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.”

(dollars in thousands except per share data)

Pre-provision net revenue(1)

Provision for credit losses

Net income available to common stockholders

Non-interest income, adjusted(2)

Total revenue, adjusted(2)

Non-interest expense, adjusted(2)

Pre-provision net revenue, adjusted(1)(2)

Net income to common stockholders, adjusted(2)

Diluted earnings per common share

Diluted earnings per common shares, adjusted(2)

Return on average assets, adjusted(2)

Return on average common equity

Return on average common equity, adjusted(2)

Efficiency ratio, adjusted(2)(3)

Tangible book value per share(4)

Loans held for investment, mortgage finance

(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.

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)

CONSOLIDATED STATEMENTS OF INCOME

Provision for credit losses

Net interest income after provision for credit losses

Income before income taxes

Net income available to common stockholders

Diluted earnings per common share

CONSOLIDATED BALANCE SHEET DATA

Loans held for investment, mortgage finance

Interest bearing cash and cash equivalents

Non-interest bearing deposits

End of period shares outstanding

Tangible book value per share(1)

Return on average assets, adjusted(4)

Return on average common equity

Return on average common equity, adjusted(4)

Efficiency ratio, adjusted(2)(4)

Non-interest income to average earning assets

Non-interest income to average earning assets, adjusted(4)

Non-interest expense to average earning assets

Non-interest expense to average earning assets, adjusted(4)

Common equity to total assets

Tangible common equity to total tangible assets(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)

Interest bearing cash and cash equivalents

Available-for-sale debt securities

Held-to-maturity debt securities

Loans held for investment, mortgage finance

Less: Allowance for credit losses on loans

Loans held for investment, net

Premises and equipment, net

Accrued interest receivable and other assets

Goodwill and intangibles, net

Liabilities and Stockholders’ Equity

Non-interest bearing deposits

Preferred stock, $.01 par value, $1,000 liquidation value:

Authorized shares – 10,000,000

Common stock, $.01 par value:

Authorized shares – 100,000,000

Additional paid-in capital

Accumulated other comprehensive loss, net of taxes

Total stockholders’ equity

Total liabilities and stockholders’ equity

(1)Preferred stock – issued shares

(2)Common stock – issued shares

(3)Treasury stock – shares at cost

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands except per share data)

Interest and fees on loans

Interest bearing cash and cash equivalents

Provision for credit losses

Net interest income after provision for credit losses

Service charges on deposit accounts

Wealth management and trust fee income

Investment banking and advisory fees

Available-for-sale debt securities gains/(losses), net

Communications and technology

Federal Deposit Insurance Corporation insurance assessment

Total non-interest expense

Income before income taxes

Net income available to common stockholders

Basic earnings per common share

Diluted earnings per common share

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF CREDIT LOSS EXPERIENCE

Allowance for credit losses on loans:

Provision for credit losses on loans

Allowance for off-balance sheet credit losses:

Provision for off-balance sheet credit losses

Total allowance for credit losses

Total provision for credit losses

Allowance for credit losses on loans to total loans held for investment

Allowance for credit losses on loans to average total loans held for investment

Net charge-offs to average total loans held for investment(1)

Net charge-offs to average total loans held for investment for last 12 months(1)

Total provision for credit losses to average total loans held for investment(1)

Total allowance for credit losses to total loans held for investment

(1)   Interim period ratios are annualized.

TEXAS CAPITAL BANCSHARES, INC.

NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS

Non-accrual loans held for investment

Non-accrual loans held for sale(1)

Total non-performing assets

Non-accrual loans held for investment to total loans held for investment

Total non-performing assets to total assets

Allowance for credit losses on loans to non-accrual loans held for investment

Total allowance for credit losses to non-accrual loans held for investment

Loans held for investment past due 90 days and still accruing

Loans held for investment past due 90 days to total loans held for investment

Loans held for sale past due 90 days and still accruing

Criticized loans to total loans held for investment

Special mention loans to total loans held for investment

(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.

TEXAS CAPITAL BANCSHARES, INC.

TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)

Interest bearing cash and cash equivalents

Loans held for investment, mortgage finance

Loans held for investment(3)

Less: Allowance for credit losses on loans

Loans held for investment, net

Liabilities and Stockholders’ Equity

Total interest bearing deposits

Total interest bearing liabilities

Non-interest bearing deposits

Total liabilities and stockholders’ equity

(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 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)

Available-for-sale debt securities losses, net

Non-interest income, adjusted

Total revenue, adjusted(1)

Non-interest expense, adjusted

Provision for credit losses

Income tax expense, adjusted

Net income to common stockholders(3)

Net income to common stockholders, adjusted(3)

Weighted average common shares outstanding, diluted

Diluted earnings per common share

Diluted earnings per common share, adjusted

Return on average assets, adjusted

Return on average common equity

Return on average common equity, adjusted

Efficiency ratio, adjusted(5)

Non-interest income to average earning assets

Non-interest income to average earning assets, adjusted

Non-interest expense to average earning assets

Non-interest expense to average earning assets, adjusted

(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.

CONTACT: INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 [email protected]