Key Takeaways TCBI approved a new $200M buyback program effective Dec. 12, 2025, through Dec. 31, 2026.The plan replaces the prior $200M authorization, with 2M shares repurchased for $164M.Solid capital and liquidity levels support TCBI's ability to sustain repurchase activity.Texas Capital Bancshares, Inc.’s (TCBI) board of directors has approved a new $200 million share repurchase program. The authorization should be effective from Dec. 12, 2025, and will remain in place through Dec. 31, 2026.Repurchases ...

Core Viewpoint - Texas Capital Bancshares reported strong third-quarter earnings, surpassing expectations and showing significant year-over-year improvements in net income and revenues, driven by increased net interest income and a decline in expenses [2][3][4]. Financial Performance - Earnings per share for Q3 2025 reached $2.18, exceeding the Zacks Consensus Estimate of $1.77 and up from $1.59 in the same quarter last year [2]. - Net income available to common shareholders was a record $100.9 million, compared to a net loss of $65.6 million in the prior-year quarter [3]. - Total quarterly revenues increased by 11.6% year over year to $340.4 million, surpassing the Zacks Consensus Estimate by 4.7% [4]. Revenue Breakdown - Net interest income (NII) was $271.8 million, reflecting a 13.2% year-over-year increase, primarily due to higher average earning assets and lower funding costs [4]. - Non-interest income rose by 5.8% year over year to $68.6 million, driven by increased service charges and trading income [5]. Expense Management - Non-interest expenses decreased by 2.4% year over year to $190.6 million, attributed to reductions in salaries, occupancy, and marketing expenses [6]. Loan and Deposit Growth - Total average loans held for investment increased by 1.1% sequentially to $24.2 billion, while total deposits rose by 5.5% sequentially to $27.5 billion [7]. Credit Quality - Total non-performing assets increased by 8% to $96.1 million from the prior-year quarter, with provisions for credit losses declining by 20% to $12 million [8]. Capital Ratios - Tangible common equity to total tangible assets improved to 10.3% from 9.7% in the year-ago quarter [9]. - The leverage ratio was 11.9%, up from 11.4% a year earlier, and the common equity tier one ratio rose to 12.1% from 11.2% [10]. Future Outlook - The company anticipates low-double-digit percentage growth in total adjusted revenues for 2025, with adjusted non-interest revenues expected to be $270 million [11]. - Management expects fee income to range between $230-$235 million in 2025, with a significant contribution from investment banking [11][13]. - The bank aims to increase non-interest income's contribution to total revenues from 11% in 2020 to 15-20% by 2025 [14]. Industry Comparison - Texas Capital operates within the Zacks Banks - Southwest industry, where BOK Financial reported revenues of $548.35 million, reflecting a year-over-year increase of 6.2% [21].

Core Points - The Texas Capital Funds Trust Board has authorized the orderly liquidation of the Texas Capital Texas Small Cap Equity Index ETF (TXSS) due to considerations of the Fund's size, asset composition, and growth trajectory, determining it is in the best interest of the Fund and its shareholders [1] - The last trading day for TXSS shares on NASDAQ will be December 8, 2025, with operations ceasing and assets liquidating by December 15, 2025 [2] - Shareholders holding shares through the Liquidation Date will receive cash distributions based on the net asset value (NAV) of their holdings, which may have tax implications [3] Company Overview - Texas Capital Bancshares, Inc. is the parent company of Texas Capital Bank, a full-service financial services firm founded in 1998, headquartered in Dallas, with a presence in multiple Texas cities [4] - Texas Capital provides a range of services including commercial, consumer, private, and capital markets capabilities, serving clients throughout their lifecycle [5] - Texas Capital Bank Private Wealth Advisors, a subsidiary of Texas Capital Bank, serves as the investment adviser to the Fund [6]

Company Overview - Texas Capital Bancshares (TCBI) is the holding company of Texas Capital Bank, a financial services firm based in Texas with over $32 billion in assets, categorizing it as a significant regional bank [1] Investment Focus - The Investment Doctor emphasizes a portfolio that includes a mix of dividend and growth stocks, targeting a 5-7 year investment horizon [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, aiming for capital gains and dividend income to ensure continuous cash flow [1] Portfolio Features - The investment group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content on European investment opportunities [1] - An active chat room is available for discussions regarding the latest developments of the portfolio holdings [1]

Group 1 - Texas Capital Bancshares (TCBI) is the holding company of Texas Capital Bank, which has over $32 billion in assets, positioning it as a significant regional bank [1] - The Investment Doctor emphasizes a diversified portfolio that includes both dividend and growth stocks, focusing on high-quality small-cap investment opportunities in Europe [1] - The investment group European Small Cap Ideas provides exclusive access to actionable research, model portfolios, weekly updates, and educational content for investors interested in European markets [1]

Core Insights - Texas Capital Bank has reported record earnings, highlighting strong financial performance and growth potential in the current market environment [1] - The CEO discussed the bank's involvement in mergers and acquisitions (M&A), indicating a proactive approach to expanding its market presence [1] - The outlook for the bank remains positive, with strategies in place to navigate future challenges and capitalize on opportunities [1] Financial Performance - The bank achieved record earnings, showcasing a significant increase compared to previous periods [1] - Specific financial metrics were not detailed in the provided content, but the emphasis on record earnings suggests robust profitability [1] M&A Activity - The CEO emphasized the importance of M&A activity as a key component of the bank's growth strategy [1] - The bank is actively seeking opportunities to enhance its portfolio and market share through strategic acquisitions [1] Future Outlook - The management expressed confidence in the bank's ability to sustain growth and adapt to changing market conditions [1] - Plans are in place to address potential challenges while leveraging existing strengths to drive future success [1]

Core Insights - Texas Capital Bancshares, Inc. (TCBI) achieved record third-quarter 2025 earnings per share (EPS) of $2.18, exceeding the Zacks Consensus Estimate of $1.77 and up from $1.59 in the same quarter last year [1][9] - The company's net income available to common shareholders reached a record $100.9 million, a significant improvement from a net loss of $65.6 million in the prior-year quarter [2] Financial Performance - Total quarterly revenues increased by 11.6% year over year to $340.4 million, surpassing the Zacks Consensus Estimate by 4.7% [3][9] - Net interest income (NII) rose to $271.8 million, reflecting a 13.2% year-over-year increase, driven by higher average earning assets and lower funding costs [3] - The net interest margin (NIM) expanded by 31 basis points year over year to 3.47% [4] - Non-interest income increased by 5.8% year over year to $68.6 million, primarily due to higher service charges and trading income [4] Expense Management - Non-interest expenses decreased by 2.4% year over year to $190.6 million, attributed to reductions in salaries, occupancy, marketing, and technology expenses [5] - The decline in expenses was partially offset by increases in legal and professional costs as well as FDIC expenses [5] Loan and Deposit Growth - As of September 30, 2025, total average loans held for investment increased by 1.1% sequentially to $24.2 billion, while total deposits rose by 5.5% sequentially to $27.5 billion [6] Credit Quality - Total non-performing assets increased by 8% year over year to $96.1 million [7] - Provision for credit losses decreased by 20% from the prior year to $12 million, while net charge-offs rose to $13.7 million from $6.1 million in the year-ago quarter [7] Capital Ratios - As of September 30, 2025, the tangible common equity to total tangible assets ratio improved to 10.3% from 9.7% in the prior year [8] - The leverage ratio increased to 11.9% from 11.4% year over year, and the common equity tier 1 ratio rose to 12.1% from 11.2% [8] Strategic Outlook - The company continues to execute growth strategies effectively, achieving record profitability and book value levels, with higher NII and fee income supporting top-line momentum [10]

Financial Performance - For Q3 2025, the company reported net income of $105.2 million, a significant increase from a net loss of $61.3 million in Q3 2024, resulting in earnings per share of $2.18 compared to a loss of $1.41 per share in the prior year [71]. - For the nine months ended September 30, 2025, net income was $229.6 million, up from $6.5 million in the same period of 2024, with earnings per share increasing to $4.67 from a loss of $0.14 [72]. - The company's return on average assets (ROA) for Q3 2025 was 1.30%, compared to (0.78)% in Q3 2024, and return on average common equity (ROE) was 12.04%, up from (8.87)% [71]. - Non-interest income for the nine months ended September 30, 2025, was $167.1 million, a $190.1 million increase compared to the same period in 2024 [91]. Income and Expenses - Net interest income for Q3 2025 was $271.8 million, up from $240.1 million in Q3 2024, while non-interest income improved to $68.6 million from a loss of $114.8 million [70]. - Non-interest expense decreased by $4.7 million to $190.6 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to decreases in salaries and benefits, occupancy expense, and marketing expense [92]. - The efficiency ratio improved to 56.0% in Q3 2025 from 155.8% in Q3 2024, reflecting better cost management [70]. Asset and Liability Management - Total assets as of September 30, 2025, were $32.2 billion, up from $31.2 billion a year earlier, showing growth in the company's balance sheet [74]. - The company’s total interest-bearing liabilities increased to $19.7 billion in Q3 2025 from $18.0 billion in Q3 2024, reflecting changes in funding strategies [74]. - Average interest bearing liabilities increased by $2.0 billion for the nine months ended September 30, 2025, primarily due to a $2.7 billion increase in average interest bearing deposits [87]. - Customer deposits increased to $26.7 billion as of September 30, 2025, compared to $24.7 billion at December 31, 2024, with customer deposits making up 97.2% of total deposits [107]. Credit Quality - Provision for credit losses for Q3 2025 was $12.0 million, compared to $10.0 million in Q3 2024, indicating a cautious approach to potential credit risks [70]. - The provision for credit losses for the nine months ended September 30, 2025, was $44.0 million, down from $49.0 million for the same period in 2024, reflecting a decrease in criticized loans [102]. - Non-accrual loans held for investment decreased to $96.1 million as of September 30, 2025, from $111.2 million at December 31, 2024, representing a decline in the non-accrual loans to total loans held for investment ratio to 0.40% [100]. - The allowance for credit losses on loans to total loans held for investment decreased to 1.13% as of September 30, 2025, from 1.23% in the prior year [103]. Interest Rate Sensitivity - The Company’s interest rate sensitivity indicates that a hypothetical increase of 200 basis points could lead to a 7.7% increase in net interest income by September 30, 2025, compared to a 6.1% increase by September 30, 2024 [129]. - A hypothetical increase of 100 basis points is projected to result in a 4.0% increase in net interest income by September 30, 2025, versus a 3.1% increase by September 30, 2024 [129]. - A decrease of 100 basis points is expected to result in a decline of 6.4% in net interest income by September 30, 2025, compared to a decline of 6.5% by September 30, 2024 [129]. - A decrease of 200 basis points could lead to a 12.5% decline in net interest income by September 30, 2025, versus a 13.5% decline by September 30, 2024 [129]. Capital Management - The Company has long-term debt of $620.4 million as of September 30, 2025, with maturities ranging from January 2026 to December 2036 [110]. - Average equity capital for the nine months ended September 30, 2025, was $3.5 billion, up from $3.2 billion for the same period in 2024 [113]. - A new share repurchase program was authorized for up to $200.0 million, with $59.2 million spent to repurchase 801,053 shares at an average price of $73.44 per share during the nine months ended September 30, 2025 [114]. - The Company may consider raising additional capital through public or private offerings of debt or equity securities to meet long-term funding needs [110]. Risk Management - The Company utilizes derivative transactions to manage various risks, including interest rate and foreign currency fluctuations [130]. - Derivative contracts are designated as fair value hedges, cash flow hedges, or customer-related transactions depending on their purpose [131]. - The Company enters into interest rate and foreign exchange derivative contracts to support customer business requirements [132]. - The assumptions used in the interest rate risk exposure model are inherently uncertain, leading to potential discrepancies between simulated and actual results [129].

Core Insights - Texas Capital (TCBI) reported revenue of $340.35 million for Q3 2025, marking an 11.6% year-over-year increase and exceeding the Zacks Consensus Estimate of $325.46 million by 4.58% [1] - The company's EPS for the same quarter was $2.18, up from $1.62 a year ago, representing a surprise of 23.16% compared to the consensus estimate of $1.77 [1] Financial Performance Metrics - Efficiency Ratio was reported at 56%, better than the estimated 60.2% [4] - Net Interest Margin stood at 3.5%, slightly above the estimated 3.4% [4] - Net charge-offs to average total loans held for investment remained stable at 0.2%, matching the estimate [4] - Average Balance of Total Earning Assets was $31 billion, exceeding the average estimate of $30.82 billion [4] - Total Non-Performing Assets were reported at $96.08 million, lower than the estimated $118.01 million [4] - Non-Accrual Loans held for investment were also at $96.08 million, compared to the estimate of $118.01 million [4] - Net Interest Income was $271.77 million, surpassing the average estimate of $261.14 million [4] - Total Non-Interest Income reached $68.58 million, exceeding the estimate of $64.31 million [4] - Net Interest Income (FTE) was reported at $272.28 million, above the estimate of $261.7 million [4] - Service Charges on Deposit Accounts were $8.11 million, slightly below the estimate of $8.57 million [4] - Other Non-Interest Income was $12.84 million, higher than the estimate of $10.07 million [4] - Wealth Management and Trust Fee Income was reported at $3.99 million, above the estimate of $3.82 million [4] Stock Performance - Texas Capital's shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Texas Capital (TCBI) reported quarterly earnings of $2.18 per share, exceeding the Zacks Consensus Estimate of $1.77 per share, and up from $1.62 per share a year ago, representing an earnings surprise of +23.16% [1] - The company posted revenues of $340.35 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.58%, compared to year-ago revenues of $304.91 million [2] - Texas Capital shares have increased approximately 4.5% year-to-date, while the S&P 500 has gained 14.5% [3] Earnings Performance - Over the last four quarters, Texas Capital has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is $1.82 on revenues of $333.19 million, and $6.18 on $1.25 billion in revenues for the current fiscal year [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Southwest industry is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]