | 2,141,739 | $ | 15,403 | 2.86 | % | $ | 2,006,493 | $ | 16,858 | 3.38 | % |
| Savings deposits | 13,357,243 | 133,577 | 4.06 | % | 12,932,458 | 144,393 | 4.44 | % | 11,409,677 | 136,790 | 4.82 | % | ||||||
| Time deposits | 2,329,384 | 27,451 | 4.78 | % | 2,331,009 | 29,265 | 4.99 | % | 1,719,325 | 21,952 | 5.14 | % | ||||||
| Total interest bearing deposits | 17,849,877 | 174,936 | 3.97 | % | 17,405,206 | 189,061 | 4.32 | % | 15,135,495 | 175,600 | 4.67 | % | ||||||
| Short-term borrowings | 751,500 | 8,246 | 4.45 | % | 883,326 | 10,678 | 4.81 | % | 912,088 | 12,783 | 5.64 | % | ||||||
| Long-term debt | 660,445 | 8,073 | 4.96 | % | 660,270 | 8,225 | 4.96 | % | 859,509 | 13,986 | 6.54 | % | ||||||
| Total interest bearing liabilities | 19,261,822 | 191,255 | 4.03 | % | 18,948,802 | 207,964 | 4.37 | % | 16,907,092 | 202,369 | 4.81 | % | ||||||
| Non-interest bearing deposits | 7,875,244 | 9,319,711 | 8,637,775 | |||||||||||||||
| Other liabilities | 552,154 | 522,641 | 509,286 | |||||||||||||||
| Stockholders’ equity | 3,414,389 | 3,420,933 | 3,196,329 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 31,103,609 | $ | 32,212,087 | $ | 29,250,482 | ||||||||||||
| Net interest income | $ | 236,504 | $ | 229,820 | $ | 215,075 | ||||||||||||
| Net interest margin | 3.19 | % | 2.93 | % | 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 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) | 1st Quarter<br>2025 | 4th Quarter<br>2024 | 3rd Quarter<br>2024 | 2nd Quarter<br>2024 | 1st Quarter<br>2024 | ||||||||||
| Net interest income | $ | 236,034 | $ | 229,607 | $ | 240,102 | $ | 216,582 | $ | 215,009 | |||||
| Non-interest income | 44,444 | 54,074 | (114,771) | 50,424 | 41,319 | ||||||||||
| Available-for-sale debt securities losses, net | — | — | 179,581 | — | — | ||||||||||
| Non-interest income, adjusted | 44,444 | 54,074 | 64,810 | 50,424 | 41,319 | ||||||||||
| Non-interest expense | 203,020 | 172,159 | 195,324 | 188,409 | 202,393 | ||||||||||
| FDIC special assessment | — | — | 651 | (462) | (3,000) | ||||||||||
| Restructuring expenses | — | — | (5,923) | — | (2,018) | ||||||||||
| Legal Settlement | — | — | — | — | (5,000) | ||||||||||
| Non-interest expense, adjusted | 203,020 | 172,159 | 190,052 | 187,947 | 192,375 | ||||||||||
| Provision for credit losses | 17,000 | 18,000 | 10,000 | 20,000 | 19,000 | ||||||||||
| Income tax expense/(benefit) | 13,411 | 22,499 | (18,674) | 16,935 | 8,793 | ||||||||||
| Tax effect of adjustments | — | — | 44,880 | 104 | 2,262 | ||||||||||
| Income tax expense/(benefit), adjusted | 13,411 | 22,499 | 26,206 | 17,039 | 11,055 | ||||||||||
| Net income/(loss)(1) | $ | 47,047 | $ | 71,023 | $ | (61,319) | $ | 41,662 | $ | 26,142 | |||||
| Net income/(loss), adjusted(1) | $ | 47,047 | $ | 71,023 | $ | 78,654 | $ | 42,020 | $ | 33,898 | |||||
| Preferred stock dividends | 4,313 | 4,312 | 4,313 | 4,312 | 4,313 | ||||||||||
| Net income/(loss) to common stockholders(2) | $ | 42,734 | $ | 66,711 | $ | (65,632) | $ | 37,350 | $ | 21,829 | |||||
| Net income/(loss) to common stockholders, adjusted(2) | $ | 42,734 | $ | 66,711 | $ | 74,341 | $ | 37,708 | $ | 29,585 | |||||
| PPNR(3) | $ | 77,458 | $ | 111,522 | $ | (69,993) | $ | 78,597 | $ | 53,935 | |||||
| PPNR(3), adjusted | $ | 77,458 | $ | 111,522 | $ | 114,860 | $ | 79,059 | $ | 63,953 | |||||
| Weighted average common shares outstanding, diluted | 46,616,704 | 46,770,961 | 46,608,742 | 46,872,498 | 47,711,192 | ||||||||||
| Diluted earnings/(loss) per common share | $ | 0.92 | $ | 1.43 | $ | (1.41) | $ | 0.80 | $ | 0.46 | |||||
| Diluted earnings/(loss) per common share, adjusted | $ | 0.92 | $ | 1.43 | $ | 1.59 | $ | 0.80 | $ | 0.62 | |||||
| Average total assets | $ | 31,103,609 | $ | 32,212,087 | $ | 31,215,173 | $ | 29,750,852 | $ | 29,250,482 | |||||
| Return on average assets | 0.61 | % | 0.88 | % | (0.78) | % | 0.56 | % | 0.36 | % | |||||
| Return on average assets, adjusted | 0.61 | % | 0.88 | % | 1.00 | % | 0.57 | % | 0.47 | % | |||||
| Average common equity | $ | 3,114,389 | $ | 3,120,933 | $ | 2,945,238 | $ | 2,857,661 | $ | 2,896,329 | |||||
| Return on average common equity | 5.56 | % | 8.50 | % | (8.87) | % | 5.26 | % | 3.03 | % | |||||
| Return on average common equity, adjusted | 5.56 | % | 8.50 | % | 10.04 | % | 5.31 | % | 4.11 | % | |||||
| Efficiency ratio(4) | 72.4 | % | 60.7 | % | 155.8 | % | 70.6 | % | 79.0 | % | |||||
| Efficiency ratio, adjusted(4) | 72.4 | % | 60.7 | % | 62.3 | % | 70.4 | % | 75.1 | % | |||||
| Average earning assets | $ | 29,946,425 | $ | 31,033,803 | $ | 29,975,318 | $ | 28,573,791 | $ | 28,192,019 | |||||
| Non-interest income to average earning assets | 0.60 | % | 0.69 | % | (1.52) | % | 0.71 | % | 0.59 | % | |||||
| Non-interest income to average earning assets, adjusted | 0.60 | % | 0.69 | % | 0.86 | % | 0.71 | % | 0.59 | % | |||||
| Non-interest expense to average earning assets | 2.75 | % | 2.21 | % | 2.59 | % | 2.65 | % | 2.89 | % | |||||
| Non-interest expense to average earning assets, adjusted | 2.75 | % | 2.21 | % | 2.52 | % | 2.65 | % | 2.74 | % |
(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.
11
a1q2025_earningsxpresent
© 2025 Texas Capital Bank Member FDIC April 17, 2025 Q1-2025 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; 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 conflict (including those already reported by the media, as well as others that may arise), 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 Foundational Tenants of Value Creation in Place Financial Priorities Described 9/1/2021 Building Tangible Book Value // Reinvesting organically generated capital to improve client relevance and create a more valuable franchise Investment // Re-aligning the expense base to directly support the business and investing aggressively to take advantage of market opportunities that we are uniquely positioned to serve Revenue Growth // Growing top- line revenue as a result of expanded banking capabilities for best-in-class clients in our Texas and national markets Flagship Results Proactive, disciplined engagement with the best clients in our markets to provide the talent, products, and offerings they need through their entire life-cycles Structurally higher, more sustainable earnings driving greater performance and lower annual variability Consistent communication, enhanced accountability, and a bias for action ensure execution and delivery Commitment to financial resilience allowing us to serve clients, access markets, and support communities through all cycles Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns
4 Targets Estab. in ’21 Where We StartedTargets Estab. in ’21 Where We Started Q4 2025 Q3 2025 Q2 2025 Q1 2025 FY 2024 FY 2020Performance Metrics YTD 2025 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.61%0.25%0.18%Return on Average Assets~10%8.0%13.6%8.0%2.9%2.7%2.2% Investment Banking and Trading Income (% of Total Revenue) >12.5%5.6% 2.0% 2.1%Return on Average Tangible Common Equity3~5%3.8%3.8%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.61%0.74%0.33%Adj. Return on Average Assets415%–20% 15.8%3.3%15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%5.6%7.1%4.2%Adj. Return on Average Tangible Common Equity315%–20%15.8%18.9%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%11.6%11.4%9.4%CET1Balance Sheet >20%29%28%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%6%7%7%16%27%36%Average Indexed Deposits (% of Total Deposits) 2021 Strategic Performance Drivers Treasury Solutions Private Wealth Investment Banking YoY GrowthQ1 ‘25Q4 ‘24Q3 ‘24Q2 ‘24Q1 ‘24Financial Performance (4%)$3.8 $4.0$4.1$4.0$4.0Assets Under Management5 ($bn) 22%$10.6 $9.5 $9.1 $8.5 $8.7 Treasury Product Fees1 ($mm) 11%$4.0 $4.0 $4.0 $3.7 $3.6 Wealth Management & Trust Fee Income ($mm) (3%)$22.4 $32.2 $40.5 $30.7 $23.1 Investment Banking & Trading Income ($mm) 4%$37.0 $45.7 $53.7 $42.9 $35.4 Income from Areas of Focus ($mm) Third consecutive quarter of record fees, surpassing $10mm for the first time; continued quarterly YoY growth of 22% Sustained success winning core operating accounts; non- interest bearing, excl. mortgage finance deposits up 7% QoQ Q1 results impacted by heightened market uncertainty; significant and growing pipelines across offerings Recent talent buildout focused on Equity Research, Sales and Trading and Investment Banking Coverage Enhanced platform resulting in improved product penetration, including cash management Stable fees despite market volatility; expect accelerated client adoption through the year
5 Financial Performance // Income Statement Adjusted (Non-GAAP4) Adjusted (Non-GAAP4)Financial Highlights ($mm) Q1 2025Q4 2024Q1 2024Q1 202420242024 236.0 229.6 215.0 215.0 901.3 901.3 Net Interest Income 44.4 54.1 41.3 41.3 210.6 31.0 Non-Interest Revenue 280.5 283.7 256.3 256.3 1,111.9 932.3 Total Revenue 203.0 172.2 192.4 202.4 742.5 758.3 Non-Interest Expense 77.5 111.5 64.0 53.9 369.4 174.1 PPNR6 17.0 18.0 19.0 19.0 67.0 67.0 Provision for Credit Losses 13.4 22.5 11.1 8.8 76.8 29.6 Income Tax Expense 47.0 71.0 33.9 26.1 225.6 77.5 Net Income 4.3 4.3 4.3 4.3 17.3 17.3 Preferred Stock Dividends 42.7 66.7 29.6 21.8 208.3 60.3 Net Income to Common Performance Metrics 0.61% 0.88% 0.47% 0.36% 0.74% 0.25% Return on Average Assets 1.01% 1.38% 0.88% 0.74% 1.21% 0.57% PPNR6 / Average Assets 72.4% 60.7% 75.1% 79.0% 66.8% 81.3% Efficiency Ratio7 5.6% 8.5% 4.1% 3.0% 7.0% 2.0% Return on Average Common Equity $0.92 $1.43 $0.62 $0.46 $4.43 $1.28 Earnings Per Share Q1 2024Non-GAAP4 Adjustments ($mm) 202.4Non-Interest Expense (3.0)FDIC Special Assessment (2.0)Restructuring Expenses (5.0)Legal Settlement 192.4Non-Interest Expense, Adj. 2024Non-GAAP4 Adjustments ($mm) 31.0Non-Interest Income 179.6Loss on AFS Securities Sale 210.6Non-Interest Income, Adj. 758.3Non-Interest Expense (2.8)FDIC Special Assessment (7.9)Restructuring Expenses (5.0)Legal Settlement 742.5Non-Interest Expense, Adj.
6 Balance Sheet Highlights ($mm) Ending Balances YoYQoQQ1 2025Q4 2024Q1 2024 Assets 15% 19% 3,802 3,189 3,316 Cash and Equivalents 3% 3% 4,531 4,396 4,414 Total Securities 10% 2% 11,404 11,146 10,383 Commercial Loans 0% 4% 5,824 5,616 5,822 CRE Loans (5%)(8%)521 565 550 Consumer Loans 14% (9%)4,726 5,216 4,153 Mortgage Finance Loans 7% (0%)22,475 22,543 20,909 Gross LHI 5% 2% (278)(272)(264)Allowance for Credit Losses on Loans 8% 2% 31,376 30,732 29,181 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Performance Metrics 27% 25% 26% Cash & Securities % of Assets 51% 49% 50% Commercial Loans % of Gross LHI (332)(325)(305)Total Allowance for Credit Losses ($mm) 1.48% 1.45% 1.46% Total ACL / Total LHI YoYQoQQ1 2025Q4 2024Q1 2024 Liabilities (7%)5% 7,875 7,485 8,478 Non-Interest Bearing Deposits 17% 2% 18,178 17,753 15,476 Interest Bearing Deposits 9% 3% 26,053 25,239 23,954 Total Deposits 0% (15%)750 885 750 FHLB Borrowings 7% 2% 27,946 27,364 26,010 Total Liabilities Equity 0% 0% 3,266 3,251 3,251 Common Equity, Excl. AOCI (64%)(26%)(136)(183)(380)AOCI 8% 2% 3,430 3,368 3,171 Total Shareholder’s Equity (2%)(0%)46,024,933 46,233,812 46,986,275 Common Shares Outstanding 86% 89% 87% Total LHI % of Deposits 30% 30% 35% Non-Interest Bearing % of Deposits $68.00 $66.36 $61.10 Book Value Per Share $67.97 $66.32 $61.06 Tangible Book Value Per Share8
7 $4.4 $4.7 $3.9 $3.5 $4.4 $5.2 $5.4 $4.0 $5.1 $4.4 $4.0 $4.2 $5.1 $5.5 $5.2 $4.7 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $5.8 $5.7 $5.3 $5.6 $5.8 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $10.4 $10.5 $11.0 $11.1 $11.4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total LHI excl. mortgage finance increased $977mm or 6% YoY Ending period commercial loans increased $259mm or 2% QoQ Growth driven by sustained new client acquisition across the platform; average commercial loans increased $401mm, or 4% QoQ Period end growth in commercial loans of 10% or $1.0bn YoY Commercial real estate loans increased $208mm or 4% QoQ resulting from consistent market facing posture, and modestly slower payoffs Multifamily comprises $2.5bn or 42% of CRE loans Average mortgage finance loans declined 27% QoQ to $4.0bn as expected Period end balances were 19% higher than average balances in Q1 as the industry enters a seasonally stronger mortgage origination period Loan Portfolio Composition Mortgage Finance Loans ($bn) Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Average Period End
8 $3.4 $3.4 $3.5 $3.5 $3.4 $3.7 $5.2 $5.2 $6.0 $5.8 $4.5 $4.2 $14.4 $15.1 $15.8 $16.9 $17.4 $17.8 $0.8 $0.6 $0.5 $0.5 $0.5 $0.4 $23.8 $24.3 $25.7 $26.7 $25.7 $26.1 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2025 2.97% 2.99% 2.94% 2.81% 2.76% 2.83% 2.83% 2.76% 2.61% 2.54% 4.67% 4.64% 4.64% 4.32% 3.97% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2025 EOP Deposit and Funding Composition Total deposit balances increased $814mm or 3% QoQ Total deposits excl. MF9 non-interest bearing deposits and brokered interest bearing deposits increased $3.3bn or 18% YoY Non-interest bearing, excl. MF9 deposits increased $250mm or 7% QoQ to $3.7bn The firm continues to increase core operating accounts through peer- leading cash management capabilities Average MF9 non-interest bearing deposits declined to $4.5bn, representing 113% of average mortgage finances loans in Q1 2025 compared to 148% in Q1 of last year The majority of MF9 non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield Average cost of interest bearing deposits declined by 35bps to 3.97% Cumulative beta of 67% since the beginning of the current easing cycle Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs QoQ Change %$Q1 ‘25Q4 ‘24Q1 ‘24 7% 250 3,716 3,466 3,340 Non-Interest Bearing, Excl. MF9 3% 140 4,159 4,019 5,138 MF9 Non-Interest Bearing 5% 389 7,875 7,485 8,478 Total Non-Interest Bearing 3% 564 17,782 17,219 14,874 Interest Bearing (26%)(139)396 535 602 Brokered Deposits 2% 425 18,178 17,753 15,476 Total Interest Bearing 3% $814 $26,053 $25,239 $23,954 Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits Non-Interest Bearing, Excl. MF9 MF9 Non-Interest Bearing Interest Bearing Interest Bearing Brokered
9 (13.7%) (12.2%) (6.8%) (6.1%) 3.4% 3.8% 6.8% 7.4% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q4 2024 Q1 2025 Net Interest Income Sensitivity Standard Model Assumptions10 100bp & 200bp Parallel Shocks Loan Balances: Static Deposit Balances: Static Loan Spreads: Current Levels Up Scenario Int. Bearing Deposit Beta: ~80% Down Scenario Int. Bearing Deposit Beta: ~70% Investment Portfolio: Ratio held constant Hedging Profile Net Interest Income Sensitivity – Static Balance Sheet ($mm) $989mm$922mmBase NII11 Earning Assets Profile (Average) Q1 2025Q4 2024 YieldBalance ($mm)YieldBalance ($mm) 4.44% $4,256 4.72% $4,473 Interest Bearing Cash and Equivalents 4.10% 4,464 3.79% 4,504 Securities 2.97% 0 --0 Loans Held for Sale 6.85% 17,527 6.82% 16,920 LHI Excl. Mortgage Finance LHI 3.93% 3,972 3.73% 5,410 Mortgage Finance LHI --(273)--(273)ACL on Loans 5.76% $29,946 5.59% $31,034 Earning Assets 94% of LHI excl. mortgage finance LHI are variable rate $1.0bn of loans, or 6%, are fixed with 10% maturing or repricing in the next 12 months Duration of the securities portfolio is ~4 years with Q1 cash flows of $115mm $199mm of AFS securities purchased in Q1 with an average rate of 5.4% Added $300mm of 2 year forward starting receive fixed swaps with a weighted average receive rate of 3.88% against 1- month SOFR beginning in 3Q Impacts of Mortgage Finance Mortgage finance LHI represents 18% of the average total LHI portfolio with the majority tied to 1-month SOFR which declined 1bp in Q1 Given the current outlook and observed seasonality, the average mortgage finance self funding ratio is expected decline to below 100% in Q2 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 $63 $32 ($63) ($126) $73 $38 ($60) ($121) Receive Rate Average Notional Balance ($bn) 3.60%2.6Q1 2025 3.43%2.4 Q2 2025 3.18%1.5 Q3 2025 3.57%0.7 Q4 2025 3.63%0.5 Q1 2026 3.88%0.3 Q2 2026 3.88%0.3 Q3 2026 3.88%0.3 Q4 2026 -200bps Shock -100bps Shock +200bps Shock -100bps Shock
10 $126.7 $118.8 $118.7 $97.9 $131.6 $65.7 $69.1 $71.3 $74.3 $71.4 $10.0 $0.5 $5.3 $202.4 $188.4 $195.3 $172.2 $203.0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $41.3 $50.4 ($114.8) $54.1 $44.4 $64.8 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $215.0 $216.6 $240.1 $229.6 $236.0 3.03% 3.01% 3.16% 2.93% 3.19% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $229.6 $9.9 ($5.3) ($14.3) $2.1 $1.3 ($4.0) ($4.5) $18.6 $2.6 $236.0 Q4 2024 Loans Excl. MF Volume Loans Excl. MF Yield MF Loan Volume MF Yield Loan Fees Investment Securities & Cash Interest Bearing Deposits Volume Interest Bearing Deposit Cost Borrowings Q1 2025 32% 63% 63% 60% 57% Q1-2025 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) 65% Net interest income increased $6.4mm QoQ supported by LHI excl. MF9 growth and lower deposit costs that were partially offset by seasonal warehouse factors Net interest margin expanded by 26bps from both higher loan yields and lower deposit costs Quarterly non-interest expense increased $30.9mm to $203.0mm impacted by incentive accrual resets, new hires in fee income areas of focus, and seasonal payroll and compensation expenses Approximately $14mm in Q1 compared to $11mm in Q1 of last year 9 9 9 9 35%43% % of Total Revenue, Adj.4 16% 19% 21% 19% 16% 5% 37% 0% 3% 37% Net Interest Income Net Interest Margin Salaries & Benefits Other NIE Non-Recurring Items4Non-Interest Income Non-Interest Income, Adj.4
11 0.35% 0.28% 0.28% 0.36% 0.30% 0.22% 0.23% 0.11% 0.22% 0.18% 4.13% 3.95% 4.03% 3.18% 3.41% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 78% 80% 73% 79% 80% 21% 19% 26% 20% 20% 1% 1% 1% $275.0 $266.4 $317.9 $278.3 $278.7 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 50% 52% 75% 70% 71% 50% 48% 25% 30% 28% 1% $584.5 $593.3 $579.8 $435.6 $484.2 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 3.3x 2.9x 3.6x 1.46% 1.45% 1.48% 1.79% 1.87% 1.85% Q1 2024 Q4 2024 Q1 2025 Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $9.8$12.1 $6.1 $12.0 $10.8 Net Charge-Offs ($mm) Total ACL / Non- accrual Loans HFI ACL on Loans increased $6.7mm QoQ to $278.4mm Total ACL, excl. MF9 increased $4.5mm to $326.8mm Total ACL, excl. MF9 to LHI, excl. MF9 in the top 5 percent among Peers12 Total ACL to LHI ratio $9.8mm of net charge-offs, 0.18% of average LHI, related to previously identified problem credits Provision expense as a percentage of average LHI of 32bps Provision expense as a percentage of average LHI excl. MF of 39bps Criticized LHI declined $96.7mm or 11.2% YoY, with the percentage of total LHI declining 72bps to 3.41% Modest $48.5mm linked quarter increase in special mention, total linked quarter criticized up 7% Non-performing assets declined $17.6mm QoQ to 0.30% of total assets from paydowns and charge-offs Commercial Mortgage Finance Real Estate ConsumerCommercial Mortgage Finance Real Estate Consumer Total ACL / LHI Total ACL, Excl. MF9 / LHI Excl. MF9 Q1 2024 Q4 2024 Q1 2025 NPAs / Total Assets NCOs / Avg. LHI Criticized / LHI
12 Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets 12.38% 11.62% 11.19% 11.38% 11.63% >11.00% 1.56% 1.47% 1.44% 1.44% 1.46% 2.70% 2.56% 2.54% 2.55% 2.51% 16.64% 15.65% 15.17% 15.37% 15.61% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2025 Target $61.06 $62.23 $66.06 $66.32 $67.97 $61.10 $62.26 $66.09 $66.36 $68.00 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 9.83% 9.63% 9.65% 9.98% 9.97% 9.84% 9.63% 9.66% 9.98% 9.98% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2025 YE Target Capital Position and Trends Regulatory capital ratios remain strong Total capital ratio of 15.61%, in the top quintile of the peer group12, and CET1 ratio of 11.63% Tangible common equity / tangible assets13 ended the quarter at 9.97%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle Tangible common equity / tangible assets13 in top quintile of peer group12 Tangible book value per share8 increased by $1.65 or 2% QoQ as a result of income generated and AOCI accretion TBVPS8 of $67.97 is an all-time high for the Firm Repurchased 396 thousand shares in Q1, 0.9% of year end 2024 shares outstanding, for a total of $31mm at a weighted average price of approximately 117% of prior month tangible book value per share $169mm remaining on the 2025 authorization at the end of Q1 Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Period End AOCI ($mm) ($136)($183)($128)($368)($380) AOCI per Share ($2.96)($3.96)($2.77)($7.96)($8.09) Peer12 Tangible Common Equity / Tangible Assets13 8.10%8.01%7.63%7.63% CET1 Tier 1 Capital Tier 2 Capital Tangible Book Value per Share8 Book Value per Share Tangible Book Value per Share8
13 Full Year 2025 Guidance FY 2024 Adjusted (Non-GAAP4) Low double-digit % growth$1,111.9mmTotal Revenue, Adjusted4 High single-digit % growth$742.5mmNon-Interest Expense, Adjusted4 30bps - 35bps40bpsProvisions / Avg LHI, Excl. Mortgage Finance LHI >11%11.38%CET1 Ratio Full Year 2025 Guidance Forward curve14 assumes 25bps cuts in both June and October with an exit rate of 4.0% at year end 2025 Tax rate expected to be ~25% for the full year in 2025 Achievement of a quarterly 1.10% ROAA in the second half of 2025 Guidance Commentary
14 1. 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 $2.8mm for FY 2020, $4.0mm for FY 2021, $6.1mm for FY 2022, $9.4mm for FY 2023, $10.2mm for FY 2024, and $2.8mm for YTD 2025 and $2.4mm, $2.5mm, $2.8mm, $2.5mm, and $2.8 for Q1 2024, Q2 2024, Q3 2024, Q4 2024, and Q1 2025 respectively 2. Non-GAAP Reconciliation // Adjusted Non-Interest Income and Total Revenue 3. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 4. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 5. Assets Under Management includes non-discretionary brokerage assets that the Firm earns wealth management and trust fee income on 6. “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 7. Non-interest expense divided by the sum of net interest income and non-interest income 8. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 9. “MF” used as abbreviation for Mortgage Finance 10. Model assumptions are only for Q1 2025; See prior TCBI Earnings Materials for prior model assumptions 11. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 12. Major exchange traded US peer banks with $20-100bn in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; peer data as of Q4 2024 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of March 4, 2025 2024 ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted3As Reported Adjusted As Reported Adjusted2As Reported Adjusted1As Reported Adjusted1As Reported $901.3 $901.3 $914.1 $914.1 $875.8 $875.8 $767.6 $768.8 $821.1 $851.3 Net Interest Income 210.6 31.0 161.4 161.4 101.0 349.5 119.5 138.3 103.7 203.0 Non-Interest Income $1,111.9 $932.3 $1,075.5 $1,075.5 $976.8 $1,225.3 $887.1 $907.1 $924.8 $1,054.3 Total Revenue 18.9%3.3%15.0%15.0%10.3%28.5%13.4%15.2%11.2%19.3%Non-Interest Income % of Total Revenue 1) Adjusted to remove revenue contribution of exited Correspondent Lending Line of Business 2) Adjusted to remove non-recurring gain on sale of Insurance Premium Finance Loan Portfolio 3) Adjusted to remove non-recurring loss on sale of AFS securities Appendix // Footnotes
15 2025 ($mm)2024 ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported $42.7 $42.7 $208.3 $60.3 $187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $3,114.4 $3,114.4 $2,955.5 $2,955.5 $2,795.0$2,795.0$2,783.3$2,783.3$2,815.7$2,815.7$2,686.7$2,686.7Average Common Equity 1.5 1.5 1.5 1.5 1.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $3,112.9 $3,112.9 $2,954.0 $2,954.0 $2,793.5$2,793.5$2,768.8$2,768.8$2,798.3$2,798.3$2,668.8$2,668.8Average Tangible Common Equity 5.6%5.6%7.0%2.0%6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 5.6%5.6%7.1%2.0%6.7%6.2%5.8%11.4%8.7%8.4%4.2%2.1%ROATCE Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios
16 Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments. FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Q3 2024 Q2 2024Q1 2024($mm, Except per Share) $901.3 $914.1 $875.8 $768.8 $851.3 $240.1 $216.6 $215.0 Net Interest Income 31.0 161.4 349.5 138.3 203.0 (114.8)50.4 41.3 Non-Interest Revenue Adjustments for Non-Recurring Items: --(248.5)-----Gain on Sale of Insur. Prem. Finance 179.6 ----179.6--Loss on AFS Securities Sale 210.6 161.4 101.0 138.3 203.064.8 50.4 41.3 Non-Interest Revenue, Adjusted 758.3 756.9 727.5 599.0 704.4 195.3 188.4 202.4 Non-Interest Expense Adjustments: --(29.6)-(17.8)---Transaction Costs (7.9)-(9.8)(12.0)(54.0)(5.9)-(2.0)Restructuring Expense (5.0)------(5.0)Legal Settlement --(8.0)-----Charitable Contribution (2.8)(19.9)---0.7 (0.5)(3.0)FDIC Special Assessment 742.5 737.1 680.1 587.0 632.6 190.1 187.9 192.4 Non-Interest Expense, Adjusted 174.1 318.6 497.8 308.1 349.9 (70.0)78.6 53.9 PPNR6 369.4 338.5 296.6 320.1 421.7 114.9 79.1 64.0 PPNR6, Adjusted 67.0 72.0 66.0 (30.0)258.0 10.0 20.0 19.0 Provision for Credit Losses 29.6 57.5 99.3 84.1 25.7 (18.7)16.9 8.8 Income Tax Expenses 47.2 4.6 (45.4)2.7 15.6 44.9 0.1 2.3 Tax Impact of Adjustments Above 76.8 62.1 53.9 86.8 41.3 26.2 17.0 11.1 Income Tax Expenses, Adjusted 77.5 189.1 332.5 253.9 66.3 (61.3)41.7 26.1 Net Income 225.6 204.4 176.8 263.2 122.4 78.7 42.0 33.9 Net Income, Adjusted 17.3 17.3 17.3 18.7 9.8 4.3 4.3 4.3 Preferred Stock Dividends 60.3 171.9 315.2 235.2 56.5 (65.6)37.4 21.8 Net Income to Common 208.3 187.1 159.5 244.5 112.6 74.3 37.7 29.6 Net Income to Common, Adjusted $30,613.2 $29,537.3 $32,049.8 $38,140.3 $37,516.2 $31,215.2 $29,750.9 $29,250.5 Average Assets 0.25% 0.64%1.04%0.67%0.18%(0.78%)0.56% 0.36% Return on Average Assets 0.74% 0.69%0.55%0.69%0.33%1.00% 0.57% 0.47% Return on Average Assets, Adjusted 0.57% 1.08%1.55%0.81%0.93%(0.89%)1.06% 0.74% PPNR6 / Average Assets 1.21% 1.15%0.93%0.84%1.12%1.46% 1.07% 0.88% PPNR6, Adjusted / Average Assets $2,955.5 $2,795.0 $2,783.3 $2,815.7 $2,686.7 $2,945.2 $2,857.7 $2,896.3 Average Common Equity 2.04% 6.15%11.33%8.35%2.10%(8.87%)5.26% 3.03% Return on Average Common Equity 7.05% 6.70%5.73%8.68%4.19%10.04% 5.31% 4.11% Return on Average Common Equity, Adjusted 46,989,204 48,610,206 51,046,742 51,140,974 50,582,979 46,608,742 46,872,498 47,711,192 Diluted Common Shares $1.28 $3.54 $6.18 $4.60 $1.12 ($1.41)$0.80 $0.46 Earnings per Share $4.43 $3.85 $3.13 $4.78 $2.23 $1.59 $0.80 $0.62 Earnings per Share, Adjusted