Texas Capital Bancshares Net Income Surges 57% to $73.8M in Q1 2026

Texas Capital Bancshares, a Dallas-based regional bank (NASDAQ: TCBI), reported net income of $73.8 million for the three months ended March 31, 2026, up 57% from $47.0 million in the same quarter a year earlier. Diluted earnings per common share rose to $1.56 from $0.92. Read more earnings reports.

The earnings gain came as non-interest income nearly doubled to $69.3 million from $44.4 million in the first quarter of 2025, driven primarily by investment banking and advisory fees, which jumped to $32.0 million from $16.5 million. Trading income also climbed to $10.3 million from $5.9 million.

Net interest income for the quarter rose 7.9% to $254.7 million from $236.0 million a year earlier, despite a 1.9% decline in total interest income to $419.1 million from $427.3 million. Interest expense fell 14% to $164.4 million from $191.3 million, as deposit costs dropped to $153.9 million from $174.9 million.

The provision for credit losses totaled $16.0 million for the quarter, down from $17.0 million in the prior-year period. Net charge-offs came to $17.4 million, up from $9.8 million in the first quarter of 2025. The allowance for credit losses on loans stood at $270.4 million at March 31, 2026, compared with $270.6 million at December 31, 2025.

Total assets climbed to $33.5 billion at March 31, 2026, from $31.5 billion at year-end 2025. Loans held for investment, net of allowances, expanded to $24.9 billion from $23.8 billion over the same period. Mortgage finance loans rose to $7.0 billion from $6.1 billion, while commercial loans increased to $18.2 billion from $18.0 billion.

Deposits grew to $28.5 billion at quarter-end from $26.4 billion at December 31, 2025. Non-interest bearing deposits climbed to $7.6 billion from $7.0 billion, while interest bearing deposits rose to $20.9 billion from $19.5 billion. The bank eliminated $330.0 million in short-term borrowings during the quarter, while long-term debt increased to $878.3 million from $620.6 million.

Non-interest expense for the quarter totaled $213.6 million, up 5.2% from $203.0 million a year earlier. Salaries and benefits rose to $139.3 million from $131.6 million, while communications and technology costs climbed to $27.2 million from $23.6 million. Legal and professional fees declined to $12.0 million from $15.0 million.

The company repurchased 770,423 shares of common stock during the quarter at a cost of $75.1 million, compared with 396,106 shares for $31.2 million in the first quarter of 2025. Treasury stock holdings increased to 8.3 million shares from 7.5 million shares at year-end.

Stockholders' equity stood at $3.6 billion at March 31, 2026, down slightly from $3.6 billion at December 31, 2025. Accumulated other comprehensive loss widened to $86.7 million from $64.6 million, reflecting unrealized losses on available-for-sale securities.

Financial Summary

Balance Sheet Highlights