Texas Capital Revenue Hits Record $356.626 Million in Third Quarter
Key Facts
Texas Capital Bancshares reported record total revenue of $356.626 million in the third quarter on October 21, 2026, up from $340.354 million a year earlier and $335.495 million in the second quarter. Net interest income hit a record $274.983 million, compared with $271.771 million in the third quarter of 2025 and $260.377 million in the second quarter of 2026. Noninterest income was $81.643 million, versus $68.583 million a year earlier, and the company said fee income reached a record, rising 14% year over year. The figures show growth in both interest revenue and fee-generating activities, while the company did not attribute revenue growth specifically to lending segments. Chief Executive Rob Holmes said the results reflect "steady improvement and increasing earnings diversification," supported by a business model designed to withstand market and interest-rate cycles.
Revenue growth came alongside improved profitability from the previous quarter, but not from a year earlier. Net income available to common shareholders was $99.392 million, compared with $80.636 million in the second quarter, but remained below the $100.897 million recorded a year earlier. Diluted earnings per share were $2.28 in the third quarter, compared with $1.83 in the previous quarter and $2.18 a year earlier; adjusted earnings were $2.35 per share, versus $1.88 in the second quarter and $2.18 in the third quarter of 2025. The company recorded a $17.0 million provision for credit losses, which it said resulted mainly from an increase in classified loans and $14.5 million in net charge-offs. That puts the annual decline in net income alongside revenue growth, while the improvement in earnings was clearer on a quarterly basis.
The company attributed the increase in net interest income between the second and third quarters to higher yields on interest-earning assets and lower short- and long-term borrowings, partly offset by higher funding costs. Net interest income was $275.0 million on the company's rounded presentation, compared with $260.4 million in the second quarter. Net interest margin rose to 3.44% from 3.28% in the previous period, in line with improved interest income during the quarter. But the total cost of deposits rose to 2.45%, up 5 basis points from the second quarter. The efficiency ratio was 57.2%, compared with 61.3% in the previous quarter. Fee income, which includes deposit fees, wealth management, investment advisory and trading, reached a record and rose 14% year over year.
On the balance sheet, loans held for investment totaled $18.641 billion on September 30, 2026, compared with $18.134 billion on the same date a year earlier. Total deposits reached $27.716 billion, versus $27.505 billion a year earlier. The common equity Tier 1 capital ratio was 12.2% at the end of September, up from 12.1% at the end of June and matching its level at the end of September 2025. The company said its regulatory capital ratios exceeded the requirements for "well-capitalized" status. These metrics indicate annual increases in loans and deposits, while the common equity Tier 1 capital ratio remained close to its level a year earlier.
The company declared a cash dividend of $0.20 per common share, payable on December 15, 2026, to shareholders of record at the close of business on December 1. The board also authorized a new share repurchase program of up to $200 million, effective October 20 and running through October 31, 2027. The company repurchased 1,051,660 shares during the third quarter at a total cost of $103 million. The two steps follow the announcement of third-quarter results on October 21, the date management also set for an earnings call at 5:00 p.m. Eastern time. The new program authorizes the company to repurchase shares during the specified period, while payment of the dividend to eligible shareholders is set for December.