Texas Capital Bancshares, Inc. Announces Third Quarter 2025 Results

Core Insights - Texas Capital Bancshares, Inc. reported record-level net income of $105.2 million for Q3 2025, with diluted earnings per share of $2.18, marking a significant improvement from a net loss of $65.6 million in Q3 2024 [2][11][24] - The company achieved a return on average assets (ROAA) of 1.30% and a return on average common equity (ROACE) of 12.04% for Q3 2025, reflecting strong financial performance [1][24] - Capital ratios improved, with Common Equity Tier 1 (CET1) at 12.1% and Total Capital at 16.1%, exceeding "well capitalized" requirements [18][24] Financial Performance - Net income available to common stockholders increased to $100.9 million in Q3 2025 from $73.0 million in Q2 2025 [6][24] - Pre-provision net revenue for Q3 2025 was $149.8 million, up from $117.2 million in Q2 2025 [4][24] - Net interest income rose to $271.8 million in Q3 2025, compared to $253.4 million in Q2 2025, driven by increases in average earning assets and yields [8][24] Balance Sheet Highlights - Total assets reached $32.54 billion as of September 30, 2025, up from $31.94 billion at the end of Q2 2025 [26][24] - Loans held for investment increased to $24.19 billion in Q3 2025, compared to $23.93 billion in Q2 2025 [24][26] - Total deposits grew to $27.51 billion in Q3 2025, up from $26.06 billion in Q2 2025 [24][26] Credit Quality - Provision for credit losses was $12.0 million in Q3 2025, down from $15.0 million in Q2 2025, reflecting improved credit quality [7][24] - Net charge-offs were recorded at $13.7 million for Q3 2025, compared to $13.0 million in Q2 2025 [17][24] - Criticized loans decreased to $529.7 million at the end of Q3 2025, down from $637.5 million at the end of Q2 2025 [17][24] Strategic Outlook - The company emphasized its commitment to clients and strategic execution, positioning itself as a leading financial services firm in Texas [4][3] - Texas Capital Bancshares aims to continue driving long-term value for stakeholders through its successful transformation and growth strategies [4][3]