Texas Capital (TCBI) Q3 2026 Earnings Call: Record EPS and Revenue
Source Tradingkey
Key Takeaways
- Adjusted EPS reached a quarterly record of $2.35, up 8% year over year and 25% sequentially. Adjusted net income available to common shareholders was a record $102.7 million.
- Total revenue rose 5% year over year to $356.6 million. Record net interest income of $275 million and 19% growth in noninterest income supported the increase.
- Noninterest income reached $81.6 million, or 23% of total revenue. Investment banking and trading income posted a third consecutive quarterly record at $46.7 million.
- Period-end commercial loans increased 13% year over year to $13.4 billion, while commercial real estate balances declined 16% to $4.8 billion and mortgage finance loans fell 15% sequentially to $5.4 billion.
- Management raised its full-year outlook to high-single-digit adjusted revenue growth and $295 million to $300 million of noninterest income.
- Texas Capital completed approximately $103 million of share repurchases at an average price of $96.99 and received authorization for a new $200 million buyback program.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Total revenue | $356.6 million | Up 5% year over year and 6% sequentially |
| Net interest income | $275 million | Record; up $3.2 million year over year |
| Net interest margin | 3.44% | Up 16 basis points sequentially; Q3 2025 was 3.47% |
| Noninterest income | $81.6 million | Up 19% year over year and 9% sequentially |
| Adjusted PPNR | $157 million | Up 5% year over year; ninth consecutive quarter of expansion |
| Adjusted net income to common | $102.7 million | Up 2% year over year; quarterly record |
| Adjusted EPS | $2.35 | Up 8% year over year and 25% sequentially |
| Adjusted noninterest expense | $199.6 million | Up 5% year over year and down 2% sequentially |
| Provision for credit losses | $17 million | Consistent with management’s credit expectations |
| Net charge-offs | $14.5 million | 24 basis points of average loans held for investment |
| CET1 ratio | 12.2% | Management described capital levels as strong |
| Tangible common equity/assets | 9.85% | Remained above internally assessed requirements |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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