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INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapital.com
MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapital.com
TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2025 RESULTS
Third quarter 2025 ROAA of 1.30%
Record-level net income of $105.2 million, record-level net income available to common stockholders
of $100.9 million and record-level diluted earnings per share of $2.18 for the third quarter of 2025
Record-level Book Value and record-level Tangible Book Value(2) per share of $73.05 and $73.02, respectively
Growth in capital ratios continues, achieving 12.1% CET1 and 16.1% Total Capital
DALLAS - October 22, 2025 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2025.
“Texas Capital delivered both the strategic and financial outcomes we set in our Strategic Update on September 1, 2021, resulting in the most successful bank transformation in the last 20 years, structurally elevating our earnings power and achieving industry-leading growth in fee income, return on assets and balance sheet resilience,” said Rob C. Holmes, Chairman, President & CEO. “As we look ahead, our unwavering commitment to clients and proven execution will continue to position us as the flagship financial services firm in Texas, driving long-term value for all stakeholders.”
3rd Quarter2nd Quarter3rd Quarter
(dollars in thousands except per share data)202520252024
OPERATING RESULTS
Net income/(loss)$105,210 $77,328 $(61,319)
Net income/(loss) available to common stockholders$100,897 $73,016 $(65,632)
Pre-provision net revenue(3)
$149,779 $117,188 $(69,993)
Diluted earnings/(loss) per common share
$2.18 $1.58 $(1.41)
Diluted common shares46,233,167 46,215,394 46,608,742 
Return on average assets1.30 %0.99 %(0.78)%
Return on average common equity12.04 %9.17 %(8.87)%
OPERATING RESULTS, ADJUSTED(1)
Net income$105,210 $79,841 $78,654 
Net income available to common stockholders$100,897 $75,529 $74,341 
Pre-provision net revenue(3)
$149,779 $120,475 $114,860 
Diluted earnings per common share$2.18 $1.63 $1.59 
Diluted common shares46,233,167 46,215,394 46,608,742 
Return on average assets1.30 %1.02 %1.00 %
Return on average common equity12.04 %9.48 %10.04 %
BALANCE SHEET
Loans held for investment$18,134,059 $18,035,945 $16,764,512 
Loans held for investment, mortgage finance6,057,804 5,889,589 5,529,659 
Total loans held for investment24,191,863 23,925,534 22,294,171 
Loans held for sale— — 9,022 
Total assets32,536,980 31,943,535 31,629,299 
Non-interest bearing deposits7,689,598 7,718,006 9,070,804 
Total deposits27,505,398 26,064,309 25,865,255 
Stockholders’ equity3,637,098 3,510,070 3,354,044 
(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.


THIRD QUARTER 2025 COMPARED TO SECOND QUARTER 2025
For the third quarter of 2025, net income available to common stockholders was $100.9 million, or $2.18 per diluted share, compared to $73.0 million, or $1.58 per diluted share, for the second quarter of 2025.
Provision for credit losses for the third quarter of 2025 was $12.0 million, compared to $15.0 million for the second quarter of 2025. The $12.0 million provision for credit losses recorded in the third quarter of 2025 resulted primarily from an increase in total loans held for investment (“LHI”) and $13.7 million in net charge-offs, partially offset by decreases in criticized loans and non-accrual loans.
Net interest income was $271.8 million for the third quarter of 2025, compared to $253.4 million for the second quarter of 2025, primarily due to increases in average earning assets and earning asset yields and a decrease in average short-term borrowings partially offset by an increase in average interest bearing deposits. Net interest margin for the third quarter of 2025 was 3.47%, an increase of 12 basis points from the second quarter of 2025. LHI, excluding mortgage finance, yields increased 14 basis points from the second quarter of 2025 and LHI, mortgage finance, yields decreased 10 basis points from the second quarter of 2025. Total cost of deposits was 2.62% for the third quarter of 2025, a 3 basis point decrease from the second quarter of 2025.
Non-interest income for the third quarter of 2025 increased $14.5 million compared to the second quarter of 2025 primarily due to the inclusion of a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025 and increases in investment banking and advisory fees and other non-interest income.
Non-interest expense for the third quarter of 2025 increased $299,000 compared to the second quarter of 2025, primarily due to an increase in legal and professional expense partially offset by a decrease in other non-interest expense.
THIRD QUARTER 2025 COMPARED TO THIRD QUARTER 2024
Net income available to common stockholders was $100.9 million, or $2.18 net income per diluted share, for the third quarter of 2025, compared to net loss available to common stockholders of $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024.
The third quarter of 2025 included a $12.0 million provision for credit losses, reflecting an increase in total LHI and $13.7 million in net charge-offs, partially offset by declines in criticized loans and non-accrual loans, compared to a $10.0 million provision for credit losses for the third quarter of 2024.
Net interest income increased to $271.8 million for the third quarter of 2025, compared to $240.1 million for the third quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing liabilities. Net interest margin increased 31 basis points to 3.47% for the third quarter of 2025, as compared to the third quarter of 2024. LHI, excluding mortgage finance, yields decreased 31 basis points compared to the third quarter of 2024 and LHI, mortgage finance yields increased 12 basis points from the third quarter of 2024. Total cost of deposits decreased 32 basis points compared to the third quarter of 2024.
Non-interest income for the third quarter of 2025 increased $183.4 million compared to the third quarter of 2024 primarily due to the inclusion of a $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, as well as increases in service charges on deposit accounts, trading income and other non-interest income.
Non-interest expense for the third quarter of 2025 decreased $4.7 million compared to the third quarter of 2024, primarily due to decreases in salaries and benefits, occupancy expense and communications and technology expense, resulting from restructuring expenses recognized in the third quarter of 2024, as well as a decrease in marketing expense, partially offset by an increase in legal and professional expense.
CREDIT QUALITY
Net charge-offs of $13.7 million were recorded during the third quarter of 2025, compared to net charge-offs of $13.0 million and $6.1 million during the second quarter of 2025 and the third quarter of 2024, respectively. Criticized loans totaled $529.7 million at September 30, 2025, compared to $637.5 million at June 30, 2025 and $897.7 million at September 30, 2024. Non-accrual LHI totaled $96.1 million at September 30, 2025, compared to $113.6 million at June 30, 2025 and $89.0 million at September 30, 2024. The ratio of non-accrual LHI to total LHI for the third quarter of 2025 was 0.40%, compared to 0.47% for the second quarter of 2025 and 0.40% for the third quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.37% at September 30, 2025, compared to 1.40% and 1.43% at June 30, 2025 and September 30, 2024, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2025. CET1, tier 1 capital, total capital and leverage ratios were 12.1%, 13.6%, 16.1% and 11.9%, respectively, at September 30, 2025, compared to 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025 and 11.2%, 12.6%, 15.2% and 11.4%, respectively, at September 30, 2024. At September 30, 2025, our ratio of tangible common equity to total tangible assets was 10.3%, compared to 10.1% at June 30, 2025 and 9.7% at September 30, 2024.
During the third quarter of 2025, the Company repurchased 87,087 shares of its common stock for an aggregate purchase price, including excise tax expense, of $7.1 million, at a weighted average price of $80.49 per share.
2

About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations, and service terms. Deposit and lending products and services are offered by TCB. Effective September 19, 2025, TCB became a member of the Federal Reserve System. For deposit products, member FDIC. For more information, please visit www.texascapital.com.
Forward Looking Statements
This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; increased or expanded competition from banks and other financial service providers in TCBI’s markets; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business 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

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20252025202520242024
CONSOLIDATED STATEMENTS OF INCOME
Interest income$460,615 $439,567 $427,289 $437,571 $452,533 
Interest expense188,844 186,172 191,255 207,964 212,431 
Net interest income271,771 253,395 236,034 229,607 240,102 
Provision for credit losses12,000 15,000 17,000 18,000 10,000 
Net interest income after provision for credit losses259,771 238,395 219,034 211,607 230,102 
Non-interest income68,583 54,069 44,444 54,074 (114,771)
Non-interest expense190,575 190,276 203,020 172,159 195,324 
Income/(loss) before income taxes137,779 102,188 60,458 93,522 (79,993)
Income tax expense/(benefit)32,569 24,860 13,411 22,499 (18,674)
Net income/(loss)105,210 77,328 47,047 71,023 (61,319)
Preferred stock dividends4,313 4,312 4,313 4,312 4,313 
Net income/(loss) available to common stockholders$100,897 $73,016 $42,734 $66,711 $(65,632)
Diluted earnings/(loss) per common share$2.18 $1.58 $0.92 $1.43 $(1.41)
Diluted common shares46,233,167 46,215,394 46,616,704 46,770,961 46,608,742 
CONSOLIDATED BALANCE SHEET DATA
Total assets$32,536,980 $31,943,535 $31,375,749 $30,731,883 $31,629,299 
Loans held for investment18,134,059 18,035,945 17,654,243 17,234,492 16,764,512 
Loans held for investment, mortgage finance6,057,804 5,889,589 4,725,541 5,215,574 5,529,659 
Loans held for sale— — — — 9,022 
Interest bearing cash and cash equivalents2,852,387 2,507,691 3,600,969 3,012,307 3,894,537 
Investment securities4,601,654 4,608,628 4,531,219 4,396,115 4,405,520 
Non-interest bearing deposits7,689,598 7,718,006 7,874,780 7,485,428 9,070,804 
Total deposits27,505,398 26,064,309 26,053,034 25,238,599 25,865,255 
Short-term borrowings275,000 1,250,000 750,000 885,000 1,035,000 
Long-term debt620,416 620,256 660,521 660,346 660,172 
Stockholders’ equity3,637,098 3,510,070 3,429,774 3,367,936 3,354,044 
End of period shares outstanding45,679,863 45,746,836 46,024,933 46,233,812 46,207,757 
Book value per share$73.05 $70.17 $68.00 $66.36 $66.09 
Tangible book value per share(1)
$73.02 $70.14 $67.97 $66.32 $66.06 
SELECTED FINANCIAL RATIOS
Net interest margin3.47 %3.35 %3.19 %2.93 %3.16 %
Return on average assets1.30 %0.99 %0.61 %0.88 %(0.78)%
Return on average assets, adjusted(4)
1.30 %1.02 %0.61 %0.88 %1.00 %
Return on average common equity12.04 %9.17 %5.56 %8.50 %(8.87)%
Return on average common equity, adjusted(4)
12.04 %9.48 %5.56 %8.50 %10.04 %
Efficiency ratio(2)
56.0 %61.9 %72.4 %60.7 %155.8 %
Efficiency ratio, adjusted(2)(4)
56.0 %61.1 %72.4 %60.7 %62.3 %
Non-interest income to average earning assets0.88 %0.72 %0.60 %0.69 %(1.52)%
Non-interest income to average earning assets, adjusted(4)
0.88 %0.74 %0.60 %0.69 %0.86 %
Non-interest expense to average earning assets2.44 %2.52 %2.75 %2.21 %2.59 %
Non-interest expense to average earning assets, adjusted(4)
2.44 %2.50 %2.75 %2.21 %2.52 %
Common equity to total assets10.3 %10.1 %10.0 %10.0 %9.7 %
Tangible common equity to total tangible assets(3)
10.3 %10.1 %10.0 %10.0 %9.7 %
Common Equity Tier 112.1 %11.4 %11.6 %11.4 %11.2 %
Tier 1 capital13.6 %12.9 %13.1 %12.8 %12.6 %
Total capital16.1 %15.3 %15.6 %15.4 %15.2 %
Leverage11.9 %11.8 %11.8 %11.3 %11.4 %
(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.
    
4

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024		September 30,
2024
Assets
Cash and due from banks$212,438 $182,451 $201,504 $176,501 $297,048 
Interest bearing cash and cash equivalents2,852,387 2,507,691 3,600,969 3,012,307 3,894,537 
Available-for-sale debt securities3,801,261 3,774,141 3,678,378 3,524,686 3,518,662 
Held-to-maturity debt securities743,120 761,907 779,354 796,168 812,432 
Equity securities55,054 68,692 71,679 75,261 74,426 
Trading securities2,219 3,888 1,808 — — 
Investment securities4,601,654 4,608,628 4,531,219 4,396,115 4,405,520 
Loans held for sale— — — — 9,022 
Loans held for investment, mortgage finance6,057,804 5,889,589 4,725,541 5,215,574 5,529,659 
Loans held for investment18,134,059 18,035,945 17,654,243 17,234,492 16,764,512 
Less: Allowance for credit losses on loans274,026 277,648 278,379 271,709 273,143 
Loans held for investment, net23,917,837 23,647,886 22,101,405 22,178,357 22,021,028 
Premises and equipment, net88,348 86,831 84,575 85,443 81,577 
Accrued interest receivable and other assets862,820 908,552 854,581 881,664 919,071 
Goodwill and intangibles, net1,496 1,496 1,496 1,496 1,496 
Total assets$32,536,980 $31,943,535 $31,375,749 $30,731,883 $31,629,299 
Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits$7,689,598 $7,718,006 $7,874,780 $7,485,428 $9,070,804 
Interest bearing deposits19,815,800 18,346,303 18,178,254 17,753,171 16,794,451 
Total deposits27,505,398 26,064,309 26,053,034 25,238,599 25,865,255 
Accrued interest payable9,360 14,120 25,270 23,680 18,679 
Other liabilities489,708 484,780 457,150 556,322 696,149 
Short-term borrowings275,000 1,250,000 750,000 885,000 1,035,000 
Long-term debt620,416 620,256 660,521 660,346 660,172 
Total liabilities28,899,882 28,433,465 27,945,975 27,363,947 28,275,255 
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)
518 517 517 515 515 
Additional paid-in capital1,069,582 1,065,083 1,060,028 1,056,719 1,054,614 
Retained earnings2,712,298 2,611,401 2,538,385 2,495,651 2,428,940 
Treasury stock(3)
(361,076)(354,000)(332,994)(301,842)(301,868)
Accumulated other comprehensive loss, net of taxes(84,224)(112,931)(136,162)(183,107)(128,157)
Total stockholders’ equity3,637,098 3,510,070 3,429,774 3,367,936 3,354,044 
Total liabilities and stockholders’ equity$32,536,980 $31,943,535 $31,375,749 $30,731,883 $31,629,299 
(1) Preferred stock - issued shares
300,000 300,000 300,000 300,000 300,000 
(2) Common stock - issued shares
51,767,419 51,747,305 51,707,542 51,520,315 51,494,260 
(3) Treasury stock - shares at cost
6,087,556 6,000,469 5,682,609 5,286,503 5,286,503 
5

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
3rd Quarter
2025		2nd Quarter
2025		1st Quarter
2025		4th Quarter
2024		3rd Quarter
2024		3rd Quarter YTD 20253rd Quarter YTD 2024
Interest income
Interest and fees on loans$379,017 $364,358 $334,150 $340,388 $361,407 $1,077,525 $1,037,537 
Investment securities49,396 45,991 46,565 44,102 38,389 141,952 104,117 
Interest bearing cash and cash equivalents32,202 29,218 46,574 53,081 52,737 107,994 150,325 
Total interest income460,615 439,567 427,289 437,571 452,533 1,327,471 1,291,979 
Interest expense
Deposits180,779 174,798 174,936 189,061 190,255 530,513 547,135 
Short-term borrowings534 3,444 8,246 10,678 13,784 12,224 39,316 
Long-term debt7,531 7,930 8,073 8,225 8,392 23,534 33,835 
Total interest expense188,844 186,172 191,255 207,964 212,431 566,271 620,286 
Net interest income271,771 253,395 236,034 229,607 240,102 761,200 671,693 
Provision for credit losses12,000 15,000 17,000 18,000 10,000 44,000 49,000 
Net interest income after provision for credit losses259,771 238,395 219,034 211,607 230,102 717,200 622,693 
Non-interest income
Service charges on deposit accounts8,111 8,182 7,840 6,989 6,307 24,133 18,557 
Wealth management and trust fee income3,989 3,730 3,964 4,009 4,040 11,683 11,306 
Brokered loan fees2,419 2,398 1,949 2,519 2,400 6,766 6,442 
Investment banking and advisory fees33,985 24,109 16,478 26,740 34,753 74,572 78,225 
Trading income7,238 7,896 5,939 5,487 5,786 21,073 16,148 
Available-for-sale debt securities losses— (1,886)— — (179,581)(1,886)(179,581)
Other12,841 9,640 8,274 8,330 11,524 30,755 25,875 
Total non-interest income68,583 54,069 44,444 54,074 (114,771)167,096 (23,028)
Non-interest expense
Salaries and benefits119,856120,154131,641 97,873 121,138 371,651368,705
Occupancy expense11,82812,14410,844 11,926 12,937 34,81633,340
Marketing3,412 3,624 5,009 4,454 5,863 12,045 17,895 
Legal and professional12,47411,06914,989 15,180 11,135 38,53238,603
Communications and technology24,59424,31423,642 24,007 25,951 72,55069,078
Federal Deposit Insurance Corporation insurance assessment5,1985,0965,341 4,454 4,906 15,63518,897
Other13,21313,87511,554 14,265 13,394 38,64239,608
Total non-interest expense190,575190,276203,020172,159195,324583,871586,126
Income/(loss) before income taxes137,779 102,188 60,458 93,522 (79,993)300,425 13,539 
Income tax expense/(benefit)32,569 24,860 13,411 22,499 (18,674)70,840 7,054 
Net income/(loss)105,210 77,328 47,047 71,023 (61,319)229,585 6,485 
Preferred stock dividends4,3134,3124,313 4,312 4,313 12,93812,938
Net income/(loss) available to common stockholders$100,897 $73,016 $42,734 $66,711 $(65,632)$216,647 $(6,453)
Basic earnings/(loss) per common share$2.21 $1.59 $0.93 $1.44 $(1.42)$4.72 $(0.14)
Diluted earnings/(loss) per common share$2.18 $1.58 $0.92 $1.43 $(1.41)$4.67 $(0.14)

6

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20252025202520242024
Allowance for credit losses on loans:
Beginning balance$277,648 $278,379 $271,709 $273,143 $267,297 
Allowance established for acquired purchase credit deterioration loans— — — — 2,579 
Loans charged-off:
Commercial13,794 13,020 10,197 14,100 6,120 
Commercial real estate— 431 500 2,566 262 
Consumer— — — — 30 
Total charge-offs13,794 13,451 10,697 16,666 6,412 
Recoveries:
Commercial50 486 483 4,562 329 
Commercial real estate— — 413 18 — 
Consumer4 — 4 15 — 
Total recoveries54 486 900 4,595 329 
Net charge-offs13,740 12,965 9,797 12,071 6,083 
Provision for credit losses on loans10,118 12,234 16,467 10,637 9,350 
Ending balance$274,026 $277,648 $278,379 $271,709 $273,143 
Allowance for off-balance sheet credit losses:
Beginning balance$56,631 $53,865 $53,332 $45,969 $45,319 
Provision for off-balance sheet credit losses1,882 2,766 533 7,363 650 
Ending balance$58,513 $56,631 $53,865 $53,332 $45,969 
Total allowance for credit losses$332,539 $334,279 $332,244 $325,041 $319,112 
Total provision for credit losses$12,000 $15,000 $17,000 $18,000 $10,000 
Allowance for credit losses on loans to total loans held for investment1.13 %1.16 %1.24 %1.21 %1.23 %
Allowance for credit losses on loans to average total loans held for investment1.15 %1.19 %1.29 %1.22 %1.24 %
Net charge-offs to average total loans held for investment(1)
0.23 %0.22 %0.18 %0.22 %0.11 %
Net charge-offs to average total loans held for investment for last 12 months(1)
0.21 %0.18 %0.18 %0.19 %0.20 %
Total provision for credit losses to average total loans held for investment(1)
0.20 %0.26 %0.32 %0.32 %0.18 %
Total allowance for credit losses to total loans held for investment
1.37 %1.40 %1.48 %1.45 %1.43 %
(1)Interim period ratios are annualized.
7

TEXAS CAPITAL BANCSHARES, INC.
 NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20252025202520242024
NON-PERFORMING ASSETS
Non-accrual loans held for investment$96,084 $113,609 $93,565 $111,165 $88,960 
Non-accrual loans held for sale— — — — — 
Other real estate owned— — — — — 
Total non-performing assets$96,084 $113,609 $93,565 $111,165 $88,960 
Non-accrual loans held for investment to total loans held for investment0.40 %0.47 %0.42 %0.50 %0.40 %
Total non-performing assets to total assets0.30 %0.36 %0.30 %0.36 %0.28 %
Allowance for credit losses on loans to non-accrual loans held for investment2.9x2.4x3.0x2.4x3.1x
Total allowance for credit losses to non-accrual loans held for investment3.5x2.9x3.6x2.9x3.6x
LOANS PAST DUE
Loans held for investment past due 90 days and still accruing
$126 $2,068 $791 $4,265 $5,281 
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
$— $— $— $— $— 
CRITICIZED LOANS
Criticized loans$529,732 $637,462 $762,887 $713,951 $897,727 
Criticized loans to total loans held for investment2.19 %2.66 %3.41 %3.18 %4.03 %
Special mention loans$249,592 $339,923 $484,165 $435,626 $579,802 
Special mention loans to total loans held for investment1.03 %1.42 %2.16 %1.94 %2.60 %




8

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
3rd Quarter 20252nd Quarter 20253rd Quarter 2024YTD September 30, 2025YTD September 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)
$4,635,066 $49,401 4.14 %$4,573,164 $45,999 3.93 %$4,314,834 $38,389 3.34 %$4,557,996 $141,965 4.05 %$4,346,957 $104,117 2.97 %
Interest bearing cash and cash equivalents2,920,102 32,202 4.38 %2,661,037 29,218 4.40 %3,958,843 52,737 5.30 %3,274,086 107,994 4.41 %3,761,901 150,325 5.34 %
Loans held for sale— — — %— — — %23,793 565 9.44 %110 2 2.97 %34,536 2,432 9.41 %
Loans held for investment, mortgage finance5,472,467 59,604 4.32 %5,327,559 58,707 4.42 %5,152,317 54,371 4.20 %4,929,539 156,838 4.25 %4,345,393 128,548 3.95 %
Loans held for investment(3)
18,253,451 319,921 6.95 %18,018,626 306,142 6.81 %16,792,446 306,541 7.26 %17,935,710 922,154 6.87 %16,688,820 906,757 7.26 %
Less: Allowance for credit losses on loans
277,385 — — %278,035 — — 266,915 — — %276,076 — — 260,024 — — 
Loans held for investment, net23,448,533 379,525 6.42 %23,068,150 364,849 6.34 %21,677,848 360,912 6.62 %22,589,173 1,078,992 6.39 %20,774,189 1,035,305 6.66 %
Total earning assets31,003,701 461,128 5.88 %30,302,351 440,066 5.80 %29,975,318 452,603 5.96 %30,421,365 1,328,953 5.82 %28,917,583 1,292,179 5.90 %
Cash and other assets1,159,008 1,117,118 1,239,855 1,144,443 1,158,758 
Total assets$32,162,709 $31,419,469 $31,215,173 $31,565,808 $30,076,341 
Liabilities and Stockholders’ Equity
Transaction deposits$2,251,217 $13,987 2.46 %$2,213,037 $13,731 2.49 %$1,988,688 $15,972 3.20 %$2,209,490 $41,626 2.52 %$2,018,824 $49,812 3.30 %
Savings deposits14,650,152 143,327 3.88 %13,727,095 134,272 3.92 %12,240,616 147,770 4.80 %13,916,232 411,176 3.95 %11,878,646 427,733 4.81 %
Time deposits2,158,228 23,465 4.31 %2,361,525 26,795 4.55 %2,070,537 26,513 5.09 %2,282,419 77,711 4.55 %1,817,182 69,590 5.12 %
Total interest bearing deposits19,059,597 180,779 3.76 %18,301,657 174,798 3.83 %16,299,841 190,255 4.64 %18,408,141 530,513 3.85 %15,714,652 547,135 4.65 %
Short-term borrowings44,022 534 4.82 %306,176 3,444 4.51 %1,012,608 13,784 5.42 %364,641 12,224 4.48 %950,876 39,316 5.52 %
Long-term debt620,348 7,531 4.82 %649,469 7,930 4.90 %660,098 8,392 5.06 %643,274 23,534 4.89 %765,616 33,835 5.90 %
Total interest bearing liabilities19,723,967 188,844 3.80 %19,257,302 186,172 3.88 %17,972,547 212,431 4.70 %19,416,056 566,271 3.90 %17,431,144 620,286 4.75 %
Non-interest bearing deposits8,351,524 8,191,402 9,439,020 8,141,135 8,910,067 
Other liabilities463,034 475,724 558,368 496,644 535,221 
Stockholders’ equity3,624,184 3,495,041 3,245,238 3,511,973 3,199,909 
Total liabilities and stockholders’ equity$32,162,709 $31,419,469 $31,215,173 $31,565,808 $30,076,341 
Net interest income
$272,284 $253,894 $240,172 $762,682 $671,893 
Net interest margin3.47 %3.35 %3.16 %3.34 %3.07 %
(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.

9

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)3rd Quarter
2025		2nd Quarter
2025		1st Quarter
2025		4th Quarter
2024		3rd Quarter
2024
Net interest income$271,771 $253,395 $236,034 $229,607 $240,102 
Non-interest income68,583 54,069 44,444 54,074 (114,771)
Available-for-sale debt securities losses, net— 1,886 — — 179,581 
Non-interest income, adjusted68,583 55,955 44,444 54,074 64,810 
Non-interest expense190,575 190,276 203,020 172,159 195,324 
FDIC special assessment— — — — 651 
Restructuring expenses— (1,401)— — (5,923)
Non-interest expense, adjusted190,575 188,875 203,020 172,159 190,052 
Provision for credit losses12,000 15,000 17,000 18,000 10,000 
Income tax expense/(benefit)32,569 24,860 13,411 22,499 (18,674)
Tax effect of adjustments— 774 — — 44,880 
Income tax expense/(benefit), adjusted32,569 25,634 13,411 22,499 26,206 
Net income/(loss)(1)
$105,210 $77,328 $47,047 $71,023 $(61,319)
Net income/(loss), adjusted(1)
$105,210 $79,841 $47,047 $71,023 $78,654 
Preferred stock dividends4,313 4,312 4,313 4,312 4,313 
Net income/(loss) to common stockholders(2)
$100,897 $73,016 $42,734 $66,711 $(65,632)
Net income/(loss) to common stockholders, adjusted(2)
$100,897 $75,529 $42,734 $66,711 $74,341 
PPNR(3)
$149,779 $117,188 $77,458 $111,522 $(69,993)
PPNR(3), adjusted
$149,779 $120,475 $77,458 $111,522 $114,860 
Weighted average common shares outstanding, diluted46,233,167 46,215,394 46,616,704 46,770,961 46,608,742 
Diluted earnings/(loss) per common share$2.18 $1.58 $0.92 $1.43 $(1.41)
Diluted earnings/(loss) per common share, adjusted$2.18 $1.63 $0.92 $1.43 $1.59 
Average total assets$32,162,709 $31,419,469 $31,103,609 $32,212,087 $31,215,173 
Return on average assets1.30 %0.99 %0.61 %0.88 %(0.78)%
Return on average assets, adjusted1.30 %1.02 %0.61 %0.88 %1.00 %
Average common equity
$3,324,184 $3,195,041 $3,114,389 $3,120,933 $2,945,238 
Return on average common equity12.04 %9.17 %5.56 %8.50 %(8.87)%
Return on average common equity, adjusted12.04 %9.48 %5.56 %8.50 %10.04 %
Efficiency ratio(4)
56.0 %61.9 %72.4 %60.7 %155.8 %
Efficiency ratio, adjusted(4)
56.0 %61.1 %72.4 %60.7 %62.3 %
Average earning assets$31,003,701 $30,302,351 $29,946,425 $31,033,803 $29,975,318 
Non-interest income to average earning assets0.88 %0.72 %0.60 %0.69 %(1.52)%
Non-interest income to average earning assets, adjusted0.88 %0.74 %0.60 %0.69 %0.86 %
Non-interest expense to average earning assets2.44 %2.52 %2.75 %2.21 %2.59 %
Non-interest expense to average earning assets, adjusted2.44 %2.50 %2.75 %2.21 %2.52 %
(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.
10