Texas Capital Bancshares, Inc. Announces Second Quarter 2025 Results

Second quarter 2025 net income of $77.3 million and net income available to common stockholders
of $73.0 million, up 86% and 95%, respectively, year-over-year

Second quarter 2025 EPS of $1.58 per diluted share and adjusted EPS⁽¹⁾ of $1.63 per
diluted share, up 98% and 104%, respectively, year-over-year

Strong balance sheet growth with total loans increasing 7% quarter-over-quarter and 10% year-over-year

Book Value and Tangible Book Value⁽²⁾ per share both increasing 13% year-over-year, reaching record levels

DALLAS, July 17, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the second quarter of 2025.

“Our multi-year focus on building a differentiated, full-service financial services firm has strengthened our client franchise and consistently delivered high-quality outcomes across our platform, driving strong financial performance this quarter,” said Rob C. Holmes, Chairman, President & CEO. “The strategic actions we’ve taken have structurally enhanced our earnings power, and as we enter the second half of the year, the breadth of our capabilities and the strength of our balance sheet position us to deliver durable, through-cycle results for both clients and shareholders.”

	2nd Quarter			1st Quarter			2nd Quarter
(dollars in thousands except per share data)		2025			2025			2024
OPERATING RESULTS
Net income	$	77,328		$	47,047		$	41,662
Net income available to common stockholders	$	73,016		$	42,734		$	37,350
Pre-provision net revenue⁽³⁾	$	117,188		$	77,458		$	78,597
Diluted earnings per common share	$	1.58		$	0.92		$	0.80
Diluted common shares		46,215,394			46,616,704			46,872,498
Return on average assets		0.99	%		0.61	%		0.56	%
Return on average common equity		9.17	%		5.56	%		5.26	%

OPERATING RESULTS, ADJUSTED⁽¹⁾
Net income	$	79,841		$	47,047		$	42,020
Net income available to common stockholders	$	75,529		$	42,734		$	37,708
Pre-provision net revenue⁽³⁾	$	120,475		$	77,458		$	79,059
Diluted earnings per common share	$	1.63		$	0.92		$	0.80
Diluted common shares		46,215,394			46,616,704			46,872,498
Return on average assets		1.02	%		0.61	%		0.57	%
Return on average common equity		9.48	%		5.56	%		5.31	%

BALANCE SHEET
Loans held for investment	$	18,035,945		$	17,654,243		$	16,700,569
Loans held for investment, mortgage finance		5,889,589			4,725,541			5,078,161
Total loans held for investment		23,925,534			22,379,784			21,778,730
Loans held for sale		—			—			36,785
Total assets		31,943,535			31,375,749			29,854,994
Non-interest bearing deposits		7,718,006			7,874,780			7,987,715
Total deposits		26,064,309			26,053,034			23,818,327
Stockholders’ equity		3,510,070			3,429,774			3,175,601

(1) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
(2) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(3) Net interest income plus non-interest income, less non-interest expense.

SECOND QUARTER 2025 COMPARED TO FIRST QUARTER 2025

For the second quarter of 2025, net income available to common stockholders was $73.0 million, or $1.58 per diluted share, compared to $42.7 million, or $0.92 per diluted share, for the first quarter of 2025.

Provision for credit losses for the second quarter of 2025 was $15.0 million, compared to $17.0 million for the first quarter of 2025. The $15.0 million provision for credit losses recorded in the second quarter of 2025 resulted primarily from an increase in total loans held for investment (“LHI”) and $13.0 million in net charge-offs, partially offset by a decrease in criticized loans.

Net interest income was $253.4 million for the second quarter of 2025, compared to $236.0 million for the first quarter of 2025, primarily due to increases in average earning assets and earning asset yields, a decrease in average short-term borrowings and the impact of one additional day in the second quarter. Net interest margin for the second quarter of 2025 was 3.35%, an increase of 16 basis points from the first quarter of 2025. LHI, excluding mortgage finance, yields decreased 4 basis points from the first quarter of 2025 and LHI, mortgage finance, yields increased 49 basis points from the first quarter of 2025. Total cost of deposits was 2.65% for the second quarter of 2025, an 11 basis point decrease from the first quarter of 2025.

Non-interest income for the second quarter of 2025 increased $9.6 million compared to the first quarter of 2025 primarily due to increases in investment banking and advisory fees and trading income, partially offset by a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025.

Non-interest expense for the second quarter of 2025 decreased $12.7 million compared to the first quarter of 2025, primarily due to decreases in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, and legal and professional expense, partially offset by an increase in other non-interest expense.

SECOND QUARTER 2025 COMPARED TO SECOND QUARTER 2024

Net income available to common stockholders was $73.0 million, or $1.58 per diluted share, for the second quarter of 2025, compared to $37.4 million, or $0.80 per diluted share, for the second quarter of 2024.

The second quarter of 2025 included a $15.0 million provision for credit losses, reflecting an increase in total LHI and $13.0 million in net charge-offs, partially offset by a decline in criticized loans, compared to a $20.0 million provision for credit losses for the second quarter of 2024.

Net interest income increased to $253.4 million for the second quarter of 2025, compared to $216.6 million for the second quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 34 basis points to 3.35% for the second quarter of 2025, as compared to the second quarter of 2024. LHI, excluding mortgage finance, yields decreased 44 basis points compared to the second quarter of 2024 and LHI, mortgage finance yields increased 48 basis points from the second quarter of 2024. Total cost of deposits decreased 34 basis points compared to the second quarter of 2024.

Non-interest income for the second quarter of 2025 increased $3.6 million compared to the second quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by the loss on sale of available-for-sale debt securities mentioned above.

Non-interest expense for the second quarter of 2025 increased $1.9 million compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in marketing expense.

CREDIT QUALITY

Net charge-offs of $13.0 million were recorded during the second quarter of 2025, compared to net charge-offs of $9.8 million and $12.0 million during the first quarter of 2025 and the second quarter of 2024, respectively. Criticized loans totaled $637.5 million at June 30, 2025, compared to $762.9 million at March 31, 2025 and $859.7 million at June 30, 2024. Non-accrual LHI totaled $113.6 million at June 30, 2025, compared to $93.6 million at March 31, 2025 and $85.0 million at June 30, 2024. The ratio of non-accrual LHI to total LHI for the second quarter of 2025 was 0.47%, compared to 0.42% for the first quarter of 2025 and 0.39% for the second quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.40% at June 30, 2025, compared to 1.48% and 1.44% at March 31, 2025 and June 30, 2024, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of June 30, 2025. CET1, tier 1 capital, total capital and leverage ratios were 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025, compared to 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025 and 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024. At June 30, 2025, our ratio of tangible common equity to total tangible assets was 10.1%, compared to 10.0% at March 31, 2025 and 9.6% at June 30, 2024.

During the second quarter of 2025, the Company repurchased 317,860 shares of its common stock for an aggregate purchase price, including excise tax expense, of $21.0 million, at a weighted average price of $65.50 per share.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ^®: TCBI), a member of the Russell 2000^® Index and the S&P MidCap 400^®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
		2025			2025			2024			2024			2024
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	439,567		$	427,289		$	437,571		$	452,533		$	422,068
Interest expense		186,172			191,255			207,964			212,431			205,486
Net interest income		253,395			236,034			229,607			240,102			216,582
Provision for credit losses		15,000			17,000			18,000			10,000			20,000
Net interest income after provision for credit losses		238,395			219,034			211,607			230,102			196,582
Non-interest income		54,069			44,444			54,074			(114,771	)		50,424
Non-interest expense		190,276			203,020			172,159			195,324			188,409
Income/(loss) before income taxes		102,188			60,458			93,522			(79,993	)		58,597
Income tax expense/(benefit)		24,860			13,411			22,499			(18,674	)		16,935
Net income/(loss)		77,328			47,047			71,023			(61,319	)		41,662
Preferred stock dividends		4,312			4,313			4,312			4,313			4,312
Net income/(loss) available to common stockholders	$	73,016		$	42,734		$	66,711		$	(65,632	)	$	37,350
Diluted earnings/(loss) per common share	$	1.58		$	0.92		$	1.43		$	(1.41	)	$	0.80
Diluted common shares		46,215,394			46,616,704			46,770,961			46,608,742			46,872,498
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994
Loans held for investment		18,035,945			17,654,243			17,234,492			16,764,512			16,700,569
Loans held for investment, mortgage finance		5,889,589			4,725,541			5,215,574			5,529,659			5,078,161
Loans held for sale		—			—			—			9,022			36,785
Interest bearing cash and cash equivalents		2,507,691			3,600,969			3,012,307			3,894,537			2,691,352
Investment securities		4,608,628			4,531,219			4,396,115			4,405,520			4,388,976
Non-interest bearing deposits		7,718,006			7,874,780			7,485,428			9,070,804			7,987,715
Total deposits		26,064,309			26,053,034			25,238,599			25,865,255			23,818,327
Short-term borrowings		1,250,000			750,000			885,000			1,035,000			1,675,000
Long-term debt		620,256			660,521			660,346			660,172			659,997
Stockholders’ equity		3,510,070			3,429,774			3,367,936			3,354,044			3,175,601

End of period shares outstanding		45,746,836			46,024,933			46,233,812			46,207,757			46,188,078
Book value per share	$	70.17		$	68.00		$	66.36		$	66.09		$	62.26
Tangible book value per share⁽¹⁾	$	70.14		$	67.97		$	66.32		$	66.06		$	62.23
SELECTED FINANCIAL RATIOS
Net interest margin		3.35	%		3.19	%		2.93	%		3.16	%		3.01	%
Return on average assets		0.99	%		0.61	%		0.88	%	(0.78		)%		0.56	%
Return on average assets, adjusted⁽⁴⁾		1.02	%		0.61	%		0.88	%		1.00	%		0.57	%
Return on average common equity		9.17	%		5.56	%		8.50	%	(8.87		)%		5.26	%
Return on average common equity, adjusted⁽⁴⁾		9.48	%		5.56	%		8.50	%		10.04	%		5.31	%
Efficiency ratio⁽²⁾		61.9	%		72.4	%		60.7	%		155.8	%		70.6	%
Efficiency ratio, adjusted⁽²⁾⁽⁴⁾		61.1	%		72.4	%		60.7	%		62.3	%		70.4	%
Non-interest income to average earning assets		0.72	%		0.60	%		0.69	%	(1.52		)%		0.71	%
Non-interest income to average earning assets, adjusted⁽⁴⁾		0.74	%		0.60	%		0.69	%		0.86	%		0.71	%
Non-interest expense to average earning assets		2.52	%		2.75	%		2.21	%		2.59	%		2.65	%
Non-interest expense to average earning assets, adjusted⁽⁴⁾		2.50	%		2.75	%		2.21	%		2.52	%		2.65	%
Common equity to total assets		10.1	%		10.0	%		10.0	%		9.7	%		9.6	%
Tangible common equity to total tangible assets⁽³⁾		10.1	%		10.0	%		10.0	%		9.7	%		9.6	%
Common Equity Tier 1		11.4	%		11.6	%		11.4	%		11.2	%		11.6	%
Tier 1 capital		12.9	%		13.1	%		12.8	%		12.6	%		13.1	%
Total capital		15.3	%		15.6	%		15.4	%		15.2	%		15.7	%
Leverage		11.8	%		11.8	%		11.3	%		11.4	%		12.2	%

(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) Non-interest expense divided by the sum of net interest income and non-interest income.
(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
(4) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Assets
Cash and due from banks	$	182,451		$	201,504		$	176,501		$	297,048		$	221,727
Interest bearing cash and cash equivalents		2,507,691			3,600,969			3,012,307			3,894,537			2,691,352
Available-for-sale debt securities		3,774,141			3,678,378			3,524,686			3,518,662			3,483,231
Held-to-maturity debt securities		761,907			779,354			796,168			812,432			831,513
Equity securities		68,692			71,679			75,261			74,426			74,232
Trading securities		3,888			1,808			—			—			—
Investment securities		4,608,628			4,531,219			4,396,115			4,405,520			4,388,976
Loans held for sale		—			—			—			9,022			36,785
Loans held for investment, mortgage finance		5,889,589			4,725,541			5,215,574			5,529,659			5,078,161
Loans held for investment		18,035,945			17,654,243			17,234,492			16,764,512			16,700,569
Less: Allowance for credit losses on loans		277,648			278,379			271,709			273,143			267,297
Loans held for investment, net		23,647,886			22,101,405			22,178,357			22,021,028			21,511,433
Premises and equipment, net		86,831			84,575			85,443			81,577			69,464
Accrued interest receivable and other assets		908,552			854,581			881,664			919,071			933,761
Goodwill and intangibles, net		1,496			1,496			1,496			1,496			1,496
Total assets	$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	7,718,006		$	7,874,780		$	7,485,428		$	9,070,804		$	7,987,715
Interest bearing deposits		18,346,303			18,178,254			17,753,171			16,794,451			15,830,612
Total deposits		26,064,309			26,053,034			25,238,599			25,865,255			23,818,327
Accrued interest payable		14,120			25,270			23,680			18,679			23,841
Other liabilities		484,780			457,150			556,322			696,149			502,228
Short-term borrowings		1,250,000			750,000			885,000			1,035,000			1,675,000
Long-term debt		620,256			660,521			660,346			660,172			659,997
Total liabilities		28,433,465			27,945,975			27,363,947			28,275,255			26,679,393

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares⁽¹⁾		300,000			300,000			300,000			300,000			300,000
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares⁽²⁾		517			517			515			515			515
Additional paid-in capital		1,065,083			1,060,028			1,056,719			1,054,614			1,050,114
Retained earnings		2,611,401			2,538,385			2,495,651			2,428,940			2,494,572
Treasury stock⁽³⁾		(354,000	)		(332,994	)		(301,842	)		(301,868	)		(301,868	)
Accumulated other comprehensive loss, net of taxes		(112,931	)		(136,162	)		(183,107	)		(128,157	)		(367,732	)
Total stockholders’ equity		3,510,070			3,429,774			3,367,936			3,354,044			3,175,601
Total liabilities and stockholders’ equity	$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994

⁽¹⁾ Preferred stock - issued shares		300,000			300,000			300,000			300,000			300,000
⁽²⁾ Common stock - issued shares		51,747,305			51,707,542			51,520,315			51,494,260			51,474,581
⁽³⁾ Treasury stock - shares at cost		6,000,469			5,682,609			5,286,503			5,286,503			5,286,503

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended June 30,					Six Months Ended June 30,
		2025		2024			2025		2024
Interest income
Interest and fees on loans	$	364,358		$	345,251	$	698,508		$	676,130
Investment securities		45,991			33,584		92,556			65,728
Interest bearing cash and cash equivalents		29,218			43,233		75,792			97,588
Total interest income		439,567			422,068		866,856			839,446
Interest expense
Deposits		174,798			181,280		349,734			356,880
Short-term borrowings		3,444			12,749		11,690			25,532
Long-term debt		7,930			11,457		16,003			25,443
Total interest expense		186,172			205,486		377,427			407,855
Net interest income		253,395			216,582		489,429			431,591
Provision for credit losses		15,000			20,000		32,000			39,000
Net interest income after provision for credit losses		238,395			196,582		457,429			392,591
Non-interest income
Service charges on deposit accounts		8,182			5,911		16,022			12,250
Wealth management and trust fee income		3,730			3,699		7,694			7,266
Brokered loan fees		2,398			2,131		4,347			4,042
Investment banking and advisory fees		24,109			25,048		40,587			43,472
Trading income		7,896			5,650		13,835			10,362
Available-for-sale debt securities losses		(1,886	)		—		(1,886	)		—
Other		9,640			7,985		17,914			14,351
Total non-interest income		54,069			50,424		98,513			91,743
Non-interest expense
Salaries and benefits		120,154			118,840		251,795			247,567
Occupancy expense		12,144			10,666		22,988			20,403
Marketing		3,624			5,996		8,633			12,032
Legal and professional		11,069			11,273		26,058			27,468
Communications and technology		24,314			22,013		47,956			43,127
Federal Deposit Insurance Corporation insurance assessment		5,096			5,570		10,437			13,991
Other		13,875			14,051		25,429			26,214
Total non-interest expense		190,276			188,409		393,296			390,802
Income before income taxes		102,188			58,597		162,646			93,532
Income tax expense		24,860			16,935		38,271			25,728
Net income		77,328			41,662		124,375			67,804
Preferred stock dividends		4,312			4,312		8,625			8,625
Net income available to common stockholders	$	73,016		$	37,350	$	115,750		$	59,179

Basic earnings per common share	$	1.59		$	0.80	$	2.52		$	1.26
Diluted earnings per common share	$	1.58		$	0.80	$	2.49		$	1.25

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
		2025			2025			2024			2024			2024
Allowance for credit losses on loans:
Beginning balance	$	278,379		$	271,709		$	273,143		$	267,297		$	263,962
Allowance established for acquired purchase credit deterioration loans		—			—			—			2,579			—
Loans charged-off:
Commercial		13,020			10,197			14,100			6,120			9,997
Commercial real estate		431			500			2,566			262			2,111
Consumer		—			—			—			30			—
Total charge-offs		13,451			10,697			16,666			6,412			12,108
Recoveries:
Commercial		486			483			4,562			329			153
Commercial real estate		—			413			18			—			—
Consumer		—			4			15			—			—
Total recoveries		486			900			4,595			329			153
Net charge-offs		12,965			9,797			12,071			6,083			11,955
Provision for credit losses on loans		12,234			16,467			10,637			9,350			15,290
Ending balance	$	277,648		$	278,379		$	271,709		$	273,143		$	267,297

Allowance for off-balance sheet credit losses:
Beginning balance	$	53,865		$	53,332		$	45,969		$	45,319		$	40,609
Provision for off-balance sheet credit losses		2,766			533			7,363			650			4,710
Ending balance	$	56,631		$	53,865		$	53,332		$	45,969		$	45,319

Total allowance for credit losses	$	334,279		$	332,244		$	325,041		$	319,112		$	312,616
Total provision for credit losses	$	15,000		$	17,000		$	18,000		$	10,000		$	20,000

Allowance for credit losses on loans to total loans held for investment		1.16	%		1.24	%		1.21	%		1.23	%		1.23	%
Allowance for credit losses on loans to average total loans held for investment		1.19	%		1.29	%		1.22	%		1.24	%		1.27	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.22	%		0.18	%		0.22	%		0.11	%		0.23	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.18	%		0.18	%		0.19	%		0.20	%		0.22	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.26	%		0.32	%		0.32	%		0.18	%		0.38	%
Total allowance for credit losses to total loans held for investment		1.40	%		1.48	%		1.45	%		1.43	%		1.44	%

(1) Interim period ratios are annualized.

TEXAS CAPITAL BANCSHARES, INC.
NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
		2025			2025			2024			2024			2024
NON-PERFORMING ASSETS
Non-accrual loans held for investment	$	113,609		$	93,565		$	111,165		$	88,960		$	85,021
Non-accrual loans held for sale		—			—			—			—			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	113,609		$	93,565		$	111,165		$	88,960		$	85,021

Non-accrual loans held for investment to total loans held for investment		0.47	%		0.42	%		0.50	%		0.40	%		0.39	%
Total non-performing assets to total assets		0.36	%		0.30	%		0.36	%		0.28	%		0.28	%
Allowance for credit losses on loans to non-accrual loans held for investment	2.4x			3.0x			2.4x			3.1x			3.1x
Total allowance for credit losses to non-accrual loans held for investment	2.9x			3.6x			2.9x			3.6x			3.7x

LOANS PAST DUE
Loans held for investment past due 90 days and still accruing	$	2,068		$	791		$	4,265		$	5,281		$	286
Loans held for investment past due 90 days to total loans held for investment		0.01	%		—	%		0.02	%		0.02	%		—	%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	—		$	64

CRITICIZED LOANS
Criticized loans	$	637,462		$	762,887		$	713,951		$	897,727		$	859,671
Criticized loans to total loans held for investment		2.66	%		3.41	%		3.18	%		4.03	%		3.95	%
Special mention loans	$	339,923		$	484,165		$	435,626		$	579,802		$	593,305
Special mention loans to total loans held for investment		1.42	%		2.16	%		1.94	%		2.60	%		2.72	%

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)

	2nd Quarter			1st Quarter		4th Quarter		3rd Quarter			2nd Quarter
		2025		2025		2024			2024		2024
Interest income
Interest and fees on loans	$	364,358		$	334,150	$	340,388	$	361,407		$	345,251
Investment securities		45,991			46,565		44,102		38,389			33,584
Interest bearing deposits in other banks		29,218			46,574		53,081		52,737			43,233
Total interest income		439,567			427,289		437,571		452,533			422,068
Interest expense
Deposits		174,798			174,936		189,061		190,255			181,280
Short-term borrowings		3,444			8,246		10,678		13,784			12,749
Long-term debt		7,930			8,073		8,225		8,392			11,457
Total interest expense		186,172			191,255		207,964		212,431			205,486
Net interest income		253,395			236,034		229,607		240,102			216,582
Provision for credit losses		15,000			17,000		18,000		10,000			20,000
Net interest income after provision for credit losses		238,395			219,034		211,607		230,102			196,582
Non-interest income
Service charges on deposit accounts		8,182			7,840		6,989		6,307			5,911
Wealth management and trust fee income		3,730			3,964		4,009		4,040			3,699
Brokered loan fees		2,398			1,949		2,519		2,400			2,131
Investment banking and advisory fees		24,109			16,478		26,740		34,753			25,048
Trading income		7,896			5,939		5,487		5,786			5,650
Available-for-sale debt securities losses		(1,886	)		—		—		(179,581	)		—
Other		9,640			8,274		8,330		11,524			7,985
Total non-interest income		54,069			44,444		54,074		(114,771	)		50,424
Non-interest expense
Salaries and benefits		120,154			131,641		97,873		121,138			118,840
Occupancy expense		12,144			10,844		11,926		12,937			10,666
Marketing		3,624			5,009		4,454		5,863			5,996
Legal and professional		11,069			14,989		15,180		11,135			11,273
Communications and technology		24,314			23,642		24,007		25,951			22,013
Federal Deposit Insurance Corporation insurance assessment		5,096			5,341		4,454		4,906			5,570
Other		13,875			11,554		14,265		13,394			14,051
Total non-interest expense		190,276			203,020		172,159		195,324			188,409
Income/(loss) before income taxes		102,188			60,458		93,522		(79,993	)		58,597
Income tax expense/(benefit)		24,860			13,411		22,499		(18,674	)		16,935
Net income/(loss)		77,328			47,047		71,023		(61,319	)		41,662
Preferred stock dividends		4,312			4,313		4,312		4,313			4,312
Net income/(loss) available to common shareholders	$	73,016		$	42,734	$	66,711	$	(65,632	)	$	37,350

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	2nd Quarter 2025						1st Quarter 2025						2nd Quarter 2024						YTD June 30, 2025						YTD June 30, 2024
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities⁽²⁾	$	4,573,164	$	45,999	3.93	%	$	4,463,876	$	46,565	4.10	%	$	4,427,023	$	33,584	2.80	%	$	4,518,822	$	92,564	4.01	%	$	4,363,195	$	65,728	2.79	%
Interest bearing cash and cash equivalents		2,661,037		29,218	4.40	%		4,255,796		46,574	4.44	%		3,273,069		43,233	5.31	%		3,454,011		75,792	4.43	%		3,662,348		97,588	5.36	%
Loans held for sale		—		—	—	%		335		2	2.97	%		28,768		683	9.55	%		167		2	2.97	%		39,966		1,867	9.40	%
Loans held for investment, mortgage finance		5,327,559		58,707	4.42	%		3,972,106		38,527	3.93	%		4,357,288		42,722	3.94	%		4,653,577		97,234	4.21	%		3,937,498		74,177	3.79	%
Loans held for investment⁽³⁾		18,018,626		306,142	6.81	%		17,527,070		296,091	6.85	%		16,750,788		301,910	7.25	%		17,774,206		602,233	6.83	%		16,636,438		600,216	7.26	%
Less: Allowance for credit losses on loans		278,035		—	—	%		272,758		—	—			263,145		—	—	%		275,411		—	—			256,541		—	—
Loans held for investment, net		23,068,150		364,849	6.34	%		21,226,418		334,618	6.39	%		20,844,931		344,632	6.65	%		22,152,372		699,467	6.37	%		20,317,395		674,393	6.68	%
Total earning assets		30,302,351		440,066	5.80	%		29,946,425		427,759	5.76	%		28,573,791		422,132	5.86	%		30,125,372		867,825	5.78	%		28,382,904		839,576	5.87	%
Cash and other assets		1,117,118						1,157,184						1,177,061						1,137,040						1,117,763
Total assets	$	31,419,469					$	31,103,609					$	29,750,852					$	31,262,412					$	29,500,667

Liabilities and Stockholders’ Equity
Transaction deposits	$	2,213,037	$	13,731	2.49	%	$	2,163,250	$	13,908	2.61	%	$	2,061,622	$	16,982	3.31	%	$	2,188,282	$	27,639	2.55	%	$	2,034,057	$	33,840	3.35	%
Savings deposits		13,727,095		134,272	3.92	%		13,357,243		133,577	4.06	%		11,981,668		143,173	4.81	%		13,543,190		267,849	3.99	%		11,695,673		279,963	4.81	%
Time deposits		2,361,525		26,795	4.55	%		2,329,384		27,451	4.78	%		1,658,899		21,125	5.12	%		2,345,543		54,246	4.66	%		1,689,112		43,077	5.13	%
Total interest bearing deposits		18,301,657		174,798	3.83	%		17,849,877		174,936	3.97	%		15,702,189		181,280	4.64	%		18,077,015		349,734	3.90	%		15,418,842		356,880	4.65	%
Short-term borrowings		306,176		3,444	4.51	%		751,500		8,246	4.45	%		927,253		12,749	5.53	%		527,608		11,690	4.47	%		919,670		25,532	5.58	%
Long-term debt		649,469		7,930	4.90	%		660,445		8,073	4.96	%		778,401		11,457	5.92	%		654,927		16,003	4.93	%		818,955		25,443	6.25	%
Total interest bearing liabilities		19,257,302		186,172	3.88	%		19,261,822		191,255	4.03	%		17,407,843		205,486	4.75	%		19,259,550		377,427	3.95	%		17,157,467		407,855	4.78	%
Non-interest bearing deposits		8,191,402						7,875,244						8,647,594						8,034,196						8,642,685
Other liabilities		475,724						552,154						537,754						513,728						523,520
Stockholders’ equity		3,495,041						3,414,389						3,157,661						3,454,938						3,176,995
Total liabilities and stockholders’ equity	$	31,419,469					$	31,103,609					$	29,750,852					$	31,262,412					$	29,500,667
Net interest income			$	253,894					$	236,504					$	216,646					$	490,398					$	431,721
Net interest margin					3.35	%					3.19	%					3.01	%					3.27	%					3.02	%

(1) Taxable equivalent rates used where applicable.
(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.
(3) Average balances include non-accrual loans.

GAAP TO NON-GAAP RECONCILIATIONS

The following items are non-GAAP financial measures: adjusted non-interest income, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures.

These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands except per share data)	2nd Quarter 2025			1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024			2nd Quarter 2024
Net interest income	$	253,395		$	236,034		$	229,607		$	240,102		$	216,582

Non-interest income		54,069			44,444			54,074			(114,771	)		50,424
Available-for-sale debt securities losses, net		1,886			—			—			179,581			—
Non-interest income, adjusted		55,955			44,444			54,074			64,810			50,424

Non-interest expense		190,276			203,020			172,159			195,324			188,409
FDIC special assessment		—			—			—			651			(462	)
Restructuring expenses		(1,401	)		—			—			(5,923	)		—
Non-interest expense, adjusted		188,875			203,020			172,159			190,052			187,947

Provision for credit losses		15,000			17,000			18,000			10,000			20,000

Income tax expense/(benefit)		24,860			13,411			22,499			(18,674	)		16,935
Tax effect of adjustments		774			—			—			44,880			104
Income tax expense/(benefit), adjusted		25,634			13,411			22,499			26,206			17,039

Net income/(loss)⁽¹⁾	$	77,328		$	47,047		$	71,023		$	(61,319	)	$	41,662
Net income/(loss), adjusted⁽¹⁾	$	79,841		$	47,047		$	71,023		$	78,654		$	42,020

Preferred stock dividends		4,312			4,313			4,312			4,313			4,312

Net income/(loss) to common stockholders⁽²⁾	$	73,016		$	42,734		$	66,711		$	(65,632	)	$	37,350
Net income/(loss) to common stockholders, adjusted⁽²⁾	$	75,529		$	42,734		$	66,711		$	74,341		$	37,708

PPNR⁽³⁾	$	117,188		$	77,458		$	111,522		$	(69,993	)	$	78,597
PPNR⁽³⁾, adjusted	$	120,475		$	77,458		$	111,522		$	114,860		$	79,059

Weighted average common shares outstanding, diluted		46,215,394			46,616,704			46,770,961			46,608,742			46,872,498
Diluted earnings/(loss) per common share	$	1.58		$	0.92		$	1.43		$	(1.41	)	$	0.80
Diluted earnings/(loss) per common share, adjusted	$	1.63		$	0.92		$	1.43		$	1.59		$	0.80

Average total assets	$	31,419,469		$	31,103,609		$	32,212,087		$	31,215,173		$	29,750,852
Return on average assets		0.99	%		0.61	%		0.88	%	(0.78		)%		0.56	%
Return on average assets, adjusted		1.02	%		0.61	%		0.88	%		1.00	%		0.57	%

Average common equity	$	3,195,041		$	3,114,389		$	3,120,933		$	2,945,238		$	2,857,661
Return on average common equity		9.17	%		5.56	%		8.50	%	(8.87		)%		5.26	%
Return on average common equity, adjusted		9.48	%		5.56	%		8.50	%		10.04	%		5.31	%

Efficiency ratio⁽⁴⁾		61.9	%		72.4	%		60.7	%		155.8	%		70.6	%
Efficiency ratio, adjusted⁽⁴⁾		61.1	%		72.4	%		60.7	%		62.3	%		70.4	%

Average earning assets	$	30,302,351		$	29,946,425		$	31,033,803		$	29,975,318		$	28,573,791
Non-interest income to average earning assets		0.72	%		0.60	%		0.69	%	(1.52		)%		0.71	%
Non-interest income to average earning assets, adjusted		0.74	%		0.60	%		0.69	%		0.86	%		0.71	%
Non-interest expense to average earning assets		2.52	%		2.75	%		2.21	%		2.59	%		2.65	%
Non-interest expense to average earning assets, adjusted		2.50	%		2.75	%		2.21	%		2.52	%		2.65	%

(1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.
(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.
(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.
(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted.

INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapitalbank.com

MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapitalbank.com

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