Texas Capital Bank delivered a record quarter, and its chief executive used a national TV appearance to sketch out what it means for regional banking and for Texas. CEO Rob Holmes appeared on Mornings with Maria to discuss performance, the health of regional lenders, and why Texas is gaining ground as a finance center. The conversation offered a window into how a midsize bank is navigating higher funding costs, deposit competition, and a surge of corporate activity migrating to the state.
A Strong Quarter Amid Industry Headwinds
Holmes said the bank posted its best results to date, signaling strength in core lending and fee-based businesses. While details were not disclosed in the segment summary, the emphasis on a “record-breaking quarter” points to improved profitability, steady credit quality, or both. Many regional banks have been pressured by higher interest rates, which raise the cost of deposits. Outperforming that trend suggests a favorable mix of clients, disciplined pricing, and stable funding sources.
Analysts often watch several markers in such periods. Net interest margin, deposit growth, and noninterest income are key to judging momentum. A record quarter suggests Texas Capital found traction in at least two of these areas. It also implies loan losses remain contained despite stress in parts of commercial real estate.
Texas Rising as a Finance Hub
A central theme was Texas’s ascent as a financial hub. Dallas, Austin, and Houston have drawn banks, asset managers, and fintech firms in recent years. The pull factors are clear. Population growth, a large corporate tax base, and steady in-migration of companies seeking lower costs and a central location.
Holmes linked the bank’s success to that shift. As firms expand headcount and suppliers follow, demand grows for treasury services, commercial lending, and capital markets support. That expanding opportunity set helps local institutions scale faster than peers in slower-growth regions.
- Corporate relocations have increased demand for cash management and credit lines.
- Population growth has supported retail deposits and small-business lending.
- Infrastructure and energy sectors continue to drive project finance needs.
The State of Regional Lenders
The discussion also touched on the wider sector. Regional banks are balancing rising deposit costs with the need to defend market share. Many have shifted to higher-yielding securities and repriced loans. That can protect earnings, but it carries risk if credit weakens or if funding becomes unstable.
For lenders with concentrated exposure to office properties, provisions for losses have risen. Those with diversified portfolios, deep relationships, and sticky deposits are faring better. Holmes’s remarks suggest Texas Capital is leaning on client service and disciplined risk controls. That is consistent with the cautious posture many mid-sized banks adopted after last year’s banking volatility.
How Texas Capital Is Positioning
The bank’s record quarter indicates its strategy is gaining traction. A balanced mix of lending and fee businesses, such as treasury and capital markets services, can smooth earnings. Serving fast-growing middle-market clients across Texas gives the bank a pipeline of new relationships. The franchise also benefits from proximity to energy, logistics, healthcare, and technology hubs.
If deposit competition eases as rates stabilize, margins could improve further. If rates remain higher for longer, the focus will likely stay on funding costs and credit discipline. Either way, the bank’s performance suggests it has room to invest in talent, technology, and client coverage across major Texas metros.
What to Watch Next
Investors and customers will look for more detail in upcoming filings and calls. Key items include the mix of deposits between commercial and retail, trends in noninterest income, and exposure to commercial real estate. Progress in fee businesses would support more durable earnings through rate cycles.
Texas’s banking footprint will keep expanding if corporate relocation trends hold. For Texas Capital, the opportunity lies in converting regional growth into long-term client relationships. The record quarter is a strong marker, but execution across credit, funding, and service quality will be the real test.
Holmes’s appearance put a spotlight on a clear message. Texas is gaining momentum in finance, and regional lenders with disciplined strategies can thrive in that environment. The next few quarters will show whether early gains translate into sustained market share and stronger returns.
