Texas Capital Bancshares, a major banking institution based in Dallas, reported second-quarter financial results on Wednesday that closely aligned with Wall Street expectations. The company’s adjusted earnings per share came in at $1.88, slightly above the estimated $1.86, while revenue reached $335.5 million, surpassing the anticipated $333.2 million. Both figures marked improvements compared to the previous quarter and the same period last year.
The gains were driven by continued growth in fee income and book value per share, both of which reached record levels in the quarter. Texas Capital’s diversified revenue streams were highlighted by a $21 million increase in non-interest income year-over-year, including a record $60.5 million in fee income from wealth management, treasury products, investment banking, and trading activities.
Rob Holmes, chairman, president, and CEO, attributed the strong performance to the company’s evolving capabilities and client-focused approach. He pointed to double-digit growth in earnings per share and book value per share, alongside solid capital ratios and operational efficiency, as indicators of sustained momentum. Holmes emphasized the company’s “durability,” broad service offerings, and team dedication as key factors in delivering consistent financial gains.
The bank’s board also approved a new round of dividends, which included payments on preferred stock and a 20-cent deferred dividend on common stock, following the company’s inaugural quarterly common stock dividend issuance last quarter. Despite a slight 1% decline in stock price on the day of the earnings announcement, Texas Capital’s shares have gained approximately 13% year-to-date, outperforming the Nasdaq Composite index.
Texas Capital recently completed a strategic transformation into a full-service financial institution, achieving several long-term targets set in 2021. This shift has broadened the bank’s revenue base, with the success of its investment banking efforts driven notably by new client relationships from commercial and corporate banking segments. Holmes noted that all mergers and acquisitions transactions closed so far this year involved privately held, middle-market, Texas-based, family-owned companies.
Chief Financial Officer Matt Scurlock highlighted the potential for these relationships to generate additional wealth management opportunities, which the firm expects to capitalize on later this year and into 2027. This integrated banking approach combines investment banking services with private wealth management, aiming to deepen client engagement.
Credit quality showed signs of stabilization in the second quarter after deteriorating earlier in the year. Nonperforming assets fell to around $124 million from $166 million in the first quarter, returning to levels last seen in the fourth quarter of 2025. Meanwhile, adjusted return on average assets—a key profitability metric—remained just below the 1.1% target set in 2021, with the company refraining from providing specific future guidance on profitability.
Holmes underscored the importance of consistent growth in book value and operational efficiency. He described the ongoing effort to enhance the firm’s performance through positive operating leverage and continued value creation as central to Texas Capital’s long-term strategy.