Q2 2026 Texas Capital Bancshares Inc Earnings Call Transcript
Key Points
- Quarterly adjusted earnings per share increased 15% year-over-year to $1.88, supported by record fee income and strong C&I loan growth.
- Non-interest income rose by 39% year-over-year to $75.1 million, representing 22% of total revenue, up from 18% a year ago.
- Investment banking fees grew 34% year-over-year to $42.8 million, driven by tailored strategic advice and strong client relationships.
- Tangible book value per share increased 10% year-over-year to $76.98, marking the ninth consecutive quarterly record.
- Strong credit quality with disciplined oversight and conservative reserve posture, maintaining a solid financial foundation.
- Net interest margin was slightly lower than expected due to changes in earning asset mix and higher temporary funding costs.
- Criticized loans increased slightly, with multifamily commercial real estate borrowers facing pressure on net operating income.
- Commercial real estate loans decreased 3% linked quarter and are expected to decline by approximately 12% for the full year.
- Interest-bearing deposit costs increased due to higher average broker deposits, impacting overall deposit cost.
- The company faces competitive pressure and irrational behavior in both C&I and CRE lending markets, affecting pricing and structure.
Good afternoon, and thank you for joining us for TCBI's Second Quarter 2026 Earnings Conference Call. I'm Jocelyn Kukulka, Head of Investor Relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events.
Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements. Our forward-looking statements are as of the date of this call, and we do not assume any obligation to update or revise them.
Today's presentation will include certain non-GAAP measures, including, but not limited to, adjusted operating metrics, adjusted earnings per share and return on capital. For reconciliation of these and other non-GAAP measures to the corresponding GAAP measures, please refer to the earnings press release and our website.
Statements made on this call should be considered together with the cautionary statements and
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