Texas Capital Bancshares (TCBI) investor relations material

Executive summary

• Net income to common stockholders rose 63% year-over-year to $69.5 million in Q1 2026, with adjusted net income up 65% to $70.5 million and diluted EPS of $1.58, up from $0.92 in Q1 2025.

• Fee-generating businesses, including investment banking, treasury, and wealth, contributed a larger share of total revenue, with fee income up 59% year-over-year to $58.8 million.

• Commercial loan balances grew 10% year-over-year, supporting total loan growth of 13%.

• Initiated first-ever quarterly common stock dividend of $0.20 per share, payable June 15, 2026.

• Repurchased $75 million in shares during the quarter at an average price of $96.82.

Financial highlights

• Net interest income rose to $254.7 million, up $18.7 million year-over-year, with net interest margin expanding 24 bps to 3.43%.

• Non-interest income reached a record $58.8 million, up 59% year-over-year, with investment banking fees up 89% to $42.3 million.

• Adjusted pre-provision net revenue increased 44% year-over-year to $111.8 million.

• Efficiency ratio improved to 65.9% from 72.4% year-over-year.

• Book value and tangible book value per share both increased 11% year-over-year, reaching $75.71 and $75.67, respectively.

Outlook and guidance

• Full-year 2026 outlook unchanged: total revenue growth expected in mid-to-high single digits, non-interest revenue of $265 million-$290 million, and non-interest expense growth in mid-single digits.

• Provision for credit losses expected at 35-40 bps of average LHI excluding mortgage finance.

• Q2 guidance: net interest income of $260 million-$265 million, margin of 3.35%-3.40%, and non-interest income of $65 million-$70 million.

• CET1 ratio guidance remains above 11%.

• Management highlighted sustainable earnings generation and strong capital levels as support for ongoing strategic initiatives and dividend policy.