Texas Capital Bancshares (NASDAQ:TCBI) Issues Earnings Results

Texas Capital Bancshares (NASDAQ:TCBI) announced its quarterly earnings results on Wednesday. The bank reported $1.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.01, FiscalAI reports. The company had revenue of $335.50 million during the quarter, compared to analyst estimates of $333.37 million. Texas Capital Bancshares had a return on equity of 10.88% and a net margin of 17.90%.The firm’s quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.63 EPS.

Here are the key takeaways from Texas Capital Bancshares’ conference call:

• Adjusted EPS rose 15% year over year to $1.88, while adjusted total revenue increased 8% on the back of record fee income in wealth management, treasury products, and investment banking.
• Fee-based businesses continued to scale, with non-interest income up 39% year over year to $75.1 million and now representing 22% of total revenue, up from 18% a year ago.
• Commercial loan growth remained strong, with C&I loans up 10% year over year and the tenth consecutive quarter of growth, though CRE balances remain under pressure and management expects full-year CRE balances to decline about 12%.
• Capital and balance sheet metrics stayed robust, including CET1 of 12.07%, tangible book value per share up 10% to a record $76.98, and an active share repurchase program alongside the first common dividend.
• Management guided for a softer Q3 margin into the low-to-mid 3.20% range due to seasonal mortgage finance funding costs, but said Q3 should mark the low point for 2026 before margin improves in Q4.

Texas Capital Bancshares Trading Down 4.1%

Shares of NASDAQ:TCBI opened at $98.67 on Friday. The stock has a market capitalization of $4.31 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 1.48 and a beta of 0.67. Texas Capital Bancshares has a 1-year low of $75.41 and a 1-year high of $108.92. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.01. The company has a 50 day moving average price of $101.26 and a 200 day moving average price of $99.51.

Texas Capital Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 annualized dividend and a yield of 0.8%. Texas Capital Bancshares’s dividend payout ratio is currently 10.75%.

Texas Capital Bancshares News Summary

Here are the key news stories impacting Texas Capital Bancshares this week:

• Positive Sentiment: Q2 earnings and revenue both topped expectations. Texas Capital reported earnings of $1.88 per share versus estimates around $1.85-$1.87, while revenue of $335.5 million also came in above forecasts. Article title: Texas Capital (TCBI) Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Core banking trends improved. The company said higher net interest income, fee income, and balance-sheet growth helped offset expense pressure, and net income available to common stockholders rose 10% year over year to $80.6 million. Article title: TCBI Q2 Earnings Beat on NII & Fee Income Growth, Expenses Up Y/Y
• Neutral Sentiment: The bank declared a quarterly dividend. Texas Capital announced a $0.20 per-share dividend, implying a modest annualized yield of about 0.8%. This supports shareholder returns, but the payout is not large enough by itself to materially change the stock’s near-term direction. Article title: Texas Capital Bancshares stock page
• Negative Sentiment: Expenses and credit costs increased. While revenue growth was solid, management noted rising operating expenses and higher credit costs, which may be weighing on investor sentiment and limiting enthusiasm for the earnings beat. Article title: TCBI Q2 Earnings Beat on NII & Fee Income Growth, Expenses Up Y/Y

Insider Buying and Selling at Texas Capital Bancshares

In other news, insider Anna M. Alvarado sold 3,500 shares of the firm’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $100.95, for a total transaction of $353,325.00. Following the completion of the sale, the insider directly owned 23,810 shares of the company’s stock, valued at $2,403,619.50. This trade represents a 12.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Rob C. Holmes sold 49,500 shares of Texas Capital Bancshares stock in a transaction on Monday, June 8th. The stock was sold at an average price of $101.22, for a total value of $5,010,390.00. Following the completion of the transaction, the chief executive officer owned 167,635 shares in the company, valued at $16,968,014.70. The trade was a 22.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 102,100 shares of company stock worth $10,366,023 in the last ninety days. 1.91% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Texas Capital Bancshares

Hedge funds and other institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Texas Capital Bancshares by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 27,603 shares of the bank’s stock worth $2,062,000 after purchasing an additional 1,206 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Texas Capital Bancshares by 3.7% during the first quarter. Goldman Sachs Group Inc. now owns 560,070 shares of the bank’s stock valued at $41,837,000 after buying an additional 20,231 shares in the last quarter. United Services Automobile Association purchased a new stake in Texas Capital Bancshares during the first quarter valued at about $230,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Texas Capital Bancshares by 29.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 107,761 shares of the bank’s stock worth $8,050,000 after buying an additional 24,538 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Texas Capital Bancshares by 34.0% in the second quarter. Invesco Ltd. now owns 149,559 shares of the bank’s stock worth $11,875,000 after buying an additional 37,982 shares during the period. Institutional investors and hedge funds own 96.88% of the company’s stock.

Analyst Upgrades and Downgrades

TCBI has been the topic of a number of recent analyst reports. Stephens set a $112.00 price objective on shares of Texas Capital Bancshares in a research note on Thursday. JPMorgan Chase & Co. increased their target price on shares of Texas Capital Bancshares from $105.00 to $110.00 and gave the company an “underweight” rating in a research report on Wednesday, July 1st. Zacks Research cut shares of Texas Capital Bancshares from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 30th. Citigroup upgraded shares of Texas Capital Bancshares from a “sell” rating to a “neutral” rating and boosted their price target for the stock from $96.00 to $105.00 in a research report on Tuesday, June 30th. Finally, Fundamental Research set a $110.00 price target on shares of Texas Capital Bancshares in a research note on Wednesday, July 1st. Four analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $106.00.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc is a bank holding company headquartered in Dallas, Texas, operating through its wholly owned subsidiary, Texas Capital Bank. The company specializes in providing commercial banking services to middle-market companies, entrepreneurs, professional service firms, real estate developers, and not-for-profit organizations. Its broad range of offerings includes commercial lending, treasury and cash management, real estate finance, equipment finance, and energy lending, all designed to address the unique financial needs of businesses navigating growth and market challenges.

In addition to its core commercial banking capabilities, Texas Capital Bancshares delivers private banking and wealth management services for business owners and high-net-worth individuals.