Financial Performance - For the three months ended September 30, 2025, net income was $105.2 million, compared to a net loss of $61.3 million for the same period in 2024[71]. - For the nine months ended September 30, 2025, net income was $229.6 million, a substantial increase from $6.5 million in the same period of 2024[72]. - Basic earnings per common share for the nine months ended September 30, 2025, was $4.72, compared to a loss of $0.14 per share in 2024[72]. Income Sources - Net interest income for the three months ended September 30, 2025, increased to $271.8 million from $240.1 million in 2024, representing a growth of 13.2%[70]. - Non-interest income for the three months ended September 30, 2025, was $68.6 million, a significant recovery from a loss of $114.8 million in the same period of 2024[70]. - 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]. Efficiency and Ratios - The return on average assets (ROA) improved to 1.30% for the third quarter of 2025, compared to (0.78)% in the third quarter of 2024[71]. - The efficiency ratio improved to 56.0% for the third quarter of 2025, down from 155.8% in the same quarter of 2024[70]. - Net interest margin for the three months ended September 30, 2025, was 3.47%, up from 3.16% in the same period of 2024[70]. Asset and Liability Management - Total assets increased to $32.2 billion as of September 30, 2025, from $31.2 billion as of September 30, 2024[74]. - Average earning assets increased by $1.5 billion for the nine months ended September 30, 2025, including a $1.8 billion increase in average total loans held for investment[86]. - Total loans held for investment increased by $1.7 billion to $24.2 billion as of September 30, 2025, driven by growth in commercial, mortgage finance, and commercial real estate loans[95]. Credit Quality - Provision for credit losses for the three months ended September 30, 2025, was $12.0 million, compared to $10.0 million in the same period of 2024[70]. - The provision for credit losses was $44.0 million for the nine months ended September 30, 2025, down from $49.0 million for the same period in 2024[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 ratio to 0.40%[100]. Deposits and Borrowings - Customer deposits increased to $26.7 billion as of September 30, 2025, compared to $24.7 billion at December 31, 2024, with a slight decrease in the percentage of total deposits from 97.9% to 97.2%[107]. - Total short-term borrowings decreased to $275.0 million as of September 30, 2025, from $885.0 million at December 31, 2024[108]. - 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]. Capital Management - The Company authorized a new share repurchase program 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 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]. Risk Management - The Company utilizes derivative transactions to manage various risks, including interest rate and foreign currency fluctuations[130]. - The Company’s market risk management strategy includes the use of Value-at-Risk (VaR) to measure and limit aggregate market risk on the trading portfolio[121]. - The assumptions used in the interest rate risk model are inherently uncertain, leading to potential discrepancies between simulated and actual results[129].
TEXAS CAP BANCSH(TCBIO) - 2025 Q3 - Quarterly Report