Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Viewpoint - Texas Capital Bancshares, Inc. (TCBI) reported better-than-expected quarterly results, with shares rising 4.5% following the announcement of adjusted earnings per share (EPS) of $1.63 for Q2 2025, exceeding the Zacks Consensus Estimate of $1.28 and significantly up from 80 cents in the same quarter last year [1][8] Financial Performance - TCBI's net income available to common shareholders (GAAP basis) was $73 million, a substantial increase from $37.3 million in the prior-year quarter [2] - Total quarterly revenues rose 15.2% year over year to $307.4 million, although this figure missed the Zacks Consensus Estimate by 3.1% [3] - Net interest income (NII) reached $253.4 million, up 16.9% year over year, driven by an increase in average earning assets and a decrease in funding costs [3] - Non-interest income increased by 7.2% to $54.1 million, primarily due to higher service charges on deposit accounts and trading income [4] Expense Analysis - Non-interest expenses rose nearly 1% to $190.3 million, mainly due to increases in salaries and benefits, occupancy expenses, and communications and technology expenses [4][8] Loan and Deposit Growth - As of June 30, 2025, total average loans held for investment increased 6.9% sequentially to $23.6 billion, while total deposits rose slightly to $26.1 billion [5] Credit Quality - Total non-performing assets increased 33.6% to $113.6 million compared to the prior-year quarter [6] - Provision for credit losses was $15 million, a decline of 25% from the year-ago quarter, while net charge-offs rose 8.4% to $12.9 million [6] Capital Ratios - As of June 30, 2025, tangible common equity to total tangible assets increased to 10.1% from 9.6% in the prior-year quarter [7] - The leverage ratio decreased to 11.8% from 12.2% as of June 30, 2024, and the common equity tier 1 ratio fell to 11.4% from 11.6% in the prior-year quarter [7] Strategic Outlook - The company continues to execute strategies aimed at enhancing top-line growth, with increasing NII and fee income expected to support future performance, although rising expenses present near-term concerns [9]

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2025 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission file number 001-34657 TEXAS CAPITAL BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 75-2679109 (State or other jurisdiction ...

Texas Capital Bancshares (TCBI 5.42%) reported its second-quarter 2025 earnings on July 17, 2025, delivering a 104% increase in adjusted EPS and 100% growth in adjusted net income year over year, supported by 16% adjusted revenue growth. Management reaffirmed guidance for low double-digit percentage revenue growth for the full year and highlighted a record tangible book value of $70.14 per share and robust capital ratios, with a CET1 ratio of 11.45%. The transcript reveals transformative strategic execution ...

Texas Capital (TCBI) reported $307.46 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 15.2%. EPS of $1.63 for the same period compares to $0.80 a year ago.The reported revenue represents a surprise of +3.09% over the Zacks Consensus Estimate of $298.24 million. With the consensus EPS estimate being $1.28, the EPS surprise was +27.34%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

Financial Data and Key Metrics Changes - Adjusted total revenue increased by 16% year-over-year, amounting to $42.3 million, with net interest income growing by 17% and adjusted fee-based revenue by 11% [10] - Adjusted net income to common rose by 100% year-over-year to $75.5 million, while adjusted earnings per share expanded by 104% [11] - Adjusted return on average assets reached 1.02%, approaching the 1.1% goal set for 2025 [5] Business Line Data and Key Metrics Changes - Commercial loans grew by 5% linked quarter and 13% year-over-year, reflecting effective competition for client relationships [5] - Treasury product fees increased by 37% year-over-year, marking a record high for the firm [7] - Investment banking and trading income rose by 43% quarter-over-quarter and 4% year-over-year, driven by a rebound in capital markets activity [8] Market Data and Key Metrics Changes - Average commercial loan balances increased by 4% during the quarter, with year-over-year balances up approximately $1.4 billion or 13% [12] - Interest-bearing deposits grew by $2.8 billion or 19% year-over-year, while the ratio of average mortgage finance deposits to average mortgage finance loans improved to 91% [13][14] Company Strategy and Development Direction - The company is focused on building a diversified and client-centric institution, enhancing client journeys, and driving operational efficiency [9] - Continued investments in technology and client service models are expected to enhance profitability and support growth [14] - The firm aims to maintain a strong capital position, with CET1 finishing the quarter at 11.45%, despite robust loan growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the diversified earnings platform and the ability to drive consistent client engagement [19] - The outlook for full-year average balances in mortgage finance is expected to grow by 10%, supported by a $1.9 trillion origination market [51] - Management remains cautious about the macroeconomic environment but believes in the strength of the firm's credit portfolio and client selection [58] Other Important Information - The allowance for credit loss increased to $334 million, representing 1.79% of loans held for investment, which is among the top decile in the peer group [16] - The firm repurchased approximately 318,000 shares for a total of $21 million at a weighted average price of $65.5 per share [18] Q&A Session Summary Question: Insights on investment banking and trading pipeline - Management noted that despite capital markets being closed in April and May, investment banking and trading income exceeded guidance, supported by strong syndication fees and sales growth [24] Question: Expectations for ROA and future performance - Management indicated that while the aspiration is not solely to achieve a 1.1% ROA, the strategy is working well, and client acceptance has been strong [28][29] Question: Commentary on restructuring charges and expense guidance - Management highlighted ongoing efforts to drive structural efficiencies and match expenses with fee income areas, maintaining a focus on investment banking trends [32] Question: Impact of regulatory tone on excess capital - Management stated that the regulatory outlook does not affect their view on excess capital, which is seen as a strategic advantage [35] Question: Revenue trends and guidance adjustments - Management expressed confidence in moving towards the high end of revenue guidance due to strong net interest income momentum and client engagement [39] Question: Commercial customer behavior during the quarter - Management observed continued strong client acquisition and a stable line utilization, with expectations for growth in bank debt demand [48][49] Question: Progress on wealth management build-out - Management is optimistic about the wealth management segment, noting improvements in client journey and performance compared to other wealth managers [61]

Financial Data and Key Metrics Changes - Adjusted total revenue increased by 16% year-over-year, amounting to $42.3 million, with net interest income growing by 17% and adjusted fee-based revenue by 11% [10] - Adjusted net income to common rose by 100% year-over-year to $75.5 million, while adjusted earnings per share expanded by 104% [11] - Adjusted return on average assets reached 1.02%, approaching the 1.1% goal set for 2025 [5] Business Line Data and Key Metrics Changes - Commercial loans grew by 5% linked quarter and 13% year-over-year, reflecting effective competition for client relationships [5] - Treasury product fees increased by 37% year-over-year, marking a record high for the firm [7] - Investment banking and trading income rose by 43% quarter-over-quarter and 4% year-over-year, driven by a rebound in capital markets activity [8] Market Data and Key Metrics Changes - Average commercial loan balances increased by 4% during the quarter, with year-over-year balances up approximately $1.4 billion [12] - Interest-bearing deposits grew by $2.8 billion or 19% year-over-year, while the ratio of average mortgage finance deposits to average mortgage finance loans improved to 91% [13][14] Company Strategy and Development Direction - The company is focused on building a diversified and client-centric institution, enhancing client journeys, and driving operational efficiency [9] - Continued investments in technology and client service models are expected to enhance profitability and support growth in various business lines [8][44] - The firm aims to maintain a strong capital position, with a CET1 ratio of 11.45%, and views excess capital as a strategic advantage [17][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the diversified earnings platform and the ability to drive consistent client engagement across market conditions [19] - The outlook for revenue growth is reaffirmed at low double-digit percentages, with non-interest expense growth expected to be mid to high single digits [19] - Management remains cautious about the mortgage outlook for the remainder of 2025, anticipating a 10% increase in full-year average balances [13] Other Important Information - The allowance for credit loss increased to $334 million, representing 1.79% of loans held for investment, with a strong reserve coverage ratio [16] - The firm repurchased approximately 318,000 shares for a total of $21 million at a weighted average price of $65.5 per share [18] Q&A Session Summary Question: Insights on investment banking and trading pipeline - Management noted that despite capital markets being closed in April and May, investment banking and trading income exceeded guidance, supported by strong syndication fees and sales growth [24] Question: Expectations for ROA and future performance - Management indicated that while the aspiration is not solely to achieve a 1.1% ROA, the strategy is working well, and client acceptance has been strong [28][29] Question: Commentary on restructuring charges - Management highlighted ongoing efforts to drive structural efficiencies and reposition expenses against fee income areas [32] Question: Impact of regulatory tone on excess capital - Management stated that the regulatory outlook does not affect their view on excess capital, which is seen as a competitive advantage [35] Question: Revenue trends and guidance adjustments - Management expressed confidence in moving towards the high end of the revenue guidance due to strong net interest income momentum [39] Question: Commercial customer behavior during the quarter - Management reported continued strong client acquisition and a 20% annualized growth in commercial and industrial loans, with no significant changes in line utilization [48] Question: Progress on wealth management build-out - Management is optimistic about the wealth management segment, noting improvements in client journey and performance compared to other wealth managers [61]

Financial Data and Key Metrics Changes - Adjusted total revenue increased by $42.3 million or 16% year-over-year, supported by a 17% growth in net interest income and an 11% growth in adjusted fee-based revenue [10][11] - Adjusted net income to common rose to $75.5 million, a 100% increase compared to the same quarter last year, with adjusted earnings per share expanding by 104% [11][12] - The adjusted return on average assets reached 1.02%, nearing the 1.1% goal set for 2025 [5][11] Business Line Data and Key Metrics Changes - Commercial loans grew by 5% linked quarter and 13% year-over-year, reflecting effective competition for holistic client relationships [5][12] - Treasury product fees increased by 37% year-over-year, marking a record high for the firm [6][12] - Investment banking and trading income rose by 43% quarter-over-quarter and 4% year-over-year, driven by a rebound in capital markets activity [8][12] Market Data and Key Metrics Changes - Average commercial loan balances increased by 4% or $399 million during the quarter, with year-over-year balances up approximately $1.4 billion or 13% [12] - Client interest-bearing deposits grew by $2.8 billion or 19% year-over-year, while deposit betas increased to 81% [13][14] - The allowance for credit loss increased to $334 million, representing 1.79% of loans held for investment, which is among the top decile in the peer group [16][17] Company Strategy and Development Direction - The company is focused on building a diversified and client-centric institution, enhancing client journeys, and driving operational efficiency [9][10] - Continued investments in technology and capabilities are expected to support growth in investment banking and trading [25][66] - The firm aims to maintain a strong capital position, with a CET1 ratio of 11.45%, allowing for onboarding of new clients [17][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the diversified earnings platform and the ability to drive consistent client engagement across various market conditions [20][41] - The firm anticipates continued earnings momentum and aims to achieve a quarterly return on average assets of 1.1% in the second half of the year [20][41] - Management remains cautious about the mortgage outlook for the remainder of 2025, expecting a 10% increase in full-year average balances [13][52] Other Important Information - The company repurchased approximately 318,000 shares for a total of $21 million at a weighted average price of $65.5 per share [19] - The firm is focused on maintaining strong credit quality, with a 26% reduction in year-over-year criticized loans [61][62] Q&A Session Summary Question: Insights on investment banking and trading pipeline - Management noted that despite capital markets being closed in April and May, investment banking and trading income exceeded guidance, supported by strong syndication fees and growth in sales and trading [25] Question: Commentary on restructuring charges - Management highlighted ongoing efforts to drive structural efficiencies and match expenses with fee income areas of focus [34] Question: Guidance on revenue trends - Management indicated that net interest income momentum could support moving to the high end of the current revenue guidance [41] Question: Update on wealth management build-out - Management expressed optimism about the wealth management segment, noting improvements in client journey and performance compared to other wealth managers [66]

Financial Performance Highlights - Net interest income increased by $174 million QoQ, supported by continued LHI growth and further reduction in funding costs[35] - Net interest margin expanded by 16 bps QoQ, and 34 bps YoY[35] - Adjusted non-interest expense increased $09 million YoY to $1889 million, reflecting continued repositioning of the expense base in support of defined growth objectives[35] - The company sold $2823 million of available for sale securities with a book yield of 31% in the quarter for a pre-tax loss of $19 million[28] Balance Sheet and Capital Position - Total assets reached $31944 billion, a 7% increase YoY[9] - Total deposits reached $26064 billion[9] - Tangible book value per share increased by $217 or 3% QoQ to $7014 as a result of income generated, share repurchase activity and AOCI accretion[57] - The company repurchased 318 thousand shares in Q2, 07% of year end 2024 shares outstanding, for a total of $21 million at a weighted average price of approximately 96% of prior month tangible book value per share[57] Asset Quality - Total ACL increased $20 million QoQ to $3343 million[44] - Criticized LHI declined $2222 million or 26% YoY, with the percentage of total LHI declining 129 bps to 266%[45] - Special mention LHI declined $1443 million or 30% linked quarter[45] Strategic Performance and Guidance - Full year 2024 adjusted total revenue was $1119 million[58] - The company expects mid to high single-digit percent growth for adjusted non-interest expense[58] - The company expects provisions / average LHI, excl mortgage finance LHI to be 30 bps - 35 bps[58] - The company expects CET1 Ratio to be greater than 11%[58]

INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com MEDIA CONTACT Julia Monter, 469.399.8425 julia.monter@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2025 RESULTS Second quarter 2025 net income of $77.3 million and net income available to common stockholders of $73.0 million, up 86% and 95%, respectively, year-over-year Second quarter 2025 EPS of $1.58 per diluted share and adjusted EPS of $1.63 per diluted share, up 98% and 104%, respectively ...