Texas Capital Bancshares, Inc. TCBI reported first-quarter 2026 adjusted earnings per share (EPS) of $1.58, which surpassed the Zacks Consensus Estimate of $1.42. The figure also compared favorably with 92 cents per share in the year-ago quarter.
TCBI’s results benefited from higher net interest income (NII) and non-interest income, along with solid loans and deposits balance. However, results were impacted by higher expenses and elevated credit costs.
Results exclude certain items. After considering this, net income available to common shareholders (GAAP basis) was $69.5 million, up 62.6% from $42.7 million reported in the year-ago quarter.
Total quarterly revenues increased 15.5% year over year to $324 million. Also, the top line surpassed the Zacks Consensus Estimate by 1.4%.
NII was $254.7 million, which rose 7.9% year over year. The increase was mainly driven by growth in average earning assets and a decline in funding costs.
Net interest margin (“NIM”) expanded 24 basis points year over year to 3.43%.
Non-interest income increased 55.9% year over year to $69.3 million. The rise was primarily driven by higher service charges on deposit accounts, wealth management and trust fee income, brokered loan fees, trading income, investment banking and advisory fee income and other income.
Non-interest expenses rose 5.2% year over year to $213.6 million. The increase was mainly due to higher salaries and benefits, occupancy expense, communications and technology expenses, and other non-interest expenses, partially offset by lower legal and professional expenses, marketing expenses and FDIC insurance assessment expense.
As of March 31, 2026, loans held for investment totaled $18.2 billion compared with $17.9 billion as of Dec. 31, 2025. Total deposits were $28.5 billion, up from $26.4 billion in the prior quarter.
Net charge-offs were $17.4 million in the first quarter of 2026, up from $9.8 million in the year-ago quarter.
Provision for credit losses aggregated to $16.0 million, down from $17.0 million in the first quarter of 2025.
Total non-performing assets rose to $166.3 million from $93.6 million in the year-ago quarter. The ratio of non-accrual loans held for investment to total loans held for investment was 0.58% compared with 0.42% in the first quarter of 2025.
As of March 31, 2026, the common equity tier 1 (CET1) ratio was 12%, up from 11.6% in the year-ago quarter.
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