Company: TCBI
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001077428-25-000145
Chunk: 78

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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)(54,015)66,285 (120,300)Net interest income$32,112 $(277)$32,389 $90,789 $1,524 $89,265 

(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 $271.8 million for the three months ended September 30, 2025, compared to $240.1 million for the same period in 2024. The increase was primarily due to an increase in average earning assets and a decrease in funding costs, partially offset by a decrease in earning asset yields and an increase in average interest bearing liabilities. 

Average earning assets for the three months ended September 30, 2025 increased $1.0 billion compared to the same period in 2024, which included increases of $1.8 billion in average total loans held for investment and $320.2 million in average investment securities, partially offset by a $1.0 billion decrease in average interest bearing cash and cash equivalents. Average interest bearing liabilities increased $1.8 billion for the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a $2.8 billion increase in average interest bearing deposits, partially offset by decreases of $968.6 million in average short-term borrowings and $39.8 million in average long-term debt. Average non-interest bearing deposits for the three months ended September 30, 2025 decreased to $8.4 billion from $9.4 billion for the same period in 2024.

Net interest margin for the three months ended September 30, 2025 was 3.47%, compared to 3.16% for the same period in 2024. The increase in net interest margin was primarily due to a decrease in the cost of interest bearing deposits, partially offset by lower earning asset yields.

The yield on total loans held for investment decreased to 6.42% for the three months ended September 30, 2025, compared to 6.62% for the same period in 2024, and the yield on earning assets decreased to 5.88% for the three months ended September 30, 2025, compared to 5.96% for the same period in 2024. Total cost of deposits decreased to 2