Texas Capital Announces New Buyback Plan: Sustainable or Not?

Texas Capital Bancshares, Inc.’s TCBI board of directors has approved a new $200 million share repurchase program. The authorization should be effective from Dec. 12, 2025, and will remain in place through Dec. 31, 2026.

Repurchases may be conducted from time to time in open-market purchases or privately negotiated transactions, subject to applicable securities laws. The timing and volume of buybacks will depend on the company’s stock price, market and economic conditions, regulatory requirements, and TCBI’s liquidity and capital levels.

The new program replaces the existing $200 million authorization announced in January 2025, which is set to expire in early 2026. As of Dec. 1, 2025, TCBI had already repurchased 2 million shares for $164 million under that plan.

Solid capital levels support Texas Capital’s ability to sustain repurchase activity. As of Sept. 30, 2025, the bank reported a total capital ratio of 16.1% and a CET1 ratio of 13.6%, both comfortably above regulatory minimums.

TCBI’s liquidity position also remains sound. As of Sept. 30, 2025, the bank held $3.06 billion in liquid assets (including its cash and due from banks, and interest-bearing cash and cash equivalents), far exceeding its $895.4 million in total debt (comprising long-term debt and short-term borrowings).

Supported by decent capital levels and liquidity position, TCBI’s share repurchase program seems sustainable.

How Do TCBI's Peers Stand in Terms of Capital Distribution?

Other banks, like BOK Financial Corporation BOKF and Cullen/Frost Bankers, Inc. CFR, also reward shareholders handsomely.

BOK Financial maintains a steady capital distribution framework, supported by consistent earnings strength. The company lifted its quarterly dividend by 3.6% to 57 cents per share in October 2024. In July 2025, BOK Financial approved a new repurchase authorization of up to 5 million shares, replacing its November 2022 plan. As of Sept. 30, 2025, 4.6 million shares remained available for repurchase. Its favorable payout ratio and earnings strength support the capital plan.

Cullen/Frost raised its quarterly dividend by 5.3% to $1 per share in May 2025. On Jan. 29, 2025, the board authorized a $150 million stock repurchase plan effective through Jan. 28, 2026. As of Sept. 30, 2025, $80.7 million remained available under this authorization. Cullen/Frost’s favorable debt-to-equity profile and solid earnings trajectory indicate that capital distribution activities seem sustainable.

TCBI Price Performance & Zacks Rank

Shares of TCBI have gained 29.1% over the past six months compared with the industry’s growth of 7.3%.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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