Texas Capital Bancshares Achieves Record-Breaking Quarter with Sustained Growth and Improved Profitability
Texas Capital Bancshares, Inc. has reported a stellar second quarter in 2025, with impressive gains across various product lines and services.
The company's adjusted total revenue increased by a remarkable 16% year-over-year, while adjusted net income to common stockholders surged 100%, reaching a new all-time high for the firm. Notably, adjusted earnings per share expanded by 104%, and the return on average assets (ROAA) of 1.02% approached the company's goal of 1.1 for 2025.
The quarter saw significant growth in commercial loans, which rose 5% linked quarter and are up 13% year-over-year. This expansion was achieved through effective competition for holistic client relationships, reflecting the company's commitment to earning its clients' primary operating bank status. The peer-leading capital ratios remained intact, with tangible common equity reaching 10.04% and tangible book value per share hitting an all-time high of $70.14.
The sustained success in treasury product fees was another notable highlight, with a 37% year-over-year increase to a record high for the firm. This growth has been consistent over the past eight quarters, demonstrating the long-term viability of this strategy and the company's commitment to being a premier payments bank.
Early investments in treasury products and services have yielded expected outcomes, enhancing profitability as they scale. The unique client service models continue to gain traction, making it easier for clients to bring more business to Texas Capital Bancshares through tech-enabled connectivity and same-day account opening.
Despite some capital markets restrictions in April and early May, investment banking and trading income increased by 43% quarter-over-quarter and 4% year-over-year. This growth was driven by a rebound in capital markets activity and the expansion of sales and trading platform.
Rob Holmes, Chairman, President, and CEO, noted that the strong quarterly performance is a direct result of continued execution on the company's multiyear roadmap. He emphasized that this approach has delivered structurally higher and more sustainable earnings across various products and services, with an operating model that is only beginning to deliver on its potential for future scale.
Matt Scurlock, CFO, highlighted the significant investments made in strategic areas of focus, which have driven elevated and granular revenue contributions. The sustained success in core operating account growth has been demonstrated by another quarter of peer-leading growth and treasury product fees.
