Texas Capital Bancshares Reports Strong Q1 2026 Financial Performance with $73.8M Net Income

Texas Capital Bancshares, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net income rising to $73.8 million, compared to $47.0 million in the same period of 2025. The earnings per share also saw a notable increase, reaching $1.56, up from $0.92 a year earlier. The company's net interest income increased to $254.7 million, driven by a rise in average earning assets and a decrease in funding costs, while non-interest income surged to $69.3 million, up from $44.4 million in the prior year.

The company's total assets grew to $33.5 billion as of March 31, 2026, compared to $31.5 billion at the end of 2025. This growth was primarily attributed to an increase in loans held for investment, which rose to $25.2 billion, up from $24.0 billion at the end of the previous year. The increase in loans was driven by a rise in commercial and mortgage finance loans, although there were slight declines in commercial real estate and consumer loans. The total deposits also increased significantly, reaching $28.5 billion, compared to $26.4 billion at the end of 2025.

In terms of operational developments, Texas Capital Bancshares has been actively managing its capital structure. The company repurchased 770,423 shares of its common stock during the first quarter of 2026, at an average price of $96.82 per share, as part of a $200 million share repurchase program authorized in December 2025. The company also declared a cash dividend of $0.20 per common share, payable on June 15, 2026, marking a return to dividend payments after a period of suspension.

The provision for credit losses was recorded at $16.0 million for the first quarter of 2026, slightly down from $17.0 million in the same period last year. The allowance for credit losses on loans stood at 1.07% of total loans held for investment, reflecting a decrease from 1.24% a year earlier. The company reported an increase in criticized loans, totaling $650.6 million, which may impact future provisions for credit losses.

Looking ahead, Texas Capital Bancshares expressed optimism about its growth trajectory, supported by its strong capital ratios, which exceed regulatory requirements. The company aims to continue expanding its loan portfolio while managing risks associated with credit quality and market conditions. The management remains focused on enhancing operational efficiency and leveraging its market position to drive future profitability.