TCBI earnings analysis
What we found in TCBI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Texas Capital delivered stronger Q2 earnings, with $335.495 million of revenue up 9.1% year over year and GAAP diluted EPS of $1.83 up from $1.58. Growth was led by record $75.118 million non-interest income and higher net interest income, while the efficiency ratio improved 60 basis points to 61.3%. Offsetting the operational progress, margin declined 7 basis points year over year, credit costs rose, criticized loans reached $696.326 million, and the funding mix became more reliant on brokered deposits.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 9.1% year over year
- Total revenue, calculated as net interest income plus non-interest income, was $335.495 million, up $28.031 million (9.1%) from $307.464 million a year earlier. It also increased $11.510 million from an implied $323.985 million in Q1 2026 based on the six-month disclosed totals.
- GAAP EPS increased 15.8% year over year
- GAAP diluted EPS rose to $1.83 from $1.58 in Q2 2025, while net income increased $7.620 million to $84.948 million. Six-month diluted EPS increased to $3.39 from $2.49.
- Fee income was the primary growth driver
- Non-interest income climbed $21.049 million to a record $75.118 million. Investment-banking and advisory fees rose $7.413 million to $31.522 million, and trading income rose $3.417 million to $11.313 million.
- NII growth and modest efficiency improvement
- Net interest income increased $6.982 million to $260.377 million, supported by a $1.6 billion rise in average earning assets and lower funding costs. The efficiency ratio improved to 61.3% from 61.9%.
- Commercial and mortgage finance drove loan growth
- Loans held for investment grew $907.024 million from year-end to $24.947 billion, led by commercial loans, up $842.658 million to $13.006 billion, and mortgage finance, up $319.362 million to $6.383 billion. Commercial real-estate loans declined $250.337 million to $5.128 billion.
- Cash liquidity strengthened and capital returned
- Liquidity increased materially: interest-bearing cash and equivalents rose $1.591 billion to $3.489 billion, or 12.1% of total deposits, from 7.2% at December 31, 2025. The company also repurchased $98.7 million of stock during the first half, leaving $102.044 million authorized.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Credit losses and criticized loans increased
- Credit costs remain elevated: Q2 provision for credit losses was $18.000 million versus $15.000 million a year ago, while six-month net charge-offs rose to $33.441 million from $22.762 million. Criticized loans increased to $696.326 million from $634.9 million at year-end.
- Margin remains exposed to lower rates
- Net interest margin contracted to 3.28% from 3.35% a year earlier as earning-asset yield fell to 5.54% from 5.80%. Management's rate simulation indicates a 200-basis-point rate decline would reduce annualized net interest income by 10.8%.
- Funding mix shifted toward brokered deposits
- Deposit growth was heavily brokered: brokered deposits increased to $3.355 billion, or 11.6% of deposits, from $729.172 million, or 2.8%, at year-end. Short-term FHLB borrowings also increased to $350.000 million from $300.000 million.
- No formal risk-factor update; downside sensitivity remains
- The 10-Q reports no material changes to risk factors from the 2025 Form 10-K; however, management's severe-downside allowance sensitivity is approximately $91.4 million before qualitative overlays, underscoring macro-credit uncertainty.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.83
- Segment
- Net interest income: $260.377 million in Q2 2026 versus $253.395 million in Q2 2025.
- Segment
- Non-interest income: $75.118 million in Q2 2026 versus $54.069 million in Q2 2025.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states that Q2 2026 operating results are not necessarily indicative of results for the year ending December 31, 2026 or future periods.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 23, 2026
- Texas Capital reported Q1 results with revenue of $323,985,000 and diluted EPS of $1.56, both above prior-year levels. Net interest income strengthened to $254,719,000 and non-interest income rose to $69,266,000, but…
- 10-Q · April 17, 2025
- Texas Capital reported strong operating profitability in Q1 2025 with net income of $47,047,000 and diluted EPS of $0.92 (vs $26,142,000 and $0.46 in Q1 2024). Revenue (net interest income + non-interest income) was…
- 10-K · February 11, 2025
- Texas Capital (TCBI) emphasizes a Texas‑centric commercial banking strategy supplemented by mortgage finance, homebuilder finance, corporate & investment banking and Bask Bank to diversify geographic concentration. The…
- 10-Q · October 17, 2024
- Texas Capital reported a Q3 2024 net loss of $61,319,000 (diluted loss per share $1.41) versus net income of $61,679,000 (EPS $1.18) in Q3 2023. Net interest income rose modestly to $240,102,000 (up $8,031,000 or 3.5%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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