Texas Capital Bancshares (TCBI) Q1 2026 earnings summary

Executive summary

• Net income to common shareholders rose 63% year-over-year to $69.5 million, with diluted EPS of $1.56, and adjusted EPS up 72% to $1.58; tangible book value per share reached a record $75.67, up 11% year-over-year.

• Fee income from focus areas, including investment banking, treasury, and wealth, surged 59% year-over-year to $58.8 million, driven by record results in these segments.

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

• Announced key executive leadership changes and initiated the first-ever quarterly common stock dividend of $0.20 per share, payable June 15, 2026.

• Repurchased $75 million in shares during the quarter.

Financial highlights

• Adjusted quarterly EPS rose 72% year-over-year to $1.58; reported EPS up 70% to $1.56.

• Total revenue increased 16% year-over-year to $324 million, driven by 8% net interest income growth and 56% non-interest revenue growth.

• Net interest income increased to $254.7 million from $236.0 million year-over-year, with net interest margin rising to 3.43%.

• Non-interest income rose $24.8 million year-over-year, driven by higher service charges, investment banking, and trading income.

• Pre-provision net revenue increased 43% year-over-year to $110.4 million; adjusted PPNR up 44%.

Outlook and guidance

• Full-year 2026 outlook unchanged: total revenue growth in mid-to-high single digits, non-interest revenue expected at $265M-$290M, 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 $260M-$265M, margin of 3.35%-3.40%, non-interest income of $65M-$70M.

• Tax rate for 2026 is expected to be approximately 25%.

• CET1 ratio guidance remains above 11%.