Texas Capital Delivers Strong Q2 2026 Results: Record Fee Income and Wealth Management Growth
Good afternoon. Thank you for joining us for Texas Capital's second quarter 2026 earnings conference call. I'm Jocelyn Kukulka, Head of Investor Relations.
Texas Capital continues to deliver at a high level on behalf of our clients, with quarterly results once again pointing to strong and improving financial outcomes that come from consistent and focused execution of our differentiated strategy delivered by a talented group of employees across the entire firm. As you have heard us communicate in the past about the power of aligning the people on our platform to our strategic goals, I wanted to mention the recent appointment of Mo Jamous as Chief Digital and Information Officer.
Mo joined Texas Capital in early July and brings more than two decades of experience leading large-scale technology organizations across the financial services industry. He will be instrumental in further strengthening our platform, driving innovation, and advancing our technology strategy. Mo reports to me and serves as a member of the operating council.
Now turning to financial outcomes. Quarterly adjusted earnings per share increased 15% versus the prior year period to $1.88 per share. Record fee income and wealth management, treasury product fees, and investment banking, coupled with the strongest C&I loan growth quarter since the second quarter of last year, supported an 8% increase in adjusted total revenue.
Non-interest income increased $21 million, or 39% year-over-year, to $75.1 million, representing approximately 22% of total revenue, compared to 18% a year ago. Fee income from areas of focus increased 28% year-over-year, reaching $60.5 million in the quarter, a record for the firm.
Advisory, sales, and trading, wealth and treasury services each exhibited meaningful momentum this quarter as our front line continues to effectively earn and deepen target relationships through high-quality execution supported by a maturing product platform. These businesses are differentiated in the market, capital efficient, and provide revenue stability through economic cycles.
Investment banking fees of $42.8 million grew 34% year-over-year as we continue to offer tailored and highly strategic advice to the businesses we serve across our banking practice. Treasury product fees of $12.5 million increased 8% as existing clients continue to leverage our sector-leading payment capabilities and new clients onboard at an accelerated pace with Q2 activity the highest since we began tracking it four years ago.
Wealth management fees also increased for the fourth straight quarter, growing 38% year-over-year to $5.1 million, reflecting building momentum that we expect to continue through the year.
Our focus on fee income as an indicator of client relevance is not a substitute for disciplined credit underwriting and balanced portfolio management. Instead, it represents the intentional and communicated strategic evolution toward more durable, complete, and less rate-sensitive revenue sources that demonstrate the depth of our relationships and expertise of our bankers.
These are structural advantages to our business model that will strengthen returns and compound franchise value over time.
Tangible book value per share increased 10% year-over-year to $76.98, marking the ninth consecutive quarterly record for this important metric.
During the quarter, we repurchased approximately $24 million of common shares at a weighted average price of $97.63 per share, while also declaring and paying our inaugural common stock cash dividend, demonstrating confidence in the franchise and conviction that earnings momentum will continue."
