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# Texas Capital Bancshares reports higher quarterly earnings, alongside rising credit concerns
- URL: https://business-leader-news.ghost.io/texas-capital-bancshares-reports-higher-quarterly-earnings-alongside-rising-credit-concerns/
- Published: 2026-10-22T02:52:35.000Z
- Updated: 2026-10-22T02:52:35.000Z
- Author: Staff Writer
- Tags: News

Texas Capital Bancshares’ third-quarter results show a bank earning more from its core operations while tracking a growing pool of loans with warning signs.

The Dallas-based parent of Texas Capital Bank reported **$99.4 million in net income available to common stockholders**, or $2.28 per diluted share, for the quarter ended Sept. 30\. That was up from $80.6 million in the second quarter, though below the $100.9 million reported a year earlier. The company released its results Oct. 21.

Revenue increased to $356.6 million from $335.5 million in the prior quarter. Net interest income, the difference between what a bank earns on loans and investments and what it pays for deposits and borrowings, rose to $275 million. The bank also reported $81.6 million in non-interest income, including fees from services such as investment banking and wealth management.

The credit figures present a more cautious side of the report. Texas Capital recorded **$14.5 million in net charge-offs**—loans written off after the bank determined they were unlikely to be collected. That was down from $16.1 million in the second quarter but above $13.7 million a year earlier.

The bank’s criticized loans—credits flagged for heightened concern—rose to $782.4 million at quarter-end, from $696.3 million three months earlier and $529.7 million a year ago. Criticized loans equaled 3.25% of loans held for investment, compared with 2.79% in June and 2.19% in September 2025\. These loans are not all necessarily in default, but the increase signals that the bank is monitoring more borrowers for potential repayment problems.

Other measures moved less sharply. Non-accrual loans, on which the bank is no longer recognizing interest income, totaled $122.3 million, slightly below June’s $124 million. They represented 0.51% of loans held for investment, compared with 0.50% in the second quarter. The bank’s provision for credit losses was $17 million, down from $18 million in the previous quarter.

For Texas businesses, the results offer a useful but limited signal. Higher criticized balances and charge-offs suggest some borrowers are under pressure and that lenders are continuing to account for credit risk. At the same time, Texas Capital’s rising net interest income and fee revenue show that its business remained profitable and active.

The results do not establish that lending conditions have worsened across Texas: one bank’s portfolio reflects its own borrowers, loan mix and underwriting. Still, businesses seeking credit may find lenders paying close attention to repayment capacity, cash flow and collateral as they assess risk.

Texas Capital reported a 12.2% common equity tier 1 capital ratio, a key measure of a bank’s ability to absorb losses. The quarter’s picture is therefore one of stronger sequential earnings alongside a growing set of loans the bank has flagged for closer attention.