Regulatory Compliance - The Company is subject to regulatory capital requirements that may change, potentially requiring an increase in capital allocation to assets held by the Bank[61]. - The Company is required to comply with the Community Reinvestment Act (CRA), which mandates meeting the credit needs of market areas, and is subject to periodic examinations[78]. - The revised CRA regulations, effective January 1, 2026, will alter compliance assessment methodologies, potentially increasing challenges for the Bank to achieve satisfactory ratings[79]. - The Company has invested significant resources to comply with anti-money laundering laws and regulations, including the Bank Secrecy Act and the Anti-Money Laundering Act of 2020[80][82]. - The Company must adhere to the Office of Foreign Assets Control (OFAC) regulations, which require blocking transactions with prohibited parties, to avoid legal and reputational risks[83]. - Federal banking agencies have broad authority to enforce operational and managerial standards, and failure to comply may result in enforcement actions against the Bank[85]. Capital and Liquidity - The capital categories for insured depository institutions include "well capitalized" (≥10% total risk-based capital ratio), "adequately capitalized" (≥8%), "undercapitalized" (<8%), "significantly undercapitalized" (<6%), and "critically undercapitalized" (tangible equity to total assets ≤2%)[64]. - The liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) are designed to ensure adequate liquidity and promote long-term funding, although they are not currently applicable to the Company[70][71]. - The Bank's deposits are insured up to $250,000 per depositor, per account ownership category, per bank, as per FDIC regulations[91]. - The FDIC has established a plan to restore the Deposit Insurance Fund (DIF) reserve ratio to at least 1.35% by September 30, 2028, with an amended restoration plan increasing the initial base deposit insurance assessment rate by 2 basis points starting in 2023[92]. Market Risk Management - The Company uses Value-at-Risk (VaR) to measure market risk, with no significant market risk exposure reported as of December 31, 2023[269]. - The Company utilizes derivative transactions to manage interest rate, prepayment, credit, price, and foreign currency fluctuations[278]. - Derivative contracts are designated as fair value hedges, cash flow hedges, or net investment hedges, depending on the nature of the transaction[279]. - The Company’s interest rate risk exposure model incorporates updated assumptions regarding deposit behaviors and loan prepayment in response to market rate changes[277]. - The simulations used to manage market risk are based on numerous assumptions, which are inherently uncertain and may lead to actual results differing from simulated results[277]. - Interest rate derivative contracts are employed to support customer-related positions and manage asset/liability risk[280]. Interest Rate Sensitivity - As of December 31, 2023, the Company's total interest-sensitive assets amount to $27,650,472,000, while total interest-sensitive liabilities are $17,402,710,000, resulting in a positive gap of $6,546,686,000[272]. - The Company has a cumulative gap of $10,247,762,000 as of December 31, 2023, indicating a strong asset sensitivity position[272]. - As of December 31, 2023, a 200 basis point increase in interest rates is projected to result in a 3.2% annualized hypothetical change in net interest income, compared to 14.5% in 2022[277]. - A 100 basis point increase in interest rates is expected to lead to a 1.6% change in net interest income for 2023, down from 8.0% in 2022[277]. - The model indicates that a 100 basis point decrease in interest rates would result in a (4.4)% change in net interest income, while a 200 basis point decrease would lead to a (9.1)% change[277]. - The Company will continue to evaluate interest rate scenarios as they change, with a focus on the impact of both increases and decreases in rates[276]. Regulatory Impact - The Volcker Rule has not materially affected the Company's operations, although future interpretations may pose risks[94]. - The Dodd-Frank Act limits interchange fees for electronic debit transactions to 21 cents plus 0.05% of the transaction value, with a proposed reduction in maximum interchange fees for large debit card issuers[95]. - The Federal Reserve, OCC, and FDIC issued guidance in 2010 to ensure that incentive compensation policies do not encourage excessive risk-taking, with rules proposed in 2016 still pending implementation[90]. - The FDIC approved a special assessment in November 2023 to recover losses associated with bank failures, to be collected at an annual rate of approximately 13.4 basis points over eight quarterly assessment periods starting in 2024[93].

Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Q4 2023 Earnings Conference Call January 18, 2024 9:00 AM ET Company Participants Jocelyn Kukulka - Head of Investor Relations Rob Holmes - President and Chief Executive Officer Matt Scurlock - Chief Financial Officer Conference Call Participants Ben Gerlinger - Citigroup Matt Olney - Stephens Woody Lay - KBW Anthony Elian - JPMorgan Brody Preston - UBS Operator Hello and welcome to the Texas Capital Bancshares, Inc. Q4 2023 Earnings Call. My name is Elliot and I ...

Q3-2023 Earnings October 19, 2023 © 2023 Texas Capital Bank Member FDIC Forward-Looking Statements 2 This communication contains "forward-looking statements" within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI's financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as "believes," "projects," "expects," "may, ...

Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Q3 2023 Earnings Call Transcript October 19, 2023 9:00 AM ET Company Participants Jocelyn Kukulka - Head of IR Rob Holmes - President and CEO Matt Scurlock - CFO Conference Call Participants Michael Rose - Raymond James Matt Olney - Stephens Zachary Westerlind - UBS Brady Gailey - KBW Operator Hello, all, and welcome to TCBI's Third Quarter 2023 Earnings Call. My name is Lydia, and I will be your operator today. [Operator Instructions] It's my pleasure to now han ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 2000 McKinney Avenue Suite 700 Dallas TX USA 75201 (Address of principal executive offices) (Zip Code) 214/932-6600 For the quarterly period ended September 30, 2023 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission file number 001-34657 TEXAS CAPITAL ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2023 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission file number 001-34657 TEXAS CAPITAL BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 75-2679109 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company reported a net income to common of $64.3 million for the quarter, up $34.5 million year-over-year, with earnings per share increasing by $0.74, marking the highest level in two years adjusted for divestiture [58] - Quarterly PPNR grew 43% year-over-year to $96.4 million, the highest since the transformation began in Q1 2021 [58] - Total revenue increased by $46.2 million or 20% compared to Q2 2022, benefiting from a 76% increase in noninterest income [85] Business Line Data and Key Metrics Changes - Investment banking and trading income reached a record $27.5 million, up $8.7 million or 47% quarter-over-quarter, marking the third consecutive record quarter since launching the investment banking business [53][84] - Wealth management income increased 8% quarter-over-quarter, with assets under management growing 6% [42] - Gross payment revenues increased by 12% year-over-year, indicating a successful multiyear focus on proprietary applications [36] Market Data and Key Metrics Changes - Deposit balances increased by 5% or $1.1 billion in the quarter, with the loan-to-deposit ratio remaining flat at 91% [44] - Noninterest-bearing deposits decreased by 19%, reflecting a shift to interest-bearing deposits [64] - The company experienced a 10% increase in criticized loans, primarily due to special mention real estate loans [95] Company Strategy and Development Direction - The company is focused on a multi-quarter business model transformation aimed at reducing dependence on rate-driven earnings and enhancing revenue stability [13] - Continued investment in the investment banking platform is expected to contribute at least 10% of total revenue by 2025 [53] - The firm aims to maintain a strong liquidity position, targeting a CET1 ratio of at least 12% by year-end [99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and the ability to meet long-term targets despite changing market conditions [74] - The company anticipates manageable real estate migration and believes its client selection and underwriting guidelines provide adequate protection against realized loss [68] - Management noted that while loan growth was lower this quarter, new client acquisition increased by over 30% compared to the prior quarter [139] Other Important Information - The company has made significant investments over the last two years, resulting in expected operating and financial efficiencies [71] - The firm has successfully launched the Texas Capital Texas Equity ETF, marking a significant expansion of its asset management capabilities [131] - The company reported a tangible book value per share of $57.93, a near all-time high, reflecting a 7% year-over-year increase [55] Q&A Session Summary Question: What is the outlook for investment banking and trading? - Management indicated that the investment banking pipeline is broad and diverse, with expectations for continued solid performance in the third and fourth quarters [119] Question: Can you provide an update on staffing expectations? - Management noted a 6% decline in noninterest expenses quarter-over-quarter, with high-quality staffing now in place and stability achieved [103][104] Question: What are the expectations for loan growth? - Management clarified that loan growth is not the primary focus, emphasizing the importance of recycling capital and meeting client needs through various solutions [138]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2023 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission file number 001-34657 TEXAS CAPITAL BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 75-2679109 (State or other jurisdiction ...

Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Q1 2023 Earnings Conference Call March 20, 2023 9:00 AM ET Company Participants Jocelyn Kukulka - Head of Investor Relations Rob Holmes - President and Chief Executive Officer Matt Scurlock - Chief Financial Officer Conference Call Participants Michael Rose - Raymond James Brett Rabatin - Hovde Group Brody Preston - UBS Matthew Olney - Stephens Inc. Brad Milsaps - Piper Sandler Brady Gailey - Keefe Bruyette & Woods Inc. Brandon King - Truist Securities Operator H ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the fiscal year ended December 31, 2022 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission file number 001-34657 TEXAS CAPITAL BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 75-2679109 (State or other ...