Texas Capital Bancshares(US:TCBI)2025-10-22 20:05Financial Performance - Record-level net income of $105.2 million and diluted earnings per share of $2.18 for Q3 2025, compared to $73.0 million and $1.58 per diluted share in Q2 2025[2][6] - Net income available to common stockholders for Q3 2025 was $100,897,000, compared to $73,016,000 in Q2 2025, indicating a 37.9% increase[23] - Basic earnings per common share for Q3 2025 were $2.21, up from $1.59 in Q2 2025, reflecting a 38.9% increase[27] - Adjusted net income for Q3 2025 was $105,210,000, a significant increase from $79,841,000 in Q2 2025, reflecting a growth of 31.8%[36] Asset and Loan Growth - Total assets reached $32,536,980,000 in Q3 2025, up from $31,943,535,000 in Q2 2025, representing a 1.8% increase[23] - Total loans held for investment reached $24.2 billion, up from $23.9 billion in Q2 2025[4][6] - Loans held for investment increased to $18,134,059,000 in Q3 2025 from $18,035,945,000 in Q2 2025, a growth of 0.5%[23] - Loans held for investment increased to $23,448,533 thousand in Q3 2025, with a net interest income of $379,525 thousand, reflecting a yield of 6.42%[32] Income and Revenue - Net interest income for Q3 2025 was $271.8 million, an increase from $253.4 million in Q2 2025, with a net interest margin of 3.47%[8][4] - Non-interest income increased by $14.5 million in Q3 2025 compared to Q2 2025, driven by higher investment banking and advisory fees[9][4] - Non-interest income for Q3 2025 was $68.58 million, a significant increase from $54.07 million in Q2 2025[27] - Net interest income for Q3 2025 was $272,284 thousand, an increase from $253,894 thousand in Q2 2025 and $240,172 thousand in Q3 2024[32] Credit Quality and Losses - Provision for credit losses decreased to $12.0 million in Q3 2025 from $15.0 million in Q2 2025[7][4] - The allowance for credit losses on loans decreased to $274,026 thousand in Q3 2025 from $277,648 thousand in Q2 2025, reflecting a reduction of 0.6%[29] - Non-performing assets totaled $96,084 thousand in Q3 2025, a decrease of 15.0% from $113,609 thousand in Q2 2025[30] - The total provision for credit losses was $12,000 thousand in Q3 2025, a decrease from $15,000 thousand in Q2 2025[29] Capital and Equity - Stockholders' equity reached $3.6 billion, up from $3.5 billion in Q2 2025[4][6] - CET1 capital ratio improved to 12.1% in Q3 2025 from 11.4% in Q2 2025[17][4] - Common Equity Tier 1 ratio increased to 12.1% in Q3 2025 from 11.4% in Q2 2025, indicating improved capital strength[23] - The company reported a total stockholders' equity of $3.64 billion as of September 30, 2025, up from $3.35 billion a year earlier, representing an increase of 8.5%[26] Efficiency and Management - The efficiency ratio for Q3 2025 improved to 56.0%, down from 61.9% in Q2 2025, indicating better cost management[36] - Non-interest expense to average earning assets for Q3 2025 was 2.44%, a slight decrease from 2.52% in Q2 2025, showing improved operational efficiency[36] - Return on average assets increased to 1.30% in Q3 2025 from 0.99% in Q2 2025[4][6] - Return on average common equity for Q3 2025 was 12.04%, an increase from 9.17% in Q2 2025[36]