Texas Capital earnings exceeded analyst expectations in the third quarter of 2026, with diluted earnings per share of $2.28 against an estimate of $1.93. Net income available to common stockholders reached $99.4 million, improving from the preceding quarter but remaining slightly below a year earlier. The company filed its 8-K on October 21, 2026.
Key Takeaways
- Net income rose from $80.6 million in the second quarter, while diluted EPS increased from $1.83.
- Net interest income reached a record $275 million as net interest margin widened to 3.44%.
Table of Contents
- Texas Capital earnings show stronger sequential profitability
- Returns improve from the second quarter
- Conclusion
Texas Capital earnings show stronger sequential profitability
The earnings beat accompanied higher revenue and a wider lending margin. Total revenue reached $356.6 million, compared with $335.5 million in the second quarter and $340.4 million in the third quarter of 2025.
Record net interest income of $275 million increased from $260.4 million in the preceding quarter and $271.8 million a year earlier. Higher average earning-asset yields supported the improvement despite rising funding costs. Net interest margin expanded by 16 basis points from the second quarter to 3.44%.
The year-over-year comparison was more mixed. Net income available to common stockholders declined from $100.9 million, although diluted EPS increased from $2.18.
Chairman, President and CEO Rob C. Holmes described the earnings profile as steadily improving and increasingly diversified, supported by a business model designed to withstand market and interest-rate cycles.
Returns improve from the second quarter
Return on average assets increased to 1.25% from 1.03% in the preceding quarter, while return on average equity rose to 11.57% from 9.56%. Both measures remained below their year-earlier levels of 1.30% and 12.04%, respectively.
Total assets stood at $32.3 billion. The bank reported a Common Equity Tier 1 capital ratio of 12.2% as of September 30, 2026, with capital ratios above regulatory requirements.
Dallas-based Texas Capital Bancshares operates through Texas Capital Bank, providing commercial and consumer banking, investment banking and wealth management services, primarily in major Texas metropolitan areas.
Insider stock sales totaled approximately $10.6 million and purchases totaled $0.5 million over the preceding year.
Conclusion
Texas Capital’s quarter combined an earnings beat with record net interest income and stronger sequential returns. The improvement was less complete against the prior year, with net income and return measures still below their comparable 2025 levels.
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