Texas Capital Bancshares, Inc.

Texas Capital Bancshares expects third-quarter net interest income to reach $265 million to $270 million and net interest margin to step down seasonally into the 3.20% to 3.25% range, according to management commentary during the company's second-quarter 2026 earnings call. Chief Financial Officer Matt Scurlock said the margin decline reflects mortgage finance mix and temporary funding, while total noninterest income is projected between $70 million and $75 million, with investment banking and sales and trading contributing approximately $40 million to $45 million. The bank reiterated its full-year 2026 outlook but now incorporates one rate hike in December, bringing the Fed funds upper limit to 4% at year-end, and expects total revenue growth in the mid- to high single digits alongside full-year noninterest revenue of $270 million to $290 million. Second-quarter net interest income rose $7 million year-over-year to $260.4 million, adjusted earnings per share increased 15% to $1.88, and tangible book value per share grew 10% to $76.98. Management also highlighted record fee income, sustained operating leverage, and the payment of the company's inaugural common stock cash dividend.

Texas Capital Bancshares reported second-quarter 2026 non-GAAP earnings per share of $1.88, beating analyst estimates by $0.02. Revenue came in at $335.4 million, a 9.1% increase year-over-year, exceeding expectations by $2.18 million. Net income available to common stockholders was $80.6 million, or $1.83 per diluted share, up from $69.5 million, or $1.56 per diluted share, in the first quarter. The provision for credit losses rose to $18.0 million from $16.0 million in the prior quarter, driven by an increase in criticized loans and $16.1 million in net charge-offs.

Texas Capital Bank reported first-quarter revenues of $324.9 million, a 15.8% year-on-year increase that exceeded analysts' expectations by 2.2%. The bank, one of 91 regional banks tracked, delivered a satisfactory quarter with an EPS beat but missed tangible book value per share estimates. Among peers, UMB Financial was the best performer with revenues of $744.8 million, up 29.3% and beating estimates by 5.4%, while BankUnited was the weakest, posting revenues of $273.8 million, up 6.1% but missing estimates by 5.1%. Overall, the group's revenues were in line with consensus, and share prices have held steady, rising 2.3% on average since the latest earnings results.