Texas Capital Bancshares (TCBI) Q2 2026 earnings summary

Executive summary

• Adjusted EPS increased 15% year-over-year to $1.88, with net income to common shareholders up 10% to $80.6 million and record fee income across investment banking, wealth management, and treasury products.

• Fee income reached $60.5 million, up 28–29% year-over-year, now representing 22% of total revenue.

• Book value per share reached an all-time high of $77.01, up 10% year-over-year.

• Operational efficiency improved, with the adjusted efficiency ratio at 60.4%.

• Appointed Mo Jamous as Chief Digital and Information Officer to drive technology innovation.

Financial highlights

• Total revenue increased 9% year-over-year to $335.5 million, driven by 3% net interest income growth and a 34–39% increase in non-interest revenue.

• Net interest income was $260.4 million, up $7.0 million year-over-year.

• Adjusted pre-provision net revenue grew 10% year-over-year to $132.7 million.

• Book value and tangible book value per share both increased 10% year-over-year.

• Commercial loans grew 10% year-over-year to $13.0 billion, while commercial real estate loans declined 9% year-over-year to $5.1 billion.

Outlook and guidance

• Full-year revenue growth expected in the mid to high single digits, with non-interest revenue guidance raised to $270–$290 million.

• Non-interest expense growth anticipated in the mid-single digits, reflecting compensation and platform investments.

• Provision for credit losses (excluding mortgage finance) expected at 35–40 basis points of average LHI.

• Net interest margin expected to trough in Q3 (low to mid 320s) and improve in Q4 as mortgage seasonality reverses.

• Tax rate expected to be approximately 25% for 2026; CET1 ratio guidance remains above 11%.