Texas Capital Bancshares Q2 2026 Earnings Call: Complete Transcript

On Wednesday, Texas Capital Bancshares (NASDAQ: TCBI ) discussed second-quarter financial results during its earnings call.

The full transcript is provided below.

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View the webcast at Summary Texas Capital Bancshares reported a 15% year-over-year increase in adjusted earnings per share, reaching $1.88, driven by record fee income in wealth management, treasury product fees, and investment banking.

Noninterest income rose 39% year over year to $75.1 million, accounting for 22% of total revenue, up from 18% a year ago, with significant contributions from investment banking and treasury services.

The company repurchased approximately $24 million of common shares and declared its inaugural common stock cash dividend, reflecting confidence in its financial strength and future earnings momentum.

Tangible book value per share increased 10% year over year to $76.98, marking the ninth consecutive quarterly record for this metric.

Commercial loans grew 10% year over year, with a notable 4% linked-quarter increase, while commercial real estate loans decreased due to high payoff rates.

Total deposits increased 11% year over year, with commercial non-interest-bearing deposits rising 18% since Q3 2025.

The company maintains a strong capital position with a CET1 ratio of 12.07%, and repaid $375 million of subordinated debt during the quarter.

For the full year 2026, Texas Capital Bancshares expects total revenue growth in the mid- to high-single-digit range, with non-interest revenue reaching $270 to $290 million.

The appointment of Mo Jamis as Chief Digital and Information Officer aims to further strengthen the company's technology strategy and platform innovation.

Full Transcript Jocelyn Kakulka, Head of Investor Relations Good afternoon and thank you for joining us for TCBI's second quarter 2026 earnings conference call.

I'm Jocelyn Kakulka, Head of Investor Relations.

Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events.

Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements.

Our forward-looking statements are as of the date of this call and we do not assume any obligation to update or revise them.

Today's presentation will include certain non-GAAP measures, including but not limited to adjusted operating metrics, adjusted earnings per share, and return on capital.

For reconciliation of these and other non-GAAP measures to the corresponding GAAP measures, please refer to the earnings press release and our website.

Statements made on this call should be considered together with the cautionary statements and other information contained in today's earnings release, our most recent annual report on Form 10-K, and subsequent filings with the SEC.

We will refer to slides during today's presentation, which can be found along with the press release in the Investor Relations section of our website at texascapital.com.

Our speakers for the call today are Rob C.

Holmes, Texas Capital Chairman, President & Chief Executive Officer, and Matt Scurlock, Chief Financial Officer.

At the conclusion of our prepared remarks, the operator will open up the call for Q&A.

I'll now turn the call over to Rob for opening remarks.

Rob C.

Holmes, Texas Capital Chairman, President & Chief Executive Officer Thank you for joining us today.

Texas Capital Bancshares continues to deliver at a high level on behalf of our clients, with quarterly results once again pointing to strong and improving financial outcomes that come from consistent and focused execution of our differentiated strategy, delivered by a talented group of employees across the entire firm.

As you have heard us communicate in the past about the power of aligning the people on our platform to our strategic goals, I wanted to mention the recent appointment of Mo Jamis as Chief Digital and Information Officer.

Mo joined Texas Capital Bancshares in early July and brings more than two decades of experience leading large-scale technology organizations across the financial services industry.

He will be instrumental in further strengthening our platform, driving innovation, and advancing our technology strategy.

Mo reports to me and serves as a member of the Operating Council.

Now turning to financial outcomes, quarterly adjusted earnings per share increased 15% versus the prior-year period to $1.88 per share, as record fee income in wealth management, treasury product fees, and investment banking, coupled with the strongest C&I loan growth quarter since the second quarter of last year, supported an 8% increase in adjusted total revenue.

Noninterest income increased $21 million, or 39% year over year, to $75.1 million, representing approximately 22% of total revenue compared to 18% a year ago, while fee income from areas of focus increased 28% year over year, reaching $60.5 million in the quarter, a record for the firm.

Advisory, sales and trading, wealth, and treasury services each exhibited meaningful momentum this quarter as our front line continues to effectively earn and deepen target relationships through high-quality execution supported by a maturing product platform.