Third quarter 2025 ROAA of 1.30%

Record-level net income of $105.2 million, record-level net income available to common stockholders

of $100.9 million and record-level diluted earnings per share of $2.18 for the third quarter of 2025

Record-level Book Value and record-level Tangible Book Value⁽²⁾ per share of $73.05 and $73.02, respectively

Growth in capital ratios continues, achieving 12.1% CET1 and 16.1% Total Capital

DALLAS, Oct. 22, 2025 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2025.

"Texas Capital delivered both the strategic and financial outcomes we set in our Strategic Update on September 1, 2021, resulting in the most successful bank transformation in the last 20 years, structurally elevating our earnings power and achieving industry-leading growth in fee income, return on assets and balance sheet resilience," said Rob C. Holmes, Chairman, President & CEO. "As we look ahead, our unwavering commitment to clients and proven execution will continue to position us as the flagship financial services firm in Texas, driving long-term value for all stakeholders."

	3rd Quarter			2nd Quarter			3rd Quarter
(dollars in thousands except per share data)		2025			2025			2024
OPERATING RESULTS
Net income/(loss)	$	105,210		$	77,328		$	(61,319	)
Net income/(loss) available to common stockholders	$	100,897		$	73,016		$	(65,632	)
Pre-provision net revenue⁽³⁾	$	149,779		$	117,188		$	(69,993	)
Diluted earnings/(loss) per common share	$	2.18		$	1.58		$	(1.41	)
Diluted common shares		46,233,167			46,215,394			46,608,742
Return on average assets		1.30	%		0.99	%	(0.78)%
Return on average common equity		12.04	%		9.17	%	(8.87)%

OPERATING RESULTS, ADJUSTED⁽¹⁾
Net income	$	105,210		$	79,841		$	78,654
Net income available to common stockholders	$	100,897		$	75,529		$	74,341
Pre-provision net revenue⁽³⁾	$	149,779		$	120,475		$	114,860
Diluted earnings per common share	$	2.18		$	1.63		$	1.59
Diluted common shares		46,233,167			46,215,394			46,608,742
Return on average assets		1.30	%		1.02	%		1.00	%
Return on average common equity		12.04	%		9.48	%		10.04	%

BALANCE SHEET
Loans held for investment	$	18,134,059		$	18,035,945		$	16,764,512
Loans held for investment, mortgage finance		6,057,804			5,889,589			5,529,659
Total loans held for investment		24,191,863			23,925,534			22,294,171
Loans held for sale		—			—			9,022
Total assets		32,536,980			31,943,535			31,629,299
Non-interest bearing deposits		7,689,598			7,718,006			9,070,804
Total deposits		27,505,398			26,064,309			25,865,255
Stockholders' equity		3,637,098			3,510,070			3,354,044

(1)   These adjusted measures are non-GAAP measures. Please refer to "GAAP to Non-GAAP Reconciliations" for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

(2)   Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.

(3)   Net interest income plus non-interest income, less non-interest expense.

THIRD QUARTER 2025 COMPARED TO SECOND QUARTER 2025

For the third quarter of 2025, net income available to common stockholders was $100.9 million, or $2.18 per diluted share, compared to $73.0 million, or $1.58 per diluted share, for the second quarter of 2025.

Provision for credit losses for the third quarter of 2025 was $12.0 million, compared to $15.0 million for the second quarter of 2025. The $12.0 million provision for credit losses recorded in the third quarter of 2025 resulted primarily from an increase in total loans held for investment ("LHI") and $13.7 million in net charge-offs, partially offset by decreases in criticized loans and non-accrual loans.

Net interest income was $271.8 million for the third quarter of 2025, compared to $253.4 million for the second quarter of 2025, primarily due to increases in average earning assets and earning asset yields and a decrease in average short-term borrowings partially offset by an increase in average interest bearing deposits. Net interest margin for the third quarter of 2025 was 3.47%, an increase of 12 basis points from the second quarter of 2025. LHI, excluding mortgage finance, yields increased 14 basis points from the second quarter of 2025 and LHI, mortgage finance, yields decreased 10 basis points from the second quarter of 2025. Total cost of deposits was 2.62% for the third quarter of 2025, a 3 basis point decrease from the second quarter of 2025.

Non-interest income for the third quarter of 2025 increased $14.5 million compared to the second quarter of 2025 primarily due to the inclusion of a $1.9 million loss on sale of available-for-sale debt securities recognized during the second quarter of 2025 and increases in investment banking and advisory fees and other non-interest income.

Non-interest expense for the third quarter of 2025 increased $299,000 compared to the second quarter of 2025, primarily due to an increase in legal and professional expense partially offset by a decrease in other non-interest expense.

THIRD QUARTER 2025 COMPARED TO THIRD QUARTER 2024

Net income available to common stockholders was $100.9 million, or $2.18 net income per diluted share, for the third quarter of 2025, compared to net loss available to common stockholders of $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024.

The third quarter of 2025 included a $12.0 million provision for credit losses, reflecting an increase in total LHI and $13.7 million in net charge-offs, partially offset by declines in criticized loans and non-accrual loans, compared to a $10.0 million provision for credit losses for the third quarter of 2024.

Net interest income increased to $271.8 million for the third quarter of 2025, compared to $240.1 million for the third quarter of 2024, primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing liabilities. Net interest margin increased 31 basis points to 3.47% for the third quarter of 2025, as compared to the third quarter of 2024. LHI, excluding mortgage finance, yields decreased 31 basis points compared to the third quarter of 2024 and LHI, mortgage finance yields increased 12 basis points from the third quarter of 2024. Total cost of deposits decreased 32 basis points compared to the third quarter of 2024.

Non-interest income for the third quarter of 2025 increased $183.4 million compared to the third quarter of 2024 primarily due to the inclusion of a $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, as well as increases in service charges on deposit accounts, trading income and other non-interest income.

Non-interest expense for the third quarter of 2025 decreased $4.7 million compared to the third quarter of 2024, primarily due to decreases in salaries and benefits, occupancy expense and communications and technology expense, resulting from restructuring expenses recognized in the third quarter of 2024, as well as a decrease in marketing expense, partially offset by an increase in legal and professional expense.

CREDIT QUALITY

Net charge-offs of $13.7 million were recorded during the third quarter of 2025, compared to net charge-offs of $13.0 million and $6.1 million during the second quarter of 2025 and the third quarter of 2024, respectively. Criticized loans totaled $529.7 million at September 30, 2025, compared to $637.5 million at June 30, 2025 and $897.7 million at September 30, 2024. Non-accrual LHI totaled $96.1 million at September 30, 2025, compared to $113.6 million at June 30, 2025 and $89.0 million at September 30, 2024. The ratio of non-accrual LHI to total LHI for the third quarter of 2025 was 0.40%, compared to 0.47% for the second quarter of 2025 and 0.40% for the third quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.37% at September 30, 2025, compared to 1.40% and 1.43% at June 30, 2025 and September 30, 2024, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of "well capitalized" requirements as of September 30, 2025. CET1, tier 1 capital, total capital and leverage ratios were 12.1%, 13.6%, 16.1% and 11.9%, respectively, at September 30, 2025, compared to 11.4%, 12.9%, 15.3% and 11.8%, respectively, at June 30, 2025 and 11.2%, 12.6%, 15.2% and 11.4%, respectively, at September 30, 2024. At September 30, 2025, our ratio of tangible common equity to total tangible assets was 10.3%, compared to 10.1% at June 30, 2025 and 9.7% at September 30, 2024.

During the third quarter of 2025, the Company repurchased 87,087 shares of its common stock for an aggregate purchase price, including excise tax expense, of $7.1 million, at a weighted average price of $80.49 per share.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank ("TCB"). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations, and service terms. Deposit and lending products and services are offered by TCB. Effective September 19, 2025, TCB became a member of the Federal Reserve System. For deposit products, member FDIC. For more information, please visit www.texascapital.com.

Forward Looking Statements

This communication contains "forward-looking statements" within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI's financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as "believes," "projects," "expects," "may," "estimates," "should," "plans," "targets," "intends" "could," "would," "anticipates," "potential," "confident," "optimistic" or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management's expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management's control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; increased or expanded competition from banks and other financial service providers in TCBI's markets; TCBI's ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI's ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI's ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI's ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI's ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI's securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI's risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI's loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
		2025			2025			2025			2024			2024
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	460,615		$	439,567		$	427,289		$	437,571		$	452,533
Interest expense		188,844			186,172			191,255			207,964			212,431
Net interest income		271,771			253,395			236,034			229,607			240,102
Provision for credit losses		12,000			15,000			17,000			18,000			10,000
Net interest income after provision for credit losses		259,771			238,395			219,034			211,607			230,102
Non-interest income		68,583			54,069			44,444			54,074			(114,771	)
Non-interest expense		190,575			190,276			203,020			172,159			195,324
Income/(loss) before income taxes		137,779			102,188			60,458			93,522			(79,993	)
Income tax expense/(benefit)		32,569			24,860			13,411			22,499			(18,674	)
Net income/(loss)		105,210			77,328			47,047			71,023			(61,319	)
Preferred stock dividends		4,313			4,312			4,313			4,312			4,313
Net income/(loss) available to common stockholders	$	100,897		$	73,016		$	42,734		$	66,711		$	(65,632	)
Diluted earnings/(loss) per common share	$	2.18		$	1.58		$	0.92		$	1.43		$	(1.41	)
Diluted common shares		46,233,167			46,215,394			46,616,704			46,770,961			46,608,742
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	32,536,980		$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299
Loans held for investment		18,134,059			18,035,945			17,654,243			17,234,492			16,764,512
Loans held for investment, mortgage finance		6,057,804			5,889,589			4,725,541			5,215,574			5,529,659
Loans held for sale		—			—			—			—			9,022
Interest bearing cash and cash equivalents		2,852,387			2,507,691			3,600,969			3,012,307			3,894,537
Investment securities		4,601,654			4,608,628			4,531,219			4,396,115			4,405,520
Non-interest bearing deposits		7,689,598			7,718,006			7,874,780			7,485,428			9,070,804
Total deposits		27,505,398			26,064,309			26,053,034			25,238,599			25,865,255
Short-term borrowings		275,000			1,250,000			750,000			885,000			1,035,000
Long-term debt		620,416			620,256			660,521			660,346			660,172
Stockholders' equity		3,637,098			3,510,070			3,429,774			3,367,936			3,354,044

End of period shares outstanding		45,679,863			45,746,836			46,024,933			46,233,812			46,207,757
Book value per share	$	73.05		$	70.17		$	68.00		$	66.36		$	66.09
Tangible book value per share⁽¹⁾	$	73.02		$	70.14		$	67.97		$	66.32		$	66.06
SELECTED FINANCIAL RATIOS
Net interest margin		3.47	%		3.35	%		3.19	%		2.93	%		3.16	%
Return on average assets		1.30	%		0.99	%		0.61	%		0.88	%	(0.78)%
Return on average assets, adjusted⁽⁴⁾		1.30	%		1.02	%		0.61	%		0.88	%		1.00	%
Return on average common equity		12.04	%		9.17	%		5.56	%		8.50	%	(8.87)%
Return on average common equity, adjusted⁽⁴⁾		12.04	%		9.48	%		5.56	%		8.50	%		10.04	%
Efficiency ratio⁽²⁾		56.0	%		61.9	%		72.4	%		60.7	%		155.8	%
Efficiency ratio, adjusted⁽²⁾⁽⁴⁾		56.0	%		61.1	%		72.4	%		60.7	%		62.3	%
Non-interest income to average earning assets		0.88	%		0.72	%		0.60	%		0.69	%	(1.52)%
Non-interest income to average earning assets, adjusted⁽⁴⁾		0.88	%		0.74	%		0.60	%		0.69	%		0.86	%
Non-interest expense to average earning assets		2.44	%		2.52	%		2.75	%		2.21	%		2.59	%
Non-interest expense to average earning assets, adjusted⁽⁴⁾		2.44	%		2.50	%		2.75	%		2.21	%		2.52	%
Common equity to total assets		10.3	%		10.1	%		10.0	%		10.0	%		9.7	%
Tangible common equity to total tangible assets⁽³⁾		10.3	%		10.1	%		10.0	%		10.0	%		9.7	%
Common Equity Tier 1		12.1	%		11.4	%		11.6	%		11.4	%		11.2	%
Tier 1 capital		13.6	%		12.9	%		13.1	%		12.8	%		12.6	%
Total capital		16.1	%		15.3	%		15.6	%		15.4	%		15.2	%
Leverage		11.9	%		11.8	%		11.8	%		11.3	%		11.4	%

(1) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.

(2) Non-interest expense divided by the sum of net interest income and non-interest income.

(3) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.

(4) These adjusted measures are non-GAAP measures. Please refer to "GAAP to Non-GAAP Reconciliations" for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Assets
Cash and due from banks	$	212,438		$	182,451		$	201,504		$	176,501		$	297,048
Interest bearing cash and cash equivalents		2,852,387			2,507,691			3,600,969			3,012,307			3,894,537
Available-for-sale debt securities		3,801,261			3,774,141			3,678,378			3,524,686			3,518,662
Held-to-maturity debt securities		743,120			761,907			779,354			796,168			812,432
Equity securities		55,054			68,692			71,679			75,261			74,426
Trading securities		2,219			3,888			1,808			—			—
Investment securities		4,601,654			4,608,628			4,531,219			4,396,115			4,405,520
Loans held for sale		—			—			—			—			9,022
Loans held for investment, mortgage finance		6,057,804			5,889,589			4,725,541			5,215,574			5,529,659
Loans held for investment		18,134,059			18,035,945			17,654,243			17,234,492			16,764,512
Less: Allowance for credit losses on loans		274,026			277,648			278,379			271,709			273,143
Loans held for investment, net		23,917,837			23,647,886			22,101,405			22,178,357			22,021,028
Premises and equipment, net		88,348			86,831			84,575			85,443			81,577
Accrued interest receivable and other assets		862,820			908,552			854,581			881,664			919,071
Goodwill and intangibles, net		1,496			1,496			1,496			1,496			1,496
Total assets	$	32,536,980		$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299

Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits	$	7,689,598		$	7,718,006		$	7,874,780		$	7,485,428		$	9,070,804
Interest bearing deposits		19,815,800			18,346,303			18,178,254			17,753,171			16,794,451
Total deposits		27,505,398			26,064,309			26,053,034			25,238,599			25,865,255
Accrued interest payable		9,360			14,120			25,270			23,680			18,679
Other liabilities		489,708			484,780			457,150			556,322			696,149
Short-term borrowings		275,000			1,250,000			750,000			885,000			1,035,000
Long-term debt		620,416			620,256			660,521			660,346			660,172
Total liabilities		28,899,882			28,433,465			27,945,975			27,363,947			28,275,255

Stockholders' equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares⁽¹⁾		300,000			300,000			300,000			300,000			300,000
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares⁽²⁾		518			517			517			515			515
Additional paid-in capital		1,069,582			1,065,083			1,060,028			1,056,719			1,054,614
Retained earnings		2,712,298			2,611,401			2,538,385			2,495,651			2,428,940
Treasury stock⁽³⁾		(361,076	)		(354,000	)		(332,994	)		(301,842	)		(301,868	)
Accumulated other comprehensive loss, net of taxes		(84,224	)		(112,931	)		(136,162	)		(183,107	)		(128,157	)
Total stockholders' equity		3,637,098			3,510,070			3,429,774			3,367,936			3,354,044
Total liabilities and stockholders' equity	$	32,536,980		$	31,943,535		$	31,375,749		$	30,731,883		$	31,629,299

⁽¹⁾Preferred stock - issued shares		300,000			300,000			300,000			300,000			300,000
⁽²⁾Common stock - issued shares		51,767,419			51,747,305			51,707,542			51,520,315			51,494,260
⁽³⁾Treasury stock - shares at cost		6,087,556			6,000,469			5,682,609			5,286,503			5,286,503

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)

	3rd Quarter 2025		2nd Quarter 2025			1st Quarter 2025		4th Quarter 2024		3rd Quarter 2024			3rd Quarter YTD 2025			3rd Quarter YTD 2024
Interest income
Interest and fees on loans	$	379,017	$	364,358		$	334,150	$	340,388	$	361,407		$	1,077,525		$	1,037,537
Investment securities		49,396		45,991			46,565		44,102		38,389			141,952			104,117
Interest bearing cash and cash equivalents		32,202		29,218			46,574		53,081		52,737			107,994			150,325
Total interest income		460,615		439,567			427,289		437,571		452,533			1,327,471			1,291,979
Interest expense
Deposits		180,779		174,798			174,936		189,061		190,255			530,513			547,135
Short-term borrowings		534		3,444			8,246		10,678		13,784			12,224			39,316
Long-term debt		7,531		7,930			8,073		8,225		8,392			23,534			33,835
Total interest expense		188,844		186,172			191,255		207,964		212,431			566,271			620,286
Net interest income		271,771		253,395			236,034		229,607		240,102			761,200			671,693
Provision for credit losses		12,000		15,000			17,000		18,000		10,000			44,000			49,000
Net interest income after provision for credit losses		259,771		238,395			219,034		211,607		230,102			717,200			622,693
Non-interest income
Service charges on deposit accounts		8,111		8,182			7,840		6,989		6,307			24,133			18,557
Wealth management and trust fee income		3,989		3,730			3,964		4,009		4,040			11,683			11,306
Brokered loan fees		2,419		2,398			1,949		2,519		2,400			6,766			6,442
Investment banking and advisory fees		33,985		24,109			16,478		26,740		34,753			74,572			78,225
Trading income		7,238		7,896			5,939		5,487		5,786			21,073			16,148
Available-for-sale debt securities losses		—		(1,886	)		—		—		(179,581	)		(1,886	)		(179,581	)
Other		12,841		9,640			8,274		8,330		11,524			30,755			25,875
Total non-interest income		68,583		54,069			44,444		54,074		(114,771	)		167,096			(23,028	)
Non-interest expense
Salaries and benefits		119,856		120,154			131,641		97,873		121,138			371,651			368,705
Occupancy expense		11,828		12,144			10,844		11,926		12,937			34,816			33,340
Marketing		3,412		3,624			5,009		4,454		5,863			12,045			17,895
Legal and professional		12,474		11,069			14,989		15,180		11,135			38,532			38,603
Communications and technology		24,594		24,314			23,642		24,007		25,951			72,550			69,078
Federal Deposit Insurance Corporation insurance assessment		5,198		5,096			5,341		4,454		4,906			15,635			18,897
Other		13,213		13,875			11,554		14,265		13,394			38,642			39,608
Total non-interest expense		190,575		190,276			203,020		172,159		195,324			583,871			586,126
Income/(loss) before income taxes		137,779		102,188			60,458		93,522		(79,993	)		300,425			13,539
Income tax expense/(benefit)		32,569		24,860			13,411		22,499		(18,674	)		70,840			7,054
Net income/(loss)		105,210		77,328			47,047		71,023		(61,319	)		229,585			6,485
Preferred stock dividends		4,313		4,312			4,313		4,312		4,313			12,938			12,938
Net income/(loss) available to common stockholders	$	100,897	$	73,016		$	42,734	$	66,711	$	(65,632	)	$	216,647		$	(6,453	)

Basic earnings/(loss) per common share	$	2.21	$	1.59		$	0.93	$	1.44	$	(1.42	)	$	4.72		$	(0.14	)
Diluted earnings/(loss) per common share	$	2.18	$	1.58		$	0.92	$	1.43	$	(1.41	)	$	4.67		$	(0.14	)

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
		2025			2025			2025			2024			2024
Allowance for credit losses on loans:
Beginning balance	$	277,648		$	278,379		$	271,709		$	273,143		$	267,297
Allowance established for acquired purchase credit deterioration loans		—			—			—			—			2,579
Loans charged-off:
Commercial		13,794			13,020			10,197			14,100			6,120
Commercial real estate		—			431			500			2,566			262
Consumer		—			—			—			—			30
Total charge-offs		13,794			13,451			10,697			16,666			6,412
Recoveries:
Commercial		50			486			483			4,562			329
Commercial real estate		—			—			413			18			—
Consumer		4			—			4			15			—
Total recoveries		54			486			900			4,595			329
Net charge-offs		13,740			12,965			9,797			12,071			6,083
Provision for credit losses on loans		10,118			12,234			16,467			10,637			9,350
Ending balance	$	274,026		$	277,648		$	278,379		$	271,709		$	273,143

Allowance for off-balance sheet credit losses:
Beginning balance	$	56,631		$	53,865		$	53,332		$	45,969		$	45,319
Provision for off-balance sheet credit losses		1,882			2,766			533			7,363			650
Ending balance	$	58,513		$	56,631		$	53,865		$	53,332		$	45,969

Total allowance for credit losses	$	332,539		$	334,279		$	332,244		$	325,041		$	319,112
Total provision for credit losses	$	12,000		$	15,000		$	17,000		$	18,000		$	10,000

Allowance for credit losses on loans to total loans held for investment		1.13	%		1.16	%		1.24	%		1.21	%		1.23	%
Allowance for credit losses on loans to average total loans held for investment		1.15	%		1.19	%		1.29	%		1.22	%		1.24	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.23	%		0.22	%		0.18	%		0.22	%		0.11	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.21	%		0.18	%		0.18	%		0.19	%		0.20	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.20	%		0.26	%		0.32	%		0.32	%		0.18	%
Total allowance for credit losses to total loans held for investment		1.37	%		1.40	%		1.48	%		1.45	%		1.43	%

(1) Interim period ratios are annualized.

TEXAS CAPITAL BANCSHARES, INC.
NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
		2025			2025			2025			2024			2024
NON-PERFORMING ASSETS
Non-accrual loans held for investment	$	96,084		$	113,609		$	93,565		$	111,165		$	88,960
Non-accrual loans held for sale		—			—			—			—			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	96,084		$	113,609		$	93,565		$	111,165		$	88,960

Non-accrual loans held for investment to total loans held for investment		0.40	%		0.47	%		0.42	%		0.50	%		0.40	%
Total non-performing assets to total assets		0.30	%		0.36	%		0.30	%		0.36	%		0.28	%
Allowance for credit losses on loans to non-accrual loans held for investment	2.9x			2.4x			3.0x			2.4x			3.1x
Total allowance for credit losses to non-accrual loans held for investment	3.5x			2.9x			3.6x			2.9x			3.6x

LOANS PAST DUE
Loans held for investment past due 90 days and still accruing	$	126		$	2,068		$	791		$	4,265		$	5,281
Loans held for investment past due 90 days to total loans held for investment		—	%		0.01	%		—	%		0.02	%		0.02	%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	—		$	—

CRITICIZED LOANS
Criticized loans	$	529,732		$	637,462		$	762,887		$	713,951		$	897,727
Criticized loans to total loans held for investment		2.19	%		2.66	%		3.41	%		3.18	%		4.03	%
Special mention loans	$	249,592		$	339,923		$	484,165		$	435,626		$	579,802
Special mention loans to total loans held for investment		1.03	%		1.42	%		2.16	%		1.94	%		2.60	%

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	3rd Quarter 2025						2nd Quarter 2025						3rd Quarter 2024						YTD September 30, 2025						YTD September 30, 2024
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities⁽²⁾	$	4,635,066	$	49,401	4.14	%	$	4,573,164	$	45,999	3.93	%	$	4,314,834	$	38,389	3.34	%	$	4,557,996	$	141,965	4.05	%	$	4,346,957	$	104,117	2.97	%
Interest bearing cash and cash equivalents		2,920,102		32,202	4.38	%		2,661,037		29,218	4.40	%		3,958,843		52,737	5.30	%		3,274,086		107,994	4.41	%		3,761,901		150,325	5.34	%
Loans held for sale		—		—	—	%		—		—	—	%		23,793		565	9.44	%		110		2	2.97	%		34,536		2,432	9.41	%
Loans held for investment, mortgage finance		5,472,467		59,604	4.32	%		5,327,559		58,707	4.42	%		5,152,317		54,371	4.20	%		4,929,539		156,838	4.25	%		4,345,393		128,548	3.95	%
Loans held for investment⁽³⁾		18,253,451		319,921	6.95	%		18,018,626		306,142	6.81	%		16,792,446		306,541	7.26	%		17,935,710		922,154	6.87	%		16,688,820		906,757	7.26	%
Less: Allowance for credit losses on loans		277,385		—	—	%		278,035		—	—			266,915		—	—	%		276,076		—	—			260,024		—	—
Loans held for investment, net		23,448,533		379,525	6.42	%		23,068,150		364,849	6.34	%		21,677,848		360,912	6.62	%		22,589,173		1,078,992	6.39	%		20,774,189		1,035,305	6.66	%
Total earning assets		31,003,701		461,128	5.88	%		30,302,351		440,066	5.80	%		29,975,318		452,603	5.96	%		30,421,365		1,328,953	5.82	%		28,917,583		1,292,179	5.90	%
Cash and other assets		1,159,008						1,117,118						1,239,855						1,144,443						1,158,758
Total assets	$	32,162,709					$	31,419,469					$	31,215,173					$	31,565,808					$	30,076,341

Liabilities and Stockholders' Equity
Transaction deposits	$	2,251,217	$	13,987	2.46	%	$	2,213,037	$	13,731	2.49	%	$	1,988,688	$	15,972	3.20	%	$	2,209,490	$	41,626	2.52	%	$	2,018,824	$	49,812	3.30	%
Savings deposits		14,650,152		143,327	3.88	%		13,727,095		134,272	3.92	%		12,240,616		147,770	4.80	%		13,916,232		411,176	3.95	%		11,878,646		427,733	4.81	%
Time deposits		2,158,228		23,465	4.31	%		2,361,525		26,795	4.55	%		2,070,537		26,513	5.09	%		2,282,419		77,711	4.55	%		1,817,182		69,590	5.12	%
Total interest bearing deposits		19,059,597		180,779	3.76	%		18,301,657		174,798	3.83	%		16,299,841		190,255	4.64	%		18,408,141		530,513	3.85	%		15,714,652		547,135	4.65	%
Short-term borrowings		44,022		534	4.82	%		306,176		3,444	4.51	%		1,012,608		13,784	5.42	%		364,641		12,224	4.48	%		950,876		39,316	5.52	%
Long-term debt		620,348		7,531	4.82	%		649,469		7,930	4.90	%		660,098		8,392	5.06	%		643,274		23,534	4.89	%		765,616		33,835	5.90	%
Total interest bearing liabilities		19,723,967		188,844	3.80	%		19,257,302		186,172	3.88	%		17,972,547		212,431	4.70	%		19,416,056		566,271	3.90	%		17,431,144		620,286	4.75	%
Non-interest bearing deposits		8,351,524						8,191,402						9,439,020						8,141,135						8,910,067
Other liabilities		463,034						475,724						558,368						496,644						535,221
Stockholders' equity		3,624,184						3,495,041						3,245,238						3,511,973						3,199,909
Total liabilities and stockholders' equity	$	32,162,709					$	31,419,469					$	31,215,173					$	31,565,808					$	30,076,341
Net interest income			$	272,284					$	253,894					$	240,172					$	762,682					$	671,893
Net interest margin					3.47	%					3.35	%					3.16	%					3.34	%					3.07	%

(1)   Taxable equivalent rates used where applicable.

(2)   Yields on investment securities are calculated using available-for-sale securities at amortized cost.

(3)   Average balances include non-accrual loans.

GAAP TO NON-GAAP RECONCILIATIONS

The following items are non-GAAP financial measures: adjusted non-interest income, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue ("PPNR"), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures.

These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands except per share data)	3rd Quarter 2025			2nd Quarter 2025			1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024
Net interest income	$	271,771		$	253,395		$	236,034		$	229,607		$	240,102

Non-interest income		68,583			54,069			44,444			54,074			(114,771	)
Available-for-sale debt securities losses, net		—			1,886			—			—			179,581
Non-interest income, adjusted		68,583			55,955			44,444			54,074			64,810

Non-interest expense		190,575			190,276			203,020			172,159			195,324
FDIC special assessment		—			—			—			—			651
Restructuring expenses		—			(1,401	)		—			—			(5,923	)
Non-interest expense, adjusted		190,575			188,875			203,020			172,159			190,052

Provision for credit losses		12,000			15,000			17,000			18,000			10,000

Income tax expense/(benefit)		32,569			24,860			13,411			22,499			(18,674	)
Tax effect of adjustments		—			774			—			—			44,880
Income tax expense/(benefit), adjusted		32,569			25,634			13,411			22,499			26,206

Net income/(loss)⁽¹⁾	$	105,210		$	77,328		$	47,047		$	71,023		$	(61,319	)
Net income/(loss), adjusted⁽¹⁾	$	105,210		$	79,841		$	47,047		$	71,023		$	78,654

Preferred stock dividends		4,313			4,312			4,313			4,312			4,313

Net income/(loss) to common stockholders⁽²⁾	$	100,897		$	73,016		$	42,734		$	66,711		$	(65,632	)
Net income/(loss) to common stockholders, adjusted⁽²⁾	$	100,897		$	75,529		$	42,734		$	66,711		$	74,341

PPNR⁽³⁾	$	149,779		$	117,188		$	77,458		$	111,522		$	(69,993	)
PPNR⁽³⁾, adjusted	$	149,779		$	120,475		$	77,458		$	111,522		$	114,860

Weighted average common shares outstanding, diluted		46,233,167			46,215,394			46,616,704			46,770,961			46,608,742
Diluted earnings/(loss) per common share	$	2.18		$	1.58		$	0.92		$	1.43		$	(1.41	)
Diluted earnings/(loss) per common share, adjusted	$	2.18		$	1.63		$	0.92		$	1.43		$	1.59

Average total assets	$	32,162,709		$	31,419,469		$	31,103,609		$	32,212,087		$	31,215,173
Return on average assets		1.30	%		0.99	%		0.61	%		0.88	%	(0.78)%
Return on average assets, adjusted		1.30	%		1.02	%		0.61	%		0.88	%		1.00	%

Average common equity	$	3,324,184		$	3,195,041		$	3,114,389		$	3,120,933		$	2,945,238
Return on average common equity		12.04	%		9.17	%		5.56	%		8.50	%	(8.87)%
Return on average common equity, adjusted		12.04	%		9.48	%		5.56	%		8.50	%		10.04	%

Efficiency ratio⁽⁴⁾		56.0	%		61.9	%		72.4	%		60.7	%		155.8	%
Efficiency ratio, adjusted⁽⁴⁾		56.0	%		61.1	%		72.4	%		60.7	%		62.3	%

Average earning assets	$	31,003,701		$	30,302,351		$	29,946,425		$	31,033,803		$	29,975,318
Non-interest income to average earning assets		0.88	%		0.72	%		0.60	%		0.69	%	(1.52)%
Non-interest income to average earning assets, adjusted		0.88	%		0.74	%		0.60	%		0.69	%		0.86	%
Non-interest expense to average earning assets		2.44	%		2.52	%		2.75	%		2.21	%		2.59	%
Non-interest expense to average earning assets, adjusted		2.44	%		2.50	%		2.75	%		2.21	%		2.52	%

(1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.

(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.

(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.

(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted.

INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapital.com

MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapital.com

Texas Capital Bancshares, Inc. Announces Third Quarter 2025 Results