TCBI Texas Capital Bancshares (TCBI) Q1 FY26 earnings call
Texas Capital Bancshares delivered strong Q1 FY26 results, marked by record fee income and significant adjusted EPS growth, driven by strategic investments and disciplined client selection. The firm initiated a quarterly common stock dividend, signaling confidence in its sustainable earnings trajectory and robust capital position. Management continues to focus on capital-efficient revenue diversification and prudent risk management amidst economic uncertainties, leveraging its enhanced platform for durable growth.
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TCBI operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Common equity tier 1 ratio (CET1) | 11.99%Tangible common equity and tangible assets of 9.87% exceeds peer levels and CET1 of 11.99% remains well above our stated target of 11% and internally assessed risk profile.Source: earnings call transcript | 12.07%Notable reductions in substandard loans mostly offset fluctuations in special mention, caused by capital-related pressures on previously discussed commercial real estate multifamily credits and macro-driven demand or operating margin pressure causing grade changes in C&I Capital ratios remained strong and well in excess of our internally assessed risk profile, with tangible common equity to tangible assets of 9.87% and CET1 of 12.07%.Source: earnings call transcript | 12.2%With tangible common equity of tangible assets of 9.85% and a CET1 ratio of 12.2%, and Cash and securities remain in line with target levels at 22% of assets and the loan-to-deposit ratio is stable at 87%.Source: earnings call transcript | +0.1 pt |
| Net interest margin | 3.43%Net interest margin expanded 24 basis points year-over-year to 3.43% the sixth consecutive quarter of year-over-year expansion and improved 5 basis points relative to the prior quarter.Source: earnings call transcript | — | 3.44%Net interest margin improved 16 basis points linked quarter to 3.44% and remained slightly below the 3.47% reported in the third quarter of last year.Source: earnings call transcript | — |
| Assets under management (AUM) | $4.4BWealth Management and trust fee income of $4.4 million also represented a record high, increasing 11% year-over-year, supported by assets under management of $4.4 billion, which increased 16% year-over-year from organic net inflows and favorable market conditions.Source: earnings call transcript | $4.8BWealth Management and trust fee of $5.1 million increased 38% year-over-year as assets under management expanded 15% to $4.8 billion, treasury product fees at $12.5 million increased 8% year-over-year, driven by both sustained new client onboarding and our advisory-based approach, which continues to propel client adoption of our integrated platform.Source: earnings call transcript | $4.8BWealth Management and trust fees of $4.6 million increased 14% year-over-year as assets under management expanded for the sixth consecutive quarter to $4.8 billion.Source: earnings call transcript | 0% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
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