Higher interest rates boost banks’ profits, but Texas Capital Bancshares prepares for rate drops with diverse revenue streams like treasury services and investment banking. Fee income grew by 8% in 2025, reaching $229 million, and the bank forecasts $160-$175 million from investment banking in 2026.

Texas Capital enhances its mortgage finance business, with over half of its loans in safer credit structures, reducing capital needs. These improvements equate to generating over $275 million of regulatory capital. The bank anticipates a 15% growth in mortgage finance balances in 2026.

Trading at a forward P/E ratio of 13.5, Texas Capital is attractive with increased revenue, diversified income sources, and improving profitability trends. While shares have climbed 40% in 5 years, the bank doesn’t pay dividends. Long-term investors could see gains if the bank continues executing its strategy successfully.

Consider Texas Capital Bancshares, a bank with diverse income sources and strong business segments. The Motley Fool’s Stock Advisor team doesn’t recommend it among the 10 best stocks for investors now. Stock Advisor boasts an 889% average return, outperforming the S&P 500’s 192%.

*Stock Advisor returns as of February 24, 2026.

Read more at Yahoo Finance: Texas Capital Bancshares Could Soar If These 2 Things Go Right