What changed in this filing

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Item 1. Financial Statements

2026-04-23 compared with 2025-10-23 · 273 added, 373 removed, 774 unchanged (45% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(in thousands except share data) September 30, 2025 December 31, 2024

(in thousands except share data) March 31, 2026 December 31, 2025

Cash and due from banks $ 254,428 $ 201,315

3 unchanged sentences

Equity securities 42,024 41,998

Trading securities 2,219 —

Investment securities 4,601,654 4,396,115

Trading debt securities

Debt and equity securities

4,673,355 4,723,099

Loans held for sale 21,333 4,361

Loans held for investment, mortgage finance 6,961,686 6,064,019

18 unchanged sentences

Authorized shares - 10,000,000

Issued shares - 300,000 at September 30, 2025 and December 31, 2024

Issued shares - 300,000 at March 31, 2026 and December 31, 2025

300,000 300,000

1 unchanged sentence

Authorized shares - 100,000,000

Issued shares - 51,767,419 and 51,520,315 at September 30, 2025 and December 31, 2024, respectively

Issued shares - 51,974,496 and 51,786,456 at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,077,139 1,074,496

Retained earnings 2,878,120 2,808,645

Treasury stock - 6,087,556 and 5,286,503 shares at cost at September 30, 2025 and December 31, 2024, respectively

Treasury stock - 8,303,191 and 7,532,768 shares at cost at March 31, 2026 and December 31, 2025, respectively

( 562,833 ) ( 487,692 )

6 unchanged sentences

COMPREHENSIVE INCOME - UNAUDITED

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands except per share data) 2026 2025

1 unchanged sentence

Interest and fees on loans $ 348,020 $ 334,150

Investment securities 49,396 38,389 141,952 104,117

Debt and equity securities

49,590 46,565

Interest bearing cash and cash equivalents 21,484 46,574

14 unchanged sentences

Trading income 10,251 5,939

Available-for-sale debt securities losses — ( 179,581 ) ( 1,886 ) ( 179,581 )

Other 11,382 8,274

9 unchanged sentences

Total non-interest expense 213,568 203,020

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

Income before income taxes 94,417 60,458

Income tax expense 20,629 13,411

Net income 73,788 47,047

Preferred stock dividends 4,313 4,313

Net income/(loss) available to common stockholders $ 100,897 $ ( 65,632 ) $ 216,647 $ ( 6,453 )

Other comprehensive income/(loss)

Net income available to common stockholders $ 69,475 $ 42,734

Other comprehensive income

Change in unrealized gain/(loss) $ ( 31,328 ) $ 50,279

Amounts reclassified into net income

6,172 199,599 26,498 239,132

Other comprehensive income

Other comprehensive income/(loss)

( 28,771 ) 60,638

Income tax expense

Income tax expense/(benefit)

( 6,617 ) 13,693

Other comprehensive income, net of tax

Other comprehensive income/(loss), net of tax

( 22,154 ) 46,945

Comprehensive income $ 51,634 $ 93,992

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.

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

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

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

Basic earnings per common share

$ 1.58 $ 0.93

Diluted earnings per common share

$ 1.56 $ 0.92

See accompanying notes to consolidated financial statements.

17 unchanged sentences

Repurchase of common stock — — — — — — ( 396,106 ) ( 31,152 ) — ( 31,152 )

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 March 31, 2025 300,000 $ 300,000 51,707,542 $ 517 $ 1,060,028 $ 2,538,385 ( 5,682,609 ) $ ( 332,994 ) $ ( 136,162 ) $ 3,429,774

Balance at December 31, 2025 (audited)

1 unchanged sentence

Comprehensive income/(loss):

— — — — — 229,585 — — — 229,585

Net income — — — — — 73,788 — — — 73,788

Change in other comprehensive income/(loss), net of taxes — — — — — — — — ( 22,154 ) ( 22,154 )

1 unchanged sentence

Stock-based compensation expense recognized in earnings — — — — 12,205 — — — — 12,205

— — — — 20,425 — — — — 20,425

Preferred stock dividend — — — — — ( 4,313 ) — — — ( 4,313 )

Issuance of stock related to stock-based awards — — 188,040 2 ( 9,562 ) — — — — ( 9,560 )

— — 247,104 3 ( 7,562 ) — — — — ( 7,559 )

Repurchase of common stock — — — — — — ( 770,423 ) ( 75,141 ) — ( 75,141 )

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

Balance at March 31, 2026 300,000 $ 300,000 51,974,496 $ 520 $ 1,077,139 $ 2,878,120 ( 8,303,191 ) $ ( 562,833 ) $ ( 86,739 ) $ 3,606,207

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

4 unchanged sentences

Depreciation and amortization 12,816 9,217

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 ) —

Net (gain)/loss on equity securities ( 1,646 ) 2,052

Sales/(purchases) of trading debt securities, net ( 3,958 ) ( 1,824 )

Stock-based compensation expense 17,499 12,750

Proceeds from sales and repayments of loans held for sale — 53,494

Changes in operating assets and liabilities:

4 unchanged sentences

Purchases of available-for-sale debt securities ( 134,520 ) ( 198,597 )

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 153,484 97,698

3 unchanged sentences

Proceeds from pay-offs of loans held for investment, mortgage finance 22,701,423 18,956,879

Net increase in loans held for investment, excluding mortgage finance loans ( 936,069 ) ( 446,916 )

Decrease/(increase) in loans held for investment, excluding mortgage finance, net ( 280,484 ) ( 429,548 )

Purchase of premises and equipment, net ( 1,357 ) ( 2,416 )

1 unchanged sentence

Financing activities

Net increase in deposits 2,266,799 3,493,416

Net increase/(decrease) in deposits, net 2,067,921 814,435

Issuance of stock related to stock-based awards ( 9,560 ) ( 7,048 )

1 unchanged sentence

Repurchase of common stock ( 75,141 ) ( 31,152 )

Net decrease in short-term borrowings ( 610,000 ) ( 465,000 )

Net increase/(decrease) in short-term borrowings, net ( 330,000 ) ( 135,000 )

Redemption of long-term debt ( 134,525 ) —

Issuance of long-term debt 397,599 —

Net cash provided by financing activities

Net increase/(decrease) in cash and cash equivalents ( 123,983 ) 948,735

1,911,981 636,922

Net increase in cash and cash equivalents

857,493 613,665

Cash and cash equivalents at beginning of period 2,099,118 3,188,808

2 unchanged sentences

Cash paid during the period for interest $ 180,511 $ 189,665

Cash paid during the period for income taxes

Cash paid/(refunded) during the period for income taxes:

$ 1,620 $ ( 1,290 )

7 unchanged sentences

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 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., doing business as Texas Capital Securities.

The Bank is a Texas state-chartered bank.

TCBI Securities is a registered broker-dealer with the U.S.

Texas Capital 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

12 unchanged sentences

The following table presents the computation of basic and diluted earnings per share:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands except share and per share data) 2026 2025

Net income/(loss) $ 105,210 $ ( 61,319 ) $ 229,585 $ 6,485

$ 73,788 $ 47,047

Preferred stock dividends 4,313 4,313

Net income/(loss) available to common stockholders $ 100,897 $ ( 65,632 ) $ 216,647 $ ( 6,453 )

Net income available to common stockholders

$ 69,475 $ 42,734

Basic earnings per common share—weighted average common shares 44,094,304 46,123,416

1 unchanged sentence

Dilutive earnings per common share—weighted average diluted common shares 44,601,129 46,616,704

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 )

Basic earnings per common share

$ 1.58 $ 0.93

Diluted earnings per common share

$ 1.56 $ 0.92

Anti-dilutive outstanding stock-settled awards 25,424 22,707

(3) Investment Securities

The following is a summary of the Company’s investment securities:

(3) Debt and Equity Securities

The following is a summary of the Company’s debt and equity securities:

(in thousands) Amortized

1 unchanged sentence

Losses Estimated

September 30, 2025

March 31, 2026

Available-for-sale debt securities:

9 unchanged sentences

Equity securities 42,024

Trading securities 2,219

Total investment securities(2) $ 4,601,654

Trading debt securities

Total debt and equity securities(2)

December 31, 2025

Available-for-sale debt securities:

Treasury securities $ 280,137 $ — $ ( 2,852 ) $ 277,285

Residential mortgage-backed securities $ 3,743,234 $ 41,037 $ ( 91,625 ) $ 3,692,646

4 unchanged sentences

Total available-for-sale debt securities 3,998,939 44,592 ( 92,076 ) 3,951,455

Held-to-maturity securities:

Held-to-maturity debt securities:

Residential mortgage-backed securities 725,722 — ( 70,890 ) 654,832

Total held-to-maturity securities 796,168 — ( 117,994 ) 678,174

Total held-to-maturity debt securities

725,722 — ( 70,890 ) 654,832

Equity securities 41,998

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.

Trading debt securities

Total debt and equity securities(2)

(1) Excludes accrued interest receivable of $ 16.0 million and $ 16.1 million at March 31, 2026 and December 31, 2025, respectively, related to available-for-sale debt securities and $ 1.1 million and $ 1.2 million at March 31, 2026 and December 31, 2025, 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 debt securities at estimated fair value and held-to-maturity debt securities at amortized cost.

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.

The amortized cost and estimated fair value as of March 31, 2026, 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.

6 unchanged sentences

Total $ 3,980,545 $ 3,913,855 $ 709,594 $ 638,584

The table below presents the weighted average yields for the Company’s available-for-sale debt securities as of September 30, 2025.

The table below presents the weighted average yields for the Company’s available-for-sale debt securities as of March 31, 2026.

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

CRT securities

Due within one year — % — % — %

6 unchanged sentences

(in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss

September 30, 2025

March 31, 2026

Residential mortgage-backed securities $ 613,940 $ ( 2,752 ) $ 741,764 $ ( 90,630 ) $ 1,355,704 $ ( 93,382 )

5 unchanged sentences

December 31, 2025

Treasury securities $ — $ — $ 277,285 $ ( 2,852 ) $ 277,285 $ ( 2,852 )

Residential mortgage-backed securities $ 203,193 $ ( 97 ) $ 934,222 $ ( 91,528 ) $ 1,137,415 $ ( 91,625 )

Commercial mortgage-backed securities

201,432 ( 5,398 ) — — 201,432 ( 5,398 )

Credit risk transfer securities

1 unchanged sentence

Total $ 203,193 $ ( 97 ) $ 945,019 $ ( 91,979 ) $ 1,148,212 $ ( 92,076 )

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.

At March 31, 2026, the Company had 41 available-for-sale debt securities in an unrealized loss position, comprised of 37 residential mortgage-backed securities, two 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.

Held-to-maturity debt securities consist of government guaranteed securities for which no loss is expected.

At March 31, 2026 and December 31, 2025, no allowance for credit losses was established for available-for-sale or held-to-maturity debt securities.

At March 31, 2026 and December 31, 2025, debt securities with carrying values of approximately $ 913,000 and $ 937,000 , respectively, were pledged to secure certain customer deposits.

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,

Three Months Ended March 31,

(in thousands) 2026 2025

4 unchanged sentences

Loans are summarized by portfolio segment as follows:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Loans held for investment(1)(2):

3 unchanged sentences

Consumer 431,442 433,926

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

Loans held for investment 25,179,662 24,040,202

Allowance for credit losses on loans ( 270,441 ) ( 270,557 )

Total loans held for investment, net $ 24,909,221 $ 23,769,645

(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.

The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades:

(1) Excludes accrued interest receivable of $ 104.4 million and $ 107.3 million at March 31, 2026 and December 31, 2025, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets.

(2) Loans are presented net of deferred loan fees and costs totaling $ 104.8 million and $ 106.8 million at March 31, 2026 and December 31, 2025, respectively.

The following tables summarize loans held for investment by year of origination and internally assigned credit grades:

(in thousands) 2026 2025 2024 2023 2022 2021

and prior Revolving lines of credit Revolving lines of credit converted to term loans Total

September 30, 2025

March 31, 2026

(1-7) Pass $ 540,210 $ 1,898,487 $ 1,093,995 $ 605,811 $ 634,839 $ 220,996 $ 7,193,115 $ 9,331 $ 12,196,784

53 unchanged sentences

Finance Commercial Real Estate Consumer Total

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Beginning balance $ 202,029 $ 6,221 $ 60,559 $ 1,748 $ 270,557

4 unchanged sentences

Ending balance $ 213,782 $ 2,527 $ 52,292 $ 1,840 $ 270,441

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Beginning balance $ 198,423 $ 2,755 $ 68,825 $ 1,706 $ 271,709

Allowance established for acquired PCD loans 2,579 — — — 2,579

Provision for credit losses on loans 9,167 2,701 4,641 ( 42 ) 16,467

3 unchanged sentences

Ending balance $ 197,876 $ 5,456 $ 73,379 $ 1,668 $ 278,379

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.

The Company recorded a $ 17.2 million provision for credit losses on loans for the three months ended March 31, 2026, compared to $ 16.5 million for the same period of 2025.

The $ 17.2 million provision for credit losses on loans resulted primarily from an increase in criticized loans and $ 17.4 million in net charge-offs recorded during the three months ended March 31, 2026.

Criticized loans totaled $ 650.6 million at March 31, 2026, compared to $ 634.9 million at December 31, 2025.

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:

At March 31, 2026, the Company had $ 32.4 million in collateral-dependent commercial loans, collateralized by business assets, and $ 45.9 million in collateral-dependent commercial real estate loans, collateralized by real estate.

The table below provides an age analysis of loans held for investment:

(in thousands) 30-59 Days

2 unchanged sentences

Due Non-accrual(1) Current Total Non-accrual With No Allowance

September 30, 2025

March 31, 2026

Commercial $ 15,907 $ 332 $ 18,030 $ 34,269 $ 99,010 $ 12,365,983 $ 12,499,262 $ 3,430

3 unchanged sentences

Total $ 17,597 $ 880 $ 18,030 $ 36,507 $ 144,947 $ 24,998,208 $ 25,179,662 $ 4,964

(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.

(1) As of March 31, 2026, $ 463,000 of non-accrual loans were earning interest income on a cash basis compared to $ 470,000 as of December 31, 2025.

Additionally, no interest income was recognized on non-accrual loans for the three months ended March 31, 2026 compared to $ 64,000 recognized for the same period in 2025.

Accrued interest of $ 4.8 million and $ 7,000 was reversed during the three months ended March 31, 2026 and March 31, 2025, respectively.

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:

The table below details loans held for investment made to borrowers experiencing financial difficulty that were modified during the three months March 31, 2026 and March 31, 2025, by type of modification granted and the financial effect of those modifications:

Financial Statement Impact

3 unchanged sentences

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

Commercial real estate — — 17,505 17,505 0.07 % — % 6

Total $ 791 $ 8,948 $ 18,263 $ 28,002 0.12 %

Three Months Ended September 30, 2024

Three Months Ended March 31, 2026

Commercial $ 25,520 $ 1,365 $ — $ 26,885 0.11 % — % 4

Total $ 360 $ — $ — $ 360 — %

Nine Months Ended September 30, 2025

Commercial $ 12,100 $ 19,950 $ 23,126 $ 55,176 0.23 % — % 3 to 26

Commercial real estate — — 16,895 16,895 0.07 % — % 6 737

Total $ 25,520 $ 1,365 $ 16,895 $ 43,780 0.17 %

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Commercial $ 1,817 $ — $ 788 $ 2,605 0.01 % — % 6 to 12

1 unchanged sentence

Total $ 19,980 $ — $ 788 $ 20,768 0.09 %

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.

The table below details 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)

Deferral Term

Extension Payment Deferral

Deferral Payment Deferral

and Term Extension

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

$ 2,902 $ — $ — $ 2,902

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Commercial $ 166 $ — $ 166

1 unchanged sentence

Total $ 166 $ — $ 166

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Commercial $ 2,996 $ — $ 2,996

Commercial real estate — 13,500 13,500

Total $ 2,996 $ 13,500 $ 16,496

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:

The table below provides an age analysis of loans held for investment as of March 31, 2026 and March 31, 2025 made to borrowers experiencing financial difficulty that were modified in the prior twelve months:

(in thousands) 30-89 Days

1 unchanged sentence

Past Due Non-Accrual Current Total

September 30, 2025

March 31, 2026

Commercial $ — $ — $ 59,015 $ 17,139 $ 76,154

2 unchanged sentences

Total $ — $ — $ 75,910 $ 17,139 $ 93,049

September 30, 2024

March 31, 2025

Commercial $ — $ — $ 9,567 $ 33,825 $ 43,392

4 unchanged sentences

The table below presents a summary of short-term borrowings:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Federal funds purchased $ — $ 30,000

Federal Home Loan Bank borrowings

Federal Home Loan Bank (“FHLB”) borrowings

Total short-term borrowings $ — $ 330,000

The table below presents a summary of long-term debt:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Bank-issued 5.25 % fixed rate subordinated notes due 2026

2 unchanged sentences

372,770 372,660

Company-issued 5.301 % fixed rate senior notes due February 2032

Trust preferred floating rate subordinated debentures due 2032 to 2036 113,406 113,406

Total long-term debt $ 878,293 $ 620,575

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.

During the first quarter of 2026, the bank-issued 5.25 % fixed rate subordinated notes due 2026 matured and were repaid in full.

The Company-issued 4.00 % fixed rate subordinated notes due 2031 are redeemable, in whole or in part, on May 6, 2026 and any interest payment date thereafter at a redemption price equal to 100 % of the principal amount of the notes being redeemed, plus accrued interest thereon.

Furthermore, the interest rate on these notes will reset on May 6, 2026 to a rate per annum equal to the five-year U.S.

treasury rate plus 3.15 % for the five-year period from the reset date to maturity.

On March 9, 2026, the Company gave notice to the holders of these subordinated notes that it will redeem these notes in full on May 6, 2026 (the “redemption date”), at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest as of the redemption date.

On February 27, 2026, the Company issued $ 400.0 million of fixed-to-floating senior notes.

The notes are redeemable, in whole or in part, on February 27, 2031 and mature on February 27, 2032.

The notes bear interest at a fixed annual rate of 5.301 %, payable semi-annually, for an initial five-year period and at a floating rate per annum equal to the compounded SOFR plus 1.94 %, payable quarterly, for the final year.

(6) Financial Instruments with Off-Balance Sheet Risk

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Real Estate Consumer Total

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Beginning balance $ 58,209 $ 16 $ 3,979 $ 51 $ 62,255

1 unchanged sentence

Ending balance $ 57,932 $ 8 $ 3,015 $ 58 $ 61,013

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Beginning balance $ 47,907 $ 23 $ 5,351 $ 51 $ 53,332

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Ending balance $ 48,511 $ 21 $ 5,290 $ 43 $ 53,865

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

Commitments to extend credit - period end balance $ 11,783,332 $ 12,193,441

8 unchanged sentences

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.

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 three months ended March 31, 2026 or during 2025.

On April 23, 2026, the Company and its board of directors declared and announced a cash dividend of $ 0.20 per common share.

The dividend is payable on June 15, 2026, to holders of record at the close of business on June 1, 2026.

Effective December 12, 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 the net stock repurchases.

The share repurchase program will expire on December 31, 2026, but may be suspended or discontinued at any time.

The remaining repurchase authorization under the January 22, 2025 share repurchase program was terminated upon authorization of this new program.

During the three months ended March 31, 2026, the Company repurchased 770,423 shares of its common stock for an aggregate price, including excise tax expense, of $ 75.1 million, at a weighted average price of $ 96.82 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

As shown in the table below, the Company’s and Bank’s capital ratios exceeded the regulatory definition of well capitalized as of March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

(dollars in thousands) Minimum Capital Required(2) Capital Required to be Well Capitalized Capital Amount Ratio Capital Amount Ratio

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Tier 1 capital (to average assets)(1) 4.00 % 5.00 % 3,708,376 11.91 % 3,618,691 11.18 %

(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.

(1) The Tier 1 capital ratio (to average assets) 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 ratio (to average assets) 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.

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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,

Three Months Ended March 31,

(in thousands) 2026 2025

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Total $ 17,499 $ 12,750

(in thousands except period data) September 30, 2025

(in thousands except period data) March 31, 2026

Unrecognized compensation expense related to unvested stock-settled awards $ 32,878

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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.

See Note 1 - Operations and Summary of Significant Accounting Policies in the 2025 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.

Assets and liabilities measured at fair value are as follows:

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(in thousands) Level 1 Level 2 Level 3

September 30, 2025

March 31, 2026

Available-for-sale debt securities:(1)

4 unchanged sentences

32,024 10,000 —

Trading securities(1) — 2,219 —

Trading debt securities(1)

Loans held for investment(2)

Derivative assets(3)

Securities sold not yet purchased(4)

Other trading assets(4)

Derivative liabilities(3)

Securities sold not yet purchased(4)

Non-qualified deferred compensation plan liabilities(5)

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Available-for-sale debt securities:(1)

Treasury securities $ 277,285 $ — $ —

Residential mortgage-backed securities $ — $ 3,692,646 $ —

3 unchanged sentences

31,998 10,000 —

Trading debt securities

Loans held for investment(2)

Derivative assets(3)

Securities sold not yet purchased(4)

Derivative liabilities(3)

Securities sold not yet purchased(4)

Non-qualified deferred compensation plan liabilities(5)

(1) Available-for-sale debt securities, equity securities and trading securities are measured at fair value on a recurring basis, generally monthly.

(1) Available-for-sale debt securities, equity securities and trading debt 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.

(3) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.

(4) Other trading assets and 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.

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(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

Three Months Ended March 31, 2026

Available-for-sale debt securities:(1)

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$ 10,797 $ — $ ( 235 ) $ — $ 12 $ 10,574

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Available-for-sale debt securities:(1)

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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 March 31, 2026, the discount rates utilized ranged from 4.79 % to 6.11 % and the weighted-average life ranged from 3.90 years to 5.65 years.

On a combined amortized cost weighted-average basis a discount rate of 5.37 % and a weighted-average life of 4.67 years were utilized to determine the fair value of these securities at March 31, 2026.

At December 31, 2025, the combined weighted-average discount rate and weighted-average life utilized were 5.16 % and 4.65 years, respectively.

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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 $ 52.2 million fair value of loans held for investment at March 31, 2026 reported above includes impaired loans with a carrying value of $ 76.8 million that were reduced by specific allowance allocations totaling $ 24.6 million based on collateral valuations utilizing Level 3 inputs.

The $ 20.8 million fair value of loans held for investment at December 31, 2025 reported above includes impaired loans with a carrying value of $ 30.1 million that were reduced by specific allowance allocations totaling $ 9.3 million based on collateral valuations utilizing Level 3 inputs.

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(in thousands) Total Level 1 Level 2 Level 3

September 30, 2025

March 31, 2026

Financial assets:

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Equity securities 42,024 42,024 32,024 10,000 —

Trading securities 2,219 2,219 — 2,219 —

Trading debt securities

7,882 7,882 — 7,882 —

Loans held for sale 21,333 21,333 — 21,333 —

Loans held for investment, net 24,909,221 24,699,883 — — 24,699,883

Derivative assets 43,918 43,918 — 43,918 —

Other trading assets

Financial liabilities:

Total deposits 28,516,688 28,524,120 — — 28,524,120

Short-term borrowings 275,000 275,000 — 275,000 —

Long-term debt 878,293 849,030 — 849,030 —

Securities sold not yet purchased 24,730 24,730 24,730 — —

Derivative liabilities 41,578 41,578 — 41,578 —

Securities sold not yet purchased 12,503 12,503 12,503 — —

December 31, 2025

4 unchanged sentences

Equity securities 41,998 41,998 31,998 10,000 —

Trading debt securities

3,924 3,924 — 3,924 —

Loans held for sale 4,361 4,361 4,361

Loans held for investment, net 23,769,645 23,604,206 — — 23,604,206

4 unchanged sentences

Long-term debt 620,575 593,610 — 593,610 —

Securities sold not yet purchased 33,705 33,705 33,705 — —

Derivative liabilities 24,458 24,458 — 24,458 —

Securities sold not yet purchased 12,026 12,026 12,026 — —

(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

March 31, 2026 December 31, 2025

Estimated Fair Value Estimated Fair Value

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Swaps hedging loans $ 2,200,000 $ 1,193 $ 8,732 $ 2,050,000 $ 4,067 $ 770

Fair value hedges:

Interest rate contracts:

Swaps hedging long-term debt 400,000 — 5,515 — — —

Non-hedging derivatives

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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.

The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $ 43.9 million at March 31, 2026 and approximately $ 40.9 million at December 31, 2025.

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.

At March 31, 2026, the Company had $ 82.7 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $ 24.3 million in cash collateral received from counterparties included in interest bearing deposits on the consolidated balance sheet.

The comparative amounts at December 31, 2025, were $ 29.5 million in cash collateral pledged to counterparties and $ 7.6 million cash collateral received from counterparties.

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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.

The Company is party to 25 risk participation agreements where it acts as a participant bank with a notional amount of $ 457.7 million at March 31, 2026, compared to 23 risk participation agreements with a notional amount of $ 338.1 million at December 31, 2025.

The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $ 1.4 million at March 31, 2026 and $ 510,000 at December 31, 2025.

The fair value of these exposures was insignificant to the consolidated financial statements at both March 31, 2026 and December 31, 2025.

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.

The Company is party to 54 risk participation agreements where the Company acts as the lead bank having a notional amount of $ 684.8 million at March 31, 2026, compared to 47 agreements having a notional amount of $ 603.1 million at December 31, 2025.

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.

During the three months ended March 31, 2026, the Company recorded $ 12.1 million in unrealized losses to adjust its cash flow hedges to fair value, which was recorded net of tax to AOCI, and reclassified $ 1.0 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 $ 4.0 million will be reclassified from AOCI as an increase to interest income.

As of March 31, 2026, the maximum length of time over which forecasted transactions are hedged is 2.17 years.

Derivatives Designated as Fair Value Hedges

The Company enters into interest rate derivative contracts that are designated as qualifying fair value hedges to hedge the exposure to variability in fair value attributable to changes in a contractually specified interest rate.

To qualify for hedge accounting the hedging relationship, both at inception and on an ongoing basis, must be expected to be highly effective in achieving offsetting fair value adjustments attributable to the hedged risk during the term of the hedge if a fair value hedge.

As of March 31, 2026, all of the Company’s fair value hedges are accounted for using the shortcut method.

The shortcut method assumes perfect hedge effectiveness and eliminates the quantitative aspect of assessing hedge effectiveness.

The fair value hedges are recorded at fair value in other assets and other liabilities on the consolidated balance sheets with changes in fair value recorded in the same income statement line item as the offsetting unrealized loss or gain on the hedged item attributable to the risk being hedged.

During the first quarter of 2026, the Company entered into a receive-fixed, pay-variable interest rate swap contract to hedge the change in the fair value due to fluctuations in market interest rates for the $ 400.0 million Company-issued 5.301 % fixed rate senior notes.

The change in fair value of the fair value hedge is recorded through earnings with an exact offset against the change in the fair value of the hedged item within interest expense on long-term debt in the consolidated statements of income.

During the three months ended March 31, 2026, the Company recorded $ 60,000 in interest expense on long-term debt related to interest settlements on derivatives.

As of March 31, 2026, the carrying amount of the hedged liability was $ 392.1 million, which included a $ 5.5 million cumulative basis reduction related to the application of hedge accounting.

(11) Accumulated Other Comprehensive Income

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(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

Three Months Ended March 31, 2026

Beginning balance $ 3,100 $ ( 36,563 ) $ ( 31,122 ) $ ( 64,585 )

1 unchanged sentence

Amounts reclassified into net income 1,039 — 1,518 2,557

Total other comprehensive income

Total other comprehensive income/(loss)

( 11,083 ) ( 19,206 ) 1,518 ( 28,771 )

Income tax expense

Income tax expense/(benefit)

( 2,549 ) ( 4,417 ) 349 ( 6,617 )

Total other comprehensive income, net of tax

Total other comprehensive income/(loss), net of tax

( 8,534 ) ( 14,789 ) 1,169 ( 22,154 )

Ending balance $ ( 5,434 ) $ ( 51,352 ) $ ( 29,953 ) $ ( 86,739 )

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Beginning balance $ ( 15,275 ) $ ( 131,531 ) $ ( 36,301 ) $ ( 183,107 )

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Ending balance $ ( 8,020 ) $ ( 93,114 ) $ ( 35,028 ) $ ( 136,162 )

(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.

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.

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.

The following discussion and analysis of the Company’s financial condition and results of operations for the three months ended March 31, 2026 and 2025 should be read in conjunction with its audited consolidated financial statements and the related notes to the consolidated financial statements included in the 2025 Form 10-K.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results for the year ending December 31, 2026 or any future period.

Forward-Looking Statements

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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;

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 trade policies, geopolitical conflicts, inflation, including increased energy costs, unemployment rates and interest rates;

TCBI’s ability to innovate, to anticipate the needs of our current and future customers and to manage 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;

TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business, products and services;

risks related to potential strategic acquisitions, including the risk that TCBI may not be able to consummate acquisitions on favorable terms, if at all, and the risk that TCBI may not realize the anticipated benefits from 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 effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, outages, disruptions or security breaches;

TCBI’s ability to use technology to provide products and services to its customers;

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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;

TCBI’s ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss;

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;

1 unchanged sentence

claims, litigation or regulatory investigations and actions that TCBI may become subject to;

the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning;

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;

4 unchanged sentences

Selected income statement data and key performance indicators are presented in the table below:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(dollars in thousands except per share data) 2026 2025

3 unchanged sentences

Non-interest expense 213,568 203,020

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

Income before income taxes

94,417 60,458

Income tax expense

20,629 13,411

73,788 47,047

Preferred stock dividends 4,313 4,313

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 income available to common stockholders

$ 69,475 $ 42,734

Basic earnings per common share

$ 1.58 $ 0.93

Diluted earnings per common share

$ 1.56 $ 0.92

Net interest margin 3.43 % 3.19 %

5 unchanged sentences

(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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025

The Company reported net income of $73.8 million and net income available to common stockholders of $69.5 million for the three months ended March 31, 2026, compared to net income of $47.0 million and net income available to common stockholders of $42.7 million for the same period in 2025.

On a fully diluted basis, earnings per common share was $1.56 for the three months ended March 31, 2026, compared to $0.92 for the same period in 2025.

ROE was 8.35% and ROA was 0.95% for the three months ended March 31, 2026, compared to 5.56% and 0.61%, respectively, for the same period in 2025.

The increase in net income for the three months ended March 31, 2026 compared to the same period in 2025 resulted primarily from increases in net interest income and non-interest income, partially offset by an increase in non-interest expense.

Details of the changes in the various components of net income are discussed below.

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/

Balance Income/

Expense Yield/

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 %

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.

Taxable Equivalent Net Interest Income Analysis - Year to Date(1)

Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

(dollars in thousands) Average

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Expense Yield /

Investment securities(2) $ 4,557,996 $ 141,965 4.05 % $ 4,346,957 $ 104,117 2.97 %

Debt and equity securities(2)

$ 4,635,471 $ 49,598 4.30 % $ 4,463,876 $ 46,565 4.10 %

Interest bearing cash and cash equivalents 2,419,518 21,484 3.60 % 4,255,796 46,574 4.44 %

Loans held for sale(3)

3,096 — — % 335 2 2.97 %

Loans held for investment, mortgage finance

5,239,103 51,573 3.99 % 3,972,106 38,527 3.93 %

Loans held for investment(3)

18,172,432 297,352 6.64 % 17,527,070 296,091 6.85 %

Allowance for credit losses on loans 268,422 — — % 272,758 — — %

19 unchanged sentences

(1) Taxable equivalent rates used where applicable.

(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.

(2) Yields are calculated using available-for-sale debt securities at amortized cost.

(3) Average balances include non-accrual loans.

1 unchanged sentence

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

Change Change Due To(1) Net

Three Months Ended March 31,

Change Change Due To(1)

(in thousands) Volume Yield/Rate(2) Volume Yield/Rate(2)

(in thousands) Volume Yield/Rate(2)

Interest income

Investment securities $ 11,012 $ 2,689 $ 8,323 $ 37,848 $ 4,692 $ 33,156

Debt and equity securities

$ 3,033 $ 1,735 $ 1,298

Interest bearing cash and cash equivalents (25,090) (20,103) (4,987)

14 unchanged sentences

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.

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

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.

Net interest income was $254.7 million for the three months ended March 31, 2026, compared to $236.0 million for the same period in 2025.

The increase was primarily due to an increase in average earning assets and a decrease in funding costs.

Average earning assets increased $254.8 million for the three months ended March 31, 2026, compared to the same period in 2025, which included increases of $1.9 billion in average total loans held for investment and $171.6 million in average debt and equity securities, partially offset by a $1.8 billion decrease in average interest bearing cash and cash equivalents.

Average interest bearing liabilities increased $446.6 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to an increase of $924.8 million in average interest bearing deposits, partially offset by a decrease of $493.5 million in average short-term borrowings.

Average non-interest bearing deposits for the three months ended March 31, 2026 decreased to $7.5 billion from $7.9 billion for the same period in 2025.

Net interest margin for the three months ended March 31, 2026 was 3.43%, compared to 3.19% for the same period of 2025.

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.

The yield on total loans held for investment decreased to 6.11% for the three months ended March 31, 2026, compared to 6.39% for the same period in 2025, and the yield on earning assets decreased to 5.63% for the three months ended March 31, 2026, compared to 5.76% for the same period in 2025.

Total cost of deposits decreased to 2.38% for the three months ended March 31, 2026 from 2.76% for the same period in 2025 and total funding costs, including non-interest bearing deposits and stockholders' equity, decreased to 2.16% for the three months ended March 31, 2026, compared to 2.54% for the same period in 2025.

Non-interest Income

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

7 unchanged sentences

Total non-interest income $ 69,266 $ 44,444

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 income increased $24.8 million during the three months ended March 31, 2026, compared to the same period in 2025, primarily due to increases in service charges on deposit accounts, investment banking and advisory fees, trading income and other non-interest income.

Non-interest Expense

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2026 2025

7 unchanged sentences

Total non-interest expense $ 213,568 $ 203,020

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.

Non-interest expense increased $10.5 million during the three months ended March 31, 2026, compared to the same period in 2025.

The increase was primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by a decrease in legal and professional expense.

Analysis of Financial Condition

1 unchanged sentence

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

See Note 1 - Operations and Summary of Significant Accounting Policies in the 2025 Form 10-K for details of these portfolio segments.

(in thousands) March 31, 2026 December 31, 2025

Commercial $ 12,499,262 $ 12,163,545

2 unchanged sentences

431,442 433,926

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 $ 25,179,662 $ 24,040,202

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.

Total loans held for investment were $25.2 billion at March 31, 2026, an increase of $1.1 billion from December 31, 2025, as increases in commercial and mortgage finance loans were partially offset by decreases in commercial real estate and 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 28% and 25% of loans held for investment at March 31, 2026 and December 31, 2025, 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.

1 unchanged sentence

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.

As of March 31, 2026, the Company had $6.6 billion in shared national credits, $1.2 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.

As of March 31, 2026, approximately $28.9 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.

As of March 31, 2026, 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 Texas.

The risks created by this concentration have been considered by management in determining the appropriateness of the allowance for credit losses.

2 unchanged sentences

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

(dollars in thousands) March 31, 2026 December 31, 2025

Non-accrual loans held for investment

3 unchanged sentences

Unsecured 1,210 2,244

Highly liquid assets — 1,340

Total commercial 99,010 96,146

2 unchanged sentences

18,871 19,200

Commercial buildings

Office buildings

Commercial building

Apartment building

Total commercial real estate 45,937 20,734

Single family residences — 964

Total consumer — 964

Total non-accrual loans held for investment 144,947 116,880

8 unchanged sentences

Loans held for sale past due 90 days and accruing $ — $ —

(1) First quarter 2026 and fourth quarter 2025 includes non-accrual loans previously reported in loans held for investment that were transferred at fair value to held for sale as of March 31, 2026 and December 31, 2025, respectively.

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 Company recorded a provision for credit losses of $16.0 million for the three months ended March 31, 2026, compared to a provision of $17.0 million for the three months ended March 31, 2025.

The provision for credit losses for the three months ended March 31, 2026 reflects an increase in criticized loans and $17.4 million in net charge-offs recorded during the three months ended March 31, 2026.

Criticized loans totaled $650.6 million at March 31, 2026, compared to $634.9 million at December 31, 2025.

The table below presents key metrics related to the Company’s credit loss experience:

September 30, 2025 September 30, 2024

March 31, 2026 March 31, 2025

Allowance for credit losses on loans to total loans held for investment 1.07 % 1.24 %

Allowance for credit losses on loans to average total loans held for investment(1)

1.16 % 1.29 %

Total allowance for credit losses to total loans held for investment 1.32 % 1.48 %

Total provision for credit losses to average total loans held for investment(1)(2)

(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.

0.28 % 0.32 %

(1) Ratios are calculated using average balance for the three months ended March 31, 2026 and 2025, respectively.

(2) Ratios are annualized utilizing provision for credit losses for the three months ended March 31, 2026 and 2025, respectively.

The table below details net charge-offs/(recoveries) as a percentage of average total loans by portfolio segment:

Nine Months Ended September 30,

Three Months Ended March 31,

(dollars in thousands) Net

6 unchanged sentences

Total $ 17,358 0.30 % $ 9,797 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

3 unchanged sentences

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’s principal source of funding is customer deposits, supplemented by short-term borrowings, primarily from federal funds purchased and 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

(dollars in thousands) March 31, 2026 December 31, 2025

Interest bearing cash and cash equivalents $ 2,702,183 $ 1,897,803

6 unchanged sentences

The following table summarizes period-end total deposits:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(dollars in thousands) Balance % of Total Balance % of Total

2 unchanged sentences

Total deposits $ 28,516,688 100.0 % $ 26,448,767 100.0 %

Estimated uninsured deposits, including accrued interest, were 42% of total deposits at September 30, 2025 and 41% at December 31, 2024.

Estimated uninsured deposits, including accrued interest, were 41% and 42% of total deposits at March 31, 2026 and December 31, 2025, respectively.

The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

3 unchanged sentences

The following table summarizes short-term borrowings, all of which mature within one year:

(in thousands) September 30, 2025 December 31, 2024

(in thousands)

March 31, 2026 December 31, 2025

Federal funds purchased $ — $ 30,000

3 unchanged sentences

The following table summarizes the Company’s short-term borrowing capacities net of balances outstanding:

(in thousands) September 30, 2025 December 31, 2024

(in thousands) March 31, 2026 December 31, 2025

FHLB borrowing capacity relating to loans and pledged securities $ 2,740,013 $ 2,570,596

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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.

No borrowings were made against this line of credit during the three months March 31, 2026 or 2025.

The Company has long-term debt outstanding of $878.3 million as of March 31, 2026, comprised of trust preferred securities, senior notes and subordinated notes with maturity dates ranging from May 2031 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.

3 unchanged sentences

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.

Risk Factors of the 2025 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.

1 unchanged sentence

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.

The Company’s equity capital averaged $3.7 billion for the three months ended March 31, 2026 compared to $3.4 billion for the same period in 2025.

No dividends were declared or paid on the Company’s common stock during the three months ended March 31, 2026 or during 2025.

On April 23, 2026, the Company and its board of directors declared and announced a cash dividend of $0.20 per common share.

The dividend is payable on June 15, 2026, to holders of record at the close of business on June 1, 2026.

Effective December 12, 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 the net stock repurchases.

The share repurchase program will expire on December 31, 2026, but may be suspended or discontinued at any time.

The remaining repurchase authorization under the January 22, 2025 share repurchase program was terminated upon authorization of this new program.

During the three months ended March 31, 2026, the Company repurchased 770,423 shares of its common stock for an aggregate purchase price, including excise tax expense, of $75.1 million, at a weighted average price of $96.82 per share.

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.

4 unchanged sentences

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.

18 unchanged sentences

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.

Within the various economic scenarios considered as of March 31, 2026, the quantitative estimate of the allowance for credit loss would increase by approximately $90.6 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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements