Texas Capital Bancshares, Inc.

Hello, everyone. Thank you for joining us and welcome to Texas Capital Bancshares' third quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jocelyn Kukulka, head of investor relations. Jocelyn, please go ahead.

Good afternoon and thank you for joining us for Texas Capital's third quarter 2026 earnings conference call. I'm Jocelyn Kukulka, head of investor relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events. Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements. Our forward-looking statements are as of the date of this call, and we do not assume any obligation to update or revise them. Today's presentation will include certain non-GAAP measures, including but not limited to adjusted operating metrics, adjusted earnings per share, and return on capital. For reconciliation of these and other non-GAAP measures to the corresponding GAAP measures, please refer to the earnings press release and our website. Thank you for joining us. Our speakers for the call today are Rob Holmes, Chairman, President and CEO, and Matt Scurlock, CFO. At the conclusion of our prepared remarks, the operator will open up the call for Q&A. I'll now turn the call over to Rob for opening remarks.

Thank you for joining us today. This was the most complete quarter in the firm's history. Thank you for joining us today. Careful risk oversight and a culture motivated to build something enduring that matters for our clients and our shareholders. Our client-centric approach means we not only engage the market with superior insight and execution, but also maintain a commitment to financial resilience, ensuring our focus remains squarely on our clients' needs, not ours. The multi-year evolution of the firm's operating model means client successes translate into a balance sheet and income statement that are increasingly working in tandem to deliver financial performance regardless of the macro backdrop. The breadth of this quarter's performance is evident in financial results that feature new records achieved across many key metrics. Quarterly adjusted earnings per share reached a record $2.35 and a 25% increase relative to the previous quarter. Record net interest income and record 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. Finally, adjusted net income to common was $103 million, another record for the firm, with firmly established multi-quarter trends and strong pipelines suggesting continued momentum to finish the year. Non-interest income increased 19% year-over-year to $82 million, representing 23% of total revenue, and supported by 14% year-over-year growth in our strategic fee income areas of focus. led by the third consecutive quarter of record income for both investment banking and trading income as well as treasury product fees. Consistent multi-year growth in these critical offerings reflects the evolution toward a more diversified and capital efficient business model and demonstrates how serving clients across multiple touchpoints makes Texas Capital a uniquely relevant financial partner. Investment banking and trading income of $46.7 million grew 13% year-over-year and 9% link quarter, supported by higher capital markets and sales and trading revenues. Treasury product fees of $12.9 million, up 16% year-over-year and 3% link quarter, grew as we continue to deepen primary operating relationships and serve clients with integrated payment capabilities. Wealth management fees increased 14% year-over-year to $4.6 million. We remain confident in the trajectory of this offering and see tremendous opportunity to replicate the proven playbook used in payments and investment banking to invest in and grow the private bank platform in 2027. Underpinning this notable fee growth is sustained new client acquisition driven by our market leading capability to access the right type of capital for clients across geographic markets and industry verticals. We have invested significantly in our client facing talent, doubling the number of bankers between 2021 and 2023, and are again aggressively recruiting high quality professionals to further expand client coverage and deliver Product Expertise Our financial outcomes validate this approach. The peer-leading growth we have achieved demonstrates not only that we have earned the right to compete and win in our markets, but that we know how to execute at scale. This track record of sustained performance across multiple cycles is a foundation upon which we continue to build. Supporting this next phase of growth is a continued evolution of our technology and delivery infrastructure with specific emphasis on enhancing data capabilities and optimizing process design to unlock the full operational benefits of AI. We reorganize technology leadership and team structure to prioritize product delivery and data infrastructure. The restructuring expenses and legacy software write-offs incurred this quarter reflect our commitment to converting these longstanding investments into measurable productivity gains. This repositioning enables us to accelerate delivery cycles, improve system stability and scale, and materially enhance our operating model productivity. Our approach demonstrates a disciplined capital allocation strategy whereby we can make technology investments more productive by consolidating around the capabilities that matter most. Finally, during the quarter, we exhausted our 2026 buyback authorization, acting opportunistically during periods of market dislocation to repurchase approximately $103 million of common shares at a weighted average price of $96.99 per share. The Board has authorized an additional $200 million share repurchase, which will be prudently leveraged to return capital to our shareholders while also investing in continued organic growth. This quarter underscores that every part of Texas capital can deliver on its strategic objectives, drive sustained growth, and attractive risk-adjusted returns. We are operating from a position of maturity and strength with substantial capital and liquidity, disciplined risk management, and an earnings profile built to perform across market environments. As we move through the final quarter of 2026, our priorities remain consistent. Deep inclined adoption across the platform, realize the benefits of our investments, thoughtfully invest against our proven mandate, and deploy capital with a focus on lasting franchise value. Our achievements to date give us the confidence and capacity to increase investment and growth with a foundation from the transformation enabling progressively shorter earn-back periods on each incremental dollar deployed. Our results reflect how far we have come. Our opportunity is to continue to build on that progress and accrete value for our clients and shareholders. Thank you for your continued interest in and support of Texas Capital. I'll now turn it over for Matt for the details of this quarter's financial results.