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INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapitalbank.com
Dallas, TX - January 22, 2026
TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS
Fourth quarter 2025 net income available to common stockholders of $96.3 million, up 44% year-over-year
Reaching record-levels, Book Value and Tangible Book Value(4) per share both increased 13% year-over-year
Capital ratios continue to be strong, achieving 12.1% CET1 and 16.1% Total Capital
“Consecutive strong quarters to close 2025 validate our multi-year transformation strategy and demonstrate the resilience of our business model in a complex market environment,” said Rob C. Holmes, Chairman, President & CEO. “Surpassing our long-term Return on Average Assets goal of 1.1% in the final two quarters underscores the effectiveness of our deliberate, disciplined approach. We are now positioned to capitalize on our increasingly differentiated platform, executing seamlessly for clients, delivering comprehensive solutions across market events and driving meaningful, sustainable value for our investors.”
4th Quarter3rd Quarter4th QuarterFull YearFull Year
(dollars in thousands except per share data)20252025202420252024
Summary Income Statement
Net interest income$267,437 $271,771 $229,607 $1,028,637 $901,300 
Non-interest income60,046 68,583 54,074 227,142 31,046 
Total revenue327,483 340,354 283,681 1,255,779 932,346 
Non-interest expense184,198 190,575 172,159 768,069 758,285 
Pre-provision net revenue(1)
143,285 149,779 111,522 487,710 174,061 
Provision for credit losses11,000 12,000 18,000 55,000 67,000 
Net income available to common stockholders96,347 100,897 66,711 312,994 60,258 
Non-interest income, adjusted(2)
$60,046 $68,583 $54,074 $229,028 $210,627 
Total revenue, adjusted(2)
327,483 340,354 283,681 1,257,665 1,111,927 
Non-interest expense, adjusted(2)
186,440 190,575 172,159 768,910 742,533 
Pre-provision net revenue, adjusted(1)(2)
141,043 149,779 111,522 488,755 369,394 
Net income to common stockholders, adjusted(2)
94,631 100,897 66,711 313,791 208,345 
Key Metrics
Diluted earnings per common share$2.12 $2.18 $1.43 $6.79 $1.28 
Diluted earnings per common shares, adjusted(2)
$2.08 $2.18 $1.43 $6.80 $4.43 
Return on average assets1.22 %1.30 %0.88 %1.04 %0.25 %
Return on average assets, adjusted(2)
1.20 %1.30 %0.88 %1.04 %0.74 %
Return on average common equity11.18 %12.04 %8.50 %9.59 %2.04 %
Return on average common equity, adjusted(2)
10.98 %12.04 %8.50 %9.61 %7.05 %
Efficiency ratio(3)
56.2 %56.0 %60.7 %61.2 %81.3 %
Efficiency ratio, adjusted(2)(3)
56.9 %56.0 %60.7 %61.1 %66.8 %
Net interest margin3.38 %3.47 %2.93 %3.35 %3.03 %
Book value per share$75.28 73.05$66.36 $75.28 $66.36 
Tangible book value per share(4)
$75.25 73.02$66.32 $75.25 $66.32 
CET1 ratio12.1 %12.1 %11.4 %12.1 %11.4 %
Balance Sheet
Total assets$31,540,274 $32,536,980 $30,731,883 
Loans held for investment17,976,183 18,134,059 17,234,492 
Loans held for investment, mortgage finance6,064,019 6,057,804 5,215,574 
Total deposits26,448,767 27,505,398 25,238,599 
Stockholders’ equity3,631,382 3,637,098 3,367,936 
(1)    Net interest income plus non-interest income, less non-interest expense.
(2)    These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
(3)    Non-interest expense divided by the sum of net interest income and non-interest income.
(4)    Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.


FOURTH QUARTER 2025 COMPARED TO THIRD QUARTER 2025
For the fourth quarter of 2025, net income available to common stockholders was $96.3 million, or $2.12 per diluted share, compared to $100.9 million, or $2.18 per diluted share, for the third quarter of 2025.
Provision for credit losses for the fourth quarter of 2025 was $11.0 million, compared to $12.0 million for the third quarter of 2025. The $11.0 million provision for credit losses recorded in the fourth quarter of 2025 resulted primarily from an increase in criticized loans and $10.7 million in net charge-offs.
Net interest income was $267.4 million for the fourth quarter of 2025, compared to $271.8 million for the third quarter of 2025, primarily due to a decrease in earning asset yields, partially offset by a decrease in funding costs. Net interest margin for the fourth quarter of 2025 was 3.38%, a decrease of 9 basis points from the third quarter of 2025. Loans Held for Investment (“LHI”), excluding mortgage finance, yields decreased 25 basis points from the third quarter of 2025 and LHI, mortgage finance, yields decreased 19 basis points from the third quarter of 2025. Total cost of deposits was 2.41% for the fourth quarter of 2025, a 21 basis point decrease from the third quarter of 2025.
Non-interest income for the fourth quarter of 2025 decreased $8.5 million compared to the third quarter of 2025 primarily due to decreases in investment banking and advisory fees, trading income and other non-interest income.
Non-interest expense for the fourth quarter of 2025 decreased $6.4 million compared to the third quarter of 2025, primarily due to decreases in salaries and benefits and FDIC insurance assessment expense, partially offset by increases in marketing expense, communications and technology expense and other non-interest expense. During the fourth quarter of 2025, the FDIC determined that the special assessment extended collection period was no longer necessary, resulting in the release of related accruals.
FOURTH QUARTER 2025 COMPARED TO FOURTH QUARTER 2024
Net income available to common stockholders was $96.3 million, or $2.12 per diluted share, for the fourth quarter of 2025, compared to $66.7 million, or $1.43 per diluted share, for the fourth quarter of 2024.
The fourth quarter of 2025 included a $11.0 million provision for credit losses, reflecting a linked quarter increase in criticized loans and $10.7 million in net charge-offs, compared to a $18.0 million provision for credit losses for the fourth quarter of 2024.
Net interest income increased to $267.4 million for the fourth quarter of 2025, compared to $229.6 million for the fourth quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 45 basis points to 3.38% for the fourth quarter of 2025, as compared to the fourth quarter of 2024. LHI, excluding mortgage finance, yields decreased 12 basis points compared to the fourth quarter of 2024 and LHI, mortgage finance yields increased 40 basis points from the fourth quarter of 2024. Total cost of deposits decreased 40 basis points compared to the fourth quarter of 2024.
Non-interest income for the fourth quarter of 2025 increased $6.0 million compared to the fourth quarter of 2024 primarily due to increases in service charges on deposit accounts and investment banking and advisory fee income.
Non-interest expense for the fourth quarter of 2025 increased $12.0 million compared to the fourth quarter of 2024, primarily due to increases in salaries and benefits, communications and technology expense and other non-interest expense, partially offset by decreases in legal and professional expense and FDIC insurance assessment expense.
CREDIT QUALITY
Net charge-offs of $10.7 million were recorded during the fourth quarter of 2025, compared to net charge-offs of $13.7 million and $12.1 million during the third quarter of 2025 and the fourth quarter of 2024, respectively. Criticized loans totaled $634.9 million at December 31, 2025, compared to $529.7 million at September 30, 2025 and $714.0 million at December 31, 2024. Non-accrual LHI totaled $116.9 million at December 31, 2025, compared to $96.1 million at September 30, 2025 and $111.2 million at December 31, 2024. The ratio of non-accrual LHI to total LHI for the fourth quarter of 2025 was 0.49%, compared to 0.40% for the third quarter of 2025 and 0.50% for the fourth quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.38% at December 31, 2025, compared to 1.37% and 1.45% at September 30, 2025 and December 31, 2024, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of December 31, 2025. CET1, tier 1 capital, total capital and leverage ratios were 12.1%, 13.6%, 16.1% and 11.7%, respectively, at December 31, 2025, compared to 12.1%, 13.6%, 16.1% and 11.9%, respectively, at September 30, 2025 and 11.4%, 12.8%, 15.4% and 11.3%, respectively, at December 31, 2024. At December 31, 2025, our ratio of tangible common equity to total tangible assets was 10.6%, compared to 10.3% at September 30, 2025 and 10.0% at December 31, 2024.
Effective December 12, 2025, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $200.0 million in shares of its outstanding common stock through December 31, 2026. Remaining repurchase authorization under the January 22, 2025 share repurchase program was terminated upon authorization of this new program.
During the fourth quarter of 2025, the Company repurchased 1,445,212 shares of its common stock for an aggregate purchase price, including excise tax expense, of $126.6 million, at a weighted average price of $86.76 per share. All shares were repurchased under the January 22, 2025 shares repurchase program.
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About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations, and service terms. Deposit and lending products and services are offered by TCB. For deposit products, member FDIC. For more information, please visit www.texascapital.com.
Forward Looking Statements
This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including trade policies, inflation, unemployment rates and interest rates; TCBI’s ability to innovate, to anticipate the needs of our current and future customers and to manage increased or expanded competition from banks and other financial service providers in TCBI’s markets; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business, products and services; risks related to potential strategic acquisitions, including the risk that TCBI may not be able to consummate acquisitions on favorable terms, if at all, and the risk that TCBI may not realize the anticipated benefits from acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; TCBI’s ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.


3

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
4th Quarter3rd Quarter2nd Quarter1st Quarter4th Quarter
20252025202520252024
CONSOLIDATED STATEMENTS OF INCOME
Interest income$444,314 $460,615 $439,567 $427,289 $437,571 
Interest expense176,877 188,844 186,172 191,255 207,964 
Net interest income267,437 271,771 253,395 236,034 229,607 
Provision for credit losses11,000 12,000 15,000 17,000 18,000 
Net interest income after provision for credit losses256,437 259,771 238,395 219,034 211,607 
Non-interest income60,046 68,583 54,069 44,444 54,074 
Non-interest expense184,198 190,575 190,276 203,020 172,159 
Income before income taxes132,285 137,779 102,188 60,458 93,522 
Income tax expense31,626 32,569 24,860 13,411 22,499 
Net income100,659 105,210 77,328 47,047 71,023 
Preferred stock dividends4,312 4,313 4,312 4,313 4,312 
Net income available to common stockholders$96,347 $100,897 $73,016 $42,734 $66,711 
Diluted earnings per common share$2.12 $2.18 $1.58 $0.92 $1.43 
Diluted common shares45,509,370 46,233,167 46,215,394 46,616,704 46,770,961 
CONSOLIDATED BALANCE SHEET DATA
Total assets$31,540,274 $32,536,980 $31,943,535 $31,375,749 $30,731,883 
Loans held for investment17,976,183 18,134,059 18,035,945 17,654,243 17,234,492 
Loans held for investment, mortgage finance6,064,019 6,057,804 5,889,589 4,725,541 5,215,574 
Loans held for sale4,361 — — — — 
Interest bearing cash and cash equivalents1,897,803 2,852,387 2,507,691 3,600,969 3,012,307 
Investment securities4,723,099 4,601,654 4,608,628 4,531,219 4,396,115 
Non-interest bearing deposits6,959,097 7,689,598 7,718,006 7,874,780 7,485,428 
Total deposits26,448,767 27,505,398 26,064,309 26,053,034 25,238,599 
Short-term borrowings330,000 275,000 1,250,000 750,000 885,000 
Long-term debt620,575 620,416 620,256 660,521 660,346 
Stockholders’ equity3,631,382 3,637,098 3,510,070 3,429,774 3,367,936 
End of period shares outstanding44,253,688 45,679,863 45,746,836 46,024,933 46,233,812 
Book value per share$75.28 $73.05 $70.17 $68.00 $66.36 
Tangible book value per share(1)
$75.25 $73.02 $70.14 $67.97 $66.32 
SELECTED FINANCIAL RATIOS
Net interest margin3.38 %3.47 %3.35 %3.19 %2.93 %
Return on average assets1.22 %1.30 %0.99 %0.61 %0.88 %
Return on average assets, adjusted(4)
1.20 %1.30 %1.02 %0.61 %0.88 %
Return on average common equity11.18 %12.04 %9.17 %5.56 %8.50 %
Return on average common equity, adjusted(4)
10.98 %12.04 %9.48 %5.56 %8.50 %
Efficiency ratio(2)
56.2 %56.0 %61.9 %72.4 %60.7 %
Efficiency ratio, adjusted(2)(4)
56.9 %56.0 %61.1 %72.4 %60.7 %
Non-interest income to average earning assets0.76 %0.88 %0.72 %0.60 %0.69 %
Non-interest income to average earning assets, adjusted(4)
0.76 %0.88 %0.74 %0.60 %0.69 %
Non-interest expense to average earning assets2.33 %2.44 %2.52 %2.75 %2.21 %
Non-interest expense to average earning assets, adjusted(4)
2.35 %2.44 %2.50 %2.75 %2.21 %
Common equity to total assets10.6 %10.3 %10.1 %10.0 %10.0 %
Tangible common equity to total tangible assets(3)
10.6 %10.3 %10.1 %10.0 %10.0 %
Common Equity Tier 112.1 %12.1 %11.4 %11.6 %11.4 %
Tier 1 capital13.6 %13.6 %12.9 %13.1 %12.8 %
Total capital16.1 %16.1 %15.3 %15.6 %15.4 %
Leverage11.7 %11.9 %11.8 %11.8 %11.3 %
(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.
    
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Assets
Cash and due from banks$201,315 $212,438 $182,451 $201,504 $176,501 
Interest bearing cash and cash equivalents1,897,803 2,852,387 2,507,691 3,600,969 3,012,307 
Available-for-sale debt securities3,951,455 3,801,261 3,774,141 3,678,378 3,524,686 
Held-to-maturity debt securities725,722 743,120 761,907 779,354 796,168 
Equity securities41,998 55,054 68,692 71,679 75,261 
Trading securities3,924 2,219 3,888 1,808 — 
Investment securities4,723,099 4,601,654 4,608,628 4,531,219 4,396,115 
Loans held for sale4,361 — — — — 
Loans held for investment, mortgage finance6,064,019 6,057,804 5,889,589 4,725,541 5,215,574 
Loans held for investment17,976,183 18,134,059 18,035,945 17,654,243 17,234,492 
Less: Allowance for credit losses on loans270,557 274,026 277,648 278,379 271,709 
Loans held for investment, net23,769,645 23,917,837 23,647,886 22,101,405 22,178,357 
Premises and equipment, net88,003 88,348 86,831 84,575 85,443 
Accrued interest receivable and other assets854,552 862,820 908,552 854,581 881,664 
Goodwill and intangibles, net1,496 1,496 1,496 1,496 1,496 
Total assets$31,540,274 $32,536,980 $31,943,535 $31,375,749 $30,731,883 
Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits$6,959,097 $7,689,598 $7,718,006 $7,874,780 $7,485,428 
Interest bearing deposits19,489,670 19,815,800 18,346,303 18,178,254 17,753,171 
Total deposits26,448,767 27,505,398 26,064,309 26,053,034 25,238,599 
Accrued interest payable6,716 9,360 14,120 25,270 23,680 
Other liabilities502,834 489,708 484,780 457,150 556,322 
Short-term borrowings330,000 275,000 1,250,000 750,000 885,000 
Long-term debt620,575 620,416 620,256 660,521 660,346 
Total liabilities27,908,892 28,899,882 28,433,465 27,945,975 27,363,947 
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)
518 518 517 517 515 
Additional paid-in capital1,074,496 1,069,582 1,065,083 1,060,028 1,056,719 
Retained earnings2,808,645 2,712,298 2,611,401 2,538,385 2,495,651 
Treasury stock(3)
(487,692)(361,076)(354,000)(332,994)(301,842)
Accumulated other comprehensive loss, net of taxes(64,585)(84,224)(112,931)(136,162)(183,107)
Total stockholders’ equity3,631,382 3,637,098 3,510,070 3,429,774 3,367,936 
Total liabilities and stockholders’ equity$31,540,274 $32,536,980 $31,943,535 $31,375,749 $30,731,883 
(1) Preferred stock - issued shares
300,000 300,000 300,000 300,000 300,000 
(2) Common stock - issued shares
51,786,456 51,767,419 51,747,305 51,707,542 51,520,315 
(3) Treasury stock - shares at cost
7,532,768 6,087,556 6,000,469 5,682,609 5,286,503 
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
4th Quarter
2025		3rd Quarter
2025		2nd Quarter
2025		1st Quarter
2025		4th Quarter
2024		4th Quarter YTD 20254th Quarter YTD 2024
Interest income
Interest and fees on loans$367,481 $379,017 $364,358 $334,150 $340,388 $1,445,006 $1,377,925 
Investment securities47,012 49,396 45,991 46,565 44,102 188,964 148,219 
Interest bearing cash and cash equivalents29,821 32,202 29,218 46,574 53,081 137,815 203,406 
Total interest income444,314 460,615 439,567 427,289 437,571 1,771,785 1,729,550 
Interest expense
Deposits167,259 180,779 174,798 174,936 189,061 697,772 736,196 
Short-term borrowings2,153 534 3,444 8,246 10,678 14,377 49,994 
Long-term debt7,465 7,531 7,930 8,073 8,225 30,999 42,060 
Total interest expense176,877 188,844 186,172 191,255 207,964 743,148 828,250 
Net interest income267,437 271,771 253,395 236,034 229,607 1,028,637 901,300 
Provision for credit losses11,000 12,000 15,000 17,000 18,000 55,000 67,000 
Net interest income after provision for credit losses256,437 259,771 238,395 219,034 211,607 973,637 834,300 
Non-interest income
Service charges on deposit accounts8,411 8,111 8,182 7,840 6,989 32,544 25,546 
Wealth management and trust fee income4,216 3,989 3,730 3,964 4,009 15,899 15,315 
Brokered loan fees2,467 2,419 2,398 1,949 2,519 9,233 8,961 
Investment banking and advisory fees30,015 33,985 24,109 16,478 26,740 104,587 104,965 
Trading income6,020 7,238 7,896 5,939 5,487 27,093 21,635 
Available-for-sale debt securities gains/(losses), net— — (1,886)— — (1,886)(179,581)
Other8,917 12,841 9,640 8,274 8,330 39,672 34,205 
Total non-interest income60,046 68,583 54,069 44,444 54,074 227,142 31,046 
Non-interest expense
Salaries and benefits108,851119,856120,154131,641 97,873 480,502466,578
Occupancy expense12,80311,82812,14410,844 11,926 47,61945,266
Marketing5,404 3,412 3,624 5,009 4,454 17,449 22,349 
Legal and professional11,58012,47411,06914,989 15,180 50,11253,783
Communications and technology26,30324,59424,31423,642 24,007 98,85393,085
Federal Deposit Insurance Corporation insurance assessment2,2765,1985,0965,341 4,454 17,91123,351
Other16,98113,21313,87511,554 14,265 55,62353,873
Total non-interest expense184,198190,575190,276203,020172,159768,069758,285
Income before income taxes132,285 137,779 102,188 60,458 93,522 432,710 107,061 
Income tax expense31,626 32,569 24,860 13,411 22,499 102,466 29,553 
Net income100,659 105,210 77,328 47,047 71,023 330,244 77,508 
Preferred stock dividends4,3124,3134,3124,313 4,312 17,25017,250
Net income available to common stockholders$96,347 $100,897 $73,016 $42,734 $66,711 $312,994 $60,258 
Basic earnings per common share$2.14 $2.21 $1.59 $0.93 $1.44 $6.86 $1.29 
Diluted earnings per common share$2.12 $2.18 $1.58 $0.92 $1.43 $6.79 $1.28 
6

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
4th Quarter3rd Quarter2nd Quarter1st Quarter4th Quarter
20252025202520252024
Allowance for credit losses on loans:
Beginning balance$274,026 $277,648 $278,379 $271,709 $273,143 
Loans charged-off:
Commercial14,417 13,794 13,020 10,197 14,100 
Commercial real estate524 — 431 500 2,566 
Total charge-offs14,941 13,794 13,451 10,697 16,666 
Recoveries:
Commercial4,202 50 486 483 4,562 
Commercial real estate— — — 413 18 
Consumer12 4 — 4 15 
Total recoveries4,214 54 486 900 4,595 
Net charge-offs10,727 13,740 12,965 9,797 12,071 
Provision for credit losses on loans7,258 10,118 12,234 16,467 10,637 
Ending balance$270,557 $274,026 $277,648 $278,379 $271,709 
Allowance for off-balance sheet credit losses:
Beginning balance$58,513 $56,631 $53,865 $53,332 $45,969 
Provision for off-balance sheet credit losses3,742 1,882 2,766 533 7,363 
Ending balance$62,255 $58,513 $56,631 $53,865 $53,332 
Total allowance for credit losses$332,812 $332,539 $334,279 $332,244 $325,041 
Total provision for credit losses$11,000 $12,000 $15,000 $17,000 $18,000 
Allowance for credit losses on loans to total loans held for investment1.13 %1.13 %1.16 %1.24 %1.21 %
Allowance for credit losses on loans to average total loans held for investment1.12 %1.15 %1.19 %1.29 %1.22 %
Net charge-offs to average total loans held for investment(1)
0.18 %0.23 %0.22 %0.18 %0.22 %
Net charge-offs to average total loans held for investment for last 12 months(1)
0.20 %0.21 %0.18 %0.18 %0.19 %
Total provision for credit losses to average total loans held for investment(1)
0.18 %0.20 %0.26 %0.32 %0.32 %
Total allowance for credit losses to total loans held for investment
1.38 %1.37 %1.40 %1.48 %1.45 %
(1)Interim period ratios are annualized.
7

TEXAS CAPITAL BANCSHARES, INC.
 NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
4th Quarter3rd Quarter2nd Quarter1st Quarter4th Quarter
20252025202520252024
NON-PERFORMING ASSETS
Non-accrual loans held for investment$116,880 $96,084 $113,609 $93,565 $111,165 
Non-accrual loans held for sale(1)
4,361 — — — — 
Other real estate owned— — — — — 
Total non-performing assets$121,241 $96,084 $113,609 $93,565 $111,165 
Non-accrual loans held for investment to total loans held for investment0.49 %0.40 %0.47 %0.42 %0.50 %
Total non-performing assets to total assets0.38 %0.30 %0.36 %0.30 %0.36 %
Allowance for credit losses on loans to non-accrual loans held for investment2.3x2.9x2.4x3.0x2.4x
Total allowance for credit losses to non-accrual loans held for investment
2.8x
3.5x2.9x3.6x2.9x
LOANS PAST DUE
Loans held for investment past due 90 days and still accruing
$19,353 $126 $2,068 $791 $4,265 
Loans held for investment past due 90 days to total loans held for investment0.08 %— %0.01 %— %0.02 %
Loans held for sale past due 90 days and still accruing
$— $— $— $— $— 
CRITICIZED LOANS
Criticized loans$634,919 $529,732 $637,462 $762,887 $713,951 
Criticized loans to total loans held for investment2.64 %2.19 %2.66 %3.41 %3.18 %
Special mention loans$346,643 $249,592 $339,923 $484,165 $435,626 
Special mention loans to total loans held for investment1.44 %1.03 %1.42 %2.16 %1.94 %
(1)Fourth quarter 2025 includes non-accrual loans previously reported in loans held for investment that were transferred at fair value to held for sale as of December 31, 2025.
8

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
4th Quarter 20253rd Quarter 20254th Quarter 2024YTD December 31, 2025YTD December 31, 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)
$4,629,242 $47,025 3.98 %$4,635,066 $49,401 4.14 %$4,504,101 $44,102 3.79 %$4,575,954 $188,990 4.03 %$4,386,458 $148,219 3.17 %
Interest bearing cash and cash equivalents2,994,417 29,821 3.95 %2,920,102 32,202 4.38 %4,472,772 53,081 4.72 %3,203,594 137,815 4.30 %3,940,590 203,406 5.16 %
Loans held for sale(3)
47 — — %— — — %— — — %95 2 2.60 %25,855 2,432 9.41 %
Loans held for investment, mortgage finance5,890,991 61,319 4.13 %5,472,467 59,604 4.32 %5,409,980 50,685 3.73 %5,171,878 218,157 4.22 %4,612,994 179,233 3.89 %
Loans held for investment(3)
18,177,312 307,053 6.70 %18,253,451 319,921 6.95 %16,919,925 289,916 6.82 %17,996,607 1,229,207 6.83 %16,746,912 1,196,673 7.15 %
Less: Allowance for credit losses on loans
278,315 — — %277,385 — — 272,975 — — %276,641 — — 263,279 — — 
Loans held for investment, net23,789,988 368,372 6.14 %23,448,533 379,525 6.42 %22,056,930 340,601 6.14 %22,891,844 1,447,364 6.32 %21,096,627 1,375,906 6.52 %
Total earning assets31,413,694 445,218 5.61 %31,003,701 461,128 5.88 %31,033,803 437,784 5.59 %30,671,487 1,774,171 5.76 %29,449,530 1,729,963 5.82 %
Cash and other assets1,192,624 1,159,008 1,178,284 1,156,587 1,163,665 
Total assets$32,606,318 $32,162,709 $32,212,087 $31,828,074 $30,613,195 
Liabilities and Stockholders’ Equity
Transaction deposits$2,470,262 $13,468 2.16 %$2,251,217 $13,987 2.46 %$2,141,739 $15,403 2.86 %$2,275,219 $55,094 2.42 %$2,049,720 $65,215 3.18 %
Savings deposits14,453,912 130,536 3.58 %14,650,152 143,327 3.88 %12,932,458 144,393 4.44 %14,051,757 541,712 3.86 %12,143,539 572,126 4.71 %
Time deposits2,207,631 23,255 4.18 %2,158,228 23,465 4.31 %2,331,009 29,265 4.99 %2,263,568 100,966 4.46 %1,946,341 98,855 5.08 %
Total interest bearing deposits19,131,805 167,259 3.47 %19,059,597 180,779 3.76 %17,405,206 189,061 4.32 %18,590,544 697,772 3.75 %16,139,600 736,196 4.56 %
Short-term borrowings221,250 2,153 3.86 %44,022 534 4.82 %883,326 10,678 4.81 %328,499 14,377 4.38 %933,896 49,994 5.35 %
Long-term debt620,505 7,465 4.77 %620,348 7,531 4.82 %660,270 8,225 4.96 %637,535 30,999 4.86 %739,136 42,060 5.69 %
Total interest bearing liabilities19,973,560 176,877 3.51 %19,723,967 188,844 3.80 %18,948,802 207,964 4.37 %19,556,578 743,148 3.80 %17,812,632 828,250 4.65 %
Non-interest bearing deposits8,455,034 8,351,524 9,319,711 8,220,254 9,013,038 
Other liabilities457,757 463,034 522,641 486,843 532,058 
Stockholders’ equity3,719,967 3,624,184 3,420,933 3,564,399 3,255,467 
Total liabilities and stockholders’ equity$32,606,318 $32,162,709 $32,212,087 $31,828,074 $30,613,195 
Net interest income
$268,341 $272,284 $229,820 $1,031,023 $901,713 
Net interest margin3.38 %3.47 %2.93 %3.35 %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.

9

GAAP TO NON-GAAP RECONCILIATIONS
The following items are non-GAAP financial measures: adjusted non-interest income, adjusted total revenue, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures.
These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about 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)4th Quarter
2025		3rd Quarter
2025		2nd Quarter
2025		1st Quarter
2025		4th Quarter
2024		Full Year 2025Full Year 2024
Net interest income$267,437 $271,771 $253,395 $236,034 $229,607 $1,028,637 $901,300 
Non-interest income60,046 68,583 54,069 44,444 54,074 227,142 31,046 
Available-for-sale debt securities losses, net— — 1,886 — — 1,886 179,581 
Non-interest income, adjusted60,046 68,583 55,955 44,444 54,074 229,028 210,627 
Total revenue(1)
327,483 340,354 307,464 280,478 283,681 1,255,779 932,346 
Total revenue, adjusted(1)
327,483 340,354 309,350 280,478 283,681 1,257,665 1,111,927 
Non-interest expense184,198 190,575 190,276 203,020 172,159 768,069 758,285 
FDIC special assessment2,242 — — — — 2,242 (2,811)
Restructuring expenses— — (1,401)— — (1,401)(7,941)
Legal Settlement— — — — — — (5,000)
Non-interest expense, adjusted186,440 190,575 188,875 203,020 172,159 768,910 742,533 
Provision for credit losses11,000 12,000 15,000 17,000 18,000 55,000 67,000 
Income tax expense31,626 32,569 24,860 13,411 22,499 102,466 29,553 
Tax effect of adjustments(526)— 774 — — 248 47,246 
Income tax expense, adjusted
31,100 32,569 25,634 13,411 22,499 102,714 76,799 
Net income(2)
$100,659 $105,210 $77,328 $47,047 $71,023 $330,244 $77,508 
Net income, adjusted(2)
$98,943 $105,210 $79,841 $47,047 $71,023 $331,041 $225,595 
Preferred stock dividends4,312 4,313 4,312 4,313 4,312 17,250 17,250 
Net income to common stockholders(3)
$96,347 $100,897 $73,016 $42,734 $66,711 $312,994 $60,258 
Net income to common stockholders, adjusted(3)
$94,631 $100,897 $75,529 $42,734 $66,711 $313,791 $208,345 
PPNR(4)
$143,285 $149,779 $117,188 $77,458 $111,522 $487,710 $174,061 
PPNR, adjusted(4)
$141,043 $149,779 $120,475 $77,458 $111,522 $488,755 $369,394 
Weighted average common shares outstanding, diluted45,509,370 46,233,167 46,215,394 46,616,704 46,770,961 46,127,375 46,989,204 
Diluted earnings per common share$2.12 $2.18 $1.58 $0.92 $1.43 $6.79 $1.28 
Diluted earnings per common share, adjusted$2.08 $2.18 $1.63 $0.92 $1.43 $6.80 $4.43 
Average total assets$32,606,318 $32,162,709 $31,419,469 $31,103,609 $32,212,087 $31,828,074 $30,613,195 
Return on average assets1.22 %1.30 %0.99 %0.61 %0.88 %1.04 %0.25 %
Return on average assets, adjusted1.20 %1.30 %1.02 %0.61 %0.88 %1.04 %0.74 %
Average common equity
$3,419,967 $3,324,184 $3,195,041 $3,114,389 $3,120,933 $3,264,399 $2,955,467 
Return on average common equity11.18 %12.04 %9.17 %5.56 %8.50 %9.59 %2.04 %
Return on average common equity, adjusted10.98 %12.04 %9.48 %5.56 %8.50 %9.61 %7.05 %
Efficiency ratio(5)
56.2 %56.0 %61.9 %72.4 %60.7 %61.2 %81.3 %
Efficiency ratio, adjusted(5)
56.9 %56.0 %61.1 %72.4 %60.7 %61.1 %66.8 %
Average earning assets$31,413,694 $31,003,701 $30,302,351 $29,946,425 $31,033,803 $30,671,487 $29,449,530 
Non-interest income to average earning assets0.76 %0.88 %0.72 %0.60 %0.69 %0.74 %0.11 %
Non-interest income to average earning assets, adjusted0.76 %0.88 %0.74 %0.60 %0.69 %0.75 %0.72 %
Non-interest expense to average earning assets2.33 %2.44 %2.52 %2.75 %2.21 %2.50 %2.57 %
Non-interest expense to average earning assets, adjusted2.35 %2.44 %2.50 %2.75 %2.21 %2.51 %2.52 %
(1)    Net interest income plus non-interest income. On an adjusted basis, net interest income plus non-interest income, adjusted.
(2)    Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense, adjusted.
(3)    Net income, less preferred stock dividends. On an adjusted basis, net income, adjusted, less preferred stock dividends.
(4)    Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.
(5)    Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted.
10