© 2025 Texas Capital Bank Member FDIC July 17, 2025 Q2-2025 Earnings
2 Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward- looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward- looking statements included herein to reflect future events or developments.
3 Foundational Tenants of Value Creation in Place Financial Priorities Described 9/1/2021 Building Tangible Book Value // Reinvesting organically generated capital to improve client relevance and create a more valuable franchise Investment // Re-aligning the expense base to directly support the business and investing aggressively to take advantage of market opportunities that we are uniquely positioned to serve Revenue Growth // Growing top- line revenue as a result of expanded banking capabilities for best-in-class clients in our Texas and national markets Flagship Results Proactive, disciplined engagement with the best clients in our markets to provide the talent, products, and offerings they need through their entire life-cycles Structurally higher, more sustainable earnings driving greater performance and lower annual variability Consistent communication, enhanced accountability, and a bias for action ensure execution and delivery Commitment to financial resilience allowing us to serve clients, access markets, and support communities through all cycles Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns
4 Targets Estab. in ’21 Where We StartedTargets Estab. in ’21 Where We Started YTD 2025 Q2 2025 Q1 2025 FY 2024 FY 2020Performance Metrics YTD 2025 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.80%0.99%0.61%0.25%0.18%Return on Average Assets~10%9.3%13.6%8.0%2.9%2.7%2.2% Investment Banking and Trading Income (% of Total Revenue) >12.5%7.4%9.2%5.6% 2.0% 2.1%Return on Average Tangible Common Equity3~5%3.8%3.8%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.82%1.02%0.61%0.74%0.33%Adj. Return on Average Assets415%–20% 16.8%3.3%15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%7.6%9.5%5.6%7.1%4.2%Adj. Return on Average Tangible Common Equity315%–20%17.0%18.9%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%11.4%11.4%11.6%11.4%9.4%CET1Balance Sheet >20%26%28%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%6%7%7%16%27%36%Average Indexed Deposits (% of Total Deposits) 2021 Strategic Performance Drivers Treasury Solutions Private Wealth Investment Banking YoY GrowthQ2 ‘25Q1 ‘25Q4 ‘24Q3 ‘24Q2 ‘24Financial Performance 3%$4.1 $3.8 $4.0$4.1$4.0Assets Under Management5 ($bn) 37%$11.6 $10.6 $9.5 $9.1 $8.5 Treasury Product Fees1 ($mm) 1%$3.7 $4.0 $4.0 $4.0 $3.7 Wealth Management & Trust Fee Income ($mm) 4%$32.0 $22.4 $32.2 $40.5 $30.7 Investment Banking & Trading Income ($mm) 10%$47.3 $37.0 $45.7 $53.7 $42.9 Income from Areas of Focus ($mm) Treasury product fees increased at fastest pace since ’21, to $11.6mm, the 4th consecutive record quarter Interest bearing deposits excl. brokered deposits grew $358mm during the quarter Q2 results driven by improved capital markets and sales and trading fees; additional Equities capabilities onboarding Depth, quality, and size of pipelines consistent with expectations to drive significant fee growth in 2H25 Assets under management increased 8% QoQ from accelerated client adoption of improved platform Clients increasingly benefitting from broad range of investment, cash management, and credit solutions
5 Q2 2025Q2 2024Non-GAAP4 Adjustments ($mm) 54.150.4Non-Interest Income 1.90.0Loss on AFS Securities Sale 56.050.4Non-Interest Income, Adj. 190.3188.4Non-Interest Expense 0.0(0.5)FDIC Special Assessment (1.4)0.0Restructuring Expenses 0.00.0Legal Settlement 188.9187.9Non-Interest Expense, Adj. Financial Performance // Income Statement Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4)Financial Highlights ($mm) Q2 2025Q2 2025Q1 2025Q2 2024Q2 2024YTD 2025YTD 202520242024 $253.4 $253.4 236.0 $216.6 $216.6 $489.4 $489.4 901.3 901.3 Net Interest Income 56.0 54.1 44.4 50.4 50.4 100.4 98.5 210.6 31.0 Non-Interest Revenue 309.4 307.5 280.5 267.0 267.0 589.8 587.9 1,111.9 932.3 Total Revenue 188.9 190.3 203.0 187.9 188.4 391.9 393.3 742.5 758.3 Non-Interest Expense 120.5 117.2 77.5 79.1 78.6 197.9 194.6 369.4 174.1 PPNR6 15.0 15.0 17.0 20.0 20.0 32.0 32.0 67.0 67.0 Provision for Credit Losses 25.6 24.9 13.4 17.0 16.9 39.0 38.3 76.8 29.6 Income Tax Expense 79.8 77.3 47.0 42.0 41.7 126.9 124.4 225.6 77.5 Net Income 4.3 4.3 4.3 4.3 4.3 8.6 8.6 17.3 17.3 Preferred Stock Dividends 75.5 73.0 42.7 37.7 37.4 118.3 115.8 208.3 60.3 Net Income to Common Performance Metrics 1.02% 0.99% 0.61% 0.57% 0.56% 0.82% 0.80% 0.74% 0.25% Return on Average Assets 1.54% 1.50% 1.01% 1.07% 1.06% 1.28% 1.26% 1.21% 0.57% PPNR6 / Average Assets 61.1% 61.9% 72.4% 70.4% 70.6% 66.4% 66.9% 66.8% 81.3% Efficiency Ratio7 9.5% 9.2% 5.6% 5.3% 5.3% 7.6% 7.4% 7.0% 2.0% Return on Average Common Equity $1.63 $1.58 $0.92 $0.80 $0.80 $2.55$2.49 $4.43 $1.28 Earnings Per Share YTD 20252024Non-GAAP4 Adjustments ($mm) 98.531.0Non-Interest Income 1.9179.6Loss on AFS Securities Sale 100.4210.6Non-Interest Income, Adj. 393.3758.3Non-Interest Expense 0.0(2.8)FDIC Special Assessment (1.4)(7.9)Restructuring Expenses 0.0(5.0)Legal Settlement 391.9742.5Non-Interest Expense, Adj.
6 Balance Sheet Highlights ($mm) Ending Balances YoYQoQQ2 2025Q1 2025Q2 2024 Assets (8%)(29%)2,690 3,802 2,913 Cash and Equivalents 5% 2% 4,609 4,531 4,389 Total Securities 13% 5% 11,931 11,404 10,534 Commercial Loans (0%)(3%)5,665 5,824 5,689 CRE Loans (3%)4% 541 521 558 Consumer Loans 16% 25% 5,890 4,726 5,078 Mortgage Finance Loans 10% 7% 24,026 22,475 21,859 Gross LHI 4% (0%)(278)(278)(267)Allowance for Credit Losses on Loans 7% 2% 31,944 31,376 29,855 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Performance Metrics 23% 27% 24% Cash & Securities % of Assets 50% 51% 48% Commercial Loans % of Gross LHI (334)(332)(313)Total Allowance for Credit Losses ($mm) 1.40% 1.48% 1.44% Total ACL / Total LHI YoYQoQQ2 2025Q1 2025Q2 2024 Liabilities (3%)(2%)7,718 7,875 7,988 Non-Interest Bearing Deposits 16% 1% 18,346 18,178 15,831 Interest Bearing Deposits 9% 0% 26,064 26,053 23,818 Total Deposits (25%)67% 1,250 750 1,675 FHLB Borrowings 7% 2% 28,433 27,946 26,679 Total Liabilities Equity 2% 2% 3,323 3,266 3,243 Common Equity, Excl. AOCI (69%)(17%)(113)(136)(368)AOCI 11% 2% 3,510 3,430 3,176 Total Shareholder’s Equity (1%)(1%)45,746,836 46,024,933 46,188,078 Common Shares Outstanding 92% 86% 91% Total LHI % of Deposits 30% 30% 34% Non-Interest Bearing % of Deposits $70.17 $68.00 $62.26 Book Value Per Share $70.14 $67.97 $62.23 Tangible Book Value Per Share8
7 $4.7 $3.9 $3.5 $4.4 $5.2 $5.4 $4.0 $5.3 $4.4 $4.0 $4.2 $5.1 $5.5 $5.2 $4.7 $5.9 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $5.7 $5.3 $5.6 $5.8 $5.7 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $10.5 $11.0 $11.1 $11.4 $11.9 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total LHI excl. mortgage finance increased $1.3bn or 8% YoY Ending period commercial loans increased $526mm or 5% QoQ Growth driven by sustained new client acquisition across the platform Average commercial loans increased $399mm or 4% QoQ Period end growth in commercial loans of $1.4bn or 13% YoY Commercial real estate loans declined $159mm or 3% QoQ due to increased payoffs during the quarter Multifamily comprises $2.3bn or 41% of CRE loans Average mortgage finance loans increased 34% QoQ to $5.3bn as expected in the seasonally strong Q2 Loan Portfolio Composition Mortgage Finance Loans ($bn) Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Average Period End
8 2.99% 2.94% 2.81% 2.76% 2.65% 2.83% 2.76% 2.61% 2.54% 2.41% 4.64% 4.64% 4.32% 3.97% 3.83% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $3.4 $3.5 $3.5 $3.4 $3.4 $3.5 $5.2 $6.0 $5.8 $4.5 $4.8 $4.2 $15.1 $15.8 $16.9 $17.4 $18.0 $18.1 $0.6 $0.5 $0.5 $0.5 $0.3 $0.2 $24.3 $25.7 $26.7 $25.7 $26.5 $26.1 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 Q2 2025 EOP Deposit and Funding Composition Total deposit balances were flat QoQ Total deposits excl. MF9 non-interest bearing deposits and brokered interest bearing deposits increased $3.0bn or 16% YoY Non-interest bearing, excl. MF9 deposits increased $211mm or 6% YoY to $3.5bn Average MF9 non-interest bearing deposits declined $384mm YoY to $4.8bn, representing 91% of average mortgage finances loans in Q2 2025 compared to 120% in Q2 of last year The majority of MF9 non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield Average cost of interest bearing deposits declined 14bps to 3.83% Cumulative beta of 81% since the beginning of the current easing cycle Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs QoQ Change %$Q2 ‘25Q1 ‘25Q2 ‘24 (5%)(182)3,534 3,716 3,323 Non-Interest Bearing, Excl. MF9 1% 25 4,184 4,159 4,665 MF9 Non-Interest Bearing (2%)(157)7,718 7,875 7,988 Total Non-Interest Bearing 2% 358 18,140 17,782 15,307 Interest Bearing (48%)(190)206 396 524 Brokered Deposits 1% 168 18,346 18,178 15,831 Total Interest Bearing 0% $11 $26,064 $26,053 $23,818 Total Deposits Avg Cost of Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Non-Interest Bearing, Excl. MF9 MF9 Non-Interest Bearing Interest Bearing Interest Bearing Brokered
9 (12.2%) (12.0%) (6.1%) (5.9%) 3.8% 3.8% 7.4% 7.4% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q1 2025 Q2 2025 -200bps Shock -100bps Shock +100bps Shock +200bps Shock Net Interest Income Sensitivity Standard Model Assumptions10 100bp & 200bp Parallel Shocks Loan Balances: Static Deposit Balances: Static Loan Spreads: Current Levels Up Scenario Int. Bearing Deposit Beta: ~80% Down Scenario Int. Bearing Deposit Beta: ~70% Investment Portfolio: Ratio held constant Hedging Profile Net Interest Income Sensitivity – Static Balance Sheet ($mm) $1,123mm$989mmBase NII11 Earning Assets Profile (Average) Q2 2025Q1 2025 YieldBalance ($mm)YieldBalance ($mm) 4.40% $2,661 4.44% $4,256 Interest Bearing Cash and Equivalents 3.93% 4,573 4.10% 4,464 Securities ----2.97% 0 Loans Held for Sale 6.81% 18,019 6.85% 17,527 LHI Excl. Mortgage Finance LHI 4.42% 5,328 3.93% 3,972 Mortgage Finance LHI --(278)--(273)ACL on Loans 5.80% $30,302 5.76% $29,946 Earning Assets 94% of LHI excl. mortgage finance LHI are variable rate $1.1bn of loans, or 6%, are fixed with 12% maturing or repricing in the next 12 months Sold $282.3mm of available for sale securities with a book yield of 3.1% in the quarter for a pre-tax loss of $1.9mm Reinvested proceeds into available for sale securities with a yield of 5.4% Loan hedges reduced interest income by $8.4mm in Q2 compared to $8.7mm in Q1 Impacts of Mortgage Finance Mortgage finance LHI represents 23% of the average total LHI portfolio with the majority tied to 1-month SOFR which was flat in Q2 Given the current outlook and observed seasonality, the average mortgage finance self funding ratio is expected to stay near 90% in Q3 Firm’s overall net interest income sensitivity (per the chart above) is inclusive of mortgage finance NII impact on a flat balance sheet and does not account for changes in warehouse volumes in either a lower or higher rate environment $73 $38 ($60) ($121) $83 $42 ($66) ($135) Receive Rate Average Notional Balance ($bn) 3.43%2.4Q2 2025 3.18%1.5Q3 2025 3.58%0.8Q4 2025 3.64%0.6Q1 2026 3.83%0.4Q2 2026 3.83%0.4Q3 2026 3.83%0.4Q4 2026
10 $118.8 $118.7 $97.9 $131.6 $118.8 $69.1 $71.3 $74.3 $71.4 $70.1 $0.5 $5.3 $1.4 $188.4 $195.3 $172.2 $203.0 $190.3 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $50.4 ($114.8) $54.1 $44.4 $54.1 $64.8 $56.0 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $216.6 $240.1 $229.6 $236.0 $253.4 3.01% 3.16% 2.93% 3.19% 3.35% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $236.0 $7.8 $2.2 $14.8 $5.4 $0.0 ($17.9) ($4.3) $4.4 $4.9 $253.4 Q1 2025 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Yield Loan Fees Investment Securities & Cash Interest Bearing Deposits Volume Interest Bearing Deposit Cost Borrowings Q2 2025 63% 60% 57% 65% Q2-2025 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) 62% Net interest income increased $17.4mm QoQ supported by continued LHI growth and further reduction in funding costs Net interest margin expanded by 16bps QoQ, and 34 bps YoY Quarterly adjusted non-interest expense4 increased $0.9mm YoY to $188.9mm, reflecting continued repositioning of the expense base in support of defined growth objectives 9 9 9 9 37% % of Total Revenue, Adj.4 19% 21% 19% 16% 18% 0% 37% 3% 1% 43% Net Interest Income Net Interest Margin Salaries & Benefits Other NIE Non-Recurring Items4Non-Interest Income Non-Interest Income, Adj.4 37% 35%
11 80% 73% 79% 80% 92% 19% 26% 20% 20% 8% 1% 1% 1% $266.4 $317.9 $278.3 $278.7 $297.5 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 52% 75% 70% 71% 64% 48% 25% 30% 28% 34% 1% 2% $593.3 $579.8 $435.6 $484.2 $339.9 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.28% 0.28% 0.36% 0.30% 0.36% 0.23% 0.11% 0.22% 0.18% 0.22% 3.95% 4.03% 3.18% 3.41% 2.66% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 3.7x 3.6x 2.9x 1.44% 1.48% 1.40% 1.84% 1.85% 1.79% Q2 2024 Q1 2025 Q2 2025 Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $13.0$9.8$12.1 $6.1 $12.0 Net Charge-Offs ($mm) Total ACL / Non- accrual Loans HFI Total ACL increased $2.0mm QoQ to $334.3mm, an all-time high for the firm Total ACL, excl. MF9 declined $3.2mm to $323.6mm Total ACL, excl. MF9 to LHI, excl. MF9 in the top decile among Peers12 Total ACL to LHI ratio $13.0mm of net charge-offs, 0.22% of average LHI, primarily related to previously identified problem credits Provision expense as a percentage of average LHI of 26bps Provision expense as a percentage of average LHI excl. MF of 33bps Criticized LHI declined $222.2mm or 26% YoY, with the percentage of total LHI declining 129bps to 2.66% Special mention LHI declined $144.3mm or 30% linked quarter Non-Accrual loans HFI increased $20.0mm QoQ Total ACL remains strong at 2.9x non-accrual loans HFI Commercial Mortgage Finance Real Estate ConsumerCommercial Mortgage Finance Real Estate Consumer Total ACL / LHI Total ACL, Excl. MF9 / LHI Excl. MF9 Q2 2024 Q1 2025 Q2 2025 Criticized / LHI NPAs / Total Assets NCOs / Avg. LHI
12 11.62% 11.19% 11.38% 11.63% 11.45% >11.00% 1.47% 1.44% 1.44% 1.46% 1.41% 2.56% 2.54% 2.55% 2.51% 2.44% 15.65% 15.17% 15.37% 15.61% 15.30% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 2025 Target $62.23 $66.06 $66.32 $67.97 $70.14 $62.26 $66.09 $66.36 $68.00 $70.17 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 9.63% 9.65% 9.98% 9.97% 10.04% 9.63% 9.66% 9.98% 9.98% 10.05% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets 2025 YE Target Capital Position and Trends Regulatory capital ratios remain strong Total capital ratio of 15.30%, in the top quartile of the peer group12, and CET1 ratio of 11.45% Tangible common equity / tangible assets13 ended the quarter at 10.04%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle Tangible common equity / tangible assets13 in top quintile of peer group12 Tangible book value per share8 increased by $2.17 or 3% QoQ as a result of income generated, share repurchase activity and AOCI accretion TBVPS8 of $70.14 is an all-time high for the Firm Repurchased 318 thousand shares in Q2, 0.7% of year end 2024 shares outstanding, for a total of $21mm at a weighted average price of approximately 96% of prior month tangible book value per share $148mm remaining on the 2025 authorization at the end of Q2 Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Period End AOCI ($mm) ($113)($136)($183)($128)($368) AOCI per Share ($2.47)($2.96)($3.96)($2.77)($7.96) Peer12 Tangible Common Equity / Tangible Assets13 8.25%8.10%8.01%7.59% CET1 Tier 1 Capital Tier 2 Capital Tangible Book Value per Share8 Book Value per Share Tangible Book Value per Share8
13 Full Year 2025 Guidance FY 2024 Adjusted (Non-GAAP4) Low double-digit % growth$1,111.9mmTotal Revenue, Adjusted4 Mid to high single-digit % growth$742.5mmNon-Interest Expense, Adjusted4 30bps - 35bps40bpsProvisions / Avg LHI, Excl. Mortgage Finance LHI >11%11.38%CET1 Ratio Full Year 2025 Guidance Forward curve14 assumes 25bps cut in September with an exit rate of 4.25% at year end 2025 Assumes a 25bps cut in January 2026 Total Revenue, Adjusted4 guidance remains unchanged Non-Interest Expense, Adjusted4 guidance decreased from high single- digit percent annual growth Provisions / Average LHI, Excl. Mortgage Finance LHI guidance remains unchanged CET1 Ratio target guidance remains unchanged Tax rate expected to be ~25% for the full year in 2025 Achievement of a quarterly 1.10% ROAA in the second half of 2025 Guidance Commentary
14 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8mm for FY 2020, $4.0mm for FY 2021, $6.1mm for FY 2022, $9.4mm for FY 2023, $10.2mm for FY 2024, and $6.1mm for YTD 2025 and $2.5mm, $2.8mm, $2.5mm, $2.8mm, and $3.4 for Q2 2024, Q3 2024, Q4 2024, Q1 2025, and Q2 2025 respectively 2. Non-GAAP Reconciliation // Adjusted Non-Interest Income and Total Revenue 3. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 4. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 5. Assets Under Management includes non-discretionary brokerage assets that the Firm earns wealth management and trust fee income on 6. “PPNR” used as an abbreviation for Pre-Provision Net Revenue which is the sum of net interest income and non-interest income, less non-interest expense 7. Non-interest expense divided by the sum of net interest income and non-interest income 8. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 9. “MF” used as abbreviation for Mortgage Finance 10. Model assumptions are only for Q2 2025; See prior TCBI Earnings Materials for prior model assumptions 11. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 12. Major exchange traded US peer banks with $20-100bn in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; peer data as of Q1 2025 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of June 4, 2025 YTD 2025 ($mm)2024 ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted3As Reported Adjusted3As Reported Adjusted As Reported Adjusted2As Reported Adjusted1As Reported Adjusted1As Reported $489.4 $489.4 $901.3 $901.3 $914.1 $914.1 $875.8 $875.8 $767.6 $768.8 $821.1 $851.3 Net Interest Income 100.4 98.5 210.6 31.0 161.4 161.4 101.0 349.5 119.5 138.3 103.7 203.0 Non-Interest Income $589.8 $587.9 $1,111.9 $932.3 $1,075.5 $1,075.5 $976.8 $1,225.3 $887.1 $907.1 $924.8 $1,054.3 Total Revenue 17.0%16.8%18.9%3.3%15.0%15.0%10.3%28.5%13.4%15.2%11.2%19.3%Non-Interest Income % of Total Revenue 1) Adjusted to remove revenue contribution of exited Correspondent Lending Line of Business 2) Adjusted to remove non-recurring gain on sale of Insurance Premium Finance Loan Portfolio 3) Adjusted to remove non-recurring loss on sale of AFS securities Appendix // Footnotes
15 2025 ($mm)2024 ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported $118.3 $115.8 $208.3 $60.3 $187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $3,154.9 $3,154.9 $2,955.5 $2,955.5 $2,795.0$2,795.0$2,783.3$2,783.3$2,815.7$2,815.7$2,686.7$2,686.7Average Common Equity 1.5 1.5 1.5 1.5 1.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $3,153.4 $3,153.4 $2,954.0 $2,954.0 $2,793.5$2,793.5$2,768.8$2,768.8$2,798.3$2,798.3$2,668.8$2,668.8Average Tangible Common Equity 7.6%7.4%7.0%2.0%6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 7.6%7.4%7.1%2.0%6.7%6.2%5.8%11.4%8.7%8.4%4.2%2.1%ROATCE Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios
16 Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments. YTD 2025FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Q2 2025 Q3 2024 Q2 2024($mm, Except per Share) $489.4 $901.3 $914.1 $875.8 $768.8 $851.3 $253.4 $240.1 $216.6 Net Interest Income $98.5 31.0 161.4 349.5 138.3 203.0 54.1 (114.8)50.4 Non-Interest Revenue Adjustments for Non-Recurring Items: ---(248.5)-----Gain on Sale of Insur. Prem. Finance 1.9 179.6 ----1.9 179.6-Loss on AFS Securities Sale 100.4 210.6 161.4 101.0 138.3 203.056.0 64.8 50.4 Non-Interest Revenue, Adjusted $393.3 758.3 756.9 727.5 599.0 704.4 190.3 195.3 188.4 Non-Interest Expense Adjustments: ---(29.6)-(17.8)---Transaction Costs (1.4)(7.9)-(9.8)(12.0)(54.0)(1.4)(5.9)-Restructuring Expense -(5.0)-------Legal Settlement ---(8.0)-----Charitable Contribution -(2.8)(19.9)----0.7 (0.5)FDIC Special Assessment 391.9 742.5 737.1 680.1 587.0 632.6 188.9 190.1 187.9 Non-Interest Expense, Adjusted 194.6 174.1 318.6 497.8 308.1 349.9 117.2 (70.0)78.6 PPNR6 197.9 369.4 338.5 296.6 320.1 421.7 120.5 114.9 79.1 PPNR6, Adjusted $32.0 67.0 72.0 66.0 (30.0)258.0 15.0 10.0 20.0 Provision for Credit Losses $38.3 29.6 57.5 99.3 84.1 25.7 24.9 (18.7)16.9 Income Tax Expenses 0.8 47.2 4.6 (45.4)2.7 15.6 0.8 44.9 0.1 Tax Impact of Adjustments Above 39.0 76.8 62.1 53.9 86.8 41.3 25.6 26.2 17.0 Income Tax Expenses, Adjusted 124.4 77.5 189.1 332.5 253.9 66.3 77.3 (61.3)41.7 Net Income 126.9 225.6 204.4 176.8 263.2 122.4 79.8 78.7 42.0 Net Income, Adjusted $8.6 17.3 17.3 17.3 18.7 9.8 4.3 4.3 4.3 Preferred Stock Dividends 115.8 60.3 171.9 315.2 235.2 56.5 73.0 (65.6)37.4 Net Income to Common 118.3 208.3 187.1 159.5 244.5 112.6 75.5 74.3 37.7 Net Income to Common, Adjusted $31,262.4 $30,613.2 $29,537.3 $32,049.8 $38,140.3 $37,516.2 $31,419.5 $31,215.2 $29,750.9 Average Assets 0.80% 0.25% 0.64%1.04%0.67%0.18%0.99% (0.78%)0.56% Return on Average Assets 0.82% 0.74% 0.69%0.55%0.69%0.33%1.02% 1.00% 0.57% Return on Average Assets, Adjusted 1.26% 0.57% 1.08%1.55%0.81%0.93%1.50% (0.89%)1.06% PPNR6 / Average Assets 1.28% 1.21% 1.15%0.93%0.84%1.12%1.54% 1.46% 1.07% PPNR6, Adjusted / Average Assets $3,154.9 $2,955.5 $2,795.0 $2,783.3 $2,815.7 $2,686.7 $3,195.0 $2,945.2 $2,857.7 Average Common Equity 7.40% 2.04% 6.15%11.33%8.35%2.10%9.17% (8.87%)5.26% Return on Average Common Equity 7.56% 7.05% 6.70%5.73%8.68%4.19%9.48% 10.04% 5.31% Return on Average Common Equity, Adjusted 46,403,11646,989,204 48,610,206 51,046,742 51,140,974 50,582,979 46,215,394 46,608,742 46,872,498 Diluted Common Shares $2.49 $1.28 $3.54 $6.18 $4.60 $1.12 $1.58 ($1.41)$0.80 Earnings per Share $2.55 $4.43 $3.85 $3.13 $4.78 $2.23 $1.63 $1.59 $0.80 Earnings per Share, Adjusted