What changed in this filing

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Item 1. Financial Statements

2026-07-23 compared with 2026-04-23 · 180 added, 433 removed, 614 unchanged (50% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS - UNAUDITED

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

(in thousands except share data) June 30, 2026 December 31, 2025

Cash and due from banks $ 209,512 $ 201,315

27 unchanged sentences

Authorized shares - 10,000,000

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

Issued shares - 300,000 at June 30, 2026 and December 31, 2025

300,000 300,000

1 unchanged sentence

Authorized shares - 100,000,000

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

Issued shares - 52,012,706 and 51,786,456 at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,082,419 1,074,496

Retained earnings 2,950,049 2,808,645

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

Treasury stock - 8,542,539 and 7,532,768 shares at cost at June 30, 2026 and December 31, 2025, respectively

( 586,401 ) ( 487,692 )

6 unchanged sentences

COMPREHENSIVE INCOME - UNAUDITED

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

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

19 unchanged sentences

Trading income 11,313 7,896 21,564 13,835

Available-for-sale debt securities gains/(losses) — ( 1,886 ) — ( 1,886 )

Other 16,191 9,640 27,573 17,914

17 unchanged sentences

Amounts reclassified into net income

2,606 9,967 5,163 20,326

Other comprehensive income/(loss)

15 unchanged sentences

(in thousands except share data) Shares Amount Shares Amount Capital Earnings Shares Amount Income/(Loss) Total

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

Comprehensive income/(loss):

Net income — — — — — 77,328 — — — 77,328

Change in other comprehensive income/(loss), net of taxes — — — — — — — — 23,231 23,231

Total comprehensive income 100,559

Preferred stock dividends — — — — — ( 4,312 ) — — — ( 4,312 )

Stock-based compensation expense recognized in earnings — — — — 4,920 — — — — 4,920

Issuance of stock related to stock-based awards — — 39,763 — 135 — — — — 135

Repurchase of common stock — — — — — — ( 317,860 ) ( 21,006 ) — ( 21,006 )

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

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

Comprehensive income/(loss):

Net income — — — — — 84,948 — — — 84,948

Change in other comprehensive income/(loss), net of taxes — — — — — — — — ( 12,141 ) ( 12,141 )

Total comprehensive income 72,807

Common stock dividends ($ 0.20 per share)

— — — — — ( 8,707 ) — — — ( 8,707 )

Preferred stock dividends — — — — — ( 4,312 ) — — — ( 4,312 )

Stock-based compensation expense recognized in earnings — — — — 4,921 — — — — 4,921

Issuance of stock related to stock-based awards — — 38,210 — 359 — — — — 359

Repurchase of common stock — — — — — — ( 239,348 ) ( 23,568 ) — ( 23,568 )

Balance at June 30, 2026 300,000 $ 300,000 52,012,706 $ 520 $ 1,082,419 $ 2,950,049 ( 8,542,539 ) $ ( 586,401 ) $ ( 98,880 ) $ 3,647,707

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 December 31, 2024 (audited)

5 unchanged sentences

Total comprehensive income

Preferred stock dividends — — — — — ( 8,625 ) — — — ( 8,625 )

Stock-based compensation expense recognized in earnings

— — — — 15,279 — — — — 15,279

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

Issuance of stock related to stock-based awards

1 unchanged sentence

Repurchase of common stock — — — — — — ( 713,966 ) ( 52,158 ) — ( 52,158 )

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 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

Balance at December 31, 2025 (audited)

4 unchanged sentences

Total comprehensive income 124,441

Common stock dividends ($ 0.20 per share)

— — — — — ( 8,707 ) — — — ( 8,707 )

Preferred stock dividends — — — — — ( 8,625 ) — — — ( 8,625 )

Stock-based compensation expense recognized in earnings — — — — 17,126 — — — — 17,126

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

Issuance of stock related to stock-based awards — — 226,250 2 ( 9,203 ) — — — — ( 9,201 )

Repurchase of common stock — — — — — — ( 1,009,771 ) ( 98,709 ) — ( 98,709 )

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

Balance at June 30, 2026 300,000 $ 300,000 52,012,706 $ 520 $ 1,082,419 $ 2,950,049 ( 8,542,539 ) $ ( 586,401 ) $ ( 98,880 ) $ 3,647,707

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2026 2025

4 unchanged sentences

Depreciation and amortization 28,368 23,669

Net loss on available-for-sale debt securities — 1,886

Net (gain)/loss on equity securities ( 3,521 ) 104

Sales/(purchases) of trading debt securities, net 1,385 ( 3,888 )

Loss on redemption of long-term debt 2,157 —

Stock-based compensation expense 27,273 20,377

Proceeds from sales and repayments of loans held for sale 21,333 —

Changes in operating assets and liabilities:

4 unchanged sentences

Purchases of available-for-sale debt securities ( 249,549 ) ( 700,052 )

Proceeds from sales of available-for-sale debt securities — 280,402

Proceeds from maturities, redemptions and pay-downs of available-for-sale debt securities 348,440 238,840

9 unchanged sentences

Issuance of stock related to stock-based awards ( 9,201 ) ( 6,913 )

Common stock dividends paid ( 8,707 ) —

Preferred stock dividends paid ( 8,625 ) ( 8,625 )

5 unchanged sentences

2,245,369 1,082,579

Net increase in cash and cash equivalents

857,493 613,665

Net increase/(decrease) in cash and cash equivalents 1,599,150 ( 498,666 )

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

2 unchanged sentences

Cash paid during the period for interest $ 369,935 $ 386,987

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

$ 1,620 $ ( 1,290 )

Cash paid during the period for income taxes $ 67,238 $ 52,813

Transfers of loans from held for investment to held for sale $ 21,333 $ —

25 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

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

16 unchanged sentences

Losses Estimated

March 31, 2026

June 30, 2026

Available-for-sale debt securities:

26 unchanged sentences

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.

(1) Excludes accrued interest receivable of $ 15.6 million and $ 16.1 million at June 30, 2026 and December 31, 2025, respectively, related to available-for-sale debt securities and $ 1.1 million and $ 1.2 million at June 30, 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

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.

The amortized cost and estimated fair value as of June 30, 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 $ 3,898,763 $ 3,826,284 $ 692,332 $ 616,820

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

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

CRT securities

Credit risk transfer securities

Due within one year — % — % — %

6 unchanged sentences

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

March 31, 2026

June 30, 2026

Residential mortgage-backed securities $ 681,674 $ ( 4,105 ) $ 718,376 $ ( 91,441 ) $ 1,400,050 $ ( 95,546 )

10 unchanged sentences

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

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.

At June 30, 2026, the Company had 45 available-for-sale debt securities in an unrealized loss position, comprised of 38 residential mortgage-backed securities, five 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.

1 unchanged sentence

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.

At June 30, 2026 and December 31, 2025, no allowance for credit losses was established for available-for-sale or held-to-maturity debt securities.

At June 30, 2026 and December 31, 2025, debt securities with carrying values of approximately $ 876,000 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2026 2025 2026 2025

4 unchanged sentences

Loans are summarized by portfolio segment as follows:

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

(in thousands) June 30, 2026 December 31, 2025

Loans held for investment(1)(2):

6 unchanged sentences

Total loans held for investment, net $ 24,678,958 $ 23,769,645

(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.

(1) Excludes accrued interest receivable of $ 110.7 million and $ 107.3 million at June 30, 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 $ 106.9 million and $ 106.8 million at June 30, 2026 and December 31, 2025, respectively.

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

1 unchanged sentence

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

March 31, 2026

June 30, 2026

(1-7) Pass $ 1,277,986 $ 1,748,719 $ 999,490 $ 563,475 $ 470,810 $ 183,760 $ 7,336,769 $ 10,377 $ 12,591,386

53 unchanged sentences

Finance Commercial Real Estate Consumer Total

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

4 unchanged sentences

Ending balance $ 221,366 $ 3,123 $ 41,976 $ 1,803 $ 268,268

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

4 unchanged sentences

Ending balance $ 207,912 $ 10,630 $ 57,296 $ 1,810 $ 277,648

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.

The Company recorded a $ 31.2 million provision for credit losses on loans for the six months ended June 30, 2026, compared to $ 28.7 million for the same period of 2025.

The $ 31.2 million provision for credit losses on loans resulted primarily from an increase in criticized loans and $ 33.4 million in net charge-offs recorded during the six months ended June 30, 2026.

Criticized loans totaled $ 696.3 million at June 30, 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 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.

At June 30, 2026, the Company had $ 29.5 million in collateral-dependent commercial loans, collateralized by business assets, and $ 38.6 million in collateral-dependent commercial real estate loans, collateralized by real estate.

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

3 unchanged sentences

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

March 31, 2026

June 30, 2026

Commercial $ 16,559 $ 7,434 $ 451 $ 24,444 $ 85,415 $ 12,896,344 $ 13,006,203 $ 6,499

3 unchanged sentences

Total $ 23,829 $ 8,750 $ 451 $ 33,030 $ 123,981 $ 24,790,215 $ 24,947,226 $ 26,526

(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.

(1) As of June 30, 2026, $ 450,000 of non-accrual loans were earning interest income on a cash basis compared to $ 470,000 as of December 31, 2025.

Additionally, $ 106,000 interest income was recognized on non-accrual loans for the six months ended June 30, 2026 compared to $ 630,000 recognized for the same period in 2025.

Accrued interest of $ 5.1 million and $ 919,000 was reversed during the six months ended June 30, 2026 and June 30, 2025, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

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:

The table below details loans held for investment made to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2026 and June 30, 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 March 31, 2026

Three Months Ended June 30, 2026

Commercial $ 54,482 $ 9,533 $ — $ 64,015 0.26 % — % 6

Total $ 54,482 $ 9,533 $ — $ 64,015 0.26 %

Three Months Ended June 30, 2025

Commercial $ 9,492 $ 11,002 $ 21,580 $ 42,074 0.18 % — % 10 to 26

Total $ 9,492 $ 11,002 $ 21,580 $ 42,074 0.18 %

Six Months Ended June 30, 2026

Commercial $ 80,002 $ 10,898 $ — $ 90,900 0.36 % — % 4 to 6

Commercial real estate — — 16,859 16,859 0.07 % — % 6

Total $ 80,002 $ 10,898 $ 16,859 $ 107,759 0.43 %

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Commercial $ 9,492 $ 12,819 $ 22,338 $ 44,649 0.19 % — % 6 to 26

4 unchanged sentences

(in thousands)

Deferral Payment Deferral

Deferral Term

Extension Payment Deferral

and Term Extension

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Commercial $ 11,082 $ 416 $ — $ 11,498

Total $ 11,082 $ 416 $ — $ 11,498

Three Months Ended June 30, 2025

Commercial $ 22,500 $ 6,537 $ — $ 29,037

Commercial real estate — — — —

$ 22,500 $ 6,537 $ — $ 29,037

Six Months Ended June 30, 2026

Commercial $ 11,248 $ 416 $ — $ 11,664

Total $ 11,248 $ 416 $ — $ 11,664

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Commercial $ 25,496 $ 6,537 $ — $ 32,033

1 unchanged sentence

Total $ 25,496 $ 6,537 $ 13,500 $ 45,533

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:

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

March 31, 2026

June 30, 2026

Commercial $ — $ — $ 49,764 $ 54,874 $ 104,638

2 unchanged sentences

Total $ — $ — $ 66,362 $ 54,874 $ 121,236

March 31, 2025

June 30, 2025

Commercial $ 758 $ — $ 61,005 $ 15,100 $ 76,863

4 unchanged sentences

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

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

(in thousands) June 30, 2026 December 31, 2025

Federal funds purchased $ — $ 30,000

Federal Home Loan Bank (“FHLB”) borrowings

350,000 300,000

Total short-term borrowings $ 350,000 $ 330,000

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

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

(in thousands) June 30, 2026 December 31, 2025

Bank-issued 5.25 % fixed rate subordinated notes due 2026

1 unchanged sentence

Company-issued 4.00 % fixed rate subordinated notes due 2031

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

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

Total long-term debt $ 500,859 $ 620,575

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.

During the second quarter of 2026, the Company-issued 4.00 % fixed rate subordinated notes due 2031 were redeemed and repaid in full.

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.

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 Secured Overnight Financing Rate (“SOFR”) plus 1.94 %, payable quarterly, for the final year.

(6) Financial Instruments with Off-Balance Sheet Risk

3 unchanged sentences

Real Estate Consumer Total

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

1 unchanged sentence

Ending balance $ 62,088 $ 27 $ 2,926 $ 62 $ 65,103

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

1 unchanged sentence

Ending balance $ 51,982 $ 30 $ 4,584 $ 35 $ 56,631

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

(in thousands) June 30, 2026 December 31, 2025

Commitments to extend credit - period end balance $ 11,888,078 $ 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 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.

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.

During the six months ended June 30, 2026, the Company declared and paid common stock dividends of $ 8.7 million, representing $ 0.20 per common share.

No common stock dividends were paid in 2025.

On July 22, 2026, the Company and its board of directors declared and announced a cash dividend of $ 0.20 per common share payable on September 15, 2026, to holders of record at the close of business on September 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.

1 unchanged sentence

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.

During the six months ended June 30, 2026, the Company repurchased 1,009,771 shares of its common stock for an aggregate price, including excise tax expense, of $ 98.7 million, at a weighted average price of $ 97.01 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.

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 March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

As shown in the table below, the Company’s and Bank’s capital ratios exceeded the regulatory definition of well capitalized as of June 30, 2026 and December 31, 2025.

June 30, 2026 December 31, 2025

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

8 unchanged sentences

(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.

however, the Federal Reserve Board and the Federal Deposit Insurance Corporation 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.

3 unchanged sentences

The table below summarizes the Company’s stock-based compensation expense:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2026 2025 2026 2025

3 unchanged sentences

Total $ 9,774 $ 7,627 $ 27,273 $ 20,377

(in thousands except period data) March 31, 2026

(in thousands except period data) June 30, 2026

Unrecognized compensation expense related to unvested stock-settled awards $ 30,246

8 unchanged sentences

(in thousands) Level 1 Level 2 Level 3

March 31, 2026

June 30, 2026

Available-for-sale debt securities:(1)

27 unchanged sentences

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 quarterly.

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

(4) Other trading assets and securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.

4 unchanged sentences

(in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Available-for-sale debt securities:(1)

1 unchanged sentence

$ 10,574 $ — $ ( 341 ) $ — $ 48 $ 10,281

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Available-for-sale debt securities:(1)

1 unchanged sentence

$ 11,594 $ — $ ( 337 ) $ — $ 110 $ 11,367

Six Months Ended June 30, 2026

Available-for-sale debt securities:(1)

Credit risk transfer securities

$ 10,797 $ — $ ( 576 ) $ — $ 60 $ 10,281

Six Months Ended June 30, 2025

Available-for-sale debt securities:(1)

Credit risk transfer securities

$ 11,926 $ — $ ( 638 ) $ — $ 79 $ 11,367

(1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI.

2 unchanged sentences

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 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 June 30, 2026, the discount rates utilized ranged from 5.04 % to 6.16 % and the weighted-average life ranged from 3.73 years to 5.40 years.

On a combined amortized cost weighted-average basis a discount rate of 5.55 % and a weighted-average life of 4.49 years were utilized to determine the fair value of these securities at June 30, 2026.

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

1 unchanged sentence

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 $ 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 $ 25.8 million fair value of loans held for investment at June 30, 2026 reported above includes impaired loans with a carrying value of $ 48.1 million that were reduced by specific allowance allocations totaling $ 22.3 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.

3 unchanged sentences

(in thousands) Total Level 1 Level 2 Level 3

March 31, 2026

June 30, 2026

Financial assets:

5 unchanged sentences

2,539 2,539 — 2,539 —

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

Loans held for investment, net 24,678,958 24,398,152 — — 24,398,152

3 unchanged sentences

Total deposits 28,911,388 29,604,026 — — 29,604,026

Short-term borrowings 350,000 350,000 — 350,000 —

Long-term debt 500,859 507,435 — 507,435 —

20 unchanged sentences

The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Estimated Fair Value Estimated Fair Value

12 unchanged sentences

Foreign currency forward contracts 724,896 10,053 9,600 265,943 1,212 984

Commodity contracts 112,146 3,219 2,784 — — —

Interest rate contracts:

7 unchanged sentences

Net derivatives included on the consolidated balance sheets $ 15,322 $ 42,470 $ 40,892 $ 24,458

In the second quarter of 2026, the Company entered into commodity contract derivative instruments with customers while at the same time entering into offsetting commodity contract derivative instruments with another financial institution.

These transactions allow the customer to effectively manage their exposure to commodity value fluctuations.

Any changes in the fair value of the underlying derivative instruments substantially offset each other, with any difference recorded in trading income on the consolidated statements of income and other comprehensive income.

The Company’s credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty.

In some cases, collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount.

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

The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $ 15.3 million at June 30, 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 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.

At June 30, 2026, the Company had $ 116.2 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $ 33.7 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.

1 unchanged sentence

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 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.

The Company is party to 24 risk participation agreements where it acts as a participant bank with a notional amount of $ 425.6 million at June 30, 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 $ 3.4 million at June 30, 2026 and $ 510,000 at December 31, 2025.

The fair value of these exposures was insignificant to the consolidated financial statements at both June 30, 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 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.

The Company is party to 52 risk participation agreements where the Company acts as the lead bank having a notional amount of $ 665.1 million at June 30, 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 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.

During the six months ended June 30, 2026, the Company recorded $ 24.7 million in unrealized losses to adjust its cash flow hedges to fair value, which was recorded net of tax to AOCI, and reclassified $ 2.2 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 $ 10.4 million will be reclassified from AOCI as a decrease to interest income.

As of June 30, 2026, the maximum length of time over which forecasted transactions are hedged is 2.09 years.

Derivatives Designated as Fair Value Hedges

1 unchanged sentence

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.

As of June 30, 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.

2 unchanged sentences

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.

During the six months ended June 30, 2026, the Company recorded $ 413,000 in interest expense on long-term debt related to interest settlements on derivatives.

As of June 30, 2026, the carrying amount of the hedged liability was $ 387.5 million, which included a $ 10.2 million cumulative basis reduction related to the application of hedge accounting.

(11) Accumulated Other Comprehensive Income

1 unchanged sentence

(in thousands) Cash Flow Hedges Available-for-Sale Securities Held-to-Maturity Securities Total

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

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

2 unchanged sentences

Total other comprehensive income/(loss) ( 11,457 ) ( 5,789 ) 1,477 ( 15,769 )

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

Income tax expense/(benefit) ( 2,636 ) ( 1,332 ) 340 ( 3,628 )

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

Total other comprehensive income/(loss), net of tax ( 8,821 ) ( 4,457 ) 1,137 ( 12,141 )

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

Ending balance $ ( 14,255 ) $ ( 55,809 ) $ ( 28,816 ) $ ( 98,880 )

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

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

1 unchanged sentence

Amounts reclassified into net income 8,379 — 1,588 9,967

Total other comprehensive income

9,372 49,621 1,645 60,638

Income tax expense

2,117 11,204 372 13,693

Total other comprehensive income, net of tax

7,255 38,417 1,273 46,945

Total other comprehensive income/(loss) 8,586 19,831 1,588 30,005

Income tax expense/(benefit) 1,938 4,478 358 6,774

Total other comprehensive income/(loss), net of tax 6,648 15,353 1,230 23,231

Ending balance $ ( 1,372 ) $ ( 77,761 ) $ ( 33,798 ) $ ( 112,931 )

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 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

This report contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, the Company’s financial condition, results of operations, business plans and future performance.

These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results.

Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to:

economic or business conditions in Texas, the United States or globally that impact TCBI or its customers;

negative credit quality developments arising from the foregoing or other factors, including 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, 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, outages, disruptions or security breaches;

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

risks related to the development and use of artificial intelligence;

changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities;

the effectiveness of TCBI’s risk management processes strategies and monitoring;

fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans;

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;

negative press and social media attention with respect to the banking industry or TCBI, in particular;

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

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;

and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC.

The information contained in this communication speaks only as of its date.

Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

Results of Operations

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

Three Months Ended March 31,

(dollars in thousands except per share data) 2026 2025

Net interest income $ 254,719 $ 236,034

Provision for credit losses 16,000 17,000

Non-interest income 69,266 44,444

Non-interest expense 213,568 203,020

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 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 %

Return on average assets (“ROA”) 0.95 % 0.61 %

Return on average common equity (“ROE”) 8.35 % 5.56 %

Efficiency ratio(1) 65.9 % 72.4 %

Non-interest income to average earning assets 0.93 % 0.60 %

Non-interest expense to average earning assets 2.87 % 2.75 %

(1) Non-interest expense divided by the sum of 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 - Year to Date(1)

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

(dollars in thousands) Average

Balance Revenue /

Expense Yield /

Balance Revenue /

Expense Yield /

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 — — %

Loans held for investment, net

23,143,113 348,925 6.11 % 21,226,418 334,618 6.39 %

Total earning assets 30,201,198 420,007 5.63 % 29,946,425 427,759 5.76 %

Cash and other assets 1,173,895 1,157,184

Total assets $ 31,375,093 $ 31,103,609

Liabilities and Stockholders’ Equity

Transaction deposits $ 2,605,884 $ 14,980 2.33 % $ 2,163,250 $ 13,908 2.61 %

Savings deposits 14,148,034 118,695 3.40 % 13,357,243 133,577 4.06 %

Time deposits 2,020,757 20,229 4.06 % 2,329,384 27,451 4.78 %

Total interest bearing deposits 18,774,675 153,904 3.32 % 17,849,877 174,936 3.97 %

Short-term borrowings 257,989 2,360 3.71 % 751,500 8,246 4.45 %

Long-term debt 675,780 8,111 4.87 % 660,445 8,073 4.96 %

Total interest bearing liabilities 19,708,444 164,375 3.38 % 19,261,822 191,255 4.03 %

Non-interest bearing deposits 7,489,751 7,875,244

Other liabilities 503,038 552,154

Stockholders’ equity 3,673,860 3,414,389

Total liabilities and stockholders’ equity $ 31,375,093 $ 31,103,609

Net interest income $ 255,632 $ 236,504

Net interest margin 3.43 % 3.19 %

(1) Taxable equivalent rates used where applicable.

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

(3) Average balances include non-accrual loans.

Volume/Rate Analysis

The following table presents the changes in taxable equivalent net interest income and identifies the changes due to differences in the average volume of earning assets and interest bearing liabilities and the changes due to differences in the average interest rate on those assets and liabilities.

Three Months Ended March 31,

Change Change Due To(1)

(in thousands) Volume Yield/Rate(2)

Interest income

Debt and equity securities

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

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

Loans held for sale (2) 20 (22)

Loans held for investment, mortgage finance 13,046 12,278 768

Loans held for investment 1,261 10,900 (9,639)

Total interest income (7,752) 4,830 (12,582)

Interest expense

Transaction deposits 1,072 2,849 (1,777)

Savings deposits (14,882) 7,917 (22,799)

Time deposits (7,222) (3,638) (3,584)

Short-term borrowings (5,886) (5,415) (471)

Long-term debt 38 188 (150)

Total interest expense (26,880) 1,901 (28,781)

Net interest income $ 19,128 $ 2,929 $ 16,199

(1) Yield/rate and volume variances are allocated to yield/rate.

(2) Taxable equivalent rates used where applicable assuming a 21% tax rate.

Net Interest Income

Net interest income was $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 6.11% 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 March 31,

(in thousands) 2026 2025

Service charges on deposit accounts $ 9,223 $ 7,840

Wealth management and trust fee income 4,388 3,964

Brokered loan fees 2,006 1,949

Investment banking and advisory fees 32,016 16,478

Trading income 10,251 5,939

Available-for-sale debt securities losses — —

Other 11,382 8,274

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

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 March 31,

(in thousands) 2026 2025

Salaries and benefits $ 139,347 $ 131,641

Occupancy expense 12,405 10,844

Marketing 4,972 5,009

Legal and professional 11,980 14,989

Communications and technology 27,172 23,642

Federal Deposit Insurance Corporation (“FDIC”) insurance assessment 4,877 5,341

Other 12,815 11,554

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

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

Loans Held for Investment

The following table summarizes the Company’s loans held for investment by portfolio segment.

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

Mortgage finance 6,961,686 6,064,019

Commercial real estate 5,287,272 5,378,712

431,442 433,926

Total loans held for investment $ 25,179,662 $ 24,040,202

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.

The Company originates a substantial majority of all loans held for investment.

The Company also participates in shared national credits, both as a participant and as an agent.

As of 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 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 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.

Non-performing Assets

Non-performing assets include non-accrual loans and leases, and repossessed assets.

The table below summarizes non-accrual loans by portfolio segment and by type of property securing the credit.

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

Non-accrual loans held for investment

Business assets $ 96,489 $ 92,725

Accounts receivable and inventory 1,145 1,177

Machinery and equipment

Unsecured 1,210 2,244

Total commercial 99,010 96,146

Commercial real estate:

Industrial buildings

18,871 19,200

Commercial building

Apartment building

Total commercial real estate 45,937 20,734

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

Non-accrual loans held for sale(1)

Other real estate owned (“OREO”) — —

Total non-performing assets $ 166,280 $ 121,241

Non-accrual loans held for investment to total loans held for investment 0.58 % 0.49 %

Total non-performing assets to total assets 0.50 % 0.38 %

Allowance for credit losses on loans to non-accrual loans held for investment 1.9x 2.3x

Loans held for investment past due 90 days and accruing $ 18,030 $ 19,353

Loans held for investment past due 90 days to total loans held for investment 0.07 % 0.08 %

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 $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:

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)

Six Months Ended June 30, 2026

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

Change in unrealized gain/(loss) ( 24,708 ) ( 24,995 ) — ( 49,703 )

Amounts reclassified into net income 2,168 — 2,995 5,163

Total other comprehensive income/(loss)

( 22,540 ) ( 24,995 ) 2,995 ( 44,540 )

(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:

Three Months Ended March 31,

(dollars in thousands) Net

Charge-offs Net Charge-offs

Commercial $ 17,358 0.57 % $ 9,714 0.35 %

Mortgage finance — — % — — %

Commercial real estate — — % 87 0.01 %

Consumer — — % (4) — %

Total $ 17,358 0.30 % $ 9,797 0.18 %

Liquidity and Capital Resources

In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs.

The Company’s objectives in managing its liquidity are to maintain the ability to meet loan commitments, repurchase investment securities and repay deposits and other liabilities in accordance with their terms, without an adverse impact on current or future earnings.

The Company’s liquidity strategy is guided by policies, formulated and monitored by senior management and the Asset and Liability Management Committee (“ALCO”), which take into account the demonstrated marketability of the Company’s assets, the sources and stability of its funding and the level of unfunded commitments.

The Company regularly evaluates all of its various funding sources with an emphasis on accessibility, stability, reliability and cost-effectiveness.

The Company’s principal source of funding is customer deposits, supplemented by short-term borrowings, primarily from federal funds purchased and 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) March 31, 2026 December 31, 2025

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

Interest bearing cash and cash equivalents as a percent of:

Total loans held for investment 10.7 % 7.9 %

Total earning assets 8.4 % 6.2 %

Total deposits 9.5 % 7.2 %

The Company aims to obtain as much of its funding as possible from customer deposits, which are generated through digital acquisition or as a result of development of long-term customer relationships, with a significant focus on treasury management products.

In addition, the Company also has access to deposits through brokered channels.

The following table summarizes period-end total deposits:

March 31, 2026 December 31, 2025

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

Customer deposits $ 26,006,886 91.2 % $ 25,719,595 97.2 %

Brokered deposits 2,509,802 8.8 % 729,172 2.8 %

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

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.

The Company has short-term borrowing sources available to supplement deposits and meet its funding needs.

Such borrowings are generally used to fund mortgage finance loans, due to their liquidity, short duration and interest spreads available.

These borrowing sources include federal funds purchased from downstream correspondent bank relationships (which consist of banks that are smaller than the Bank) and from upstream correspondent bank relationships (which consist of banks that are larger than the Bank) and advances from the FHLB and the Federal Reserve.

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

(in thousands)

March 31, 2026 December 31, 2025

Federal funds purchased $ — $ 30,000

FHLB borrowings — 300,000

Total short-term borrowings

Income tax expense/(benefit)

( 5,185 ) ( 5,749 ) 689 ( 10,245 )

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

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

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

FHLB borrowing capacity relating to unencumbered securities 4,540,952 4,594,553

Total FHLB borrowing capacity(1) $ 7,280,965 $ 7,165,149

Unused federal funds lines available from commercial banks $ 1,572,000 $ 1,520,000

Unused Federal Reserve borrowings capacity $ 10,245,901 $ 9,174,238

Unused revolving line of credit(2)

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

( 17,355 ) ( 19,246 ) 2,306 ( 34,295 )

(1) FHLB borrowings are collateralized by a blanket floating lien on certain real estate secured loans and certain pledged securities.

(2) Unsecured revolving, non-amortizing line of credit with maturity date of February 8, 2027.

Proceeds may be used for general corporate purposes, including funding regulatory capital infusions into the Bank.

The loan agreement contains customary financial covenants and restrictions.

No borrowings were made against this line of credit during the 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.

The Company may consider raising additional capital, if needed, in public or private offerings of debt or equity securities to supplement deposits and meet its long-term funding needs.

As the Company is a holding company and is a separate operating entity from the Bank, the Company’s primary sources of liquidity are dividends received from the Bank and borrowings from outside sources.

Banking regulations may limit the amount of dividends that may be paid by the Bank.

See Note 7 - Regulatory Ratios and Capital in the accompanying notes to the consolidated financial statements included elsewhere in this report for additional information regarding dividend restrictions and “ Liquidity Risks ” included in Part I, Item 1A.

Risk Factors of the 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.

For example, the Company periodically evaluates and may engage in liability management transactions, including repurchases or redemptions of outstanding subordinated notes, which may be funded by the issuance of, or exchanges of, newly issued unsecured borrowings to actively manage the debt maturity profile and interest cost.

Capital Resources

The Company’s equity capital averaged $3.7 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.

The extent to which the Company repurchases shares, and the timing of such repurchases, will be at management’s discretion and will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations.

For additional information on the Company’s capital and stockholders’ equity, see Note 7 - Regulatory Ratios and Capital, in the accompanying notes to the consolidated financial statements included elsewhere in this report.

Critical Accounting Estimates

SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.

The Company follows financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States.

The more significant of these policies are summarized in Note 1 - Operations and Summary of Significant Accounting Policies in the notes to the consolidated financial statements included in the 2025 Form 10-K.

Not all significant accounting policies require management to make difficult, subjective or complex judgments.

However, the policy noted below could be deemed to meet the SEC’s definition of a critical accounting estimate.

Allowance for Credit Losses

Management considers the policies related to the allowance for credit losses as the most critical to the financial statement presentation.

The total allowance for credit losses includes activity related to allowances calculated in accordance with Accounting Standards Codification 326, Credit Losses .

The allowance for credit losses is established through a provision for credit losses charged to current earnings.

The amount maintained in the allowance reflects management’s continuing evaluation of the credit losses expected to be recognized over the life of the loans in the Company’s portfolio.

The allowance for credit losses on loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans.

The allowance for credit losses on off-balance sheet financial instruments is recorded in other liabilities on the consolidated balance sheets.

For purposes of determining the allowance for credit losses, the loan portfolio is segregated into pools first by portfolio segment and then by past due status or credit grade.

Each pool is assigned a loss estimate, reflecting historical loss rates that incorporate probability of default and severity of losses over the estimated remaining life of the loans.

Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective (pool) evaluation.

Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts.

Modifications to loss estimates are made to incorporate a reasonable and supportable forecast of future losses at the pool level, as well as any necessary qualitative adjustments using a Portfolio Level Qualitative Factor (“PLQF”) and/or a Portfolio Segment Level Qualitative Factor (“SLQF”).

A similar process is employed to calculate a reserve assigned to off-balance sheet financial instruments, specifically unfunded loan commitments and letters of credit.

Modified loss estimates are assigned based on the balance of the commitments estimated to be outstanding at the time of default.

The PLQF and SLQF are utilized to address factors that are not present in historical loss rates and are otherwise unaccounted for in the quantitative process.

A reserve is recorded upon origination or purchase of a loan.

See “Summary of Credit Loss Experience” above and Note 4 - Loans and Allowance for Credit Losses on Loans in the accompanying notes to the consolidated financial statements included elsewhere in this report for further discussion of the risk factors considered by management in establishing the allowance for credit losses.

Management considers a range of macroeconomic scenarios in connection with the allowance estimation process.

Within the various economic scenarios considered as of 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.

Ending balance $ ( 14,255 ) $ ( 55,809 ) $ ( 28,816 ) $ ( 98,880 )

Six Months Ended June 30, 2025

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

Change in unrealized gain/(loss) 865 69,452 — 70,317

Amounts reclassified into net income 17,093 — 3,233 20,326

Total other comprehensive income/(loss) 17,958 69,452 3,233 90,643

Income tax expense/(benefit) 4,055 15,682 730 20,467

Total other comprehensive income/(loss), net of tax 13,903 53,770 2,503 70,176

Ending balance $ ( 1,372 ) $ ( 77,761 ) $ ( 33,798 ) $ ( 112,931 )

(12) New Accounting Standards

Accounting Standards Update 2026-01 “Equity (Topic 505):

Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock” (“ASU 2026-01”) improves generally accepted accounting principles by providing authoritative guidance for the initial measurement of paid-in-kind dividends on equity-classified preferred stock.

Specifically, the amendments improve the decision usefulness of the financial reporting information provided to investors which helps investors to understand the amount and preference of relative claims on equity.

The amendments also provide clear, cost-effective guidance that will reduce complexity.

ASU 2026-01 will be effective for the Company beginning January 1, 2027, with early adoption permitted in an interim reporting period, and is not expected to have a significant impact on the Company’s financial statements.

Accounting Standards Update 2026-02 “Environmental Credits and Environmental Credit Obligations (Topic 818) (“ASU 2026-02”) establishes guidance on the recognition, measurement, presentation and disclosure of environmental credits and environmental credit obligations.

Under the new standard, entities will recognize and measure environmental credit assets based on their intended use as well as how the credits are obtained.

Environmental credit obligations will be recognized and measured depending on whether an entity holds and expects to use compliance environmental credits to settle that obligation.

ASU 2026-02 will be effective for the Company beginning January 1, 2028, and is not expected to have a significant impact on the Company’s financial statements.

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