Texas Capital | 8-K: FY2026 Q2 Revenue: USD 335.5 M

Revenue: As of FY2026 Q2, the actual value is USD 335.5 M.

EPS: As of FY2026 Q2, the actual value is USD 1.83, missing the estimate of USD 1.8697.

EBIT: As of FY2026 Q2, the actual value is USD 112 M.

Net Income to Common

• GAAP Net Income to Common was $80.6 million, an increase of $7.6 million or 10% year-over-year (YoY).
• Adjusted Net Income to Common was $82.7 million, an increase of $7.2 million or 9% YoY.
• For the year-to-date (YTD) 2026, adjusted net income to common was $153.2 million, an increase of $7.2 million compared to YTD 2025.

Operating Profit (PPNR)

• GAAP Pre-Provision Net Revenue (PPNR) was $130.0 million, an increase of $12.8 million or 11% YoY.
• Adjusted PPNR increased $12.2 million or 10% YoY to $132.7 million.
• For YTD 2026, adjusted PPNR was $244.5 million, an increase of $12.2 million compared to YTD 2025.

Revenue

• Total Revenue (GAAP) for Q2 2026 was $335.5 million, compared to $309.4 million in Q2 2025.
• Adjusted Total Revenue for Q2 2026 was $335.5 million, compared to $307.5 million in Q2 2025.
• For YTD 2026, adjusted total revenue was $659.5 million, an increase of $26.1 million compared to YTD 2025.
• Net Interest Income for Q2 2026 was $260.4 million, an increase of $5.7 million quarter-over-quarter (QoQ).
• Non-Interest Revenue (GAAP) for Q2 2026 was $75.1 million, an increase of $21.0 million or 39% YoY compared to Q2 2025.
• Fee income from areas of focus increased $13.2 million or 28% YoY to $60.5 million.
• Record investment banking and trading income reached $42.8 million.
• Record treasury product fees were $12.5 million.
• Record wealth management fees were $5.1 million.

Operating Costs

• Adjusted Non-Interest Expense for Q2 2026 was $202.8 million, an increase of $13.9 million YoY.
• For YTD 2026, adjusted non-interest expense was $414.9 million, an increase of $13.9 million compared to YTD 2025.

Operational Metrics

• Return on Average Assets (ROAA) was 1.03% (GAAP) and 1.06% (Adjusted) in Q2 2026, up 4 basis points (bps) YoY for both.
• Return on Average Common Equity (ROACE) was 9.6% (GAAP) and 9.8% (Adjusted) in Q2 2026, up 39 bps and 32 bps YoY respectively.
• Efficiency Ratio was 61.3% (GAAP) and 60.4% (Adjusted) in Q2 2026, down 64 bps and 62 bps YoY respectively.
• Return on Average Tangible Common Equity (ROATCE) was 9.6% (GAAP) and 9.8% (Adjusted) in Q2 2026, up 39 bps and 32 bps YoY respectively.
• Net Interest Margin was 3.28% in Q2 2026, up 4 bps YoY.
• Commercial loan balances increased $507 million or 4% QoQ and $1.2 billion or 10% YoY to $13.0 billion.
• Average non-interest bearing deposits, excluding mortgage finance, increased $254 million or 8% QoQ and $183 million or 5% YoY.
• Total assets were $33,913 million in Q2 2026, an increase of 6% YoY.
• Total deposits reached $28,911 million, an increase of 11% YoY.
• Non-interest bearing deposits were $7,574 million, a decrease of -2% YoY.
• Interest bearing deposits were $21,338 million, an increase of 16% YoY.
• Short-term borrowings were $350 million, a decrease of -72% YoY.
• Total liabilities were $30,266 million, an increase of 6% YoY.
• Average cost of interest bearing deposits increased by 6 bps to 3.38%.
• Non-performing assets declined $42 million or 25% QoQ to $124 million, representing 0.37% of total assets, a 13 bps decline linked quarter.
• Quarterly net charge-offs totaled $16.1 million or 26 bps of average Loans Held for Investment (LHI).
• Total criticized LHI increased $59 million or 9% YoY, with the percentage to total LHI increasing 13 bps to 2.79%.
• Assets Under Management were $4.8 billion in Q2 2026, an increase of 15% YoY.

Capital and Equity

• Book Value per Share was $77.01, an increase of $6.84 or 10% YoY.
• Tangible Book Value per Share grew 10% YoY to $76.98, an all-time high for Texas Capital Bancshares, Inc..
• Common Equity / Total Assets was 9.87% in Q2 2026, down -18 bps YoY.
• Tangible Common Equity / Tangible Assets was 9.87% in Q2 2026, down -17 bps YoY.
• Total capital ratio was 14.68% and CET1 ratio was 12.07%.
• Texas Capital Bancshares, Inc. repurchased 239 thousand shares in Q2 2026 for a total of $24 million.
• A quarterly common stock cash dividend of $0.20 was declared.

Outlook / Guidance

• For the full year 2026, Texas Capital Bancshares, Inc. anticipates adjusted total revenue to achieve mid to high single-digit percentage growth, while adjusted non-interest expense is expected to show mid single-digit percentage growth.
• The provision for average LHI, excluding mortgage finance LHI, is projected to be between 35 bps and 40 bps, with the CET1 ratio remaining above 11%.
• The forward curve assumes a 25 bps hike in December, with an exit rate of 4.00% at year-end 2026, and the tax rate is expected to be approximately 25% for the full year 2026.