# Texas Capital Bancshares Inc: Form 10-Q for the period ended Sep 30, 2025

- Company: [Texas Capital Bancshares Inc](/companies/tcbi.md) (CIK 1077428)
- Form: 10-Q
- Filed: 2025-10-23
- Accepted by EDGAR: Oct 23, 2025, 08:20 ET
- Period: 2025-09-30
- Accession: 0001077428-25-000145
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1077428/000107742825000145/tcbi-20250930.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1077428/000107742825000145/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Income tax | 3 months, 2025-07-01 to 2025-09-30 | $32.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2025-01-01 to 2025-09-30 | $70.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-07-01 to 2025-09-30 | $105.2m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2025-01-01 to 2025-09-30 | $229.6m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-07-01 to 2025-09-30 | $2.18 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2025-01-01 to 2025-09-30 | $4.67 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-07-01 to 2025-09-30 | $2.21 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2025-01-01 to 2025-09-30 | $4.72 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-07-01 to 2025-09-30 | 46,233,167 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2025-01-01 to 2025-09-30 | 46,348,236 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2025-01-01 to 2025-09-30 | $229.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2025-01-01 to 2025-09-30 | $12.9m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 9 months, 2025-01-01 to 2025-09-30 | $59.2m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | at 2025-09-30 | $32.54bn | us-gaap:Assets |
| Total liabilities | at 2025-09-30 | $28.90bn | us-gaap:Liabilities |
| Long-term debt | at 2025-09-30 | $620.4m | us-gaap:LongTermDebt |
| Shareholders' equity | at 2025-09-30 | $3.64bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 2,081 characters.

The Company repurchased shares of its common stock in the open market during the nine months ended September 30, 2025 as follows:

|  | Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(1)(2) |
| --- | ---: | ---: | ---: | ---: |
| Total first quarter 2025 | 396,106 | $78.25 | 396,106 | $169,003,778 |
| Total second quarter 2025 | 317,860 | $65.50 | 317,860 | $148,183,554 |
| July 2025 | — | $— | — | $148,183,554 |
| August 2025 | 87,087 | 80.49 | 87,087 | 141,174,282 |
| September 2025 | — | — | — | 141,174,282 |
| Total third quarter 2025 | 87,087 | $80.49 | 87,087 | $141,174,282 |
| Total 2025 | 801,053 | $73.44 | 801,053 | $141,174,282 |

(1) The approximate dollar value of shares that may yet be purchased under the plans or programs and average price paid per share do not include the effect of excise tax expense incurred on net stock repurchases.

(2) On January 22, 2025, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $200.0 million in shares of its outstanding common stock, excluding the effect of excise tax expense incurred on net stock repurchases. Any repurchases under the repurchase program will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will be at management’s discretion and will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations. The share repurchase program is set to expire on January 31, 2026, and the program may be suspended or discontinued at any time. Remaining repurchase authorization under the January 17, 2024 share repurchase program was terminated upon authorization of this new program.

## Market risk

As filed, 10,582 characters.

Market risk represents the potential economic loss on trading and non-trading portfolios and financial instruments due to adverse price movements in markets including interest rates, foreign exchange rates, credit spreads, commodity prices and equity and related implied volatility levels. The Company is subject to market risk primarily through the effect of changes in interest rates on its portfolio of assets held for purposes other than trading and interest rate derivative instruments that are used for managing interest rate risk. In addition, the Company has exposure to market risk through its trading desks that engage in securities, derivatives and foreign exchange transactions to support the capital raising, investing and hedging activities of customers. The Company may manage or reduce market risk through the use of hedging, short sale or other similar transactions intended to reduce market risk to be within tolerance levels designated by the Company’s market risk management strategy. The Company uses Value-at-Risk (“VaR”) as a means to measure, monitor, and limit aggregate market risk on the trading portfolio. VaR is a statistical risk measure estimating potential loss at the 95th percentile based on a one-year history of market risk factors associated with the trading portfolio. VaR provides a consistent cross-asset measure for risk profiles and allows for diversification benefit based on historical correlations across market moves. As of September 30, 2025, the Company’s exposure through its trading desk does not pose a significant market risk to the Company. All statistical models involve a degree of uncertainty and VaR is calculated at a statistical confidence interval of the 95th percentile based on one-year daily historic market moves. Larger economic losses are possible, particularly during stressed macroeconomic and market conditions.

The responsibility for managing market risk rests with the ALCO, which operates under policy guidelines established by the Company’s board of directors. Oversight of the Company’s compliance with the guidelines is the ongoing responsibility of the ALCO, with exceptions reported to the Executive Risk Committee and the board of directors, if necessary, on a quarterly basis.

### Interest Rate Risk Management

The Company’s interest rate sensitivity as of September 30, 2025 is illustrated in the following table. The table reflects rate-sensitive positions as of September 30, 2025 and is not necessarily indicative of positions on other dates. The table does not take into account the effect of the Company’s derivatives designated as cash flow hedges. The balances of interest rate sensitive assets and liabilities are presented in the periods in which they next reprice to market rates or mature and are aggregated to show the interest rate sensitivity gap. The mismatch between repricings or maturities within a time period is commonly referred to as the “gap” for that period. A positive gap (asset sensitive), where interest rate sensitive assets exceed interest rate sensitive liabilities, generally will result in the net interest margin increasing in a rising rate environment and decreasing in a falling rate environment. A negative gap (liability sensitive) will generally have the opposite results on the net interest margin. Certain variable rate loans have embedded floors which limit the decline in yield on those loans at times when market interest rates are extraordinarily low. The degree of asset sensitivity, spreads on loans and net interest margin may be reduced until rates increase by an amount sufficient to eliminate the effects of floors. The adverse effect of floors as market rates increase may also be offset by the positive gap, the extent to which rates on deposits and other funding sources lag increasing market rates for loans and changes in composition of funding.

*(in thousands)*

| Assets | 0-3 months | 4-12 months | 1-3 years | 3+ years | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Interest bearing cash and cash equivalents | $2,852,387 | $— | $— | $— | $2,852,387 |
| Investment securities(1) | 68,838 | 197 | 103,916 | 4,428,703 | 4,601,654 |
| Variable loans | 22,690,735 | 176,134 | 132,504 | 225,652 | 23,225,025 |
| Fixed loans | 15,588 | 136,623 | 224,090 | 692,349 | 1,068,650 |
| Total loans(2) | 22,706,323 | 312,757 | 356,594 | 918,001 | 24,293,675 |
| Total interest sensitive assets | $25,627,548 | $312,954 | $460,510 | $5,346,704 | $31,747,716 |
| **Liabilities** |  |  |  |  |  |
| Interest bearing customer deposits | $17,541,388 | $— | $— | $— | $17,541,388 |
| CDs | 750,714 | 1,471,246 | 48,937 | 3,515 | 2,274,412 |
| Total interest bearing deposits | 18,292,102 | 1,471,246 | 48,937 | 3,515 | 19,815,800 |
| Short-term borrowings | 275,000 | — | — | — | 275,000 |
| Long-term debt | 113,406 | 507,010 | — | — | 620,416 |
| Total borrowings | 388,406 | 507,010 | — | — | 895,416 |
| Total interest sensitive liabilities | $18,680,508 | $1,978,256 | $48,937 | $3,515 | $20,711,216 |
| GAP | $6,947,040 | $(1,665,302) | $411,573 | $5,343,189 | $— |
| Cumulative GAP | $6,947,040 | $5,281,738 | $5,693,311 | $11,036,500 | $11,036,500 |
| Non-interest bearing deposits |  |  |  |  | 7,689,598 |
| Stockholders’ equity |  |  |  |  | 3,637,098 |
| Total |  |  |  |  | $11,326,696 |

(1) Available-for-sale debt securities, equity securities and trading securities based on fair market value.

(2) Total loans include gross loans held for investment and loans held for sale.

While a gap interest table is useful in analyzing interest rate sensitivity, an interest rate sensitivity simulation provides a better illustration of the sensitivity of earnings to changes in interest rates. Earnings are also affected by the effects of changing interest rates on the value of funding derived from non-interest bearing deposits and stockholders’ equity. Management performs a sensitivity analysis to identify interest rate risk exposure on net interest income. Management also quantifies and measures interest rate risk exposure using a model to dynamically simulate the effect of changes in net interest income relative to changes in interest rates over the next twelve months based on different interest rate scenarios. These are a static rate scenario and “shock test” scenarios, as described below.

These scenarios are based on interest rates as of the last day of a reporting period published by independent sources and incorporate relevant spreads of instruments that are actively traded in the open market. The Federal Reserve’s federal funds target affects short-term borrowing; the prime lending rate, SOFR and other alternative indexes are the basis for most of the variable-rate loan pricing. The 10-year treasury rate is also monitored because of its effect on prepayment speeds for mortgage-backed securities. These are the Company’s primary interest rate exposures. Interest rate derivative contracts may be used to manage exposure to adverse fluctuations in these primary interest rate exposures as is discussed in more detail under the heading *Use of Derivatives to Manage Interest Rate and Other Risks* below.

For modeling purposes, the “shock test” scenarios as of September 30, 2025 and September 30, 2024 assume immediate parallel, sustained 100 and 200 basis point increases in interest rates as well as 100 and 200 basis point decreases in interest rates. The Company will continue to evaluate these scenarios as interest rates change.

The Company’s interest rate risk exposure model incorporates assumptions regarding the level of interest rate, including indeterminable maturity deposits (non-interest bearing deposits, interest bearing transaction accounts and savings accounts) and loan and security prepayment behaviors for a given level of market rate change. In the current environment of changing short-term rates, deposit pricing can vary by product and customer. These assumptions have been developed through a combination of historical analysis and projection of future expected pricing behavior. Changes in prepayment behavior of mortgage-backed securities and residential and commercial mortgage loans in each rate environment are captured using industry estimates of prepayment speeds for various coupon segments of the portfolio. The impact of these changes is factored into the simulation model results and indicated interest rate sensitivity as follows:

|  | Annualized Hypothetical Change in Net Interest Income September 30, 2025 | September 30, 2024 |
| --- | ---: | ---: |
| + 200 basis points | 7.7% | 6.1% |
| + 100 basis points | 4.0% | 3.1% |
| - 100 basis points | (6.4)% | (6.5)% |
| - 200 basis points | (12.5)% | (13.5)% |

The simulations used to manage interest rate risk are based on numerous assumptions regarding the effect of changes in interest rates on the timing and extent of repricing characteristics, future cash flows and customer behavior. These assumptions are inherently uncertain and, as a result, the model cannot precisely estimate net interest income or precisely predict the impact of higher or lower interest rates on net interest income. Actual results will differ from simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions, customer behavior and management strategies, among other factors.

### Use of Derivatives to Manage Interest Rate and Other Risks

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers.

On the date the Company enters into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, net investment hedge, or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations.

To manage the sensitivity of earnings and capital to interest rate, prepayment, credit, price and foreign currency fluctuations (asset and liability management positions), the Company may enter into derivative transactions. In addition, the Company enters into interest rate and foreign exchange derivative contracts to support the business requirements of its customers (customer-related positions).

For additional information regarding derivatives, see Note 10 - Derivative Financial Instruments in the accompanying notes to the consolidated financial statements included elsewhere in this report.

## Controls and procedures

As filed, 1,861 characters.

### Evaluation of Disclosure Controls and Procedures

The Company’s management, with the supervision and participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based upon that evaluation, the Company has concluded that, as of the end of such period, its disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed in the reports that the Company files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed in the reports filed or submitted under the Exchange Act is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

### Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(e) and 15d-15(f) under the Exchange Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

## Risk factors

As filed, 149 characters.

There have been no material changes in the Company’s risk factors from those previously disclosed in Part I, Item 1A of the Company’s 2024 Form 10-K.

Filed Oct 23, 2025.
Source: SEC EDGAR, the filing index for accession 0001077428-25-000145. Last ingested by Listed: Nov 5, 2026, 14:39 ET. No prices; not investment advice.