Texas Capital Bancshares, Inc. Announces Second Quarter 2025 Results

About this update from Texas Capital Bancshares, Inc.

Second quarter 2025 net income of $77.3 million and net income available to common stockholders of $73.0 million , up 86% and 95%, respectively, year-over-year Second quarter 2025 EPS of $1.58 per diluted share and adjusted EPS (1) of $1.63 per diluted share, up 98% and 104%, respectively, year-over-year Strong balance sheet growth with total loans increasing 7% quarter-over-quarter and 10% year-over-year Book Value and Tangible Book Value (2) per share both increasing 13% year-over-year, reaching record levels DALLAS , July 17, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank , announced operating results for the second quarter of 2025. “Our multi-year focus on building a differentiated, full-service financial services firm has strengthened our client franchise and consistently delivered high-quality outcomes across our platform, driving strong financial performance this quarter,” said Rob C. Holmes , Chairman, President & CEO. “The strategic actions we’ve taken have structurally enhanced our earnings power, and as we enter the second half of the year, the breadth of our capabilities and the strength of our balance sheet position us to deliver durable, through-cycle results for both clients and shareholders.” 2nd Quarter 1st Quarter 2nd Quarter (dollars in thousands except per share data) 2025 2025 2024 OPERATING RESULTS Net income $ 77,328 $ 47,047 $ 41,662 Net income available to common stockholders $ 73,016 $ 42,734 $ 37,350 Pre-provision net revenue(3) $ 117,188 $ 77,458 $ 78,597 Diluted earnings per common share $ 1.58 $ 0.92 $ 0.80 Diluted common shares 46,215,394 46,616,704 46,872,498 Return on average assets 0.99 % 0.61 % 0.56 % Return on average common equity 9.17 % 5.56 % 5.26 % OPERATING RESULTS, ADJUSTED (1) Net income $ 79,841 $ 47,047 $ 42,020 Net income available to common stockholders $ 75,529 $ 42,734 $ 37,708 Pre-provision net revenue(3) $ 120,475 $ 77,458 $ 79,059 Diluted earnings per common share $ 1.63 $ 0.92 $ 0.80 Diluted common shares 46,215,394 46,616,704 46,872,498 Return on average assets 1.02 % 0.61 % 0.57 % Return on average common equity 9.48 % 5.56 % 5.31 % BALANCE SHEET Loans held for investment $ 18,035,945 $ 17,654,243 $ 16,700,569 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,078,161 Total loans held for investment 23,925,534 22,379,784 21,778,730 Loans held for sale — — 36,785 Total assets 31,943,535 31,375,749 29,854,994 Non-interest bearing deposits 7,718,006 7,874,780 7,987,715 Total deposits 26,064,309 26,053,034 23,818,327 Stockholders’ equity 3,510,070 3,429,774 3,175,601 (1) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.(2) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(3) Net interest income plus non-interest income, less non-interest expense. SECOND QUARTER 2025 COMPARED TO FIRST QUARTER 2025 For the second quarter of 2025, net income available to common stockholders was $73.0 million , or $1.58 per diluted share, compared to $42.7 million , or $0.92 per diluted share, for the first quarter of 2025. Provision for credit losses for the second quarter of 2025 was $15.0 million , compared to $17.0 million for the first quarter of 2025. The $15.0 million provision for credit losses recorded in the second quarter of 2025 resulted primarily from an increase in total loans held for investment (“LHI”) and $13.0 million in net charge-offs, partially offset by a decrease in criticized loans. Net interest income was $253.4 million for the second quarter of 2025, compared to $236.0 million for the first quarter of 2025, primarily due to increases in average earning assets and earning asset yields, a decrease in average short-term borrowings and the impact of one additional day in the second quarter. Net interest margin for the second quarter of 2025 was 3.35%, an increase of 16 basis points from the first quarter of 2025. LHI, excluding mortgage finance, yields decreased 4 basis points from the first quarter of 2025 and LHI, mortgage finance, yields increased 49 basis points from the first quarter of 2025. Total cost of deposits was 2.65% for the second quarter of 2025, an 11 basis point decrease from the first quarter of 2025. Non-interest income for the second quarter of 2025 increased $9.6 million compared to the first quarter of 2025 primarily due to increases in investment banking and advisory fees and trading income, partially offset by a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025. Non-interest expense for the second quarter of 2025 decreased $12.7 million compared to the first quarter of 2025, primarily due to decreases in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, and legal and professional expense, partially offset by an increase in other non-interest expense. SECOND QUARTER 2025 COMPARED TO SECOND QUARTER 2024 Net income available to common stockholders was $73.0 million , or $1.58 per diluted share, for the second quarter of 2025, compared to $37.4 million , or $0.80 per diluted share, for the second quarter of 2024. The second quarter of 2025 included a $15.0 million provision for credit losses, reflecting an increase in total LHI and $13.0 million in net charge-offs, partially offset by a decline in criticized loans, compared to a $20.0 million provision for credit losses for the second quarter of 2024. Net interest income increased to $253.4 million for the second quarter of 2025, compared to $216.6 million for the second quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 34 basis points to 3.35% for the second quarter of 2025, as compared to the second quarter of 2024. LHI, excluding mortgage finance, yields decreased 44 basis points compared to the second quarter of 2024 and LHI, mortgage finance yields increased 48 basis points from the second quarter of 2024. Total cost of deposits decreased 34 basis points compared to the second quarter of 2024. Non-interest income for the second quarter of 2025 increased $3.6 million compared to the second quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by the loss on sale of available-for-sale debt securities mentioned above. Non-interest expense for the second quarter of 2025 increased $1.9 million compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in marketing expense. CREDIT QUALITY Net charge-offs of $13.0 million were recorded during the second quarter of 2025, compared to net charge-offs of $9.8 million and $12.0 million during the first quarter of 2025 and the second quarter of 2024, respectively. Criticized loans totaled $637.5 million at June 30, 2025 , compared to $762.9 million at March 31, 2025 and $859.7 million at June 30, 2024 . Non-accrual LHI totaled $113.6 million at June 30, 2025 , compared to $93.6 million at March 31, 2025 and $85.0 million at June 30, 2024 . The ratio of non-accrual LHI to total LHI for the second quarter of 2025 was 0.47%, compared to 0.42% for the first quarter of 2025 and 0.39% for the second quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.40% at June 30, 2025 , compared to 1.48% and 1.44% at March 31, 2025 and June 30, 2024 , respectively. REGULATORY RATIOS AND CAPITAL All regulatory ratios continue to be in excess of “well capitalized” requirements as of June 30, 2025 . CET1, tier 1 capital, total capital and leverage ratios were 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025 , compared to 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025 and 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024 . At June 30, 2025 , our ratio of tangible common equity to total tangible assets was 10.1%, compared to 10.0% at March 31, 2025 and 9.6% at June 30, 2024 . During the second quarter of 2025, the Company repurchased 317,860 shares of its common stock for an aggregate purchase price, including excise tax expense, of $21.0 million , at a weighted average price of $65.50 per share. About Texas Capital Bancshares, Inc. Texas Capital Bancshares, Inc. (NASDAQ ® : TCBI), a member of the Russell 2000 ® Index and the S&P MidCap 400 ® , is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin , Houston , San Antonio , and Fort Worth , and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. Forward Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas , the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC . The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. TEXAS CAPITAL BANCSHARES, INC. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) (dollars in thousands except per share data) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 CONSOLIDATED STATEMENTS OF INCOME Interest income $ 439,567 $ 427,289 $ 437,571 $ 452,533 $ 422,068 Interest expense 186,172 191,255 207,964 212,431 205,486 Net interest income 253,395 236,034 229,607 240,102 216,582 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Net interest income after provision for credit losses 238,395 219,034 211,607 230,102 196,582 Non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Non-interest expense 190,276 203,020 172,159 195,324 188,409 Income/(loss) before income taxes 102,188 60,458 93,522 (79,993 ) 58,597 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Net income/(loss) 77,328 47,047 71,023 (61,319 ) 41,662 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) available to common stockholders $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350 Diluted earnings/(loss) per common share $ 1.58 $ 0.92 $ 1.43 $ (1.41 ) $ 0.80 Diluted common shares 46,215,394 46,616,704 46,770,961 46,608,742 46,872,498 CONSOLIDATED BALANCE SHEET DATA Total assets $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 Loans held for investment 18,035,945 17,654,243 17,234,492 16,764,512 16,700,569 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,215,574 5,529,659 5,078,161 Loans held for sale — — — 9,022 36,785 Interest bearing cash and cash equivalents 2,507,691 3,600,969 3,012,307 3,894,537 2,691,352 Investment securities 4,608,628 4,531,219 4,396,115 4,405,520 4,388,976 Non-interest bearing deposits 7,718,006 7,874,780 7,485,428 9,070,804 7,987,715 Total deposits 26,064,309 26,053,034 25,238,599 25,865,255 23,818,327 Short-term borrowings 1,250,000 750,000 885,000 1,035,000 1,675,000 Long-term debt 620,256 660,521 660,346 660,172 659,997 Stockholders’ equity 3,510,070 3,429,774 3,367,936 3,354,044 3,175,601 End of period shares outstanding 45,746,836 46,024,933 46,233,812 46,207,757 46,188,078 Book value per share $ 70.17 $ 68.00 $ 66.36 $ 66.09 $ 62.26 Tangible book value per share(1) $ 70.14 $ 67.97 $ 66.32 $ 66.06 $ 62.23 SELECTED FINANCIAL RATIOS Net interest margin 3.35 % 3.19 % 2.93 % 3.16 % 3.01 % Return on average assets 0.99 % 0.61 % 0.88 % (0.78 )% 0.56 % Return on average assets, adjusted(4) 1.02 % 0.61 % 0.88 % 1.00 % 0.57 % Return on average common equity 9.17 % 5.56 % 8.50 % (8.87 )% 5.26 % Return on average common equity, adjusted(4) 9.48 % 5.56 % 8.50 % 10.04 % 5.31 % Efficiency ratio(2) 61.9 % 72.4 % 60.7 % 155.8 % 70.6 % Efficiency ratio, adjusted(2)(4) 61.1 % 72.4 % 60.7 % 62.3 % 70.4 % Non-interest income to average earning assets 0.72 % 0.60 % 0.69 % (1.52 )% 0.71 % Non-interest income to average earning assets, adjusted(4) 0.74 % 0.60 % 0.69 % 0.86 % 0.71 % Non-interest expense to average earning assets 2.52 % 2.75 % 2.21 % 2.59 % 2.65 % Non-interest expense to average earning assets, adjusted(4) 2.50 % 2.75 % 2.21 % 2.52 % 2.65 % Common equity to total assets 10.1 % 10.0 % 10.0 % 9.7 % 9.6 % Tangible common equity to total tangible assets(3) 10.1 % 10.0 % 10.0 % 9.7 % 9.6 % Common Equity Tier 1 11.4 % 11.6 % 11.4 % 11.2 % 11.6 % Tier 1 capital 12.9 % 13.1 % 12.8 % 12.6 % 13.1 % Total capital 15.3 % 15.6 % 15.4 % 15.2 % 15.7 % Leverage 11.8 % 11.8 % 11.3 % 11.4 % 12.2 % (1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(2) Non-interest expense divided by the sum of net interest income and non-interest income.(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.(4) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure. TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands) June 30 , 2025 March 31 , 2025 December 31 , 2024 September 30 , 2024 June 30 , 2024 Assets Cash and due from banks $ 182,451 $ 201,504 $ 176,501 $ 297,048 $ 221,727 Interest bearing cash and cash equivalents 2,507,691 3,600,969 3,012,307 3,894,537 2,691,352 Available-for-sale debt securities 3,774,141 3,678,378 3,524,686 3,518,662 3,483,231 Held-to-maturity debt securities 761,907 779,354 796,168 812,432 831,513 Equity securities 68,692 71,679 75,261 74,426 74,232 Trading securities 3,888 1,808 — — — Investment securities 4,608,628 4,531,219 4,396,115 4,405,520 4,388,976 Loans held for sale — — — 9,022 36,785 Loans held for investment, mortgage finance 5,889,589 4,725,541 5,215,574 5,529,659 5,078,161 Loans held for investment 18,035,945 17,654,243 17,234,492 16,764,512 16,700,569 Less: Allowance for credit losses on loans 277,648 278,379 271,709 273,143 267,297 Loans held for investment, net 23,647,886 22,101,405 22,178,357 22,021,028 21,511,433 Premises and equipment, net 86,831 84,575 85,443 81,577 69,464 Accrued interest receivable and other assets 908,552 854,581 881,664 919,071 933,761 Goodwill and intangibles, net 1,496 1,496 1,496 1,496 1,496 Total assets $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 Liabilities and Stockholders’ Equity Liabilities: Non-interest bearing deposits $ 7,718,006 $ 7,874,780 $ 7,485,428 $ 9,070,804 $ 7,987,715 Interest bearing deposits 18,346,303 18,178,254 17,753,171 16,794,451 15,830,612 Total deposits 26,064,309 26,053,034 25,238,599 25,865,255 23,818,327 Accrued interest payable 14,120 25,270 23,680 18,679 23,841 Other liabilities 484,780 457,150 556,322 696,149 502,228 Short-term borrowings 1,250,000 750,000 885,000 1,035,000 1,675,000 Long-term debt 620,256 660,521 660,346 660,172 659,997 Total liabilities 28,433,465 27,945,975 27,363,947 28,275,255 26,679,393 Stockholders’ equity: Preferred stock, $.01 par value, $1,000 liquidation value: Authorized shares - 10,000,000 Issued shares(1) 300,000 300,000 300,000 300,000 300,000 Common stock, $.01 par value: Authorized shares - 100,000,000 Issued shares(2) 517 517 515 515 515 Additional paid-in capital 1,065,083 1,060,028 1,056,719 1,054,614 1,050,114 Retained earnings 2,611,401 2,538,385 2,495,651 2,428,940 2,494,572 Treasury stock(3) (354,000 ) (332,994 ) (301,842 ) (301,868 ) (301,868 ) Accumulated other comprehensive loss, net of taxes (112,931 ) (136,162 ) (183,107 ) (128,157 ) (367,732 ) Total stockholders’ equity 3,510,070 3,429,774 3,367,936 3,354,044 3,175,601 Total liabilities and stockholders’ equity $ 31,943,535 $ 31,375,749 $ 30,731,883 $ 31,629,299 $ 29,854,994 (1) Preferred stock - issued shares 300,000 300,000 300,000 300,000 300,000 (2) Common stock - issued shares 51,747,305 51,707,542 51,520,315 51,494,260 51,474,581 (3) Treasury stock - shares at cost 6,000,469 5,682,609 5,286,503 5,286,503 5,286,503 TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands except per share data) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 Interest income Interest and fees on loans $ 364,358 $ 345,251 $ 698,508 $ 676,130 Investment securities 45,991 33,584 92,556 65,728 Interest bearing cash and cash equivalents 29,218 43,233 75,792 97,588 Total interest income 439,567 422,068 866,856 839,446 Interest expense Deposits 174,798 181,280 349,734 356,880 Short-term borrowings 3,444 12,749 11,690 25,532 Long-term debt 7,930 11,457 16,003 25,443 Total interest expense 186,172 205,486 377,427 407,855 Net interest income 253,395 216,582 489,429 431,591 Provision for credit losses 15,000 20,000 32,000 39,000 Net interest income after provision for credit losses 238,395 196,582 457,429 392,591 Non-interest income Service charges on deposit accounts 8,182 5,911 16,022 12,250 Wealth management and trust fee income 3,730 3,699 7,694 7,266 Brokered loan fees 2,398 2,131 4,347 4,042 Investment banking and advisory fees 24,109 25,048 40,587 43,472 Trading income 7,896 5,650 13,835 10,362 Available-for-sale debt securities losses (1,886 ) — (1,886 ) — Other 9,640 7,985 17,914 14,351 Total non-interest income 54,069 50,424 98,513 91,743 Non-interest expense Salaries and benefits 120,154 118,840 251,795 247,567 Occupancy expense 12,144 10,666 22,988 20,403 Marketing 3,624 5,996 8,633 12,032 Legal and professional 11,069 11,273 26,058 27,468 Communications and technology 24,314 22,013 47,956 43,127 Federal Deposit Insurance Corporation insurance assessment 5,096 5,570 10,437 13,991 Other 13,875 14,051 25,429 26,214 Total non-interest expense 190,276 188,409 393,296 390,802 Income before income taxes 102,188 58,597 162,646 93,532 Income tax expense 24,860 16,935 38,271 25,728 Net income 77,328 41,662 124,375 67,804 Preferred stock dividends 4,312 4,312 8,625 8,625 Net income available to common stockholders $ 73,016 $ 37,350 $ 115,750 $ 59,179 Basic earnings per common share $ 1.59 $ 0.80 $ 2.52 $ 1.26 Diluted earnings per common share $ 1.58 $ 0.80 $ 2.49 $ 1.25 TEXAS CAPITAL BANCSHARES, INC. SUMMARY OF CREDIT LOSS EXPERIENCE (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 Allowance for credit losses on loans: Beginning balance $ 278,379 $ 271,709 $ 273,143 $ 267,297 $ 263,962 Allowance established for acquired purchase credit deterioration loans — — — 2,579 — Loans charged-off: Commercial 13,020 10,197 14,100 6,120 9,997 Commercial real estate 431 500 2,566 262 2,111 Consumer — — — 30 — Total charge-offs 13,451 10,697 16,666 6,412 12,108 Recoveries: Commercial 486 483 4,562 329 153 Commercial real estate — 413 18 — — Consumer — 4 15 — — Total recoveries 486 900 4,595 329 153 Net charge-offs 12,965 9,797 12,071 6,083 11,955 Provision for credit losses on loans 12,234 16,467 10,637 9,350 15,290 Ending balance $ 277,648 $ 278,379 $ 271,709 $ 273,143 $ 267,297 Allowance for off-balance sheet credit losses: Beginning balance $ 53,865 $ 53,332 $ 45,969 $ 45,319 $ 40,609 Provision for off-balance sheet credit losses 2,766 533 7,363 650 4,710 Ending balance $ 56,631 $ 53,865 $ 53,332 $ 45,969 $ 45,319 Total allowance for credit losses $ 334,279 $ 332,244 $ 325,041 $ 319,112 $ 312,616 Total provision for credit losses $ 15,000 $ 17,000 $ 18,000 $ 10,000 $ 20,000 Allowance for credit losses on loans to total loans held for investment 1.16 % 1.24 % 1.21 % 1.23 % 1.23 % Allowance for credit losses on loans to average total loans held for investment 1.19 % 1.29 % 1.22 % 1.24 % 1.27 % Net charge-offs to average total loans held for investment(1) 0.22 % 0.18 % 0.22 % 0.11 % 0.23 % Net charge-offs to average total loans held for investment for last 12 months(1) 0.18 % 0.18 % 0.19 % 0.20 % 0.22 % Total provision for credit losses to average total loans held for investment(1) 0.26 % 0.32 % 0.32 % 0.18 % 0.38 % Total allowance for credit losses to total loans held for investment 1.40 % 1.48 % 1.45 % 1.43 % 1.44 % (1) Interim period ratios are annualized. TEXAS CAPITAL BANCSHARES, INC. NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 NON-PERFORMING ASSETS Non-accrual loans held for investment $ 113,609 $ 93,565 $ 111,165 $ 88,960 $ 85,021 Non-accrual loans held for sale — — — — — Other real estate owned — — — — — Total non-performing assets $ 113,609 $ 93,565 $ 111,165 $ 88,960 $ 85,021 Non-accrual loans held for investment to total loans held for investment 0.47 % 0.42 % 0.50 % 0.40 % 0.39 % Total non-performing assets to total assets 0.36 % 0.30 % 0.36 % 0.28 % 0.28 % Allowance for credit losses on loans to non-accrual loans held for investment 2.4x 3.0x 2.4x 3.1x 3.1x Total allowance for credit losses to non-accrual loans held for investment 2.9x 3.6x 2.9x 3.6x 3.7x LOANS PAST DUE Loans held for investment past due 90 days and still accruing $ 2,068 $ 791 $ 4,265 $ 5,281 $ 286 Loans held for investment past due 90 days to total loans held for investment 0.01 % — % 0.02 % 0.02 % — % Loans held for sale past due 90 days and still accruing $ — $ — $ — $ — $ 64 CRITICIZED LOANS Criticized loans $ 637,462 $ 762,887 $ 713,951 $ 897,727 $ 859,671 Criticized loans to total loans held for investment 2.66 % 3.41 % 3.18 % 4.03 % 3.95 % Special mention loans $ 339,923 $ 484,165 $ 435,626 $ 579,802 $ 593,305 Special mention loans to total loans held for investment 1.42 % 2.16 % 1.94 % 2.60 % 2.72 % TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 2025 2025 2024 2024 2024 Interest income Interest and fees on loans $ 364,358 $ 334,150 $ 340,388 $ 361,407 $ 345,251 Investment securities 45,991 46,565 44,102 38,389 33,584 Interest bearing deposits in other banks 29,218 46,574 53,081 52,737 43,233 Total interest income 439,567 427,289 437,571 452,533 422,068 Interest expense Deposits 174,798 174,936 189,061 190,255 181,280 Short-term borrowings 3,444 8,246 10,678 13,784 12,749 Long-term debt 7,930 8,073 8,225 8,392 11,457 Total interest expense 186,172 191,255 207,964 212,431 205,486 Net interest income 253,395 236,034 229,607 240,102 216,582 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Net interest income after provision for credit losses 238,395 219,034 211,607 230,102 196,582 Non-interest income Service charges on deposit accounts 8,182 7,840 6,989 6,307 5,911 Wealth management and trust fee income 3,730 3,964 4,009 4,040 3,699 Brokered loan fees 2,398 1,949 2,519 2,400 2,131 Investment banking and advisory fees 24,109 16,478 26,740 34,753 25,048 Trading income 7,896 5,939 5,487 5,786 5,650 Available-for-sale debt securities losses (1,886 ) — — (179,581 ) — Other 9,640 8,274 8,330 11,524 7,985 Total non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Non-interest expense Salaries and benefits 120,154 131,641 97,873 121,138 118,840 Occupancy expense 12,144 10,844 11,926 12,937 10,666 Marketing 3,624 5,009 4,454 5,863 5,996 Legal and professional 11,069 14,989 15,180 11,135 11,273 Communications and technology 24,314 23,642 24,007 25,951 22,013 Federal Deposit Insurance Corporation insurance assessment 5,096 5,341 4,454 4,906 5,570 Other 13,875 11,554 14,265 13,394 14,051 Total non-interest expense 190,276 203,020 172,159 195,324 188,409 Income/(loss) before income taxes 102,188 60,458 93,522 (79,993 ) 58,597 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Net income/(loss) 77,328 47,047 71,023 (61,319 ) 41,662 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) available to common shareholders $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350 TEXAS CAPITAL BANCSHARES, INC. TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED) (1) (dollars in thousands) 2nd Quarter 2025 1st Quarter 2025 2nd Quarter 2024 YTD June 30, 2025 YTD June 30, 2024 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 Investment securities(2) $ 4,573,164 $ 45,999 3.93 % $ 4,463,876 $ 46,565 4.10 % $ 4,427,023 $ 33,584 2.80 % $ 4,518,822 $ 92,564 4.01 % $ 4,363,195 $ 65,728 2.79 % Interest bearing cash and cash equivalents 2,661,037 29,218 4.40 % 4,255,796 46,574 4.44 % 3,273,069 43,233 5.31 % 3,454,011 75,792 4.43 % 3,662,348 97,588 5.36 % Loans held for sale — — — % 335 2 2.97 % 28,768 683 9.55 % 167 2 2.97 % 39,966 1,867 9.40 % Loans held for investment, mortgage finance 5,327,559 58,707 4.42 % 3,972,106 38,527 3.93 % 4,357,288 42,722 3.94 % 4,653,577 97,234 4.21 % 3,937,498 74,177 3.79 % Loans held for investment(3) 18,018,626 306,142 6.81 % 17,527,070 296,091 6.85 % 16,750,788 301,910 7.25 % 17,774,206 602,233 6.83 % 16,636,438 600,216 7.26 % Less: Allowance for credit losses on loans 278,035 — — % 272,758 — — 263,145 — — % 275,411 — — 256,541 — — Loans held for investment, net 23,068,150 364,849 6.34 % 21,226,418 334,618 6.39 % 20,844,931 344,632 6.65 % 22,152,372 699,467 6.37 % 20,317,395 674,393 6.68 % Total earning assets 30,302,351 440,066 5.80 % 29,946,425 427,759 5.76 % 28,573,791 422,132 5.86 % 30,125,372 867,825 5.78 % 28,382,904 839,576 5.87 % Cash and other assets 1,117,118 1,157,184 1,177,061 1,137,040 1,117,763 Total assets $ 31,419,469 $ 31,103,609 $ 29,750,852 $ 31,262,412 $ 29,500,667 Liabilities and Stockholders’ Equity Transaction deposits $ 2,213,037 $ 13,731 2.49 % $ 2,163,250 $ 13,908 2.61 % $ 2,061,622 $ 16,982 3.31 % $ 2,188,282 $ 27,639 2.55 % $ 2,034,057 $ 33,840 3.35 % Savings deposits 13,727,095 134,272 3.92 % 13,357,243 133,577 4.06 % 11,981,668 143,173 4.81 % 13,543,190 267,849 3.99 % 11,695,673 279,963 4.81 % Time deposits 2,361,525 26,795 4.55 % 2,329,384 27,451 4.78 % 1,658,899 21,125 5.12 % 2,345,543 54,246 4.66 % 1,689,112 43,077 5.13 % Total interest bearing deposits 18,301,657 174,798 3.83 % 17,849,877 174,936 3.97 % 15,702,189 181,280 4.64 % 18,077,015 349,734 3.90 % 15,418,842 356,880 4.65 % Short-term borrowings 306,176 3,444 4.51 % 751,500 8,246 4.45 % 927,253 12,749 5.53 % 527,608 11,690 4.47 % 919,670 25,532 5.58 % Long-term debt 649,469 7,930 4.90 % 660,445 8,073 4.96 % 778,401 11,457 5.92 % 654,927 16,003 4.93 % 818,955 25,443 6.25 % Total interest bearing liabilities 19,257,302 186,172 3.88 % 19,261,822 191,255 4.03 % 17,407,843 205,486 4.75 % 19,259,550 377,427 3.95 % 17,157,467 407,855 4.78 % Non-interest bearing deposits 8,191,402 7,875,244 8,647,594 8,034,196 8,642,685 Other liabilities 475,724 552,154 537,754 513,728 523,520 Stockholders’ equity 3,495,041 3,414,389 3,157,661 3,454,938 3,176,995 Total liabilities and stockholders’ equity $ 31,419,469 $ 31,103,609 $ 29,750,852 $ 31,262,412 $ 29,500,667 Net interest income $ 253,894 $ 236,504 $ 216,646 $ 490,398 $ 431,721 Net interest margin 3.35 % 3.19 % 3.01 % 3.27 % 3.02 % (1) Taxable equivalent rates used where applicable.(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.(3) Average balances include non-accrual loans. GAAP TO NON-GAAP RECONCILIATIONS The following items are non-GAAP financial measures: adjusted non-interest income, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures. These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. Reconciliation of Non-GAAP Financial Measures (dollars in thousands except per share data) 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 Net interest income $ 253,395 $ 236,034 $ 229,607 $ 240,102 $ 216,582 Non-interest income 54,069 44,444 54,074 (114,771 ) 50,424 Available-for-sale debt securities losses, net 1,886 — — 179,581 — Non-interest income, adjusted 55,955 44,444 54,074 64,810 50,424 Non-interest expense 190,276 203,020 172,159 195,324 188,409 FDIC special assessment — — — 651 (462 ) Restructuring expenses (1,401 ) — — (5,923 ) — Non-interest expense, adjusted 188,875 203,020 172,159 190,052 187,947 Provision for credit losses 15,000 17,000 18,000 10,000 20,000 Income tax expense/(benefit) 24,860 13,411 22,499 (18,674 ) 16,935 Tax effect of adjustments 774 — — 44,880 104 Income tax expense/(benefit), adjusted 25,634 13,411 22,499 26,206 17,039 Net income/(loss)(1) $ 77,328 $ 47,047 $ 71,023 $ (61,319 ) $ 41,662 Net income/(loss), adjusted(1) $ 79,841 $ 47,047 $ 71,023 $ 78,654 $ 42,020 Preferred stock dividends 4,312 4,313 4,312 4,313 4,312 Net income/(loss) to common stockholders(2) $ 73,016 $ 42,734 $ 66,711 $ (65,632 ) $ 37,350 Net income/(loss) to common stockholders, adjusted(2) $ 75,529 $ 42,734 $ 66,711 $ 74,341 $ 37,708 PPNR(3) $ 117,188 $ 77,458 $ 111,522 $ (69,993 ) $ 78,597 PPNR(3), adjusted $ 120,475 $ 77,458 $ 111,522 $ 114,860 $ 79,059 Weighted average common shares outstanding, diluted 46,215,394 46,616,704 46,770,961 46,608,742 46,872,498 Diluted earnings/(loss) per common share $ 1.58 $ 0.92 $ 1.43 $ (1.41 ) $ 0.80 Diluted earnings/(loss) per common share, adjusted $ 1.63 $ 0.92 $ 1.43 $ 1.59 $ 0.80 Average total assets $ 31,419,469 $ 31,103,609 $ 32,212,087 $ 31,215,173 $ 29,750,852 Return on average assets 0.99 % 0.61 % 0.88 % (0.78 )% 0.56 % Return on average assets, adjusted 1.02 % 0.61 % 0.88 % 1.00 % 0.57 % Average common equity $ 3,195,041 $ 3,114,389 $ 3,120,933 $ 2,945,238 $ 2,857,661 Return on average common equity 9.17 % 5.56 % 8.50 % (8.87 )% 5.26 % Return on average common equity, adjusted 9.48 % 5.56 % 8.50 % 10.04 % 5.31 % Efficiency ratio(4) 61.9 % 72.4 % 60.7 % 155.8 % 70.6 % Efficiency ratio, adjusted(4) 61.1 % 72.4 % 60.7 % 62.3 % 70.4 % Average earning assets $ 30,302,351 $ 29,946,425 $ 31,033,803 $ 29,975,318 $ 28,573,791 Non-interest income to average earning assets 0.72 % 0.60 % 0.69 % (1.52 )% 0.71 % Non-interest income to average earning assets, adjusted 0.74 % 0.60 % 0.69 % 0.86 % 0.71 % Non-interest expense to average earning assets 2.52 % 2.75 % 2.21 % 2.59 % 2.65 % Non-interest expense to average earning assets, adjusted 2.50 % 2.75 % 2.21 % 2.52 % 2.65 % (1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted. INVESTOR CONTACT Jocelyn Kukulka , 469.399.8544 [email protected] MEDIA CONTACT Julia Monter , 469.399.8425 [email protected] Source: Texas Capital Bancshares, Inc.

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