Texas Capital (TCBI) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Texas Capital (TCBI) reported revenue of $307.46 million for Q2 2025, marking a year-over-year increase of 15.2% and exceeding the Zacks Consensus Estimate by 3.09% [1] - The earnings per share (EPS) for the same quarter was $1.63, a significant increase from $0.80 a year ago, resulting in an EPS surprise of 27.34% compared to the consensus estimate of $1.28 [1] Financial Performance Metrics - Efficiency Ratio stood at 61.9%, better than the five-analyst average estimate of 66.6% [4] - Net interest margin was reported at 3.4%, surpassing the average estimate of 3.2% [4] - Net charge-offs to average total loans held for investment for the last 12 months remained at 0.2%, matching the average estimate [4] - Average balance of total earning assets was $30.3 billion, slightly below the four-analyst average estimate of $30.98 billion [4] - Total non-performing assets were $113.61 million, higher than the average estimate of $96.88 million [4] - Non-accrual loans held for investment also totaled $113.61 million, compared to the average estimate of $96.88 million [4] - Net Interest Income was reported at $253.4 million, exceeding the average estimate of $245.58 million [4] - Total Non-Interest Income reached $54.07 million, above the five-analyst average estimate of $52.56 million [4] - Net Interest Income (FTE) was $253.89 million, compared to the four-analyst average estimate of $246.85 million [4] - Wealth management and trust fee income was $3.73 million, below the average estimate of $4.02 million [4] - Brokered loan fees amounted to $2.4 million, exceeding the average estimate of $1.99 million [4] - Service charges on deposit accounts were reported at $8.18 million, slightly above the average estimate of $8.12 million [4] Stock Performance - Texas Capital shares have returned +13.1% over the past month, outperforming the Zacks S&P 500 composite's +4.2% 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]