Texas Capital Bancshares Reports $84.9 Million Net Income for Q2 2026

Texas Capital Bancshares, Inc. reported its financial results for the second quarter and first half of 2026, showing a net income of $84.9 million for the three months ended June 30, 2026, compared to $77.3 million for the same period in 2025. For the first half of 2026, net income reached $158.7 million, up from $124.4 million in the prior year. The company’s diluted earnings per share increased to $1.83 for the second quarter and $3.39 for the first half, compared to $1.58 and $2.49, respectively, in 2025. The growth in profitability was primarily driven by increases in net interest income and non-interest income, which were partially offset by higher non-interest expenses.

Total interest income for the second quarter of 2026 was $439.9 million, slightly up from $439.6 million in the same quarter of 2025. Interest expense decreased to $179.6 million from $186.2 million year-over-year, leading to a net interest income of $260.4 million, an increase from $253.4 million. The company’s net interest margin for the quarter was 3.28%, down from 3.35% in the previous year. Non-interest income surged to $75.1 million, up from $54.1 million, reflecting strong performance in investment banking and advisory fees, as well as trading income.

In terms of operational metrics, Texas Capital Bancshares reported total loans held for investment of $24.9 billion as of June 30, 2026, an increase of $907 million from December 31, 2025. The company’s allowance for credit losses on loans was $268.3 million, representing 1.08% of total loans held for investment. The provision for credit losses for the first half of 2026 was $34 million, compared to $32 million in the same period of 2025, reflecting an increase in criticized loans. The company’s criticized loans totaled $696.3 million at the end of the second quarter, up from $634.9 million at the end of 2025.

Texas Capital Bancshares has also been active in managing its capital structure, repurchasing 1,009,771 shares of common stock for approximately $98.7 million during the first half of 2026. The company declared a cash dividend of $0.20 per share, payable on September 15, 2026. The board of directors has authorized a new share repurchase program allowing for the repurchase of up to $200 million in shares, which is set to expire on December 31, 2026. The company’s capital ratios remain strong, with a Common Equity Tier 1 capital ratio of 12.07% as of June 30, 2026, exceeding regulatory requirements.

Looking ahead, Texas Capital Bancshares expressed optimism about its growth prospects, citing a focus on expanding its loan portfolio and enhancing its service offerings. The company remains committed to managing its credit risk and maintaining strong capital levels to support its operations and strategic initiatives. However, management acknowledged potential challenges, including economic conditions and competitive pressures in the banking sector, which could impact future performance.