Dallas, January 23, 2026
Texas Capital Bancshares, Inc. announced impressive financial results for Q4 and the full year, showing significant growth in net income and key metrics. In Q4, net income reached $96.3 million, a 44% increase compared to the previous year, while full-year net income surged to $313 million. The company also reported improvements in net interest margin and efficiency ratio, indicating strong financial health and effective management strategies. The positive results have led to a rise in stock value, reflecting investor confidence.
Dallas, Texas – Texas Capital Bancshares, Inc. Reports Strong Q4 and Full Year 2025 Financial Results
Dallas, Texas – Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced robust financial results for the fourth quarter and full year of 2025, highlighting significant growth in net income, revenue, and key financial metrics.
Fourth Quarter 2025 Highlights
- Net Income: Achieved $96.3 million, or $2.12 per diluted share, marking a 44% increase from the same period in 2024.
- Net Interest Income (NII): Reported at $267.4 million, up from $229.6 million in Q4 2024, driven by higher average earning assets and reduced funding costs.
- Net Interest Margin (NIM): Improved to 3.38%, a 45 basis point increase year-over-year.
- Non-Interest Income: Increased by $6.0 million compared to Q4 2024, primarily due to higher service charges on deposit accounts and investment banking fees.
- Non-Interest Expense: Rose by $12.0 million year-over-year, mainly due to higher salaries, benefits, and technology expenses.
- Credit Quality: Net charge-offs were $10.7 million, with criticized loans totaling $634.9 million as of December 31, 2025.
Full Year 2025 Highlights
- Net Income to Common Shareholders: Reached $313.0 million, a 419% increase from 2024.
- Adjusted Net Income: Totaled $313.8 million, up 51% year-over-year.
- Pre-Provision Net Revenue (PPNR): Achieved a record $487.7 million, a 180% increase from the previous year.
- Net Interest Margin: Improved to 3.35%, up 32 basis points from 2024.
- Efficiency Ratio: Improved to 56.2% in Q4 2025 from 60.7% in Q4 2024, reflecting effective cost management.
- Capital Ratios: Maintained strong capital ratios, with a Common Equity Tier 1 (CET1) ratio of 12.1% as of December 31, 2025.
Strategic Initiatives and Outlook
Throughout 2025, Texas Capital Bancshares focused on expanding its investment banking platform and enhancing product offerings, contributing to its robust financial performance. The company anticipates continued revenue growth in the coming year, supported by its diversified product suite and strong capital position. Management has guided for mid to high single-digit percentage growth in total revenue and mid single-digit growth in non-interest expense for 2026. The provision for credit losses is expected to be between 35–40 basis points of average loans held for investment, excluding mortgage finance, with a CET1 ratio guidance above 11%. The effective tax rate for 2026 is projected to be approximately 25%.
Stock Performance
Following the earnings announcement, Texas Capital Bancshares’ stock experienced a 1.92% increase in pre-market trading, reaching $104.2, reflecting investor confidence in the company’s strong financial results and strategic direction.
About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. is the parent company of Texas Capital Bank, a financial services firm headquartered in Dallas, Texas. The company offers a comprehensive range of banking services, including commercial and consumer banking, private banking, and wealth management, serving clients across Texas and beyond.
Frequently Asked Questions (FAQ)
What were Texas Capital Bancshares’ net income and earnings per share for Q4 2025?
The company reported a net income of $96.3 million, or $2.12 per diluted share, for the fourth quarter of 2025, a 44% increase from the same period in 2024.
How did the net interest margin perform in Q4 2025?
The net interest margin improved to 3.38% in Q4 2025, a 45 basis point increase year-over-year.
What is the company’s outlook for 2026?
Management anticipates mid to high single-digit percentage growth in total revenue and mid single-digit growth in non-interest expense for 2026, with a provision for credit losses expected to be between 35–40 basis points of average loans held for investment, excluding mortgage finance, and a CET1 ratio guidance above 11%. The effective tax rate for 2026 is projected to be approximately 25%.
How did the stock perform following the earnings announcement?
Following the earnings announcement, Texas Capital Bancshares’ stock experienced a 1.92% increase in pre-market trading, reaching $104.2, reflecting investor confidence in the company’s strong financial results and strategic direction.
Key Features of Texas Capital Bancshares’ Q4 and Full Year 2025 Financial Results
| Feature | Q4 2025 | Full Year 2025 |
|---|---|---|
| Net Income | $96.3 million | $313.0 million |
| Earnings Per Share | $2.12 | Not specified |
| Net Interest Income | $267.4 million | Not specified |
| Net Interest Margin | 3.38% | 3.35% |
| Non-Interest Income | Increased by $6.0 million compared to Q4 2024 | Not specified |
| Non-Interest Expense | Increased by $12.0 million compared to Q4 2024 | Not specified |
| Credit Quality | Net charge-offs of $10.7 million; criticized loans totaling $634.9 million as of December 31, 2025 | Not specified |
| Capital Ratios | CET1 ratio of 12.1% as of December 31, 2025 | Not specified |
| Stock Performance | 1.92% increase in pre-market trading, reaching $104.2 | Not specified |
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