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						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)
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Assets
Cash and due from banks	$	201,504	$	176,501	$	297,048	$	221,727	$	167,985
Interest bearing cash and cash equivalents	3,600,969		3,012,307		3,894,537		2,691,352		3,148,157
Available-for-sale debt securities	3,678,378		3,524,686		3,518,662		3,483,231		3,491,510
Held-to-maturity debt securities	779,354		796,168		812,432		831,513		849,283
Equity securities	71,679		75,261		74,426		74,232		73,487
Trading securities	1,808		—		—		—		—
Investment securities	4,531,219		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	4,725,541		5,215,574		5,529,659		5,078,161		4,153,313
Loans held for investment	17,654,243		17,234,492		16,764,512		16,700,569		16,677,691
Less: Allowance for credit losses on loans	278,379		271,709		273,143		267,297		263,962
Loans held for investment, net	22,101,405		22,178,357		22,021,028		21,511,433		20,567,042

Premises and equipment, net	84,575		85,443		81,577		69,464		49,899
Accrued interest receivable and other assets	854,581		881,664		919,071		933,761		793,976
Goodwill and intangibles, net	1,496		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	18,178,254		17,753,171		16,794,451		15,830,612		15,475,822
Total deposits	26,053,034		25,238,599		25,865,255		23,818,327		23,954,037
Accrued interest payable	25,270		23,680		18,679		23,841		32,352
Other liabilities	457,150		556,322		696,149		502,228		413,711
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
Total liabilities	27,945,975		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		300,000
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares(2)	517		515		515		515		514
Additional paid-in capital	1,060,028		1,056,719		1,054,614		1,050,114		1,044,669
Retained earnings	2,538,385		2,495,651		2,428,940		2,494,572		2,457,222
Treasury stock(3)	(332,994)		(301,842)		(301,868)		(301,868)		(251,857)
Accumulated other comprehensive loss, net of taxes	(136,162)		(183,107)		(128,157)		(367,732)		(379,886)
Total stockholders’ equity	3,429,774		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		300,000
(2) Common stock - issued shares	51,707,542		51,520,315		51,494,260		51,474,581		51,420,680
(3) Treasury stock - shares at cost	5,682,609		5,286,503		5,286,503		5,286,503		4,434,405


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 Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ 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 2025			4th Quarter 2024			3rd Quarter 2024			2nd Quarter 2024			1st Quarter 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.