Texas Capital Bancshares, Inc. Announces Second Quarter 2026 Results

Second quarter 2026 net income available to common stockholders of $80.6 million, up 10% year-over-year

Record-level fee income⁽⁵⁾, up 29% year-over-year

Record-level Book Value and Tangible Book Value⁽⁴⁾ per share, both increasing 10% year-over-year

Capital ratios continue to be strong, achieving 12.1% CET1 and 14.7% Total Capital

DALLAS, July 22, 2026 (GLOBE NEWSWIRE) -- “Double-digit year-over-year growth in earnings per share and book value per share, combined with strong capital ratios and operational efficiency, reflect another quarter of consistently improving financial performance earned through continued focus on delivering for our clients,” said Rob C. Holmes, Chairman, President & CEO. “The durability of our platform, diversity of our solution set, and dedication of our teams, position us to sustain momentum through the remainder of the year.”


	2nd Quarter			1st Quarter			2nd Quarter
(dollars in thousands except per share data)	2026			2026			2025
Summary Income Statement
Net interest income	$	260,377		$	254,719		$	253,395
Non-interest income		75,118			69,266			54,069
Total revenue		335,495			323,985			307,464
Non-interest expense		205,493			213,568			190,276
Pre-provision net revenue⁽¹⁾		130,002			110,417			117,188

Provision for credit losses		18,000			16,000			15,000
Net income available to common stockholders		80,636			69,475			73,016

Non-interest income, adjusted⁽²⁾	$	75,118		$	69,266		$	55,955
Total revenue, adjusted⁽²⁾		335,495			323,985			309,350
Non-interest expense, adjusted⁽²⁾		202,772			212,167			188,875
Pre-provision net revenue, adjusted⁽¹⁾⁽²⁾		132,723			111,818			120,475
Net income to common stockholders, adjusted⁽²⁾		82,698			70,537			75,529

Key Metrics
Diluted earnings per common share	$	1.83		$	1.56		$	1.58
Diluted earnings per common share, adjusted⁽²⁾	$	1.88		$	1.58		$	1.63
Return on average assets		1.03	%		0.95	%		0.99	%
Return on average assets, adjusted⁽²⁾		1.06	%		0.97	%		1.02	%
Return on average common equity		9.56	%		8.35	%		9.17	%
Return on average common equity, adjusted⁽²⁾		9.80	%		8.48	%		9.48	%
Efficiency ratio⁽³⁾		61.3	%		65.9	%		61.9	%
Efficiency ratio, adjusted⁽²⁾⁽³⁾		60.4	%		65.5	%		61.1	%
Net interest margin		3.28	%		3.43	%		3.35	%
Book value per share	$	77.01		$	75.71		$	70.17
Tangible book value per share⁽⁴⁾	$	76.98		$	75.67		$	70.14
Common Equity Tier 1 ratio		12.1	%		12.0	%		11.4	%

Balance Sheet
Total assets	$	33,913,361		$	33,486,484		$	31,943,535
Loans held for investment		18,563,845			18,217,976			18,035,945
Loans held for investment, mortgage finance		6,383,381			6,961,686			5,889,589
Total deposits		28,911,388			28,516,688			26,064,309
Stockholders’ equity		3,647,707			3,606,207			3,510,070

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

SECOND QUARTER 2026 COMPARED TO FIRST QUARTER 2026

For the second quarter of 2026, net income available to common stockholders was $80.6 million, or $1.83 per diluted share, compared to $69.5 million, or $1.56 per diluted share, for the first quarter of 2026.

Provision for credit losses for the second quarter of 2026 was $18.0 million, compared to $16.0 million for the first quarter of 2026. The $18.0 million provision for credit losses recorded in the second quarter of 2026 resulted primarily from an increase in criticized loans and $16.1 million in net charge-offs.

Net interest income increased to $260.4 million for the second quarter of 2026, compared to $254.7 million for the first quarter of 2026, primarily due to an increase in average earning assets, partially offset by an increase in average interest bearing deposits. Net interest margin for the second quarter of 2026 was 3.28%, a decrease of 15 basis points from the first quarter of 2026. Loans held for investment (“LHI”), excluding mortgage finance, yields decreased 2 basis points from the first quarter of 2026 and LHI, mortgage finance, yields increased 7 basis points from the first quarter of 2026. Total cost of deposits was 2.40% for the second quarter of 2026, a 2 basis point increase from the first quarter of 2026.

Non-interest income for the second quarter of 2026 increased $5.9 million compared to the first quarter of 2026 primarily due to increases in trading income and other non-interest income.

Non-interest expense for the second quarter of 2026 decreased $8.1 million compared to the first quarter of 2026, primarily due to a decrease in salaries and benefits, primarily as a result of the effect of seasonal payroll expenses that peak in the first quarter, partially offset by increases in legal and professional, communications and technology, and other non-interest expense.

SECOND QUARTER 2026 COMPARED TO SECOND QUARTER 2025

Net income available to common stockholders was $80.6 million, or $1.83 per diluted share, for the second quarter of 2026, compared to $73.0 million, or $1.58 per diluted share, for the second quarter of 2025.

The second quarter of 2026 included a $18.0 million provision for credit losses, reflecting a linked quarter increase in criticized loans and $16.1 million in net charge-offs, compared to a $15.0 million provision for credit losses for the second quarter of 2025.

Net interest income increased to $260.4 million for the second quarter of 2026, compared to $253.4 million for the second quarter of 2025, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing deposits. Net interest margin increased 8 basis points to 3.28% for the second quarter of 2026, as compared to the second quarter of 2025. LHI, excluding mortgage finance, yields decreased 20 basis points compared to the second quarter of 2025 and LHI, mortgage finance yields decreased 18 basis points from the second quarter of 2025. Total cost of deposits decreased 31 basis points compared to the second quarter of 2025.

Non-interest income for the second quarter of 2026 increased $21.0 million compared to the second quarter of 2025 primarily due to increases in wealth management and trust fee income, investment banking and advisory fees, trading income and other non-interest income, as well as the absence of a $1.9 million loss on sale of available-for sale debt securities recognized in the second quarter of 2025.

Non-interest expense for the second quarter of 2026 increased $15.2 million compared to the second quarter of 2025, primarily due to increases in salaries and benefits, marketing, legal and professional, communications and technology, and other non-interest expense.

CREDIT QUALITY

Net charge-offs of $16.1 million were recorded during the second quarter of 2026, compared to net charge-offs of $17.4 million and $13.0 million during the first quarter of 2026 and the second quarter of 2025, respectively. Criticized loans totaled $696.3 million at June 30, 2026, compared to $650.6 million at March 31, 2026 and $637.5 million at June 30, 2025. Non-accrual LHI totaled $124.0 million at June 30, 2026, compared to $144.9 million at March 31, 2026 and $113.6 million at June 30, 2025. The ratio of non-accrual LHI to total LHI for the second quarter of 2026 was 0.50%, compared to 0.58% for the first quarter of 2026 and 0.47% for the second quarter of 2025. The ratio of total allowance for credit losses to total LHI was 1.34% at June 30, 2026, compared to 1.32% and 1.40% at March 31, 2026 and June 30, 2025, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of June 30, 2026. CET1, tier 1 capital, total capital and leverage ratios were 12.1%, 13.5%, 14.7% and 11.6%, respectively, at June 30, 2026, compared to 12.0%, 13.4%, 15.9% and 12.1%, respectively, at March 31, 2026 and 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025. At June 30, 2026, our ratio of tangible common equity to total tangible assets was 9.9%, compared to 9.9% at March 31, 2026 and 10.1% at June 30, 2025.

During the second quarter of 2026, the Company repurchased 239,348 shares of its common stock for an aggregate purchase price, including excise tax expense, of $23.6 million, at a weighted average price of $97.63 per share.

PREFERRED AND COMMON DIVIDEND

Texas Capital Bancshares, Inc. and its board of directors declared and announced a cash dividend of $14.375 per share of the 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), equivalent to $0.359375 per depositary share, each representing a 1/40th interest in a share of the Series B Preferred Stock. The depositary shares are traded on the NASDAQ under the symbol “TCBIO.” The dividend is payable on September 15, 2026, to holders of record at the close of business on September 1, 2026.

Texas Capital Bancshares, Inc. and its board of directors declared and announced a cash dividend of $0.20 per common share. The common shares are traded on the NASDAQ under the symbol “TCBI.” The dividend is payable on September 15, 2026, to holders of record at the close of business on September 1, 2026.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations, and service terms. Deposit and lending products and services are offered by TCB. For deposit products, member FDIC. For more information, please visit www.texascapital.com.

Forward Looking Statements

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

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


TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2026			2026			2025			2025			2025
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	439,930		$	419,094		$	444,314		$	460,615		$	439,567
Interest expense		179,553			164,375			176,877			188,844			186,172
Net interest income		260,377			254,719			267,437			271,771			253,395
Provision for credit losses		18,000			16,000			11,000			12,000			15,000
Net interest income after provision for credit losses		242,377			238,719			256,437			259,771			238,395
Non-interest income		75,118			69,266			60,046			68,583			54,069
Non-interest expense		205,493			213,568			184,198			190,575			190,276
Income before income taxes		112,002			94,417			132,285			137,779			102,188
Income tax expense		27,054			20,629			31,626			32,569			24,860
Net income		84,948			73,788			100,659			105,210			77,328
Preferred stock dividends		4,312			4,313			4,312			4,313			4,312
Net income available to common stockholders	$	80,636		$	69,475		$	96,347		$	100,897		$	73,016
Diluted earnings per common share	$	1.83		$	1.56		$	2.12		$	2.18		$	1.58
Diluted common shares		44,062,419			44,601,129			45,509,370			46,233,167			46,215,394
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980		$	31,943,535
Loans held for investment		18,563,845			18,217,976			17,976,183			18,134,059			18,035,945
Loans held for investment, mortgage finance		6,383,381			6,961,686			6,064,019			6,057,804			5,889,589
Loans held for sale		—			21,333			4,361			—			—
Interest bearing cash and cash equivalents		3,488,756			2,702,183			1,897,803			2,852,387			2,507,691
Debt and equity securities		4,564,584			4,673,355			4,723,099			4,601,654			4,608,628
Non-interest bearing deposits		7,573,788			7,634,618			6,959,097			7,689,598			7,718,006
Total deposits		28,911,388			28,516,688			26,448,767			27,505,398			26,064,309
Short-term borrowings		350,000			—			330,000			275,000			1,250,000
Long-term debt		500,859			878,293			620,575			620,416			620,256
Stockholders’ equity		3,647,707			3,606,207			3,631,382			3,637,098			3,510,070

End of period shares outstanding		43,470,167			43,671,305			44,253,688			45,679,863			45,746,836
Book value per share	$	77.01		$	75.71		$	75.28		$	73.05		$	70.17
Tangible book value per share⁽¹⁾	$	76.98		$	75.67		$	75.25		$	73.02		$	70.14
SELECTED FINANCIAL RATIOS
Net interest margin		3.28	%		3.43	%		3.38	%		3.47	%		3.35	%
Return on average assets		1.03	%		0.95	%		1.22	%		1.30	%		0.99	%
Return on average assets, adjusted⁽⁴⁾		1.06	%		0.97	%		1.20	%		1.30	%		1.02	%
Return on average common equity		9.56	%		8.35	%		11.18	%		12.04	%		9.17	%
Return on average common equity, adjusted⁽⁴⁾		9.80	%		8.48	%		10.98	%		12.04	%		9.48	%
Efficiency ratio⁽²⁾		61.3	%		65.9	%		56.2	%		56.0	%		61.9	%
Efficiency ratio, adjusted⁽²⁾⁽⁴⁾		60.4	%		65.5	%		56.9	%		56.0	%		61.1	%
Non-interest income to average earning assets		0.95	%		0.93	%		0.76	%		0.88	%		0.72	%
Non-interest income to average earning assets, adjusted⁽⁴⁾		0.95	%		0.93	%		0.76	%		0.88	%		0.74	%
Non-interest expense to average earning assets		2.59	%		2.87	%		2.33	%		2.44	%		2.52	%
Non-interest expense to average earning assets, adjusted⁽⁴⁾		2.55	%		2.85	%		2.35	%		2.44	%		2.50	%
Common equity to total assets		9.9	%		9.9	%		10.6	%		10.3	%		10.1	%
Tangible common equity to total tangible assets⁽³⁾		9.9	%		9.9	%		10.6	%		10.3	%		10.1	%
Common Equity Tier 1 ratio		12.1	%		12.0	%		12.1	%		12.1	%		11.4	%
Tier 1 capital ratio		13.5	%		13.4	%		13.6	%		13.6	%		12.9	%
Total capital ratio		14.7	%		15.9	%		16.1	%		16.1	%		15.3	%
Leverage ratio		11.6	%		12.1	%		11.7	%		11.9	%		11.8	%

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


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets
Cash and due from banks	$	209,512		$	254,428		$	201,315		$	212,438		$	182,451
Interest bearing cash and cash equivalents		3,488,756			2,702,183			1,897,803			2,852,387			2,507,691
Available-for-sale debt securities		3,826,284			3,913,855			3,951,455			3,801,261			3,774,141
Held-to-maturity debt securities		692,332			709,594			725,722			743,120			761,907
Equity securities		43,429			42,024			41,998			55,054			68,692
Trading debt securities		2,539			7,882			3,924			2,219			3,888
Debt and equity securities		4,564,584			4,673,355			4,723,099			4,601,654			4,608,628
Loans held for sale		—			21,333			4,361			—			—
Loans held for investment, mortgage finance		6,383,381			6,961,686			6,064,019			6,057,804			5,889,589
Loans held for investment		18,563,845			18,217,976			17,976,183			18,134,059			18,035,945
Less: Allowance for credit losses on loans		268,268			270,441			270,557			274,026			277,648
Loans held for investment, net		24,678,958			24,909,221			23,769,645			23,917,837			23,647,886
Premises and equipment, net		91,852			85,698			88,003			88,348			86,831
Accrued interest receivable and other assets		878,203			838,770			854,552			862,820			908,552
Goodwill and intangibles, net		1,496			1,496			1,496			1,496			1,496
Total assets	$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980		$	31,943,535

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	7,573,788		$	7,634,618		$	6,959,097		$	7,689,598		$	7,718,006
Interest bearing deposits		21,337,600			20,882,070			19,489,670			19,815,800			18,346,303
Total deposits		28,911,388			28,516,688			26,448,767			27,505,398			26,064,309
Accrued interest payable		19,291			9,420			6,716			9,360			14,120
Other liabilities		484,116			475,876			502,834			489,708			484,780
Short-term borrowings		350,000			—			330,000			275,000			1,250,000
Long-term debt		500,859			878,293			620,575			620,416			620,256
Total liabilities		30,265,654			29,880,277			27,908,892			28,899,882			28,433,465

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares⁽¹⁾		300,000			300,000			300,000			300,000			300,000
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares⁽²⁾		520			520			518			518			517
Additional paid-in capital		1,082,419			1,077,139			1,074,496			1,069,582			1,065,083
Retained earnings		2,950,049			2,878,120			2,808,645			2,712,298			2,611,401
Treasury stock⁽³⁾		(586,401	)		(562,833	)		(487,692	)		(361,076	)		(354,000	)
Accumulated other comprehensive loss, net of taxes		(98,880	)		(86,739	)		(64,585	)		(84,224	)		(112,931	)
Total stockholders’ equity		3,647,707			3,606,207			3,631,382			3,637,098			3,510,070
Total liabilities and stockholders’ equity	$	33,913,361		$	33,486,484		$	31,540,274		$	32,536,980		$	31,943,535

⁽¹⁾Preferred stock - issued shares		300,000			300,000			300,000			300,000			300,000
⁽²⁾Common stock - issued shares		52,012,706			51,974,496			51,786,456			51,767,419			51,747,305
⁽³⁾Treasury stock - shares at cost		8,542,539			8,303,191			7,532,768			6,087,556			6,000,469


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

	2nd Quarter 2026		1st Quarter 2026		4th Quarter 2025		3rd Quarter 2025		2nd Quarter 2025			2nd Quarter YTD 2026		2nd Quarter YTD 2025
Interest income
Interest and fees on loans	$	368,416	$	348,020	$	367,481	$	379,017	$	364,358		$	716,436	$	698,508
Debt and equity securities		46,307		49,590		47,012		49,396		45,991			95,897		92,556
Interest bearing cash and cash equivalents		25,207		21,484		29,821		32,202		29,218			46,691		75,792
Total interest income		439,930		419,094		444,314		460,615		439,567			859,024		866,856
Interest expense
Deposits		167,027		153,904		167,259		180,779		174,798			320,931		349,734
Short-term borrowings		3,552		2,360		2,153		534		3,444			5,912		11,690
Long-term debt		8,974		8,111		7,465		7,531		7,930			17,085		16,003
Total interest expense		179,553		164,375		176,877		188,844		186,172			343,928		377,427
Net interest income		260,377		254,719		267,437		271,771		253,395			515,096		489,429
Provision for credit losses		18,000		16,000		11,000		12,000		15,000			34,000		32,000
Net interest income after provision for credit losses		242,377		238,719		256,437		259,771		238,395			481,096		457,429
Non-interest income
Service charges on deposit accounts		8,853		9,223		8,411		8,111		8,182			18,076		16,022
Wealth management and trust fee income		5,136		4,388		4,216		3,989		3,730			9,524		7,694
Brokered loan fees		2,103		2,006		2,467		2,419		2,398			4,109		4,347
Investment banking and advisory fees		31,522		32,016		30,015		33,985		24,109			63,538		40,587
Trading income		11,313		10,251		6,020		7,238		7,896			21,564		13,835
Available-for-sale debt securities gains/(losses), net		—		—		—		—		(1,886	)		—		(1,886	)
Other		16,191		11,382		8,917		12,841		9,640			27,573		17,914
Total non-interest income		75,118		69,266		60,046		68,583		54,069			144,384		98,513
Non-interest expense
Salaries and benefits		123,339		139,347		108,851		119,856		120,154			262,686		251,795
Occupancy expense		12,359		12,405		12,803		11,828		12,144			24,764		22,988
Marketing		4,786		4,972		5,404		3,412		3,624			9,758		8,633
Legal and professional		14,700		11,980		11,580		12,474		11,069			26,680		26,058
Communications and technology		28,494		27,172		26,303		24,594		24,314			55,666		47,956
Federal Deposit Insurance Corporation insurance assessment		4,586		4,877		2,276		5,198		5,096			9,463		10,437
Other		17,229		12,815		16,981		13,213		13,875			30,044		25,429
Total non-interest expense		205,493		213,568		184,198		190,575		190,276			419,061		393,296
Income before income taxes		112,002		94,417		132,285		137,779		102,188			206,419		162,646
Income tax expense		27,054		20,629		31,626		32,569		24,860			47,683		38,271
Net income		84,948		73,788		100,659		105,210		77,328			158,736		124,375
Preferred stock dividends		4,312		4,313		4,312		4,313		4,312			8,625		8,625
Net income available to common stockholders	$	80,636	$	69,475	$	96,347	$	100,897	$	73,016		$	150,111	$	115,750

Basic earnings per common share	$	1.85	$	1.58	$	2.14	$	2.21	$	1.59		$	3.42	$	2.52
Diluted earnings per common share	$	1.83	$	1.56	$	2.12	$	2.18	$	1.58		$	3.39	$	2.49


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2026			2026			2025			2025			2025
Allowance for credit losses on loans:
Beginning balance	$	270,441		$	270,557		$	274,026		$	277,648		$	278,379
Loans charged-off:
Commercial		9,998			17,489			14,417			13,794			13,020
Commercial real estate		7,098			—			524			—			431
Total charge-offs		17,096			17,489			14,941			13,794			13,451
Recoveries:
Commercial		822			131			4,202			50			486
Commercial real estate		184			—			—			—			—
Consumer		7			—			12			4			—
Total recoveries		1,013			131			4,214			54			486
Net charge-offs		16,083			17,358			10,727			13,740			12,965
Provision for credit losses on loans		13,910			17,242			7,258			10,118			12,234
Ending balance	$	268,268		$	270,441		$	270,557		$	274,026		$	277,648

Allowance for off-balance sheet credit losses:
Beginning balance	$	61,013		$	62,255		$	58,513		$	56,631		$	53,865
Provision for off-balance sheet credit losses		4,090			(1,242	)		3,742			1,882			2,766
Ending balance	$	65,103		$	61,013		$	62,255		$	58,513		$	56,631

Total allowance for credit losses	$	333,371		$	331,454		$	332,812		$	332,539		$	334,279
Total provision for credit losses	$	18,000		$	16,000		$	11,000		$	12,000		$	15,000

Allowance for credit losses on loans to total loans held for investment		1.08	%		1.07	%		1.13	%		1.13	%		1.16	%
Allowance for credit losses on loans to average total loans held for investment		1.08	%		1.16	%		1.12	%		1.15	%		1.19	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.26	%		0.30	%		0.18	%		0.23	%		0.22	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.24	%		0.23	%		0.20	%		0.21	%		0.18	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.29	%		0.28	%		0.18	%		0.20	%		0.26	%
Total allowance for credit losses to total loans held for investment		1.34	%		1.32	%		1.38	%		1.37	%		1.40	%

(1) Interim period ratios are annualized.


TEXAS CAPITAL BANCSHARES, INC.
NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2026			2026			2025			2025			2025
NON-PERFORMING ASSETS
Non-accrual loans held for investment	$	123,981		$	144,947		$	116,880		$	96,084		$	113,609
Non-accrual loans held for sale⁽¹⁾		—			21,333			4,361			—			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	123,981		$	166,280		$	121,241		$	96,084		$	113,609

Non-accrual loans held for investment to total loans held for investment		0.50	%		0.58	%		0.49	%		0.40	%		0.47	%
Total non-performing assets to total assets		0.37	%		0.50	%		0.38	%		0.30	%		0.36	%
Allowance for credit losses on loans to non-accrual loans held for investment	2.2x			1.9x			2.3x			2.9x			2.4x
Total allowance for credit losses to non-accrual loans held for investment	2.7x			2.3x			2.8x			3.5x			2.9x

LOANS PAST DUE
Loans held for investment past due 90 days and still accruing	$	451		$	18,030		$	19,353		$	126		$	2,068
Loans held for investment past due 90 days to total loans held for investment		—	%		0.07	%		0.08	%		—	%		0.01	%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	—		$	—

CRITICIZED LOANS
Criticized loans	$	696,326		$	650,615		$	634,919		$	529,732		$	637,462
Criticized loans to total loans held for investment		2.79	%		2.58	%		2.64	%		2.19	%		2.66	%
Special mention loans	$	479,341		$	366,422		$	346,643		$	249,592		$	339,923
Special mention loans to total loans held for investment		1.92	%		1.46	%		1.44	%		1.03	%		1.42	%

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


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	2nd Quarter 2026						1st Quarter 2026						2nd Quarter 2025						YTD June 30, 2026						YTD June 30, 2025
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Debt and equity securities⁽²⁾	$	4,544,249	$	46,317	4.03	%	$	4,635,471	$	49,598	4.30	%	$	4,573,164	$	45,999	3.93	%	$	4,589,608	$	95,915	4.17	%	$	4,518,822	$	92,564	4.01	%
Interest bearing cash and cash equivalents		2,777,654		25,207	3.64	%		2,419,518		21,484	3.60	%		2,661,037		29,218	4.40	%		2,599,575		46,691	3.62	%		3,454,011		75,792	4.43	%
Loans held for sale⁽³⁾		3,080		4	0.54	%		3,096		—	—	%		—		—	—	%		3,088		4	0.27	%		167		2	2.97	%
Loans held for investment, mortgage finance		6,309,596		63,862	4.06	%		5,239,103		51,573	3.99	%		5,327,559		58,707	4.42	%		5,777,306		115,435	4.03	%		4,653,577		97,234	4.21	%
Loans held for investment⁽³⁾		18,490,750		305,403	6.62	%		18,172,432		297,352	6.64	%		18,018,626		306,142	6.81	%		18,332,470		602,755	6.63	%		17,774,206		602,233	6.83	%
Less: Allowance for credit losses on loans		271,925		—	—	%		268,422		—	—			278,035		—	—	%		270,183		—	—			275,411		—	—
Loans held for investment, net		24,528,421		369,265	6.04	%		23,143,113		348,925	6.11	%		23,068,150		364,849	6.34	%		23,839,593		718,190	6.08	%		22,152,372		699,467	6.37	%
Total earning assets		31,853,404		440,793	5.54	%		30,201,198		420,007	5.63	%		30,302,351		440,066	5.80	%		31,031,864		860,800	5.58	%		30,125,372		867,825	5.78	%
Cash and other assets		1,190,251						1,173,895						1,117,118						1,182,119						1,137,040
Total assets	$	33,043,655					$	31,375,093					$	31,419,469					$	32,213,983					$	31,262,412

Liabilities and Stockholders’ Equity
Transaction deposits	$	2,762,965	$	16,865	2.45	%	$	2,605,884	$	14,980	2.33	%	$	2,213,037	$	13,731	2.49	%	$	2,684,858	$	31,845	2.39	%	$	2,188,282	$	27,639	2.55	%
Savings deposits		13,902,996		118,592	3.42	%		14,148,034		118,695	3.40	%		13,727,095		134,272	3.92	%		14,024,838		237,287	3.41	%		13,543,190		267,849	3.99	%
Time deposits		3,172,354		31,570	3.99	%		2,020,757		20,229	4.06	%		2,361,525		26,795	4.55	%		2,599,737		51,799	4.02	%		2,345,543		54,246	4.66	%
Total interest bearing deposits		19,838,315		167,027	3.38	%		18,774,675		153,904	3.32	%		18,301,657		174,798	3.83	%		19,309,433		320,931	3.35	%		18,077,015		349,734	3.90	%
Short-term borrowings		378,022		3,552	3.77	%		257,989		2,360	3.71	%		306,176		3,444	4.51	%		318,337		5,912	3.75	%		527,608		11,690	4.47	%
Long-term debt		642,689		8,974	5.60	%		675,780		8,111	4.87	%		649,469		7,930	4.90	%		659,143		17,085	5.23	%		654,927		16,003	4.93	%
Total interest bearing liabilities		20,859,026		179,553	3.45	%		19,708,444		164,375	3.38	%		19,257,302		186,172	3.88	%		20,286,913		343,928	3.42	%		19,259,550		377,427	3.95	%
Non-interest bearing deposits		8,058,149						7,489,751						8,191,402						7,775,520						8,034,196
Other liabilities		442,543						503,038						475,724						472,623						513,728
Stockholders’ equity		3,683,937						3,673,860						3,495,041						3,678,927						3,454,938
Total liabilities and stockholders’ equity	$	33,043,655					$	31,375,093					$	31,419,469					$	32,213,983					$	31,262,412
Net interest income			$	261,240					$	255,632					$	253,894					$	516,872					$	490,398
Net interest margin					3.28	%					3.43	%					3.35	%					3.35	%					3.27	%

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

GAAP TO NON-GAAP RECONCILIATIONS

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

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


Reconciliation of Non-GAAP Financial Measures
(dollars in thousands except per share data)	2nd Quarter 2026			1st Quarter 2026			4th Quarter 2025			3rd Quarter 2025			2nd Quarter 2025
Net interest income	$	260,377		$	254,719		$	267,437		$	271,771		$	253,395

Non-interest income		75,118			69,266			60,046			68,583			54,069
Available-for-sale debt securities losses, net		—			—			—			—			1,886
Non-interest income, adjusted		75,118			69,266			60,046			68,583			55,955

Total revenue⁽¹⁾		335,495			323,985			327,483			340,354			307,464
Total revenue, adjusted⁽¹⁾		335,495			323,985			327,483			340,354			309,350

Non-interest expense		205,493			213,568			184,198			190,575			190,276
FDIC special assessment		—			—			2,242			—			—
Restructuring expenses		(564	)		(1,401	)		—			—			(1,401	)
Debt extinguishment expense		(2,157	)		—			—			—			—
Non-interest expense, adjusted		202,772			212,167			186,440			190,575			188,875

Provision for credit losses		18,000			16,000			11,000			12,000			15,000

Income tax expense		27,054			20,629			31,626			32,569			24,860
Tax effect of adjustments		659			339			(526	)		—			774
Income tax expense, adjusted		27,713			20,968			31,100			32,569			25,634

Net income⁽²⁾	$	84,948		$	73,788		$	100,659		$	105,210		$	77,328
Net income, adjusted⁽²⁾	$	87,010		$	74,850		$	98,943		$	105,210		$	79,841

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

Net income to common stockholders⁽³⁾	$	80,636		$	69,475		$	96,347		$	100,897		$	73,016
Net income to common stockholders, adjusted⁽³⁾	$	82,698		$	70,537		$	94,631		$	100,897		$	75,529

PPNR⁽⁴⁾	$	130,002		$	110,417		$	143,285		$	149,779		$	117,188
PPNR, adjusted⁽⁴⁾	$	132,723		$	111,818		$	141,043		$	149,779		$	120,475

Weighted average common shares outstanding, diluted		44,062,419			44,601,129			45,509,370			46,233,167			46,215,394
Diluted earnings per common share	$	1.83		$	1.56		$	2.12		$	2.18		$	1.58
Diluted earnings per common share, adjusted	$	1.88		$	1.58		$	2.08		$	2.18		$	1.63

Average total assets	$	33,043,655		$	31,375,093		$	32,606,318		$	32,162,709		$	31,419,469
Return on average assets		1.03	%		0.95	%		1.22	%		1.30	%		0.99	%
Return on average assets, adjusted		1.06	%		0.97	%		1.20	%		1.30	%		1.02	%

Average common equity	$	3,383,937		$	3,373,860		$	3,419,967		$	3,324,184		$	3,195,041
Return on average common equity		9.56	%		8.35	%		11.18	%		12.04	%		9.17	%
Return on average common equity, adjusted		9.80	%		8.48	%		10.98	%		12.04	%		9.48	%

Efficiency ratio⁽⁵⁾		61.3	%		65.9	%		56.2	%		56.0	%		61.9	%
Efficiency ratio, adjusted⁽⁵⁾		60.4	%		65.5	%		56.9	%		56.0	%		61.1	%

Average earning assets	$	31,853,404		$	30,201,198		$	31,413,694		$	31,003,701		$	30,302,351
Non-interest income to average earning assets		0.95	%		0.93	%		0.76	%		0.88	%		0.72	%
Non-interest income to average earning assets, adjusted		0.95	%		0.93	%		0.76	%		0.88	%		0.74	%
Non-interest expense to average earning assets		2.59	%		2.87	%		2.33	%		2.44	%		2.52	%
Non-interest expense to average earning assets, adjusted		2.55	%		2.85	%		2.35	%		2.44	%		2.50	%

(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.

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

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