Texas Capital Bancshares, Inc.

Reported Q2 2026 adjusted EPS was $1.88, up 15% year over year; GAAP EPS was $1.83. Total revenue increased $28 million, or 9% year over year, while adjusted total revenue rose 8%. Net interest income was $260.4 million, up $7 million year over year, and adjusted noninterest income was $75.1 million, up $21 million or 39% year over year. Adjusted noninterest expense was $202.8 million, up $13.9 million or 7% year over year. Pre-provision net revenue was $130 million, up 11%, and adjusted PPNR was $132.7 million, up 10%. Provision for credit losses was $18 million, up $3 million year over year. Net income to common was $80.6 million, up $7.6 million or 10%, and adjusted net income to common was $82.7 million, up 9%. Tangible book value per share was $76.98, up 10% year over year, and CET1 was 12.07%. For Q3, management guided net interest income to $265 million-$270 million, noninterest income to $70 million-$75 million, and investment banking plus sales and trading to about $40 million-$45 million. For full-year 2026, management reiterated mid- to high-single-digit total revenue growth, noninterest revenue of $270 million-$290 million, expense growth in the mid-single digits, and provision of 35 to 40 basis points of average LHI excluding mortgage finance. Management said the full-year outlook now assumes one rate hike in December with a 4% upper limit on Fed funds at year-end.

Rob Holmes framed the quarter as evidence that Texas Capital’s differentiated strategy is working, citing record fee income, stronger client acquisition, and sustained capital generation. He emphasized that the firm is intentionally shifting toward more durable, less rate-sensitive revenue streams while maintaining disciplined credit underwriting and a conservative reserve posture. His tone was confident and assertive, repeatedly stressing that the platform is built for resilience, not prediction, and that the business is gaining share by staying selective on pricing and structure.

Matt Scurlock focused on the mechanics behind the quarter: revenue rose 9% year over year, NII reached $260.4 million, and adjusted noninterest income set another record at $75.1 million. He highlighted that expenses were controlled despite ongoing investment, with Q2 adjusted noninterest expense at $202.8 million, and said full-year salaries and benefits should be about $125 million per quarter and all other noninterest expense about $75 million per quarter. He also pointed to strong capital and liquidity, including CET1 of 12.07%, tangible common equity to tangible assets of 9.87%, $333 million in allowance for credit losses, and active buybacks at prices below the level he described as attractive; he said $102 million remains under the repurchase authorization.

Analysts pressed on the Q3 margin decline, and management said the low 3.20% range should be the trough for 2026, driven mainly by seasonal mortgage finance mix and higher brokered funding, with improvement expected in Q4 as those effects unwind. Questions on criticized loans and CRE drew a response that the main pressure remains multifamily CRE with rental concessions and payoff activity, while C&I issues were described as isolated and not tied to a broader pattern. Analysts also asked about capital return and M&A; management said buybacks should be most active when shares trade inside 1.3x tangible book, and noted that whole-bank M&A remains on the capital allocation menu if a rational transaction appears.