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-yearReaching record-levels, Book Value and Tangible Book Value(4) per share both increased 13% year-over-yearCapital ratios continue to be strong, achieving 12.1% CET1 and 16.1% Total Capital
DALLAS, Jan. 22, 2026 (GLOBE NEWSWIRE) -- "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 Quarter
3rd Quarter
4th Quarter
Full Year
Full Year
(dollars in thousands except per share data)
2025
2025
2024
2025
2024
Summary Income Statement
Net interest income
$
267,437
$
271,771
$
229,607
$
1,028,637
$
901,300
Non-interest income
60,046
68,583
54,074
227,142
31,046
Total revenue
327,483
340,354
283,681
1,255,779
932,346
Non-interest expense
184,198
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 losses
11,000
12,000
18,000
55,000
67,000
Net income available to common stockholders
96,347
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 assets
1.22
%
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 equity
11.18
%
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 margin
3.38
%
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 ratio
12.1
%
12.1
%
11.4
%
12.1
%
11.4
%
Balance Sheet
Total assets
$
31,540,274
$
32,536,980
$
30,731,883
Loans held for investment
17,976,183
18,134,059
17,234,492
Loans held for investment, mortgage finance
6,064,019
6,057,804
5,215,574
Total deposits
26,448,767
27,505,398
25,238,599
Stockholders' equity
3,631,382
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.
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.
TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
4th Quarter
2025
2025
2025
2025
2024
CONSOLIDATED STATEMENTS OF INCOME
Interest income
$
444,314
$
460,615
$
439,567
$
427,289
$
437,571
Interest expense
176,877
188,844
186,172
191,255
207,964
Net interest income
267,437
271,771
253,395
236,034
229,607
Provision for credit losses
11,000
12,000
15,000
17,000
18,000
Net interest income after provision for credit losses
256,437
259,771
238,395
219,034
211,607
Non-interest income
60,046
68,583
54,069
44,444
54,074
Non-interest expense
184,198
190,575
190,276
203,020
172,159
Income before income taxes
132,285
137,779
102,188
60,458
93,522
Income tax expense
31,626
32,569
24,860
13,411
22,499
Net income
100,659
105,210
77,328
47,047
71,023
Preferred stock dividends
4,312
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 shares
45,509,370
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 investment
17,976,183
18,134,059
18,035,945
17,654,243
17,234,492
Loans held for investment, mortgage finance
6,064,019
6,057,804
5,889,589
4,725,541
5,215,574
Loans held for sale
4,361
—
—
—
—
Interest bearing cash and cash equivalents
1,897,803
2,852,387
2,507,691
3,600,969
3,012,307
Investment securities
4,723,099
4,601,654
4,608,628
4,531,219
4,396,115
Non-interest bearing deposits
6,959,097
7,689,598
7,718,006
7,874,780
7,485,428
Total deposits
26,448,767
27,505,398
26,064,309
26,053,034
25,238,599
Short-term borrowings
330,000
275,000
1,250,000
750,000
885,000
Long-term debt
620,575
620,416
620,256
660,521
660,346
Stockholders' equity
3,631,382
3,637,098
3,510,070
3,429,774
3,367,936
End of period shares outstanding
44,253,688
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 margin
3.38
%
3.47
%
3.35
%
3.19
%
2.93
%
Return on average assets
1.22
%
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 equity
11.18
%
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 assets
0.76
%
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 assets
2.33
%
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 assets
10.6
%
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 1
12.1
%
12.1
%
11.4
%
11.6
%
11.4
%
Tier 1 capital
13.6
%
13.6
%
12.9
%
13.1
%
12.8
%
Total capital
16.1
%
16.1
%
15.3
%
15.6
%
15.4
%
Leverage
11.7
%
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.
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 equivalents
1,897,803
2,852,387
2,507,691
3,600,969
3,012,307
Available-for-sale debt securities
3,951,455
3,801,261
3,774,141
3,678,378
3,524,686
Held-to-maturity debt securities
725,722
743,120
761,907
779,354
796,168
Equity securities
41,998
55,054
68,692
71,679
