TEXAS CAPITAL BANCSHARES INC/TX 10-Q

ITEM 1. FINANCIAL STATEMENTS TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS - UNAUDITED (in thousands except share data) September 30, 2025 December 31, 2024 Assets Cash and due from banks $ 212,438 $ 176,501 Interest bearing cash and cash equivalents 2,852,387 3,012,307 Available-for-sale debt securities 3,801,261 3,524,686 Held-to-maturity debt securities 743,120 796,168 Equity securities 55,054 75,261 Trading securities 2,219 — Investment securities 4,601,654 4,396,115 Loans held for investment, mortgage finance 6,057,804 5,215,574 Loans held for investment 18,134,059 17,234,492 Less: Allowance for credit losses on loans 274,026 271,709 Loans held for investment, net 23,917,837 22,178,357 Premises and equipment, net 88,348 85,443 Accrued interest receivable and other assets 862,820 881,664 Goodwill and intangibles, net 1,496 1,496 Total assets $ 32,536,980 $ 30,731,883 Liabilities and Stockholders’ Equity Liabilities: Non-interest bearing deposits $ 7,689,598 $ 7,485,428 Interest bearing deposits 19,815,800 17,753,171 Total deposits 27,505,398 25,238,599 Accrued interest payable 9,360 23,680 Other liabilities 489,708 556,322 Short-term borrowings 275,000 885,000 Long-term debt 620,416 660,346 Total liabilities 28,899,882 27,363,947 Stockholders’ equity: Preferred stock, $ 0.01 par value, $ 1,000 liquidation value: Authorized shares - 10,000,000 Issued shares - 300,000 at September 30, 2025 and December 31, 2024 300,000 300,000 Common stock, $ 0.01 par value: Authorized shares - 100,000,000 Issued shares - 51,767,419 and 51,520,315 at September 30, 2025 and December 31, 2024, respectively 518 515 Additional paid-in capital 1,069,582 1,056,719 Retained earnings 2,712,298 2,495,651 Treasury stock - 6,087,556 and 5,286,503 shares at cost at September 30, 2025 and December 31, 2024, respectively ( 361,076 ) ( 301,842 ) Accumulated other comprehensive loss, net of taxes ( 84,224 ) ( 183,107 ) Total stockholders’ equity 3,637,098 3,367,936 Total liabilities and stockholders’ equity $ 32,536,980 $ 30,731,883 See accompanying notes to consolidated financial statements. 3 Table of Contents TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - UNAUDITED Three Months Ended September 30, Nine Months Ended September 30, (in thousands except per share data) 2025 2024 2025 2024 Interest income Interest and fees on loans $ 379,017 $ 361,407 $ 1,077,525 $ 1,037,537 Investment securities 49,396 38,389 141,952 104,117 Interest bearing cash and cash equivalents 32,202 52,737 107,994 150,325 Total interest income 460,615 452,533 1,327,471 1,291,979 Interest expense Deposits 180,779 190,255 530,513 547,135 Short-term borrowings 534 13,784 12,224 39,316 Long-term debt 7,531 8,392 23,534 33,835 Total interest expense 188,844 212,431 566,271 620,286 Net interest income 271,771 240,102 761,200 671,693 Provision for credit losses 12,000 10,000 44,000 49,000 Net interest income after provision for credit losses 259,771 230,102 717,200 622,693 Non-interest income Service charges on deposit accounts 8,111 6,307 24,133 18,557 Wealth management and trust fee income 3,989 4,040 11,683 11,306 Brokered loan fees 2,419 2,400 6,766 6,442 Investment banking and advisory fees 33,985 34,753 74,572 78,225 Trading income 7,238 5,786 21,073 16,148 Available-for-sale debt securities losses — ( 179,581 ) ( 1,886 ) ( 179,581 ) Other 12,841 11,524 30,755 25,875 Total non-interest income 68,583 ( 114,771 ) 167,096 ( 23,028 ) Non-interest expense Salaries and benefits 119,856 121,138 371,651 368,705 Occupancy expense 11,828 12,937 34,816 33,340 Marketing 3,412 5,863 12,045 17,895 Legal and professional 12,474 11,135 38,532 38,603 Communications and technology 24,594 25,951 72,550 69,078 Federal Deposit Insurance Corporation insurance assessment 5,198 4,906 15,635 18,897 Other 13,213 13,394 38,642 39,608 Total non-interest expense 190,575 195,324 583,871 586,126 Income/(loss) before income taxes 137,779 ( 79,993 ) 300,425 13,539 Income tax expense/(benefit) 32,569 ( 18,674 ) 70,840 7,054 Net income/(loss) 105,210 ( 61,319 ) 229,585 6,485 Preferred stock dividends 4,313 4,313 12,938 12,938 Net income/(loss) available to common stockholders $ 100,897 $ ( 65,632 ) $ 216,647 $ ( 6,453 ) Other comprehensive income/(loss) Change in unrealized gain/(loss) $ 30,909 $ 109,849 $ 101,226 $ 53,567 Amounts reclassified into net income 6,172 199,599 26,498 239,132 Other comprehensive income 37,081 309,448 127,724 292,699 Income tax expense 8,374 69,873 28,841 58,852 Other comprehensive income, net of tax 28,707 239,575 98,883 233,847 Comprehensive income $ 133,917 $ 178,256 $ 328,468 $ 240,332 Basic earnings/(loss) per common share $ 2.21 $ ( 1.42 ) $ 4.72 $ ( 0.14 ) Diluted earnings/(loss) per common share $ 2.18 $ ( 1.41 ) $ 4.67 $ ( 0.14 ) See accompanying notes to consolidated financial statements. 4 Table of Contents TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED Preferred Stock Common Stock Additional Treasury Stock Accumulated Other Paid-in Retained Comprehensive (in thousands except share data) Shares Amount Shares Amount Capital Earnings Shares Amount Income/(Loss) Total Balance at June 30, 2024 300,000 $ 300,000 51,474,581 $ 515 $ 1,050,114 $ 2,494,572 ( 5,286,503 ) $ ( 301,868 ) $ ( 367,732 ) $ 3,175,601 Comprehensive income/(loss): Net loss — — — — — ( 61,319 ) — — — ( 61,319 ) Change in other comprehensive income/(loss), net of taxes — — — — — — — — 239,575 239,575 Total comprehensive income 178,256 Stock-based compensation expense recognized in earnings — — — — 4,957 — — — — 4,957 Preferred stock dividend — — — — — ( 4,313 ) — — — ( 4,313 ) Issuance of stock related to stock-based awards — — 19,679 — ( 457 ) — — — — ( 457 ) Balance at September 30, 2024 300,000 $ 300,000 51,494,260 $ 515 $ 1,054,614 $ 2,428,940 ( 5,286,503 ) $ ( 301,868 ) $ ( 128,157 ) $ 3,354,044 Balance at June 30, 2025 300,000 $ 300,000 51,747,305 $ 517 $ 1,065,083 $ 2,611,401 ( 6,000,469 ) $ ( 354,000 ) $ ( 112,931 ) $ 3,510,070 Comprehensive income/(loss): Net income — — — — — 105,210 — — — 105,210 Change in other comprehensive income/(loss), net of taxes — — — — — — — — 28,707 28,707 Total comprehensive income 133,917 Stock-based compensation expense recognized in earnings — — — — 5,146 — — — — 5,146 Preferred stock dividend — — — — — ( 4,313 ) — — — ( 4,313 ) Issuance of stock related to stock-based awards — — 20,114 1 ( 647 ) — — — — ( 646 ) Repurchase of common stock — — — — — — ( 87,087 ) ( 7,076 ) — ( 7,076 ) Balance at September 30, 2025 300,000 $ 300,000 51,767,419 $ 518 $ 1,069,582 $ 2,712,298 ( 6,087,556 ) $ ( 361,076 ) $ ( 84,224 ) $ 3,637,098 See accompanying notes to consolidated financial statements. 5 Table of Contents TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED Preferred Stock Common Stock Additional Treasury Stock Accumulated Other Paid-in Retained Comprehensive (in thousands except share data) Shares Amount Shares Amount Capital Earnings Shares Amount Income/(Loss) Total Balance at December 31, 2023 (audited) 300,000 $ 300,000 51,142,979 $ 511 $ 1,045,576 $ 2,435,393 ( 3,905,067 ) $ ( 220,334 ) $ ( 362,004 ) $ 3,199,142 Comprehensive income/(loss): Net income — — — — — 6,485 — — — 6,485 Change in other comprehensive income/(loss), net of taxes — — — — — — — — 233,847 233,847 Total comprehensive income 240,332 Stock-based compensation expense recognized in earnings — — — — 18,229 — — — — 18,229 Preferred stock dividend — — — — — ( 12,938 ) — — — ( 12,938 ) Issuance of stock related to stock-based awards — — 351,281 4 ( 9,191 ) — — — — ( 9,187 ) Repurchase of common stock — — — — — — ( 1,381,436 ) ( 81,534 ) — ( 81,534 ) Balance at September 30, 2024 300,000 $ 300,000 51,494,260 $ 515 $ 1,054,614 $ 2,428,940 ( 5,286,503 ) $ ( 301,868 ) $ ( 128,157 ) $ 3,354,044 Balance at December 31, 2024 (audited) 300,000 $ 300,000 51,520,315 $ 515 $ 1,056,719 $ 2,495,651 ( 5,286,503 ) $ ( 301,842 ) $ ( 183,107 ) $ 3,367,936 Comprehensive income/(loss): Net income — — — — — 229,585 — — — 229,585 Change in other comprehensive income/(loss), net of taxes — — — — — — — — 98,883 98,883 Total comprehensive income 328,468 Stock-based compensation expense recognized in earnings — — — — 20,425 — — — — 20,425 Preferred stock dividend — — — — — ( 12,938 ) — — — ( 12,938 ) Issuance of stock related to stock-based awards — — 247,104 3 ( 7,562 ) — — — — ( 7,559 ) Repurchase of common stock — — — — — — ( 801,053 ) ( 59,234 ) — ( 59,234 ) Balance at September 30, 2025 300,000 $ 300,000 51,767,419 $ 518 $ 1,069,582 $ 2,712,298 ( 6,087,556 ) $ ( 361,076 ) $ ( 84,224 ) $ 3,637,098 See accompanying notes to consolidated financial statements. 6 Table of Contents TEXAS CAPITAL BANCSHARES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, (in thousands) 2025 2024 Operating activities Net income $ 229,585 $ 6,485 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 44,000 49,000 Depreciation and amortization 36,291 38,917 Net loss on available-for-sale debt securities 1,886 179,581 Net gain on equity securities ( 2,265 ) ( 6,727 ) Sales/(purchases) of trading securities, net ( 2,219 ) — Stock-based compensation expense 28,614 21,208 Proceeds from sales and repayments of loans held for sale — 53,494 Changes in operating assets and liabilities: Accrued interest receivable and other assets ( 39,949 ) ( 60,683 ) Accrued interest payable and other liabilities ( 66,283 ) 180,584 Net cash provided by operating activities 229,660 461,859 Investing activities Purchases of available-for-sale debt securities ( 843,190 ) ( 1,793,339 ) Proceeds from sales of available-for-sale debt securities 280,402 1,057,159 Proceeds from maturities, redemptions and pay-downs of available-for-sale debt securities 385,694 514,159 Proceeds from maturities, redemptions and pay-downs of held-to-maturity debt securities 55,555 55,696 Sales/(purchases) of equity securities, net 22,472 ( 15,874 ) Originations of loans held for investment, mortgage finance ( 71,110,334 ) ( 60,379,814 ) Proceeds from pay-offs of loans held for investment, mortgage finance 70,268,104 58,828,483 Net increase in loans held for investment, excluding mortgage finance loans ( 936,069 ) ( 446,916 ) Purchase of premises and equipment, net ( 12,910 ) ( 57,435 ) Net cash used in investing activities ( 1,890,276 ) ( 2,237,881 ) Financing activities Net increase in deposits 2,266,799 3,493,416 Issuance of stock related to stock-based awards ( 7,559 ) ( 9,187 ) Preferred stock dividends paid ( 12,938 ) ( 12,938 ) Repurchase of common stock ( 59,234 ) ( 81,534 ) Net decrease in short-term borrowings ( 610,000 ) ( 465,000 ) Redemption of long-term debt ( 40,435 ) ( 200,000 ) Net cash provided by financing activities 1,536,633 2,724,757 Net increase/(decrease) in cash and cash equivalents ( 123,983 ) 948,735 Cash and cash equivalents at beginning of period 3,188,808 3,242,850 Cash and cash equivalents at end of period $ 3,064,825 $ 4,191,585 Supplemental disclosures of cash flow information Cash paid during the period for interest $ 580,591 $ 672,199 Cash paid during the period for income taxes 67,402 48,040 Transfers of loans from held for investment to held for sale — 18,411 See accompanying notes to consolidated financial statements. 7 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED (1) Operations and Summary of Significant Accounting Policies Organization and Nature of Business Texas Capital Bancshares, Inc. (“TCBI” or the “Company”) is a registered bank holding company and a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. TCBI is headquartered in Dallas, with primary banking offices in Austin, Dallas, Fort Worth, Houston and San Antonio, and has built a network of clients across the country. The Company’s business activities are conducted primarily through its wholly-owned bank subsidiary Texas Capital Bank (the “Bank”) and its wholly-owned non-bank subsidiary, TCBI Securities Inc. (“TCBI Securities”). The Bank is a Texas state-chartered bank. TCBI Securities is a registered broker-dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority and Municipal Securities Rulemaking Board. The Company was incorporated as a Delaware corporation in 1996 and commenced banking operations in 1998. Effective September 19, 2025, the Bank became a member of the Federal Reserve System. As a result, the Board of Governors of the Federal Reserve System assumed the role as the Bank’s primary federal regulator, succeeding the Federal Deposit Insurance Corporation. The Texas Department of Banking will continue to serve as the Bank’s primary state regulator. Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited, and certain information and disclosures in the notes to consolidated unaudited financial statements that are presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made present a fair presentation of the Company’s financial position and results of operations. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the SEC. Accordingly, the financial statements and the notes to the consolidated unaudited financial statements required by GAAP for complete annual financial statements do not include all of the information and should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. 8 Table of Contents (2) Earnings Per Share The following table presents the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands except share and per share data) 2025 2024 2025 2024 Numerator: Net income/(loss) $ 105,210 $ ( 61,319 ) $ 229,585 $ 6,485 Preferred stock dividends 4,313 4,313 12,938 12,938 Net income/(loss) available to common stockholders $ 100,897 $ ( 65,632 ) $ 216,647 $ ( 6,453 ) Denominator: Basic earnings per common share—weighted average common shares 45,708,185 46,201,518 45,873,276 46,674,034 Effect of dilutive outstanding stock-settled awards 524,982 407,224 474,960 379,683 Dilutive earnings per common share—weighted average diluted common shares 46,233,167 46,608,742 46,348,236 47,053,717 Basic earnings/(loss) per common share $ 2.21 $ ( 1.42 ) $ 4.72 $ ( 0.14 ) Diluted earnings/(loss) per common share $ 2.18 $ ( 1.41 ) $ 4.67 $ ( 0.14 ) Anti-dilutive outstanding stock-settled awards — 622 207 62,560 (3) Investment Securities The following is a summary of the Company’s investment securities: (in thousands) Amortized Cost(1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2025 Available-for-sale debt securities: Residential mortgage-backed securities $ 3,616,063 $ 28,099 $ ( 100,147 ) $ 3,544,015 Commercial mortgage-backed securities 243,360 2,899 ( 6 ) 246,253 Credit risk transfer securities 11,447 — ( 454 ) 10,993 Total available-for-sale debt securities 3,870,870 30,998 ( 100,607 ) 3,801,261 Held-to-maturity debt securities: Residential mortgage-backed securities 743,120 — ( 81,197 ) 661,923 Total held-to-maturity debt securities 743,120 — ( 81,197 ) 661,923 Equity securities 55,054 Trading securities 2,219 Total investment securities(2) $ 4,601,654 December 31, 2024 Available-for-sale debt securities: U.S. Treasury securities $ 280,137 $ — $ ( 2,852 ) $ 277,285 Residential mortgage-backed securities 3,195,145 7,200 ( 168,302 ) 3,034,043 Commercial mortgage-backed securities 206,830 — ( 5,398 ) 201,432 Credit risk transfer securities 12,466 — ( 540 ) 11,926 Total available-for-sale debt securities 3,694,578 7,200 ( 177,092 ) 3,524,686 Held-to-maturity securities: Residential mortgage-backed securities 796,168 — ( 117,994 ) 678,174 Total held-to-maturity securities 796,168 — ( 117,994 ) 678,174 Equity securities 75,261 Total investment securities(2) $ 4,396,115 (1) Excludes accrued interest receivable of $ 15.6 million and $ 13.8 million at September 30, 2025 and December 31, 2024, respectively, related to available-for-sale debt securities and $ 1.2 million and $ 1.3 million at September 30, 2025 and December 31, 2024, respectively, related to held-to-maturity debt securities that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. (2) Includes available-for-sale debt securities, equity securities and trading securities at estimated fair value and held-to-maturity debt securities at amortized cost. 9 Table of Contents Debt Securities During the second quarter of 2025, the Company sold available-for-sale debt securities with an amortized cost basis of $ 287.5 million, realizing a loss of $ 1.9 million, and repositioned the proceeds into purchases of available-for-sale residential mortgage-backed securities. In the third quarter of 2024, the Company sold available-for-sale debt securities with an amortized cost basis of $1.2 billion and realized a loss of $179.6 million. The amortized cost and estimated fair value as of September 30, 2025, excluding accrued interest receivable, of available-for-sale and held-to-maturity debt securities are presented below by contractual maturity. Actual maturities may differ from contractual maturities of mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Available-for-sale Held-to-maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ — $ — $ — $ — Due after one year through five years — — — — Due after five years through ten years 255,563 258,015 — — Due after ten years 3,615,307 3,543,246 743,120 661,923 Total $ 3,870,870 $ 3,801,261 $ 743,120 $ 661,923 The table below presents the weighted average yields for the Company’s available-for-sale debt securities as of September 30, 2025. Weighted average yields are calculated based on amortized cost on a tax-exempt basis assuming a 21% federal tax rate, where applicable. Residential mortgage-backed securities Commercial mortgage-backed securities Credit risk transfer securities Due within one year — % — % — % Due after one year through five years — — — Due after five years through ten years 3.91 4.90 4.28 Due after ten years 4.71 — — Total 4.71 % 4.90 % 4.28 % The following table discloses the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss September 30, 2025 Residential mortgage-backed securities $ 23 $ — $ 1,014,549 $ ( 100,147 ) $ 1,014,572 $ ( 100,147 ) Commercial mortgage-backed securities 33,327 ( 6 ) — — 33,327 ( 6 ) Credit risk transfer securities — — 10,993 ( 454 ) 10,993 ( 454 ) Total $ 33,350 $ ( 6 ) $ 1,025,542 $ ( 100,601 ) $ 1,058,892 $ ( 100,607 ) December 31, 2024 U.S. Treasury securities $ — $ — $ 277,285 $ ( 2,852 ) $ 277,285 $ ( 2,852 ) Residential mortgage-backed securities 1,338,801 ( 18,141 ) 1,323,180 ( 150,161 ) 2,661,981 ( 168,302 ) Commercial mortgage-backed securities 201,432 ( 5,398 ) — — 201,432 ( 5,398 ) Credit risk transfer securities — — 11,926 ( 540 ) 11,926 ( 540 ) Total $ 1,540,233 $ ( 23,539 ) $ 1,612,391 $ ( 153,553 ) $ 3,152,624 $ ( 177,092 ) At September 30, 2025, the Company had 32 available-for-sale debt securities in an unrealized loss position, comprised of 29 residential mortgage-backed securities, one commercial mortgage-backed securities and two credit risk transfer securities. The unrealized losses on the available-for-sale debt securities were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not currently intend to sell and based on current conditions it does not believe it is likely that the Company will be required to sell these available-for-sale debt securities before recovery of the amortized cost of such securities in an unrealized loss position and has therefore recorded the unrealized losses related to this portfolio in accumulated other comprehensive income/loss, net (“AOCI”). Held-to-maturity securities consist of government guaranteed securities for which no loss is expected. At September 30, 2025 and December 31, 2024, no allowance for credit losses was established for available-for-sale or held-to-maturity debt securities. At September 30, 2025 and December 31, 2024, debt securities with carrying values of approximately $ 951,000 and $ 940,000 , respectively, were pledged to secure certain customer deposits. 10 Table of Contents Equi ty Securities The following is a summary of unrealized and realized gains/(losses) recognized on equity securities included in other non-interest income on the consolidated statements of income and other comprehensive income: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Net gains/(losses) recognized during the period $ 2,369 $ 2,752 $ 2,265 $ 6,727 Less: Realized net gains/(losses) recognized on securities sold 831 482 1,862 853 Unrealized net gains/(losses) recognized on securities still held $ 1,538 $ 2,270 $ 403 $ 5,874 (4) Loans and Allowance for Credit Losses on Loans Loans are summarized by portfolio segment as follows: (in thousands) September 30, 2025 December 31, 2024 Loans held for investment(1): Commercial $ 11,999,025 $ 11,145,591 Mortgage finance 6,057,804 5,215,574 Commercial real estate 5,696,720 5,616,282 Consumer 540,126 565,376 Gross loans held for investment 24,293,675 22,542,823 Unearned income (net of direct origination costs) ( 101,812 ) ( 92,757 ) Total loans held for investment 24,191,863 22,450,066 Allowance for credit losses on loans ( 274,026 ) ( 271,709 ) Total loans held for investment, net $ 23,917,837 $ 22,178,357 (1) Excludes accrued interest receivable of $ 107.6 million and $ 107.3 million at September 30, 2025 and December 31, 2024, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. 11 Table of Contents The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades: (in thousands) 2025 2024 2023 2022 2021 2020 and prior Revolving lines of credit Revolving lines of credit converted to term loans Total September 30, 2025 Commercial (1-7) Pass $ 1,515,522 $ 1,304,446 $ 786,716 $ 905,138 $ 205,979 $ 158,114 $ 6,708,635 $ 30,271 $ 11,614,821 (8) Special mention 972 25,126 7,624 55,824 2,620 10,778 25,298 300 128,542 (9) Substandard - accruing 793 9,423 60,075 14,400 35,910 758 62,337 — 183,696 (9+) Non-accrual 14,613 — 4,140 27,072 — 12,575 13,566 — 71,966 Total commercial $ 1,531,900 $ 1,338,995 $ 858,555 $ 1,002,434 $ 244,509 $ 182,225 $ 6,809,836 $ 30,571 $ 11,999,025 Mortgage finance (1-7) Pass $ — $ — $ — $ — $ — $ — $ 6,057,804 $ — $ 6,057,804 (8) Special mention — — — — — — — — — (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Total mortgage finance $ — $ — $ — $ — $ — $ — $ 6,057,804 $ — $ 6,057,804 Commercial real estate (1-7) Pass $ 653,167 $ 608,176 $ 951,334 $ 1,690,702 $ 694,803 $ 692,056 $ 255,206 $ 7,448 $ 5,552,892 (8) Special mention — 25,532 — 87,907 3,263 1,856 — 792 119,350 (9) Substandard - accruing 12 348 — — — — — — 360 (9+) Non-accrual — — 3,034 21,084 — — — — 24,118 Total commercial real estate $ 653,179 $ 634,056 $ 954,368 $ 1,799,693 $ 698,066 $ 693,912 $ 255,206 $ 8,240 $ 5,696,720 Consumer (1-7) Pass $ 28,850 $ 41,970 $ 29,979 $ 53,067 $ 74,023 $ 116,102 $ 194,435 $ — $ 538,426 (8) Special mention — — — — — — 1,700 — 1,700 (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Total consumer $ 28,850 $ 41,970 $ 29,979 $ 53,067 $ 74,023 $ 116,102 $ 196,135 $ — $ 540,126 Total $ 2,213,929 $ 2,015,021 $ 1,842,902 $ 2,855,194 $ 1,016,598 $ 992,239 $ 13,318,981 $ 38,811 $ 24,293,675 Gross charge-offs $ 7,061 $ 704 $ 2,371 $ 5,692 $ 28 $ 858 $ 21,228 $ — $ 37,942 (in thousands) 2024 2023 2022 2021 2020 2019 and prior Revolving lines of credit Revolving lines of credit converted to term loans Total December 31, 2024 Commercial (1-7) Pass $ 1,612,695 $ 1,156,414 $ 1,256,539 $ 307,590 $ 76,821 $ 169,974 $ 6,027,177 $ 12,040 $ 10,619,250 (8) Special mention 22,953 28,354 134,092 21,626 30 6,369 91,423 — 304,847 (9) Substandard - accruing 623 44,901 51,536 7,855 301 3,309 37,405 — 145,930 (9+) Non-accrual — 9,220 8,057 — 360 23,708 34,219 — 75,564 Total commercial $ 1,636,271 $ 1,238,889 $ 1,450,224 $ 337,071 $ 77,512 $ 203,360 $ 6,190,224 $ 12,040 $ 11,145,591 Mortgage finance (1-7) Pass $ — $ — $ — $ — $ — $ — $ 5,215,574 $ — $ 5,215,574 (8) Special mention — — — — — — — — — (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Total mortgage finance $ — $ — $ — $ — $ — $ — $ 5,215,574 $ — $ 5,215,574 Commercial real estate (1-7) Pass $ 599,301 $ 889,603 $ 1,843,706 $ 885,913 $ 216,077 $ 704,288 $ 273,663 $ 18,085 $ 5,430,636 (8) Special mention 25,532 4,353 70,161 15,831 299 13,731 — 872 130,779 (9) Substandard - accruing — — — — — 20,230 — — 20,230 (9+) Non-accrual 85 — 20,637 — — 13,915 — — 34,637 Total commercial real estate $ 624,918 $ 893,956 $ 1,934,504 $ 901,744 $ 216,376 $ 752,164 $ 273,663 $ 18,957 $ 5,616,282 Consumer (1-7) Pass $ 44,352 $ 28,289 $ 54,148 $ 75,924 $ 40,667 $ 99,471 $ 220,561 $ — $ 563,412 (8) Special mention — — — — — — — — — (9) Substandard - accruing — — — — — — 1,000 — 1,000 (9+) Non-accrual — — — — — 964 — — 964 Total Consumer $ 44,352 $ 28,289 $ 54,148 $ 75,924 $ 40,667 $ 100,435 $ 221,561 $ — $ 565,376 Total $ 2,305,541 $ 2,161,134 $ 3,438,876 $ 1,314,739 $ 334,555 $ 1,055,959 $ 11,901,022 $ 30,997 $ 22,542,823 Gross charge-offs $ 994 $ 7,543 $ 550 $ 4,037 $ 537 $ 8,784 $ 23,566 $ 44 $ 46,055 12 Table of Contents The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Mortgage Finance Commercial Real Estate Consumer Total Nine Months Ended September 30, 2025 Beginning balance $ 198,423 $ 2,755 $ 68,825 $ 1,706 $ 271,709 Provision for credit losses on loans 35,106 5,944 ( 2,306 ) 75 38,819 Charge-offs 37,011 — 931 — 37,942 Recoveries 1,019 — 413 8 1,440 Net charge-offs (recoveries) 35,992 — 518 ( 8 ) 36,502 Ending balance $ 197,537 $ 8,699 $ 66,001 $ 1,789 $ 274,026 Nine Months Ended September 30, 2024 Beginning balance $ 171,437 $ 4,173 $ 71,829 $ 2,534 $ 249,973 Allowance established for acquired PCD loans 2,579 — — — 2,579 Provision for credit losses on loans 54,529 1,290 ( 6,840 ) 414 49,393 Charge-offs 23,661 — 5,698 30 29,389 Recoveries 587 — — — 587 Net charge-offs (recoveries) 23,074 — 5,698 30 28,802 Ending balance $ 205,471 $ 5,463 $ 59,291 $ 2,918 $ 273,143 The Company recorded a $ 38.8 million provision for credit losses on loans for the nine months ended September 30, 2025, compared to $ 49.4 million for the same period of 2024. The $ 38.8 million provision for credit losses on loans resulted primarily from an increase in total loans held for investment and $ 36.5 million in net charge-offs recorded during the nine months ended September 30, 2025, partially offset by decreases in criticized loans and non-accrual loans. Criticized loans totaled $ 529.7 million at September 30, 2025, compared to $ 714.0 million at December 31, 2024. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At September 30, 2025, the Company had $ 13.2 million in collateral-dependent commercial loans, collateralized by business assets, and $ 24.1 million in collateral-dependent commercial real estate loans, collateralized by real estate. The table below provides an age analysis of gross loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Non-accrual(1) Current Total Non-accrual With No Allowance September 30, 2025 Commercial $ 5,202 $ 1,340 $ 126 $ 6,668 $ 71,966 $ 11,920,391 $ 11,999,025 $ 3,073 Mortgage finance — — — — — 6,057,804 6,057,804 — Commercial real estate 296 2,096 — 2,392 24,118 5,670,210 5,696,720 4,568 Consumer — — — — — 540,126 540,126 — Total $ 5,498 $ 3,436 $ 126 $ 9,060 $ 96,084 $ 24,188,531 $ 24,293,675 $ 7,641 (1) As of September 30, 2025, $ 556,000 of non-accrual loans were earning interest income on a cash basis compared to $ 360,000 as of December 31, 2024. Additionally, $ 630,000 of interest income was recognized on non-accrual loans for the nine months ended September 30, 2025 compared to $ 272,000 for the same period in 2024. Accrued interest of $ 1.5 million and $ 917,000 was reversed during the nine months ended September 30, 2025 and September 30, 2024, respectively. 13 Table of Contents Modifications to Borrowers Experiencing Financial Difficulty The table below details gross loans held for investment made to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2025 and September 30, 2024, by type of modification granted and the financial effect of those modifications: Financial Statement Impact ($ in thousands) Payment Deferral Term Extension Payment Deferral and Term Extension Total Percentage of Loans Held for Investment Interest Rate Reduction Term Extension (in months) Payment Deferrals Three Months Ended September 30, 2025 Commercial $ 791 $ 8,948 $ 758 $ 10,497 0.04 % — % 3 to 6 $ 814 Commercial real estate — — 17,505 17,505 0.07 % — % 6 737 Total $ 791 $ 8,948 $ 18,263 $ 28,002 0.12 % Three Months Ended September 30, 2024 Commercial $ 360 $ — $ — $ 360 — % — % 0 $ 42 Total $ 360 $ — $ — $ 360 — % Nine Months Ended September 30, 2025 Commercial $ 12,100 $ 19,950 $ 23,126 $ 55,176 0.23 % — % 3 to 26 $ 6,711 Commercial real estate 18,163 — 17,505 35,668 0.15 % — % 6 1,106 Total $ 30,263 $ 19,950 $ 40,631 $ 90,844 0.37 % Nine Months Ended September 30, 2024 Commercial $ 28,082 $ 553 $ 7,439 $ 36,074 0.16 % — % 3 to 13 $ 4,868 Commercial real estate — 15,831 — 15,831 0.07 % — % 3 — Total $ 28,082 $ 16,384 $ 7,439 $ 51,905 0.23 % The table below details gross loans held for investment that experienced a default during the periods presented subsequent to being granted a modification in the prior twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first. (in thousands) Payment Deferral Term Extension Payment Deferral and Term Extension Total Three Months Ended September 30, 2025 Commercial $ 179 $ 3,000 $ 14,613 $ 17,792 Total $ 179 $ 3,000 $ 14,613 $ 17,792 Three Months Ended September 30, 2024 Commercial $ 2,902 $ — $ — $ 2,902 Total $ 2,902 $ — $ — $ 2,902 Nine Months Ended September 30, 2025 Commercial $ 25,675 $ 9,537 $ 14,613 $ 49,825 Commercial real estate — — 13,500 13,500 Total $ 25,675 $ 9,537 $ 28,113 $ 63,325 Nine Months Ended September 30, 2024 Commercial $ 6,031 $ — $ 1,756 $ 7,787 Total $ 6,031 $ — $ 1,756 $ 7,787 14 Table of Contents The table below provides an age analysis of gross loans held for investment as of September 30, 2025 and September 30, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months: (in thousands) 30-89 Days Past Due 90+ Days Past Due Non-Accrual Current Total September 30, 2025 Commercial $ 758 $ — $ 47,849 $ 18,157 $ 66,764 Commercial real estate — — 17,506 — 17,506 Total $ 758 $ — $ 65,355 $ 18,157 $ 84,270 September 30, 2024 Commercial $ — $ — $ 10,191 $ 4,474 $ 14,665 Commercial real estate — — — 15,831 15,831 Total $ — $ — $ 10,191 $ 20,305 $ 30,496 (5) Short-Term Borrowings and Long-Term Debt The table below presents a summary of short-term borrowings: (in thousands) September 30, 2025 December 31, 2024 Federal funds purchased $ 275,000 $ — Federal Home Loan Bank borrowings — 885,000 Total short-term borrowings $ 275,000 $ 885,000 The table below presents a summary of long-term debt: (in thousands) September 30, 2025 December 31, 2024 Bank-issued 5.25 % fixed rate subordinated notes due 2026 $ 134,459 $ 174,717 Company-issued 4.00 % fixed rate subordinated notes due 2031 372,551 372,223 Trust preferred floating rate subordinated debentures due 2032 to 2036 113,406 113,406 Total long-term debt $ 620,416 $ 660,346 During the second quarter of 2025, the Company partially paid down $ 40.5 million of the bank-issued 5.25 % fixed rate subordinated notes due 2026. (6) Financial Instruments with Off-Balance Sheet Risk The table below presents the Company’s financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. (in thousands) Commercial Mortgage Finance Commercial Real Estate Consumer Total Nine Months Ended September 30, 2025 Beginning balance $ 47,907 $ 23 $ 5,351 $ 51 $ 53,332 Provision for off-balance sheet credit losses 5,717 2 ( 522 ) ( 16 ) 5,181 Ending balance $ 53,624 $ 25 $ 4,829 $ 35 $ 58,513 Nine Months Ended September 30, 2024 Beginning balance $ 36,040 $ 6 $ 10,147 $ 169 $ 46,362 Provision for off-balance sheet credit losses 5,701 26 ( 6,100 ) ( 20 ) ( 393 ) Ending balance $ 41,741 $ 32 $ 4,047 $ 149 $ 45,969 (in thousands) September 30, 2025 December 31, 2024 Commitments to extend credit - period end balance $ 11,063,858 $ 9,694,406 Standby letters of credit - period end balance 564,799 538,047 15 Table of Contents (7) Regulatory Ratios and Capital The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III Capital Rules adopted by U.S. federal banking agencies, among other things, (i) establish the capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 Capital” instruments meeting stated requirements, (iii) require that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) define the scope of the deductions/adjustments to the capital measures. Additionally, the Basel III Capital Rules require that the Company maintain a 2.5 % capital conservation buffer comprised of CET1, with respect to each of CET1, Tier 1 and total capital to risk-weighted asset ratios. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. No dividends were declared or paid on the Company’s common stock during the nine months ended September 30, 2025 or during 2024. 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, which is set to expire January 31, 2026. During the nine months ended September 30, 2025, the Company repurchased 801,053 shares of its common stock for an aggregate price, including excise tax expense, of $ 59.2 million, at a weighted average price of $ 73.44 per share. Because the Bank had less than $ 15.0 billion in total consolidated assets as of December 31, 2009, it is allowed to continue to classify the trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. At the beginning of each of the last five years of the life of the Bank-issued fixed rate subordinated notes due 2026, the amount that is eligible to be included in Tier 2 capital is reduced by 20% of the original amount of the notes (net of redemptions). In 2025, the amount of the notes that qualify as Tier 2 capital has been reduced by 100%. The table below summarizes the Company’s and the Bank’s actual and required capital ratios under the Basel III Capital Rules and other standards. As shown in the table below, the Company’s and Bank’s capital ratios exceeded the regulatory definition of well capitalized as of September 30, 2025 and December 31, 2024. September 30, 2025 December 31, 2024 (dollars in thousands) Minimum Capital Required(2) Capital Required to be Well Capitalized Capital Amount Ratio Capital Amount Ratio The Company CET1 capital (to risk-weighted assets) 7.00 % N/A $ 3,419,546 12.14 % $ 3,251,979 11.38 % Tier 1 capital (to risk-weighted assets) 8.50 % 6.00 % 3,829,546 13.60 % 3,661,979 12.82 % Total capital (to risk-weighted assets) 10.50 % 10.00 % 4,534,636 16.10 % 4,390,656 15.37 % Tier 1 capital (to average assets)(1) 4.00 % N/A 3,829,546 11.88 % 3,661,979 11.33 % The Bank CET1 capital (to risk-weighted assets) 7.00 % 6.50 % $ 3,509,504 12.53 % $ 3,611,714 12.75 % Tier 1 capital (to risk-weighted assets) 8.50 % 8.00 % 3,509,504 12.53 % 3,611,714 12.75 % Total capital (to risk-weighted assets) 10.50 % 10.00 % 3,842,043 13.72 % 3,968,168 14.00 % Tier 1 capital (to average assets)(1) 4.00 % 5.00 % 3,509,504 10.99 % 3,611,714 11.27 % (1) The Tier 1 capital (to average assets) ratio is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital (to average assets) ratio above the required minimum. (2) Percentages represent the minimum capital ratios plus, as applicable, the fully phased-in 2.5% CET1 capital buffer under the Basel III Capital Rules. 16 Table of Contents (8) Stock-Based Compensation The Company has long-term incentive plans under which stock-based compensation awards are granted to employees and directors by the Company’s board of directors or its designated committee. Grants are subject to vesting requirements and may include, among other things, nonqualified stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock and performance units, or any combination thereof. On April 15, 2025, the Company’s stockholders approved the Texas Capital Bancshares, Inc. 2022 Long-Term Incentive Plan, as amended and restated, which increases shares authorized and available for grant by 1.1 million shares and extends the plan’s maturity date by two years . The table below summarizes the Company’s stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Stock-settled awards: RSUs $ 5,146 $ 4,957 $ 20,425 $ 18,229 Cash-settled units 3,091 1,496 8,189 2,979 Total $ 8,237 $ 6,453 $ 28,614 $ 21,208 (in thousands except period data) September 30, 2025 Unrecognized compensation expense related to unvested stock-settled awards $ 22,406 Weighted average period over which stock-settled awards expense is expected to be recognized, in years 1.8 Unrecognized compensation expense related to cash-settled units $ 21,060 Weighted average period over which cash-settled units expense is expected to be recognized, in years 2.1 (9) Fair Value Disclosures The Company determines the fair market values of its assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in Accounting Standards Codification 820, Fair Value Measurements and Disclosures. See Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2024 Form 10-K for information regarding the fair value hierarchy and a description of the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial statements. 17 Table of Contents Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 September 30, 2025 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 3,544,015 $ — Commercial mortgage-backed securities — 246,253 — Credit risk transfer securities — — 10,993 Equity securities(1) 45,054 10,000 — Trading securities(1) — 2,219 — Loans held for investment(2) — — 21,057 Derivative assets(3) — 37,297 — Securities sold not yet purchased(4) 24,730 — — Derivative liabilities(3) — 24,264 — Non-qualified deferred compensation plan liabilities(5) 18,540 — — December 31, 2024 Available-for-sale debt securities:(1) U.S. Treasury securities $ 277,285 $ — $ — Residential mortgage-backed securities — 3,034,043 — Commercial mortgage-backed securities — 201,432 — Credit risk transfer securities — — 11,926 Equity securities(1) 59,235 16,026 — Loans held for investment(2) — — 35,318 Derivative assets(3) — 23,202 — Securities sold not yet purchased(4) 33,705 — — Derivative liabilities(3) — 57,906 — Non-qualified deferred compensation plan liabilities(5) 19,109 — — (1) Available-for-sale debt securities, equity securities and trading securities are measured at fair value on a recurring basis, generally monthly. (2) Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (3) Derivative assets and liabilities are measured at fair value on a recurring basis, generally monthly. (4) Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly. (5) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis: Net Gains/(Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Three Months Ended September 30, 2025 Available-for-sale debt securities:(1) Credit risk transfer securities $ 11,367 $ — $ ( 382 ) $ — $ 8 $ 10,993 Three Months Ended September 30, 2024 Available-for-sale debt securities:(1) Credit risk transfer securities $ 12,328 $ — $ ( 346 ) $ — $ 20 $ 12,002 Nine Months Ended September 30, 2025 Available-for-sale debt securities:(1) Credit risk transfer securities $ 11,926 $ — $ ( 1,019 ) $ — $ 86 $ 10,993 Nine Months Ended September 30, 2024 Available-for-sale debt securities:(1) Credit risk transfer securities $ 11,995 $ — $ ( 846 ) $ — $ 853 $ 12,002 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI . Realized gains/(losses) are recorded in other non-interest income on the consolidated statements of income and other comprehensive income/(loss). 18 Table of Contents Credit risk transfer securities The fair value of credit risk transfer securities is based on a discounted cash flow model, which utilizes Level 3 inputs, the most significant of which were a discount rate and weighted-average life. At September 30, 2025, the discount rates utilized ranged from 4.65 % to 5.68 % and the weighted-average life ranged from 3.88 years to 5.90 years. On a combined amortized cost weighted-average basis a discount rate of 5.09 % and a weighted-average life of 4.74 years were utilized to determine the fair value of these securities at September 30, 2025. At December 31, 2024, the combined weighted-average discount rate and weighted-average life utilized were 5.63 % and 5.35 years, respectively. Loans held for investment Certain collateral-dependent loans held for investment are reported at fair value when, based upon an individual evaluation, the specific allocation of the allowance for credit losses that is deducted from the loan's amortized cost is based upon the fair value of the loan's underlying collateral. The $ 21.1 million fair value of loans held for investment at September 30, 2025 reported above includes impaired loans with a carrying value of $ 35.8 million that were reduced by specific allowance allocations totaling $ 14.7 million based on collateral valuations utilizing Level 3 inputs. The $ 35.3 million fair value of loans held for investment at December 31, 2024 reported above includes impaired loans with a carrying value of $ 63.6 million that were reduced by specific allowance allocations totaling $ 28.3 million based on collateral valuations utilizing Level 3 inputs. Fair Value of Financial Instruments A summary of the carrying amounts and estimated fair values of financial instruments is as follows: Carrying Amount Estimated Fair Value (in thousands) Total Level 1 Level 2 Level 3 September 30, 2025 Financial assets: Cash and cash equivalents $ 3,064,825 $ 3,064,825 $ 3,064,825 $ — $ — Available-for-sale debt securities 3,801,261 3,801,261 — 3,790,268 10,993 Held-to-maturity debt securities 743,120 661,923 — 661,923 — Equity securities 55,054 55,054 45,054 10,000 — Trading securities 2,219 2,219 — 2,219 — Loans held for investment, net 23,917,837 23,874,493 — — 23,874,493 Derivative assets 37,297 37,297 — 37,297 — Financial liabilities: Total deposits 27,505,398 27,504,235 — — 27,504,235 Short-term borrowings 275,000 275,000 — 275,000 — Long-term debt 620,416 592,312 — 592,312 — Securities sold not yet purchased 24,730 24,730 24,730 — — Derivative liabilities 24,264 24,264 — 24,264 — December 31, 2024 Financial assets: Cash and cash equivalents $ 3,188,808 $ 3,188,808 $ 3,188,808 $ — $ — Available-for-sale debt securities 3,524,686 3,524,686 277,285 3,235,475 11,926 Held-to-maturity debt securities 796,168 678,174 — 678,174 — Equity securities 75,261 75,261 59,235 16,026 — Loans held for investment, net 22,178,357 22,115,585 — — 22,115,585 Derivative assets 23,202 23,202 — 23,202 — Financial liabilities: Total deposits 25,238,599 25,245,009 — — 25,245,009 Short-term borrowings 885,000 885,000 — 885,000 — Long-term debt 660,346 622,713 — 622,713 — Securities sold not yet purchased 33,705 33,705 33,705 — — Derivative liabilities 57,906 57,906 — 57,906 — 19 Table of Contents (10) Derivative Financial Instruments The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table. September 30, 2025 December 31, 2024 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Derivatives designated as hedges Cash flow hedges: Interest rate contracts: Swaps hedging loans $ 1,200,000 $ 3,778 $ 1,528 $ 2,600,000 $ 254 $ 23,265 Non-hedging derivatives Customer-initiated and other derivatives: Foreign currency forward contracts 355,200 1,894 1,631 485,948 5,462 5,299 Interest rate contracts: Swaps 6,502,321 37,382 37,382 6,273,301 45,771 45,771 Caps and floors written 2,055,925 4,028 1,417 970,451 1,066 2,529 Caps and floors purchased 2,055,925 1,417 4,028 970,451 2,529 1,066 Forward contracts 22,708,747 30,815 30,385 20,237,917 41,896 41,035 Gross derivatives 79,314 76,371 96,978 118,965 Netting adjustment - offsetting derivative assets/liabilities ( 32,350 ) ( 32,350 ) ( 44,097 ) ( 44,097 ) Netting adjustment - cash collateral received/posted ( 9,667 ) ( 19,757 ) ( 29,679 ) ( 16,962 ) Net derivatives included on the consolidated balance sheets $ 37,297 $ 24,264 $ 23,202 $ 57,906 The Company’s credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases, collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $ 37.3 million at September 30, 2025 and approximately $ 23.2 million at December 31, 2024. Collateral levels are monitored and adjusted on a regular basis for changes in the value of derivative instruments. At September 30, 2025, the Company had $ 30.0 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $ 10.6 million in cash collateral received from counterparties included in interest bearing deposits on the consolidated balance sheet. The comparative amounts at December 31, 2024, were $ 71.3 million in cash collateral pledged to counterparties and $ 31.0 million cash collateral received from counterparties. The Company also enters into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which the Company is either a participant or a lead bank. The risk participation agreements entered into by the Company as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. The Company is party to 19 risk participation agreements where it acts as a participant bank with a notional amount of $ 228.9 million at September 30, 2025, compared to 17 risk participation agreements with a notional amount of $ 228.6 million at December 31, 2024. The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $ 627,000 at September 30, 2025 and $ 4.1 million at December 31, 2024. The fair value of these exposures was insignificant to the consolidated financial statements at both September 30, 2025 and December 31, 2024. Risk participation agreements entered into by the Company as the lead bank provide credit protection should the borrower fail to perform on its interest rate derivative contract. The Company is party to 46 risk participation agreements where the Company acts as the lead bank having a notional amount of $ 587.9 million at September 30, 2025, compared to 25 agreements having a notional amount of $ 349.5 million at December 31, 2024. Derivatives Designated as Cash Flow Hedges The Company enters into interest rate derivative contracts that are designated as qualifying cash flow hedges to hedge the exposure to variability in expected future cash flows attributable to changes in a contractually specified interest rate. During the nine months ended September 30, 2025, the Company recorded $ 943,000 in unrealized gains to adjust its cash flow hedges to fair value, which was recorded net of tax to AOCI, and reclassified $ 21.6 million from AOCI as a decrease to interest income on loans. Based on current market conditions, the Company estimates that during the next 12 months, an additional $ 25,000 will be reclassified from AOCI as an increase to interest income. As of September 30, 2025, the maximum length of time over which forecasted transactions are hedged is 2.09 years. 20 Table of Contents (11) Accumulated Other Comprehensive Income The following table provides the change in AOCI by component: (in thousands) Cash Flow Hedges Available-for-Sale Securities Held-to-Maturity Securities Total Three Months Ended September 30, 2025 Beginning balance $ ( 1,372 ) $ ( 77,761 ) $ ( 33,798 ) $ ( 112,931 ) Change in unrealized gain/(loss) 78 30,831 — 30,909 Amounts reclassified into net income 4,525 — 1,647 6,172 Total other comprehensive income 4,603 30,831 1,647 37,081 Income tax expense 1,040 6,962 372 8,374 Total other comprehensive income, net of tax 3,563 23,869 1,275 28,707 Ending balance $ 2,191 $ ( 53,892 ) $ ( 32,523 ) $ ( 84,224 ) Three Months Ended September 30, 2024 Beginning balance $ ( 45,215 ) $ ( 283,559 ) $ ( 38,958 ) $ ( 367,732 ) Change in unrealized gain/(loss) 18,849 91,000 — 109,849 Amounts reclassified into net income 18,251 179,581 1,767 199,599 Total other comprehensive income 37,100 270,581 1,767 309,448 Income tax expense 8,377 61,097 399 69,873 Total other comprehensive income, net of tax 28,723 209,484 1,368 239,575 Ending balance $ ( 16,492 ) $ ( 74,075 ) $ ( 37,590 ) $ ( 128,157 ) Nine Months Ended September 30, 2025 Beginning balance $ ( 15,275 ) $ ( 131,531 ) $ ( 36,301 ) $ ( 183,107 ) Change in unrealized gain/(loss) 943 100,283 — 101,226 Amounts reclassified into net income 21,618 — 4,880 26,498 Total other comprehensive income 22,561 100,283 4,880 127,724 Income tax expense 5,095 22,644 1,102 28,841 Total other comprehensive income, net of tax 17,466 77,639 3,778 98,883 Ending balance $ 2,191 $ ( 53,892 ) $ ( 32,523 ) $ ( 84,224 ) Nine Months Ended September 30, 2024 Beginning balance $ ( 45,749 ) $ ( 273,806 ) $ ( 42,449 ) $ ( 362,004 ) Change in unrealized gain/(loss) ( 17,762 ) 71,329 — 53,567 Amounts reclassified into net income 54,371 179,581 5,180 239,132 Total other comprehensive income 36,609 250,910 5,180 292,699 Income tax expense 7,352 51,179 321 58,852 Total other comprehensive income, net of tax 29,257 199,731 4,859 233,847 Ending balance $ ( 16,492 ) $ ( 74,075 ) $ ( 37,590 ) $ ( 128,157 ) (12) New Accounting Standards Accounting Standards Update 2025-05 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets” (“ASU 2025-05”) provides certain entities with an additional practical expedient and an accounting policy election for estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions accounted for under Topic 606, Revenue from Contracts with Customers . ASU 2025-05 will be effective for the Company beginning January 1, 2026 for the Company’s interim and annual financial statements on Forms 10-Q and 10-K, respectively, with early adoption permitted and is not expected to have a significant impact on the Company’s financial statements. Accounting Standards Update 2025-06 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): (“ASU 2025-06”) removes all references to prescriptive and sequential software development stages and clarifies that the threshold for when an entity is required to start capitalizing software costs is when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 will be effective for the Company beginning January 1, 2028 for the Company’s interim and annual financial statements on Forms 10Q and 10-K, respectively, with early adoption permitted and is not expected to have a significant impact on the Company’s financial statements. 21 Table of Contents Accounting Standards Update 2025-07 “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract” (“ASU 2025-07”) refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. ASU 2025-07 also clarifies the guidance on share-based payments from a customer in a revenue contract under Topic 606. ASU 2025-07 will be effective for the Company beginning January 1, 2027 for the Company’s interim and annual financial statements on Forms 10-Q and 10-K, respectively, with early adoption permitted and is not expected to have a significant impact on the Company’s financial statements. 22 Table of Contents ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the Company’s financial condition and results of operations for the three and nine months ended September 30, 2025 and 2024 should be read in conjunction with its audited consolidated financial statements and the related notes to the consolidated financial statements included in the Company’s 2024 Form 10-K. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results for the year ending December 31, 2025 or any future period. Forward-Looking Statements This report contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, the Company’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to, economic or business conditions in Texas, the United States, or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; increased or expanded competition from banks and other financial service providers in TCBI’s markets; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity, or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents, or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes, strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract, and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global or other geopolitical conflicts, or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. 23 Table of Contents Results of Operations Selected income statement data and key performance indicators are presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands except per share data) 2025 2024 2025 2024 Net interest income $ 271,771 $ 240,102 $ 761,200 $ 671,693 Provision for credit losses 12,000 10,000 44,000 49,000 Non-interest income 68,583 (114,771) 167,096 (23,028) Non-interest expense 190,575 195,324 583,871 586,126 Income/(loss) before income taxes 137,779 (79,993) 300,425 13,539 Income tax expense/(benefit) 32,569 (18,674) 70,840 7,054 Net income/(loss) 105,210 (61,319) 229,585 6,485 Preferred stock dividends 4,313 4,313 12,938 12,938 Net income/(loss) available to common stockholders $ 100,897 $ (65,632) $ 216,647 $ (6,453) Basic earnings/(loss) per common share $ 2.21 $ (1.42) $ 4.72 $ (0.14) Diluted earnings/(loss) per common share $ 2.18 $ (1.41) $ 4.67 $ (0.14) Net interest margin 3.47 % 3.16 % 3.34 % 3.07 % Return on average assets (“ROA”) 1.30 % (0.78) % 0.97 % 0.03 % Return on average common equity (“ROE”) 12.04 % (8.87) % 9.02 % (0.30) % Efficiency ratio(1) 56.0 % 155.8 % 62.9 % 90.4 % Non-interest income to average earning assets 0.88 % (1.52) % 0.73 % (0.11) % Non-interest expense to average earning assets 2.44 % 2.59 % 2.57 % 2.71 % (1) Non-interest expense divided by the sum of net interest income and non-interest income. Three months ended September 30, 2025 compared to three months ended September 30, 2024 The Company reported net income of $105.2 million and net income available to common stockholders of $100.9 million for the third quarter of 2025, compared to net loss of $61.3 million and net loss available to common stockholders of $65.6 million for the third quarter of 2024. On a fully diluted basis, earnings per common share was $2.18 for the third quarter of 2025, compared to net loss per common share of $1.41 for the same period in 2024. ROE was 12.04% and ROA was 1.30% for the third quarter of 2025, compared to (8.87)% and (0.78)%, respectively, for the same period in 2024. The increase in net income for the third quarter of 2025 compared to the third quarter of 2024 resulted primarily from increases in net interest income and non-interest income. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024 The Company reported net income of $229.6 million and net income available to common stockholders of $216.6 million for the nine months ended September 30, 2025, compared to net income of $6.5 million and net loss available to common stockholders of $6.5 million for the same period in 2024. On a fully diluted basis, earnings per common share was $4.67 for the nine months ended September 30, 2025, compared to loss per common share of $0.14 for the same period in 2024. ROE was 9.02% and ROA was 0.97% for the nine months ended September 30, 2025, compared to (0.30)% and 0.03%, respectively, for the same period in 2024. The increase in net income for the nine months ended September 30, 2025 compared to the same period in 2024 resulted primarily from increases in net interest income and non-interest income. Details of the changes in the various components of net income are discussed below. 24 Table of Contents Taxable Equivalent Net Interest Income Analysis - Quarterly(1) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 (dollars in thousands) Average Balance Income/ Expense Yield/ Rate Average Balance Income/ Expense Yield/ Rate Assets Investment securities(2) $ 4,635,066 $ 49,401 4.14 % $ 4,314,834 $ 38,389 3.34 % Interest bearing cash and cash equivalents 2,920,102 32,202 4.38 % 3,958,843 52,737 5.30 % Loans held for sale — — — % 23,793 565 9.44 % Loans held for investment, mortgage finance 5,472,467 59,604 4.32 % 5,152,317 54,371 4.20 % Loans held for investment(3) 18,253,451 319,921 6.95 % 16,792,446 306,541 7.26 % Less: Allowance for credit losses on loans 277,385 — — 266,915 — — Loans held for investment, net 23,448,533 379,525 6.42 % 21,677,848 360,912 6.62 % Total earning assets 31,003,701 461,128 5.88 % 29,975,318 452,603 5.96 % Cash and other assets 1,159,008 1,239,855 Total assets $ 32,162,709 $ 31,215,173 Liabilities and Stockholders’ Equity Transaction deposits $ 2,251,217 $ 13,987 2.46 % $ 1,988,688 $ 15,972 3.20 % Savings deposits 14,650,152 143,327 3.88 % 12,240,616 147,770 4.80 % Time deposits 2,158,228 23,465 4.31 % 2,070,537 26,513 5.09 % Total interest bearing deposits 19,059,597 180,779 3.76 % 16,299,841 190,255 4.64 % Short-term borrowings 44,022 534 4.82 % 1,012,608 13,784 5.42 % Long-term debt 620,348 7,531 4.82 % 660,098 8,392 5.06 % Total interest bearing liabilities 19,723,967 188,844 3.80 % 17,972,547 212,431 4.70 % Non-interest bearing deposits 8,351,524 9,439,020 Other liabilities 463,034 558,368 Stockholders’ equity 3,624,184 3,245,238 Total liabilities and stockholders’ equity $ 32,162,709 $ 31,215,173 Net interest income $ 272,284 $ 240,172 Net interest margin 3.47 % 3.16 % (1) Taxable equivalent rates used where applicable. (2) Yields on investment securities are calculated using available-for-sale securities at amortized cost. (3) Average balances include non-accrual loans. 25 Table of Contents Taxable Equivalent Net Interest Income Analysis - Year to Date(1) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 (dollars in thousands) Average Balance Revenue / Expense Yield / Rate Average Balance Revenue / Expense Yield / Rate Assets Investment securities(2) $ 4,557,996 $ 141,965 4.05 % $ 4,346,957 $ 104,117 2.97 % Interest bearing cash and cash equivalents 3,274,086 107,994 4.41 % 3,761,901 150,325 5.34 % Loans held for sale 110 2 2.97 % 34,536 2,432 9.41 % Loans held for investment, mortgage finance 4,929,539 156,838 4.25 % 4,345,393 128,548 3.95 % Loans held for investment(3) 17,935,710 922,154 6.87 % 16,688,820 906,757 7.26 % Less: Allowance for credit losses on loans 276,076 — — % 260,024 — — % Loans held for investment, net 22,589,173 1,078,992 6.39 % 20,774,189 1,035,305 6.66 % Total earning assets 30,421,365 1,328,953 5.82 % 28,917,583 1,292,179 5.90 % Cash and other assets 1,144,443 1,158,758 Total assets $ 31,565,808 $ 30,076,341 Liabilities and Stockholders’ Equity Transaction deposits $ 2,209,490 $ 41,626 2.52 % $ 2,018,824 $ 49,812 3.30 % Savings deposits 13,916,232 411,176 3.95 % 11,878,646 427,733 4.81 % Time deposits 2,282,419 77,711 4.55 % 1,817,182 69,590 5.12 % Total interest bearing deposits 18,408,141 530,513 3.85 % 15,714,652 547,135 4.65 % Short-term borrowings 364,641 12,224 4.48 % 950,876 39,316 5.52 % Long-term debt 643,274 23,534 4.89 % 765,616 33,835 5.90 % Total interest bearing liabilities 19,416,056 566,271 3.90 % 17,431,144 620,286 4.75 % Non-interest bearing deposits 8,141,135 8,910,067 Other liabilities 496,644 535,221 Stockholders’ equity 3,511,973 3,199,909 Total liabilities and stockholders’ equity $ 31,565,808 $ 30,076,341 Net interest income $ 762,682 $ 671,893 Net interest margin 3.34 % 3.07 % (1) Taxable equivalent rates used where applicable. (2) Yields on investment securities are calculated using available-for-sale securities at amortized cost. (3) Average balances include non-accrual loans. 26 Table of Contents Volume/Rate Analysis The following table presents the changes in taxable equivalent net interest income and identifies the changes due to differences in the average volume of earning assets and interest bearing liabilities and the changes due to differences in the average interest rate on those assets and liabilities. Three Months Ended September 30, Nine Months Ended September 30, 2025/2024 2025/2024 Net Change Change Due To(1) Net Change Change Due To(1) (in thousands) Volume Yield/Rate(2) Volume Yield/Rate(2) Interest income Investment securities $ 11,012 $ 2,689 $ 8,323 $ 37,848 $ 4,692 $ 33,156 Interest bearing cash and cash equivalents (20,535) (13,839) (6,696) (42,331) (19,501) (22,830) Loans held for sale (565) (565) — (2,430) (2,425) (5) Loans held for investment, mortgage finance 5,233 3,380 1,853 28,290 17,274 11,016 Loans held for investment 13,380 26,662 (13,282) 15,397 67,769 (52,372) Total interest income 8,525 18,327 (9,802) 36,774 67,809 (31,035) Interest expense Transaction deposits (1,985) 2,112 (4,097) (8,186) 4,710 (12,896) Savings deposits (4,443) 29,072 (33,515) (16,557) 73,372 (89,929) Time deposits (3,048) 1,122 (4,170) 8,121 17,833 (9,712) Short-term borrowings (13,250) (13,196) (54) (27,092) (24,226) (2,866) Long-term debt (861) (506) (355) (10,301) (5,404) (4,897) Total interest expense (23,587) 18,604 (42,191) (54,015) 66,285 (120,300) Net interest income $ 32,112 $ (277) $ 32,389 $ 90,789 $ 1,524 $ 89,265 (1) Yield/rate and volume variances are allocated to yield/rate. (2) Taxable equivalent rates used where applicable assuming a 21% tax rate. Net Interest Income Net interest income was $271.8 million for the three months ended September 30, 2025, compared to $240.1 million for the same period in 2024. The increase was primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing liabilities. Average earning assets for the three months ended September 30, 2025 increased $1.0 billion compared to the same period in 2024, which included increases of $1.8 billion in average total loans held for investment and $320.2 million in average investment securities, partially offset by a $1.0 billion decrease in average interest bearing cash and cash equivalents. Average interest bearing liabilities increased $1.8 billion for the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a $2.8 billion increase in average interest bearing deposits, partially offset by decreases of $968.6 million in average short-term borrowings and $39.8 million in average long-term debt. Average non-interest bearing deposits for the three months ended September 30, 2025 decreased to $8.4 billion from $9.4 billion for the same period in 2024. Net interest margin for the three months ended September 30, 2025 was 3.47%, compared to 3.16% for the same period in 2024. The increase in net interest margin was primarily due to a decrease in the cost of interest bearing deposits, partially offset by lower earning asset yields. The yield on total loans held for investment decreased to 6.42% for the three months ended September 30, 2025, compared to 6.62% for the same period in 2024, and the yield on earning assets decreased to 5.88% for the three months ended September 30, 2025, compared to 5.96% for the same period in 2024. Total cost of deposits decreased to 2.62% for the three months ended September 30, 2025 from 2.94% for the same period in 2024, and total funding costs, including non-interest bearing deposits and stockholders' equity, decreased to 2.36% for the three months ended September 30, 2025, compared to 2.76% for the same period in 2024. Net interest income was $761.2 million for the nine months ended September 30, 2025, compared to $671.7 million for the same period in 2024. The increase was primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing liabilities. Average earning assets increased $1.5 billion for the nine months ended September 30, 2025, compared to the same period in 2024, which included increases of $1.8 billion in average total loans held for investment and $211.0 million in average investment securities, partially offset by a $487.8 million decrease in average interest bearing cash and cash equivalents. Average interest bearing liabilities increased $2.0 billion for the nine months ended September 30, 2025, compared to the same 27 Table of Contents period in 2024, primarily due to an increase of $2.7 billion in average interest bearing deposits, partially offset by decreases of $586.2 million in average short-term borrowings and $122.3 million in average long-term debt. Average non-interest bearing deposits for the nine months ended September 30, 2025 decreased to $8.1 billion from $8.9 billion for the same period in 2024. Net interest margin for the nine months ended September 30, 2025 was 3.34%, compared to 3.07% for the same period of 2024. The increase was primarily due to a decrease in funding costs. The yield on total loans held for investment decreased to 6.39% for the nine months ended September 30, 2025, compared to 6.66% for the same period in 2024, and the yield on earning assets decreased to 5.82% for the nine months ended September 30, 2025, compared to 5.90% for the same period in 2024. Total cost of deposits decreased to 2.67% for the nine months ended September 30, 2025 from 2.97% for the same period in 2024 and total funding costs, including non-interest bearing deposits and stockholders' equity, decreased to 2.44% for the nine months ended September 30, 2025, compared to 2.80% for the same period in 2024. Non-interest Income Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Service charges on deposit accounts $ 8,111 $ 6,307 $ 24,133 $ 18,557 Wealth management and trust fee income 3,989 4,040 11,683 11,306 Brokered loan fees 2,419 2,400 6,766 6,442 Investment banking and advisory fees 33,985 34,753 74,572 78,225 Trading income 7,238 5,786 21,073 16,148 Available-for-sale debt securities losses — (179,581) (1,886) (179,581) Other 12,841 11,524 30,755 25,875 Total non-interest income $ 68,583 $ (114,771) $ 167,096 $ (23,028) Non-interest income increased $183.4 million during the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the inclusion of a $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, as well as increases in service charges on deposit accounts, trading income and other non-interest income. Non-interest income was $167.1 million for the nine months September 30, 2025, a $190.1 million increase as compared to the same period in 2024, primarily due to the inclusion of the $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024 mentioned above, as well as increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by a decrease in investment banking and advisory fees. Non-interest Expense Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Salaries and benefits $ 119,856 $ 121,138 $ 371,651 $ 368,705 Occupancy expense 11,828 12,937 34,816 33,340 Marketing 3,412 5,863 12,045 17,895 Legal and professional 12,474 11,135 38,532 38,603 Communications and technology 24,594 25,951 72,550 69,078 Federal Deposit Insurance Corporation (“FDIC”) insurance assessment 5,198 4,906 15,635 18,897 Other 13,213 13,394 38,642 39,608 Total non-interest expense $ 190,575 $ 195,324 $ 583,871 $ 586,126 Non-interest expense decreased $4.7 million during the three months ended September 30, 2025, compared to the same period in 2024. The increase was primarily due to decreases in salaries and benefits, occupancy expense and communications and technology expense, resulting from restructuring expenses recognized in the third quarter of 2024, as well as a decrease in marketing expense, partially offset by an increase in legal and professional expense. Non-interest expense was $583.9 million for the nine months September 30, 2025, an increase of $2.3 million as compared to the same period in 2024, primarily due to increases in salaries and benefits and communications and technology expense, partially offset by decreases in marketing expense and FDIC insurance assessment. FDIC insurance assessment included an additional $2.8 million FDIC special assessment expense recorded in the first nine months of 2024. 28 Table of Contents Analysis of Financial Condition Loans Held for Investment The following table summarizes the Company’s loans held for investment by portfolio segment. See Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2024 Form 10-K for details of these portfolio segments. (in thousands) September 30, 2025 December 31, 2024 Commercial $ 11,999,025 $ 11,145,591 Mortgage finance 6,057,804 5,215,574 Commercial real estate 5,696,720 5,616,282 Consumer 540,126 565,376 Gross loans held for investment 24,293,675 22,542,823 Unearned income (net of direct origination costs) (101,812) (92,757) Total loans held for investment $ 24,191,863 $ 22,450,066 Total loans held for investment were $24.2 billion at September 30, 2025, an increase of $1.7 billion from December 31, 2024, as increases in commercial, mortgage finance and commercial real estate loans were partially offset by a decrease in consumer loans. Mortgage finance loans include legal ownership interests in mortgage loans that the Company purchases from unaffiliated mortgage originators, either directly or through a special purpose entity structure, that are typically sold within 10 to 20 days and represent 25% and 23% of gross loans held for investment at September 30, 2025 and December 31, 2024, respectively. Volumes fluctuate based on the level of market demand for the product and the number of days between purchase and sale of the loans, which can be affected by changes in overall market interest rates, and tend to peak at the end of each month. The Company originates a substantial majority of all loans held for investment. The Company also participates in shared national credits, both as a participant and as an agent. As of September 30, 2025, the Company had $5.9 billion in shared national credits, $1.0 billion of which the Company administered as agent. All syndicated loans, whether the Company acts as agent or participant, are underwritten to the same standards as all other loans the Company originates. As of September 30, 2025, approximately $32.1 million of the Company’s shared national credits were on non-accrual. Portfolio Concentrations Although more than 50% of the Company’s total loan exposure is outside of Texas and more than 50% of deposits are sourced outside of Texas, Texas concentration remains significant. As of September 30, 2025, a majority of the loans held for investment, excluding mortgage finance and other national lines of business, were to businesses with headquarters or operations in Texas. This geographic concentration subjects the Company’s loan portfolio to the general economic conditions within this state. The risks created by this concentration have been considered by management in determining the appropriateness of the allowance for credit losses. 29 Table of Contents Non-performing Assets Non-performing assets include non-accrual loans and leases, and repossessed assets. The table below summarizes non-accrual loans by portfolio segment and by type of property securing the credit. (dollars in thousands) September 30, 2025 December 31, 2024 Non-accrual loans held for investment Commercial: Business assets $ 66,879 $ 64,481 Accounts receivable and inventory 4,949 6,315 Machinery and equipment 132 2,729 Unsecured 6 60 Highly liquid assets — 1,340 Other — 639 Total commercial 71,966 75,564 Commercial real estate: Industrial buildings 22,584 20,637 Commercial buildings 1,534 — Office buildings — 14,000 Total commercial real estate 24,118 34,637 Consumer: Single family residences — 964 Total consumer — 964 Total non-accrual loans held for investment 96,084 111,165 Non-accrual loans held for sale — — Other real estate owned (“OREO”) — — Total non-performing assets $ 96,084 $ 111,165 Non-accrual loans held for investment to total loans held for investment 0.40 % 0.50 % Total non-performing assets to total assets 0.30 % 0.36 % Allowance for credit losses on loans to non-accrual loans held for investment 2.9x 2.4x Loans held for investment past due 90 days and accruing $ 126 $ 4,265 Loans held for investment past due 90 days to total loans held for investment — % 0.02 % Loans held for sale past due 90 days and accruing $ — $ — Summary of Credit Loss Experience The provision for credit losses, comprised of a provision for loans and off-balance sheet credit losses, is a charge to earnings to maintain the allowance for credit losses at a level consistent with management’s assessment of expected losses at each balance sheet date. The Company recorded a provision for credit losses of $44.0 million for the nine months ended September 30, 2025, compared to a provision of $49.0 million for the nine months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 reflects an increase in total loans held for investment and $36.5 million in net charge-offs recorded during the nine months ended September 30, 2025, partially offset by decreases in criticized loans and non-accrual loans. Criticized loans totaled $529.7 million at September 30, 2025, compared to $714.0 million at December 31, 2024. The table below presents key metrics related to the Company’s credit loss experience: September 30, 2025 September 30, 2024 Allowance for credit losses on loans to total loans held for investment 1.13 % 1.23 % Allowance for credit losses on loans to average total loans held for investment(1) 1.20 % 1.30 % Total allowance for credit losses to total loans held for investment 1.37 % 1.43 % Total provision for credit losses to average total loans held for investment(1)(2) 0.26 % 0.31 % (1) Ratios are calculated using average balance for the nine months ended September 30, 2025 and 2024, respectively. (2) Ratios are annualized utilizing provision for credit losses for the nine months ended September 30, 2025 and 2024, respectively. 30 Table of Contents The table below details net charge-offs/(recoveries) as a percentage of average total loans by portfolio segment: Nine Months Ended September 30, 2025 2024 (dollars in thousands) Net Charge-offs Net Charge-offs to Average Loans(1) Net Charge-offs Net Charge-offs to Average Loans(1) Commercial $ 35,992 0.41 % $ 23,074 0.29 % Mortgage finance — — % — — % Commercial real estate 518 0.01 % 5,698 0.13 % Consumer (8) — % 30 0.01 % Total $ 36,502 0.21 % $ 28,802 0.18 % (1) Ratios are annualized utilizing net charge-offs for the nine months ended September 30, 2025 and 2024, respectively. Liquidity and Capital Resources Liquidity In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. The Company’s objectives in managing its liquidity are to maintain the ability to meet loan commitments, repurchase investment securities and repay deposits and other liabilities in accordance with their terms, without an adverse impact on current or future earnings. The Company’s liquidity strategy is guided by policies, formulated and monitored by senior management and the Asset and Liability Management Committee (“ALCO”), which take into account the demonstrated marketability of the Company’s assets, the sources and stability of its funding and the level of unfunded commitments. The Company regularly evaluates all of its various funding sources with an emphasis on accessibility, stability, reliability and cost-effectiveness. The Company’s principal source of funding is customer deposits, supplemented by short-term borrowings, primarily from federal funds purchased and Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits and long-term debt. The Company also relies on the availability of the mortgage secondary market provided by Ginnie Mae and government sponsored entities to support the liquidity of mortgage finance loans. The following table summarizes the Company’s interest bearing cash and cash equivalents: (dollars in thousands) September 30, 2025 December 31, 2024 Interest bearing cash and cash equivalents $ 2,852,387 $ 3,012,307 Interest bearing cash and cash equivalents as a percent of: Total loans held for investment 11.8 % 13.4 % Total earning assets 9.1 % 10.2 % Total deposits 10.4 % 11.9 % The Company aims to obtain as much of its funding as possible from customer deposits, which are generated through digital acquisition or as a result of development of long-term customer relationships, with a significant focus on treasury management products. In addition, the Company also has access to deposits through brokered channels. The following table summarizes period-end total deposits: September 30, 2025 December 31, 2024 (dollars in thousands) Balance % of Total Balance % of Total Customer deposits $ 26,739,258 97.2 % $ 24,704,091 97.9 % Brokered deposits 766,140 2.8 % 534,508 2.1 % Total deposits $ 27,505,398 100.0 % $ 25,238,599 100.0 % Estimated uninsured deposits, including accrued interest, were 42% of total deposits at September 30, 2025 and 41% at December 31, 2024. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements. 31 Table of Contents The Company has short-term borrowing sources available to supplement deposits and meet its funding needs. Such borrowings are generally used to fund mortgage finance loans, due to their liquidity, short duration and interest spreads available. These borrowing sources include federal funds purchased from downstream correspondent bank relationships (which consist of banks that are smaller than the Bank) and from upstream correspondent bank relationships (which consist of banks that are larger than the Bank) and advances from the FHLB and the Federal Reserve. The following table summarizes short-term borrowings, all of which mature within one year: (in thousands) September 30, 2025 December 31, 2024 Federal funds purchased $ 275,000 $ — FHLB borrowings — 885,000 Total short-term borrowings $ 275,000 $ 885,000 The following table summarizes the Company’s short-term borrowing capacities net of balances outstanding: (in thousands) September 30, 2025 December 31, 2024 FHLB borrowing capacity relating to loans and pledged securities $ 2,841,660 $ 4,664,703 FHLB borrowing capacity relating to unencumbered securities 4,451,240 4,189,993 Total FHLB borrowing capacity(1) $ 7,292,900 $ 8,854,696 Unused federal funds lines available from commercial banks $ 1,275,000 $ 1,370,000 Unused Federal Reserve borrowings capacity $ 9,362,692 $ 5,436,652 Unused revolving line of credit(2) $ 75,000 $ 75,000 (1) FHLB borrowings are collateralized by a blanket floating lien on certain real estate secured loans and certain pledged securities. (2) Unsecured revolving, non-amortizing line of credit with maturity date of February 8, 2026. Proceeds may be used for general corporate purposes, including funding regulatory capital infusions into the Bank. The loan agreement contains customary financial covenants and restrictions. No borrowings were made against this line of credit during the nine months ended September 30, 2025 or 2024. The Company has long-term debt outstanding of $620.4 million as of September 30, 2025, comprised of trust preferred securities and subordinated notes with maturity dates ranging from January 2026 to December 2036. See Note 5 - Short-Term Borrowings and Long-Term Debt in the accompanying notes to the consolidated financial statements included elsewhere in this report for additional information. The Company may consider raising additional capital, if needed, in public or private offerings of debt or equity securities to supplement deposits and meet its long-term funding needs. As the Company is a holding company and is a separate operating entity from the Bank, the Company’s primary sources of liquidity are dividends received from the Bank and borrowings from outside sources. Banking regulations may limit the amount of dividends that may be paid by the Bank. See Note 7 - Regulatory Ratios and Capital in the accompanying notes to the consolidated financial statements included elsewhere in this report for additional information regarding dividend restrictions and “ Liquidity Risks ” included in Part I, Item 1A. Risk Factors of the Company’s 2024 Form 10-K. Periodically, based on market conditions and other factors, and subject to compliance with applicable laws and regulations and the terms of its existing indebtedness, the Company may repay, repurchase, exchange or redeem outstanding indebtedness, or otherwise enter into transactions regarding debt or capital structure. For example, the Company periodically evaluates and may engage in liability management transactions, including repurchases or redemptions of outstanding subordinated notes, which may be funded by the issuance of, or exchanges of, newly issued unsecured borrowings to actively manage the debt maturity profile and interest cost. Capital Resources The Company’s equity capital averaged $3.5 billion for the nine months ended September 30, 2025 compared to $3.2 billion for the same period in 2024. The Company has not paid any cash dividends on common stock since operations commenced and has no plans to do so in the foreseeable future. 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. The share repurchase program expires on January 31, 2026, but 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. During the nine months ended September 30, 2025, the Company repurchased 801,053 shares of its common stock for an aggregate purchase price, including excise tax expense, of $59.2 million, at a weighted average price of $73.44 per share. 32 Table of Contents Any repurchases under the Company’s 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. For additional information on the Company’s capital and stockholders’ equity, see Note 7 - Regulatory Ratios and Capital, in the accompanying notes to the consolidated financial statements included elsewhere in this report. Critical Accounting Estimates SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant. The Company follows financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. The more significant of these policies are summarized in Note 1 - Operations and Summary of Significant Accounting Policies in the notes to the consolidated financial statements included in the Company’s 2024 Form 10-K. Not all significant accounting policies require management to make difficult, subjective or complex judgments. However, the policy noted below could be deemed to meet the SEC’s definition of a critical accounting estimate. Allowance for Credit Losses Management considers the policies related to the allowance for credit losses as the most critical to the financial statement presentation. The total allowance for credit losses includes activity related to allowances calculated in accordance with Accounting Standards Codification 326, Credit Losses . The allowance for credit losses is established through a provision for credit losses charged to current earnings. The amount maintained in the allowance reflects management’s continuing evaluation of the credit losses expected to be recognized over the life of the loans in the Company’s portfolio. The allowance for credit losses on loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The allowance for credit losses on off-balance sheet financial instruments is recorded in other liabilities on the consolidated balance sheets. For purposes of determining the allowance for credit losses, the loan portfolio is segregated into pools first by portfolio segment and then by past due status or credit grade. Each pool is assigned a loss estimate, reflecting historical loss rates that incorporate probability of default and severity of losses over the estimated remaining life of the loans. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective (pool) evaluation. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Modifications to loss estimates are made to incorporate a reasonable and supportable forecast of future losses at the pool level, as well as any necessary qualitative adjustments using a Portfolio Level Qualitative Factor (“PLQF”) and/or a Portfolio Segment Level Qualitative Factor (“SLQF”). A similar process is employed to calculate a reserve assigned to off-balance sheet financial instruments, specifically unfunded loan commitments and letters of credit. Modified loss estimates are assigned based on the balance of the commitments estimated to be outstanding at the time of default. The PLQF and SLQF are utilized to address factors that are not present in historical loss rates and are otherwise unaccounted for in the quantitative process. A reserve is recorded upon origination or purchase of a loan. See “Summary of Credit Loss Experience” above and Note 4 - Loans and Allowance for Credit Losses on Loans in the accompanying notes to the consolidated financial statements included elsewhere in this report for further discussion of the risk factors considered by management in establishing the allowance for credit losses. Management considers a range of macroeconomic scenarios in connection with the allowance estimation process. Within the various economic scenarios considered as of September 30, 2025, the quantitative estimate of the allowance for credit loss would increase by approximately $134.7 million under sole consideration of the most severe downside scenario. The quoted sensitivity calculation reflects the sensitivity of the modeled allowance estimate to macroeconomic forecast data, but is absent of qualitative overlays and other qualitative adjustments that are part of the quarterly reserving process and does not necessarily reflect the nature and extent of future changes in the allowance for reasons including increases or decreases in qualitative adjustments, changes in the risk profile and size of the portfolio, changes in the severity of the macroeconomic scenario and the range of scenarios under management consideration. 33 Table of Contents