Texas Capital Bancshares (TCA) Q3 2026 Earnings Report
DE:TCA Q3 2026 EPS Results
- Actual EPS
- EUR 2.04
- Consensus EPS
- EUR 1.75
- Beat/Miss
- Beat by +EUR 0.29
- One Year Ago EPS
- EUR 1.95
DE:TCA Q3 2026 Revenue Results
- Actual Revenue
- EUR 483.48M
- Expected Revenue
- EUR 304.33M
- Beat/Miss
- Beat by +EUR 179.15M
- YoY Revenue Growth
- +2.33%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
Texas Capital Bancshares's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive, with record earnings, revenue, net interest income, fee income, pre-provision net revenue, commercial loan growth, improved full-year revenue guidance, strong capital ratios, and continued momentum in investment banking, treasury, and wealth management. The main challenges were declining commercial real estate and mortgage finance balances, lower total deposits linked to broker-deposit runoff, higher expenses from hiring and technology restructuring, and ongoing credit and macroeconomic pressures. Management nevertheless characterized the firm as operating from a position of financial resilience and maintained its positive operating leverage and credit outlook.
For the fourth quarter of 2026, total non interest expense is expected at $205 million to $210 million, including $125 million to $130 million of salaries and benefits expense and approximately $80 million of all other non interest expense; total non interest income is expected to be $70 million to $75 million, with investment banking and sales and trading contributing $45 million to $50 million, NII is expected at $270 million to $275 million and margin at 3.45% to 3.50%, and the mortgage finance self funding ratio is expected to increase to approximately 85%; for full-year 2026, adjusted total revenue growth is expected in the high single digits versus adjusted total revenue of $1.26 billion in 2025, full year noninterest income is expected to reach $295 million to $300 million, noninterest expense growth is expected in the mid to high single digits versus $768.9 million in 2025, and provision is expected at 35 to 40 basis points of average LHI, excluding mortgage finance, based on an additional 25 basis points increase in December and an upper bound of the Federal Funds target range of 4.25% at year end.
- Record Quarterly Earnings and RevenueAdjusted earnings per share reached a record $2.35, up 8% year over year and 25% linked quarter. Adjusted total revenue reached a record $357 million, up 5% year over year, while adjusted pre-provision net revenue reached a record $157 million, also up 5% year over year. Adjusted net income to common was another record at $103 million.
- Record Net Interest Income and Improving MarginNet interest income increased $3.2 million year over year to a record $275 million. Net interest margin improved 16 basis points linked quarter to 3.44%, and fourth-quarter guidance calls for net interest income of $270 million to $275 million and net interest margin of 3.45% to 3.50%.
- Strong Noninterest Income GrowthNoninterest income increased 19% year over year to $81.6 million, representing 23% of total revenue versus 20% a year ago. Combined fees from strategic focus areas reached a quarterly record of $64.1 million, up 14% year over year and 6% linked quarter.
- Investment Banking and Trading MomentumInvestment banking and trading income reached a third consecutive quarterly record of $46.7 million, up 13% year over year and 9% linked quarter, supported by strength in advisory, capital markets, and sales and trading. The company cited a strong pipeline supporting estimated fourth-quarter fees of $45 million to $50 million, and expects approximately 40% year-over-year growth in investment banking for the full year.
- Treasury and Wealth Management Fee GrowthTreasury product fees increased 16% year over year and 3% linked quarter to $12.9 million as client adoption of cash management, commercial card, and payments continued at a peer-leading pace. Wealth management fees increased 14% year over year to $4.6 million, while assets under management expanded for the sixth consecutive quarter to $4.8 billion.
- Commercial Loan GrowthPeriod-end commercial loans increased $1.5 billion, or 13%, year over year, and $422 million, or 13% annualized, linked quarter to $13.4 billion. This marked the eleventh consecutive quarter of growth in average commercial loan balances, with commercial loans now comprising 56% of total loans versus 28% at year-end 2020 when adjusting for divested businesses.
- High-Quality Commercial Deposit GrowthDeposits excluding mortgage finance noninterest-bearing deposits and brokered interest-bearing deposits increased $777 million, or 4%, linked quarter to $22.4 billion. Average commercial noninterest-bearing deposits increased $250 million, or 7%, year over year, to $3.7 billion and remained 13% of total deposits. Over the last year, commercial interest-bearing deposits grew $850 million and commercial noninterest-bearing deposits grew $320 million.
- Improved Operating Productivity and PPNR ExpansionAdjusted pre-provision net revenue increased 5% year over year to $157 million, marking the ninth consecutive quarter of expansion. Adjusted noninterest expense declined 2% linked quarter to $199.6 million, reflecting a more productive operating model and the return of legal and professional fees to more typical levels.
- Technology Reorganization and AI Infrastructure InvestmentThe company reorganized technology leadership and team structure to prioritize product delivery, data infrastructure, system stability, and process design intended to unlock the operational benefits of AI. Management said the new leadership and talent are expected to advance client journeys, AI, and new technology deployment, while the restructuring is intended to convert long-standing investments into measurable productivity gains.
- Continued Frontline Hiring and Faster PaybackThe company doubled its number of bankers between 2021 and 2023 and is again aggressively recruiting high-quality professionals across commercial banking, corporate banking, investment banking, wealth management, treasury, and other client-facing businesses. Management stated that the time to a dollar of revenue is now much quicker and the return is much faster because the supporting middle-office, risk, compliance, and technology infrastructure has already been built.
- Active Share Repurchases and Strong Capital PositionTexas Capital repurchased approximately $103 million of common shares, or approximately 1.05 million shares, at a weighted average price of $96.99 per share, exhausting its 2026 authorization. The board authorized an additional $200 million repurchase plan. Tangible common equity to tangible assets was 9.85%, the CET1 ratio was 12.2%, cash and securities were 20% of assets, and the loan-to-deposit ratio was 87%.
- Interest-Rate Risk ManagementDuring the quarter, the company executed $600 million of two-year received-fixed swaps against one-month SOFR at a weighted average receive rate of 4.16%. Following historic rate moves in October, it executed another $200 million of two-year fixed swaps at a weighted average receive rate of 4.72%. Management said these actions kept interest-rate sensitivity within its desired range and supported balance-sheet resilience.
- Mortgage Finance Risk-Weight and Self-Funding ImprovementsEnhanced credit structures represented 76% of period-end mortgage finance balances, up from 69% in the second quarter, resulting in a blended risk weight of 48%. Management expects the mortgage finance self-funding ratio to increase to approximately 85% in the fourth quarter and said the ratio is likely to remain around 80% to 85% for at least the next few quarters.
- Improved Full-Year Revenue OutlookThe company modestly improved its full-year performance outlook and now anticipates adjusted total revenue growth in the high single digits versus adjusted total revenue of $1.26 billion in 2025. Full-year noninterest income is expected to reach $295 million to $300 million, up from the previously provided guidance.
- Positive Operating Leverage OutlookManagement reiterated that the full-year outlook supports another year of positive operating leverage while investing in the next phase of growth. Full-year provision guidance remained 35 to 40 basis points of average loans held for investment, excluding mortgage finance.
- Texas Stock Exchange Listing ProgressThe transfer to the Texas Stock Exchange was described as having gone smoothly. The company expects to change its ticker to TCBI and said it and its ETFs were the first two securities ever listed on a Texas exchange. Management stated that the exchange had more than $100 billion of market capitalization and a pipeline of additional listings.
DE:TCA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2026 (Q4) | 1.82- | 1.9 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 1.752.04 | 1.95 | 4.59% (+0.09) | |
| Jul 22, 2026 | 2026 (Q2) | 1.681.64 | 1.41 | 15.82% (+0.22) | |
| Apr 23, 2026 | 2026 (Q1) | 1.261.40 | 0.82 | 69.57% (+0.57) | |
| Jan 22, 2026 | 2025 (Q4) | 1.581.90 | 1.28 | 48.25% (+0.62) | |
| Oct 23, 2025 | 2025 (Q3) | 1.591.95 | -1.26 | 254.61% (+3.21) | |
| Jul 17, 2025 | 2025 (Q2) | 1.151.41 | 0.72 | 97.50% (+0.70) | |
| Apr 17, 2025 | 2025 (Q1) | 0.850.82 | 0.41 | 100.00% (+0.41) | |
| Jan 23, 2025 | 2024 (Q4) | 0.981.28 | 0.3 | 333.33% (+0.98) | |
| Oct 17, 2024 | 2024 (Q3) | -1.77-1.26 | 1.06 | -219.49% (-2.32) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
