Core Viewpoint - Texas Capital Bancshares, Inc. (NASDAQ: TCBI) has seen a significant increase in analyst confidence, reflected in the rising consensus price target, indicating a positive outlook for the company's future performance and growth potential [1][2][5]. Price Target Trends - The average price target for TCBI has risen to $105, up from $95.4 three months ago, marking an increase of $9.6 over the quarter and $18.58 from a year ago when it was $86.42 [2][3][4]. - Despite the positive sentiment, analyst Brad Milsaps from Piper Sandler has set a lower price target of $75, suggesting a more cautious outlook amidst the overall bullish trend [2][4]. Stock Performance - Since the last earnings report, TCBI's stock has only increased modestly by 0.4%, indicating that while analysts are optimistic, the market performance has not fully reflected this sentiment [3][6]. - The upcoming earnings report is anticipated to show growth, but there are concerns that the company may lack the necessary factors for an earnings beat [4][5].

Financial Data and Key Metrics Changes - The company achieved a record adjusted total revenue of $1.3 billion, with a 13% year-over-year increase in full-year adjusted total revenue to $1.26 billion [7][12] - Full-year adjusted net income to common stockholders reached $314 million, a 53% improvement over 2024 levels, with adjusted earnings per share of $6.80 [7][14] - The adjusted return on average assets (ROAA) for the full year was 1.04%, reflecting a 30 basis point improvement compared to 2024 [5][11] Business Line Data and Key Metrics Changes - Commercial loan growth was $1.1 billion, or 10%, year-over-year, with total gross loans increasing by $1.6 billion, or 7% [7][15] - Fee income from strategic areas of focus generated $192 million in 2025, indicating substantial growth opportunities ahead [9][22] - Adjusted non-interest income grew 8% to $229 million, marking a record for the firm [22] Market Data and Key Metrics Changes - The company reported a full-year deposit growth of $1.2 billion, or 5%, driven by effective client relationship management [17][18] - Average mortgage finance loans increased 8% late in the quarter to $5.9 billion, with a 12% growth for the full year [16][17] - The commercial real estate loan balances are expected to decline approximately 10% year-over-year, reflecting ongoing market dynamics [16][96] Company Strategy and Development Direction - The company is focused on consistent execution and realizing the full potential of its investments, emphasizing operational excellence and high-value client segments [5][9] - The strategic focus includes enhancing fee income as a percentage of total revenue, which is expected to drive profitability and reduce earnings volatility [9][28] - The company aims to maintain a strong capital position while pursuing growth opportunities in targeted client segments [41][46] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the macroeconomic environment, moderating the full-year provision outlook to 35-40 basis points of average loans held for investment (LHI) [28][68] - The company anticipates total revenue growth in the mid to high single-digit range for 2026, driven by client adoption and fee income growth [28][90] - Management highlighted the importance of maintaining financial resilience and prudent risk management in the current economic climate [68][92] Other Important Information - The company repurchased 2.2 million shares, or 4.9% of prior year shares outstanding, at approximately 114% of prior month's tangible book value per share [8][27] - The tangible common equity to tangible assets ratio finished at 10.6%, ranking first among the largest banks in the country [27][25] - The total allowance for credit loss remains near an all-time high, reflecting a conservative approach to credit risk management [24][81] Q&A Session Summary Question: Investment banking and trading outlook - Management reported arranging about $49 billion of debt for clients in 2025, with Q4 transaction volume up about 40% [33][34] Question: Capital management and buyback strategy - The company increased CET1 to 12.13% while growing loans and buying back shares, indicating a strong capital management strategy [41][42] Question: Expense outlook and hiring plans - The company plans to focus on growth in salaries and benefits, with expected increases in technology investments to enhance productivity [51][52] Question: Credit trends and provision guidance - A modest increase in special mention loans was noted, primarily related to a few multi-family properties under pressure [68][78] Question: Mortgage finance activity - The sequential increase in average balances was driven by lower rates and longer dwell times, supporting higher originations [75][76]

Financial Data and Key Metrics Changes - The company achieved a record adjusted total revenue of $1.3 billion, with a 13% year-over-year increase in full-year adjusted total revenue to $1.26 billion [7][12] - Adjusted net income to common stockholders reached $314 million, marking a 53% improvement over 2024 levels, with adjusted earnings per share at $6.80 [7][14] - Full-year adjusted return on average assets (ROAA) improved by 30 basis points to 1.04%, while Q4 ROAA reached 1.2% [5][11] Business Line Data and Key Metrics Changes - Commercial loan growth was significant, increasing by $1.1 billion, or 10%, year-over-year, while total gross loans increased by $1.6 billion, or 7% [15][17] - Fee income from strategic areas generated $192 million, with a notable 24% growth in treasury product fees for the full year [9][22] - Investment banking saw substantial growth, with transaction volumes increasing nearly 40% year-over-year and total notional bank capital arranged rising by 20% [23] Market Data and Key Metrics Changes - The company reported a full-year deposit growth of $1.2 billion, or 5%, driven by effective client relationship management [17][18] - Average mortgage finance loans increased by 8% late in the quarter, with expectations for a 15% increase in full-year average balances in 2026 [16][57] - The commercial real estate portfolio is expected to see a 10% year-over-year decline in average balances, reflecting a cautious outlook [16][96] Company Strategy and Development Direction - The company is focused on consistent execution and realizing the full potential of its investments, emphasizing operational excellence and high-value client segments [5][9] - A disciplined capital allocation strategy is in place, with a focus on driving long-term shareholder value and maintaining a strong capital position [7][41] - The strategic focus includes enhancing fee income as a percentage of total revenue, which is expected to grow further [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the macroeconomic environment, maintaining a conservative approach to provisioning [14][68] - The company anticipates continued revenue growth in the mid to high single-digit range, supported by strong client adoption and fee income growth [28][90] - Management highlighted the importance of maintaining financial resilience and prudent risk management in the current economic climate [41][62] Other Important Information - The company repurchased 2.2 million shares, or 4.9% of prior year shares outstanding, at approximately 114% of prior month's tangible book value per share [8][27] - The tangible common equity to tangible assets ratio finished at 10.6%, ranking first among the largest banks in the country [27] - The total allowance for credit loss remains near an all-time high, reflecting a conservative approach to credit risk management [24][81] Q&A Session Summary Question: Investment banking and trading outlook - Management reported arranging about $49 billion of debt for clients in 2025, with Q4 transaction volume up about 40% [33] Question: Capital management and buybacks - The company increased CET1 to 12.13% while growing loans and buying back shares, indicating a strong capital management strategy [41] Question: Expense outlook - Management indicated that expenses would grow in mid-single digits, primarily due to increased salaries and benefits as well as technology investments [51] Question: Loan growth and market conditions - Management expects strong C&I and mortgage finance growth to offset declines in commercial real estate balances, supporting mid to high single-digit growth in gross loans [56] Question: Recent credit trends - A modest increase in special mention loans was noted, primarily related to a few multifamily properties under pressure due to rental concessions [68][78]

Financial Data and Key Metrics Changes - The company achieved a record adjusted total revenue of $1.3 billion, with adjusted net income to common stockholders reaching $314 million, and adjusted earnings per share at $6.80, marking a 53% improvement over 2024 levels [5][12] - Full-year adjusted return on average assets (ROAA) was 1.04%, a 30 basis point improvement compared to 2024, while Q4 ROAA reached 1.2% [4][10] - Adjusted pre-provision net revenue was a record $489 million, reflecting a 32% increase year-over-year [11][12] Business Line Data and Key Metrics Changes - Commercial loan growth was $1.1 billion, or 10%, year-over-year, with total gross loans increasing by $1.6 billion, or 7% [5][14] - Adjusted fee-based revenue grew by 9% to $229 million, marking the third consecutive year of record fee income [11][20] - The company reported a 24% increase in treasury product fees for the full year, reflecting robust client acquisition [21] Market Data and Key Metrics Changes - The company expects total market originations in mortgage finance to increase by 16% to $2.3 trillion in 2026, with internal estimates suggesting a 15% increase in full-year average balances [15][40] - Average mortgage finance loans increased by 8% late in the quarter, driven by strong industry demand [15][48] Company Strategy and Development Direction - The company is focused on executing its strategy with discipline, scaling operations intentionally, and delivering consistent superior returns [8][25] - The strategic focus has shifted towards realizing the full potential of investments made in infrastructure, talent, and technology platforms [7][58] - The company aims to enhance profitability through diversified fee income streams and disciplined capital allocation [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the macroeconomic environment, maintaining a conservative view on provisions for credit losses [12][44] - The company anticipates continued realized scale for multi-year platform investments, with total revenue growth expected in the mid to high single-digit range [25][26] - Management highlighted the importance of maintaining financial resilience amid economic uncertainty [25][32] Other Important Information - The company repurchased 2.2 million shares, or 4.9% of prior year shares outstanding, at approximately 114% of prior month's tangible book value per share [6][24] - The tangible common equity to tangible assets ratio finished at 10.56%, ranking first among the largest banks in the country [5][24] Q&A Session Summary Question: Investment banking and trading outlook - The investment banking pipeline remains healthy, with Q4 transaction volume up about 40%, and the company arranged approximately $49 billion of debt for clients in 2025 [28][29] Question: Capital management and buyback strategy - The company is pleased with its capital management, having increased CET1 to 12.13% while growing loans and buying back shares [32][34] Question: Expense outlook and hiring plans - The company plans to focus on leveraging previous investments by expanding capabilities and adding targeted coverage, with expected mid-single-digit expense growth [36][37] Question: Credit trends and provision guidance - The company experienced a modest increase in special mention loans, primarily related to a few multi-family properties under pressure [44][49] Question: Net interest margin (NIM) expectations - The company expects NIM to remain flattish in Q1, with a focus on managing deposit repricing and maintaining a strong client acquisition strategy [45][54]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Highlights - Full Year 2025 Net Income to common reached a record high for the firm[4], with adjusted Net Income to common at $3138 million[5, 73] - Full Year 2025 revenue was $12577 million, a record high for the firm[5, 67] - Full Year 2025 Tangible Book Value per Share was $7525, an increase of $893 or 13%[5] - Full Year 2025 Return on average assets was 104%[5] - Q4 2025 adjusted earnings per share grew 45% year-over-year[7] - Q4 2025 adjusted return on average assets was 120%[7] Loan Portfolio - Total LHI increased by $16 billion, or 7% year-over-year[18] - Ending period commercial loans increased by $11 billion, or 10% year-over-year[19] - Multifamily comprises $22 billion, or 40% of CRE loans[19] - Full year average mortgage finance loan balances increased 12% to $52 billion[19] Deposits and Funding - Total deposit balances increased $12 billion, or 5% year-over-year[24] - Non-interest bearing, excl MF10 deposits increased $233 million, or 8% quarter-over-quarter to $33 billion[25] - Average cost of interest bearing deposits declined 29bps to 347%[25] - Average MF10 non-interest bearing deposits increased $78 million linked quarter to $50 billion, representing 85% of average mortgage finance loans in Q4 2025 compared to 107% in Q4 of last year[25] Asset Quality - Criticized LHI declined $79 million, or 11% year-over-year, with the percentage of total LHI declining 54bps to 264%[56] - Special mention LHI declined $89 million, or 20% year-over-year[56] - Quarterly net charge-offs were $107 million, or 018% of average LHI[53, 56] Capital Position - Tangible common equity to tangible assets ended the quarter at 1056%, an improvement of 58bps year-over-year[5, 66] - Tangible book value per share expanded $223, or 3% quarter-over-quarter[66] - Repurchased 14 million shares in Q4 for a total of $125 million[66]

Core Insights - Texas Capital (TCBI) reported quarterly earnings of $2.08 per share, exceeding the Zacks Consensus Estimate of $1.78 per share, and showing an increase from $1.43 per share a year ago, resulting in an earnings surprise of +16.57% [1] - The company achieved revenues of $327.48 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.36% and up from $283.68 million year-over-year [2] - Texas Capital shares have increased approximately 7.5% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $318.3 million, while for the current fiscal year, the estimate is $7.13 on revenues of $1.35 billion [7] - The estimate revisions trend for Texas Capital was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Southwest is currently in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Cullen/Frost Bankers (CFR), another company in the same industry, is expected to report quarterly earnings of $2.47 per share, reflecting a year-over-year change of +4.7%, with revenues anticipated to be $585.8 million, up 5.3% from the previous year [9][10]

https://files.reportify.cc/media/production/TC INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com Dallas, TX - January 22, 2026 (4) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end. Exhibit 99.1 FOURTH QUARTER 2025 COMPARED TO THIRD QUARTER 2025 TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS Fourth quarter 2025 net income available to common stockholders of $96.3 mil ...

Fourth quarter 2025 net income available to common stockholders of $96.3 million, up 44% year-over-yearReaching record-levels, Book Value and Tangible Book Value(4) per share both increased 13% year-over-yearCapital ratios continue to be strong, achieving 12.1% CET1 and 16.1% Total Capital DALLAS, Jan. 22, 2026 (GLOBE NEWSWIRE) -- “Consecutive strong quarters to close 2025 validate our multi-year transformation strategy and demonstrate the resilience of our business model in a complex market environment,” s ...

Wall Street analysts expect Texas Capital (TCBI) to post quarterly earnings of $1.78 per share in its upcoming report, which indicates a year-over-year increase of 24.5%. Revenues are expected to be $323.08 million, up 13.9% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Befor ...