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- **Record Financials**: All-time highs in revenue ($340M), net income ($101M), EPS ($2.18), and tangible book value ($73.02).
- **Investment Banking Dominance**: 20% fee growth, repeat clients driving 35% of fees, #2 in syndicated loans.
- **Credit Excellence**: 41% YoY criticized loans reduction, 1.79% allowance ratio, 90% new clients adopt multiple services.
- **Capital Strength**: 12.14% CET1, 10.25% TCE, 24% liquidity, 54% mortgage loans under enhanced credit structures.
- **Shareholder Returns**: 12% buybacks at $59, 36% EPS growth, 1.3% ROA vs. 1.1% target.
- **Strategic Growth**: Texas industry expansion, SBA lending top 5, 12% annualized C&I commitments growth.
- **Resilient NII**: 13% YoY growth, 3.3% margin despite 100bp rate cuts, 3.8% mortgage yield.
- **Client Engagement**: 22% YoY deposit growth, 91% treasury fee increase, 85% self-funding ratio.
- **Risk Management**: 3.5x reserves, idiosyncratic credit issues, conservative risk stance.

**【CEO Summary Section】**
- Achieved record revenue of $340 million, pre-provision net revenue of $150 million, and net income of $101 million, with EPS of $2.18.
- Treasury product fees grew 91% over 4 years, with 90% of new clients adopting multiple services.
- Became Texas' top 5 SBA lender and launched a full-service investment bank with 12% annualized C&I commitments growth.
- Maintained 10.25% TCE ratio and 24% liquidity, supporting proactive client engagement.
- Repurchased 12% of shares at $59, below tangible book value, driving 36% EPS growth.
- Achieved 1.3% ROA, exceeding the 1.1% target, with 54% mortgage loans under enhanced credit structures.

**【CFO Financial Commentary】**
- Total revenue up 12% YoY to $340 million, with 13% NII growth and 6% fee-based revenue increase.
- Pre-provision net revenue rose 30% to $149.8 million, supported by 36% net income growth.
- Allowance for credit loss at 1.79% of LHI, with criticized loans down 41% YoY to 2.19% of LHI.
- Mortgage finance loans averaged $5.5 billion, with a 85% self-funding ratio and 3.8% yield guidance.
- Noninterest expenses grew 3% YoY, below 7% of revenue, reflecting structural efficiencies.
- CET1 ratio increased to 12.14%, with 54% of mortgage loans under enhanced credit structures.

**【Q&A Highlights】**
- **Investment Banking Momentum**: $230-235 million annual fees, 20% YoY growth, repeat clients driving 35% of fees.
- **Loan Growth**: C&I commitments up 8.2% QoQ, industry-leading syndicated loans.
- **NII Resilience**: 13% YoY growth despite 100bp rate cuts, 3.3% margin guidance.
- **Capital Strategy**: Maintain 12.14% CET1, prioritize organic growth and buybacks.
- **Client Engagement**: 22% YoY deposit growth, 91% treasury fee increase.
- **Risk Management**: 3.5x reserves to nonaccrual loans, idiosyncratic criticized loans.
- **Mortgage Outlook**: 10% YoY growth, 3.8% yield, 85% self-funding ratio.
- **Expense Control**: Mid-single-digit growth, 3% YoY noninterest expenses.
- **Texas Expansion**: Full-service investment bank, SBA lending leadership.


Texas Capital Bancshares, Inc. (TCBI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TCBIO

TCBIO fundamentals

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