Texas Capital Sets New Records Across Key Metrics as Firm Continues to Demonstrate Resilience and Sustained Growth
Texas Capital, a leading financial institution, has reported another quarter of impressive performance, setting new records across several key metrics. In its third-quarter 2026 earnings conference call, the company's leadership provided insight into the firm's success, attributing it to disciplined capital management, thoughtful portfolio construction, careful risk oversight, and a client-centric approach.
Chairman, President, and CEO Rob Holmes highlighted the significance of this quarter, stating that it was "the most complete quarter in the firm's history." He emphasized that the company's strategic actions have enabled it to build a unique platform, resilient to changing market conditions and positioned for sustained growth. Holmes noted that Texas Capital's client-centric approach ensures that its focus remains on clients' needs, not its own.
The firm's operating model has undergone significant evolution over the past few years, resulting in improved financial performance. Quarterly adjusted earnings per share reached a record $2.35, an 8% increase year-over-year and a 25% increase relative to the previous quarter. Record net interest income and fees drove record adjusted total revenue of $357 million and record adjusted pre-provision net revenue of $157 million, both of which increased 5% year-over-year.
Adjusted net income to common was also a record for the firm at $103 million. This achievement is particularly notable given that it reflects firmly established multi-quarter trends and strong pipelines suggesting continued momentum to finish the year. Non-interest income increased by 19% year-over-year to $82 million, representing 23% of total revenue.
Texas Capital's strategic fee income areas continue to grow steadily, with investment banking and trading income reaching $46.7 million, a 13% increase year-over-year and 9% linked quarter. Treasury product fees grew by 16% year-over-year and 3% linked quarter to $12.9 million. Wealth management fees increased by 14% year-over-year to $4.6 million.
The company's confidence in its trajectory is evident, with plans to invest in and grow the private bank platform in 2027. This growth strategy is based on the proven playbook used in payments and investment banking. The firm has invested significantly in client-facing talent, doubling the number of bankers between 2021 and 2023, and continues to aggressively recruit high-quality professionals to further expand client coverage and deliver product expertise.
The sustained new client acquisition driven by Texas Capital's market-leading capability to access the right type of capital for clients across geographic markets and industry verticals has underpinned this notable fee growth. The firm remains committed to delivering financial resilience, ensuring that its focus remains on its clients' needs.
