Texas Capital Bancshares, Inc. Announces Third Quarter 2025 Results

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 Quarter2nd Quarter1st Quarter4th Quarter3rd 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,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Assets 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
20252nd Quarter
20251st Quarter
20254th Quarter
20243rd Quarter
2024 3rd Quarter YTD 20253rd Quarter YTD 2024Interest 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 Quarter2nd Quarter1st Quarter4th Quarter3rd 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 Quarter2nd Quarter1st Quarter4th Quarter3rd 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 investment2.9x2.4x3.0x2.4x3.1xTotal allowance for credit losses to non-accrual loans held for investment3.5x2.9x3.6x2.9x3.6x 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
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
Rate Average
BalanceIncome/
ExpenseYield/
RateAssets Investment securities(2)$4,635,066$49,4014.14% $4,573,164$45,9993.93% $4,314,834$38,3893.34% $4,557,996$141,9654.05% $4,346,957$104,1172.97%Interest bearing cash and cash equivalents 2,920,102 32,2024.38% 2,661,037 29,2184.40% 3,958,843 52,7375.30% 3,274,086 107,9944.41% 3,761,901 150,3255.34%Loans held for sale — ——% — ——% 23,793 5659.44% 110 22.97% 34,536 2,4329.41%Loans held for investment, mortgage finance 5,472,467 59,6044.32% 5,327,559 58,7074.42% 5,152,317 54,3714.20% 4,929,539 156,8384.25% 4,345,393 128,5483.95%Loans held for investment(3) 18,253,451 319,9216.95% 18,018,626 306,1426.81% 16,792,446 306,5417.26% 17,935,710 922,1546.87% 16,688,820 906,7577.26%Less: Allowance for credit losses on loans 277,385 ——% 278,035 —— 266,915 ——% 276,076 —— 260,024 —— Loans held for investment, net 23,448,533 379,5256.42% 23,068,150 364,8496.34% 21,677,848 360,9126.62% 22,589,173 1,078,9926.39% 20,774,189 1,035,3056.66%Total earning assets 31,003,701 461,1285.88% 30,302,351 440,0665.80% 29,975,318 452,6035.96% 30,421,365 1,328,9535.82% 28,917,583 1,292,1795.90%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$13,9872.46% $2,213,037$13,7312.49% $1,988,688$15,9723.20% $2,209,490$41,6262.52% $2,018,824$49,8123.30%Savings deposits 14,650,152 143,3273.88% 13,727,095 134,2723.92% 12,240,616 147,7704.80% 13,916,232 411,1763.95% 11,878,646 427,7334.81%Time deposits 2,158,228 23,4654.31% 2,361,525 26,7954.55% 2,070,537 26,5135.09% 2,282,419 77,7114.55% 1,817,182 69,5905.12%Total interest bearing deposits 19,059,597 180,7793.76% 18,301,657 174,7983.83% 16,299,841 190,2554.64% 18,408,141 530,5133.85% 15,714,652 547,1354.65%Short-term borrowings 44,022 5344.82% 306,176 3,4444.51% 1,012,608 13,7845.42% 364,641 12,2244.48% 950,876 39,3165.52%Long-term debt 620,348 7,5314.82% 649,469 7,9304.90% 660,098 8,3925.06% 643,274 23,5344.89% 765,616 33,8355.90%Total interest bearing liabilities 19,723,967 188,8443.80% 19,257,302 186,1723.88% 17,972,547 212,4314.70% 19,416,056 566,2713.90% 17,431,144 620,2864.75%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
20252nd Quarter
20251st Quarter
20254th Quarter
20243rd Quarter
2024Net 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.