DALLAS, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2021.
“I am very pleased by the important actions taken this quarter,” said Rob C. Holmes, President and CEO. “We have communicated a transformative vision for the future of our company which we believe will lead to higher quality, more sustainable earnings for our shareholders. I am encouraged by the support we have received thus far, and with a vastly improved balance sheet, a strengthening loan portfolio, and a highly motivated management team and employee base, we are focused on what needs to be done to become the flagship financial services firm headquartered in Texas.”
- Net income of $43.4 million ($0.76 per diluted share) reported for the third quarter of 2021, a decrease of $30.1 million on a linked quarter basis and a decrease of $13.7 million from the third quarter of 2020.
- Provision for credit losses of $5.0 million for the third quarter of 2021, compared to a negative provision of $19.0 million for the second quarter of 2021 and a provision of $30.0 million for the third quarter of 2020.
- During the third quarter of 2021, we recorded a $12.0 million write-off of certain software assets to reposition our capitalized technology investment to align with the long-term strategy as announced by management in the third quarter of 2021.
- Loans held for investment (“LHI”), excluding mortgage finance loans, increased $52.8 million (less than 1%) on a linked quarter basis and decreased $568.6 million (4)% from the third quarter of 2020.
- LHI, mortgage finance loans decreased 3% on a linked quarter basis and decreased 9% from the third quarter of 2020.
- Demand deposits increased 5% and total deposits increased 3% on a linked quarter basis, and increased 21% and decreased 7%, respectively, from the third quarter of 2020.
FINANCIAL SUMMARY
| (dollars and shares in thousands) |
Q3 2021 |
|
Q3 2020 |
|
% Change |
| QUARTERLY OPERATING RESULTS |
|
|
|
|
|
| Net income |
$ |
43,390 |
|
|
$ |
57,116 |
|
|
(24 |
) |
% |
| Net income available to common stockholders |
$ |
39,078 |
|
|
$ |
54,678 |
|
|
(29 |
) |
% |
| Diluted earnings per common share |
$ |
0.76 |
|
|
$ |
1.08 |
|
|
(30 |
) |
% |
| Diluted common shares |
51,140 |
|
|
50,573 |
|
|
1 |
|
% |
| Return on average assets |
0.47 |
% |
|
0.59 |
% |
|
|
| Return on average common equity |
5.41 |
% |
|
8.24 |
% |
|
|
| BALANCE SHEET |
|
|
|
|
|
| Loans held for sale (“LHS”) |
$ |
9,660 |
|
|
$ |
648,009 |
|
|
(99 |
) |
% |
| LHI, mortgage finance |
8,528,313 |
|
|
9,378,104 |
|
|
(9 |
) |
% |
| LHI |
15,221,404 |
|
|
15,789,958 |
|
|
(4 |
) |
% |
| Total LHI |
23,749,717 |
|
|
25,168,062 |
|
|
(6 |
) |
% |
| Total assets |
36,404,320 |
|
|
38,432,872 |
|
|
(5 |
) |
% |
| Demand deposits |
14,970,462 |
|
|
12,339,212 |
|
|
21 |
|
% |
| Total deposits |
29,813,668 |
|
|
31,959,487 |
|
|
(7 |
) |
% |
| Stockholders’ equity |
3,147,752 |
|
|
2,800,404 |
|
|
12 |
|
% |
|
|
|
|
|
|
|
|
|
|
DETAILED FINANCIALS
For the third quarter of 2021, net income was $43.4 million, compared to $73.5 million for the second quarter of 2021 and $57.1 million for the third quarter of 2020. On a fully diluted basis, earnings per common share were $0.76 for the quarter ended September 30, 2021, compared to $1.31 for the quarter ended June 30, 2021 and $1.08 for the quarter ended September 30, 2020.
We recorded a $5.0 million provision for credit losses for the third quarter of 2021, compared to a $19.0 million negative provision for credit losses for the second quarter of 2021 and a $30.0 million provision for credit losses for the third quarter of 2020. The $5.0 million provision for credit losses recorded in the third quarter of 2021 resulted from our view of the economic outlook remaining consistent as compared to the prior quarter and an increase in LHI, excluding mortgage finance. We recorded $3.1 million in net charge-offs during the third quarter of 2021, compared to $2.4 million during the second quarter of 2021 and $1.6 million during the third quarter of 2020. Criticized loans totaled $728.9 million at September 30, 2021, compared to $891.6 million at June 30, 2021 and $1.1 billion at September 30, 2020.
Non-performing assets (“NPAs”) totaled $87.5 million at September 30, 2021, compared to $86.6 million at June 30, 2021 and $161.9 million at September 30, 2020. The ratio of total LHI NPAs to total LHI plus other real estate owned for the third quarter of 2021 was 0.37%, compared to 0.36% for the second quarter of 2021 and 0.64% for the third quarter of 2020.
Net interest income was $194.1 million for the third quarter of 2021, compared to $197.0 million for the second quarter of 2021 and $207.6 million for the third quarter of 2020. The linked-quarter decrease in net interest income was primarily driven by a decline in loan fees, partially offset by a decrease in average interest-bearing deposits. The year-over-year decrease was primarily due to declines in total average loans and earning asset yields, partially offset by increases in average investment securities and loan fees, as well as declining cost of funds. Net interest margin for the third quarter of 2021 was 2.15%, an increase of 5 basis points from the second quarter of 2021 and a decrease of 7 basis points from the third quarter of 2020. LHI yields, excluding mortgage finance loans, decreased 18 basis points from the second quarter of 2021, and decreased 1 basis point compared to the third quarter of 2020. LHI, mortgage finance yields for the third quarter of 2021 decreased 16 basis points compared to the second quarter of 2021, and decreased 43 basis points compared to the third quarter of 2020. Additionally, total cost of deposits for the third quarter of 2021 decreased 1 basis point to 0.19% compared to 0.20% for the second quarter of 2021, and decreased 15 basis points from 0.34% for the third quarter of 2020.
Non-interest income for the third quarter of 2021 decreased $8.9 million, or 30%, compared to the second quarter of 2021, and decreased $39.1 million, or 65%, compared to the third quarter of 2020. The linked quarter decrease was primarily related to decreases in servicing income, due to the second quarter sale of our mortgage servicing rights (“MSR”) portfolio, and other non-interest income. The year-over-year decrease was primarily related to decreases in net gain/(loss) on sale of LHS, brokered loan fees and servicing income, all resulting from the second quarter 2021 sale of our MSR portfolio and transition of the mortgage correspondent aggregation MCA program to a third-party.
Non-interest expense for the third quarter of 2021 increased $3.9 million, or 3 percent, compared to the second quarter of 2021, and decreased $12.8 million, or 8%, compared to the third quarter of 2020. The linked quarter increase was primarily due to an increase in communications and technology expense, partially offset by a decrease in servicing-related expenses due to the second quarter sale of our MSR portfolio. The year-over-year decrease was primarily due to decreases in communications and technology expense and servicing-related expenses, partially offset by an increase in salaries and employee benefits. Included in communication and technology expense for the third quarter of 2021 was a $12.0 million write-off of certain software assets as discussed above, compared to none in the second quarter and $15.4 million in the third quarter of 2020.
All regulatory ratios continue to be in excess of “well-capitalized” requirements as of September 30, 2021. Our CET 1, tier 1 capital, total capital and leverage ratios were 10.7%, 12.2%, 14.9% and 9.0%, respectively, at September 30, 2021, compared to 10.5%, 12.1%, 14.8% and 8.4%, respectively, at June 30, 2021. At September 30, 2021, our ratio of tangible common equity to total tangible assets was 7.8% compared to 7.9% at June 30, 2021.
About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000 Index and the S&P MidCap 400, is the parent company of Texas Capital Bank (the “Bank”), a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.
Forward Looking Statements
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, our 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 “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,” “continue,” “become,” “intend” and similar expressions.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, but are not limited to, (1) the credit quality of our loan portfolio, (2) general economic conditions and related material risks and uncertainties in the United States, globally and in our markets and the impact they may have on us and our customers, including the continued impact on our customers from volatility in oil and gas prices as well as the continued impact of the COVID-19 pandemic (and any other pandemic, epidemic or health-related crisis), (3) technological changes, including the increased focus on information technology and cybersecurity and our ability to manage such information systems and the effects of cyber-incidents (including failures, disruptions or security breaches) or those of third-party providers, (4) changes in interest rates and changes in the value of commercial and residential real estate securing our loans, (5) adverse economic or market conditions that could affect the credit quality of our loan portfolio or our operating performance, (6) expectations regarding rates of default and credit losses and the appropriateness of our allowance for credit losses and provision for credit losses, (7) unexpected market conditions, regulatory changes or changes in our credit ratings that could, among other things, cause access to capital market transactions and other sources of funding to become more difficult, (8) the inadequacy of our available funds to meet our obligations, (9) the failure to effectively balance our funding sources with cash demands by depositors and borrowers, (10) material failures of our accounting estimates and risk management processes based on management judgment, (11) failure of our risk management strategies and procedures, including failure or circumvention of our controls, (12) the failure to effectively manage risk, (13) uncertainty regarding alternatives to the London Interbank Offered Rate and our ability to successfully implement any new interest rate benchmarks, (14) the impact of changing regulatory requirements and legislative changes on our business, (15) the failure to successfully execute our business strategy, including completing planned merger, acquisition or sale transactions, (16) the failure to identify, attract and retain key personnel or the loss of such personnel, (17) increased or more effective competition from banks or other financial service providers in our markets, (18) structural changes in the markets for origination, sale and servicing of residential mortgages, (19) certainty in the pricing of mortgage loans that we purchase, and later sell or securitize, (20) volatility in the market price of our common stock, (21) credit risk resulting from our exposure to counterparties, (22) an increase in the incidence or severity of fraud, illegal payments, security breaches and other illegal acts impacting us, (23) the failure to maintain adequate regulatory capital to support our business, (24) environmental liability or other environmental, social or governance factors that may materially negatively impact the company, (25) severe weather, natural disasters, acts of war or terrorism and other external events and (26) our success at managing the risk and uncertainties involved in the foregoing factors.
These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
| TEXAS CAPITAL BANCSHARES, INC. |
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) |
| (dollars in thousands except per share data) |
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
2021 |
2021 |
2021 |
2020 |
2020 |
| CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
| Interest income |
$ |
220,148 |
|
$ |
224,490 |
|
|
$ |
228,412 |
|
|
$ |
255,163 |
|
$ |
243,731 |
|
| Interest expense |
26,053 |
|
27,496 |
|
|
28,339 |
|
|
32,153 |
|
36,162 |
|
| Net interest income |
194,095 |
|
196,994 |
|
|
200,073 |
|
|
223,010 |
|
207,569 |
|
| Provision for credit losses |
5,000 |
|
(19,000 |
) |
|
(6,000 |
) |
|
32,000 |
|
30,000 |
|
| Net interest income after provision for credit losses |
189,095 |
|
215,994 |
|
|
206,073 |
|
|
191,010 |
|
177,569 |
|
| Non-interest income |
21,220 |
|
30,102 |
|
|
39,092 |
|
|
42,863 |
|
60,348 |
|
| Non-interest expense |
152,987 |
|
149,060 |
|
|
150,316 |
|
|
150,863 |
|
165,741 |
|
| Income before income taxes |
57,328 |
|
97,036 |
|
|
94,849 |
|
|
83,010 |
|
72,176 |
|
| Income tax expense |
13,938 |
|
23,555 |
|
|
22,911 |
|
|
22,834 |
|
15,060 |
|
| Net income |
43,390 |
|
73,481 |
|
|
71,938 |
|
|
60,176 |
|
57,116 |
|
| Preferred stock dividends |
4,312 |
|
6,317 |
|
|
3,779 |
|
|
2,437 |
|
2,438 |
|
| Net income available to common stockholders |
$ |
39,078 |
|
$ |
67,164 |
|
|
$ |
68,159 |
|
|
$ |
57,739 |
|
$ |
54,678 |
|
| Diluted earnings per common share |
$ |
0.76 |
|
$ |
1.31 |
|
|
$ |
1.33 |
|
|
$ |
1.14 |
|
$ |
1.08 |
|
| Diluted common shares |
51,139,555 |
|
51,093,660 |
|
|
51,069,511 |
|
|
50,794,421 |
|
50,573,073 |
|
| CONSOLIDATED BALANCE SHEET DATA |
|
|
|
|
|
| Total assets |
$ |
36,404,320 |
|
$ |
35,228,542 |
|
|
$ |
40,054,433 |
|
|
$ |
37,726,096 |
|
$ |
38,432,872 |
|
| LHI |
15,221,404 |
|
15,168,565 |
|
|
15,399,174 |
|
|
15,351,451 |
|
15,789,958 |
|
| LHI, mortgage finance |
8,528,313 |
|
8,772,799 |
|
|
9,009,081 |
|
|
9,079,409 |
|
9,378,104 |
|
| LHS |
9,660 |
|
63,747 |
|
|
176,286 |
|
|
283,165 |
|
648,009 |
|
| Liquidity assets(1) |
8,317,926 |
|
6,768,650 |
|
|
11,212,276 |
|
|
9,032,807 |
|
10,461,544 |
|
| Investment securities |
3,663,874 |
|
3,798,275 |
|
|
3,443,058 |
|
|
3,196,970 |
|
1,367,313 |
|
| Demand deposits |
14,970,462 |
|
14,228,038 |
|
|
15,174,642 |
|
|
12,740,947 |
|
12,339,212 |
|
| Total deposits |
29,813,668 |
|
28,839,563 |
|
|
33,391,970 |
|
|
30,996,589 |
|
31,959,487 |
|
| Other borrowings |
2,203,470 |
|
2,014,481 |
|
|
2,515,587 |
|
|
3,111,751 |
|
2,908,183 |
|
| Long-term debt |
928,062 |
|
927,386 |
|
|
664,968 |
|
|
395,896 |
|
395,806 |
|
| Stockholders’ equity |
3,147,752 |
|
3,114,957 |
|
|
3,159,482 |
|
|
2,871,224 |
|
2,800,404 |
|
|
|
|
|
|
|
| End of period shares outstanding |
50,605,626 |
|
50,592,201 |
|
|
50,557,767 |
|
|
50,470,450 |
|
50,455,552 |
|
| Book value |
$ |
56.27 |
|
$ |
55.64 |
|
|
$ |
53.59 |
|
|
$ |
53.92 |
|
$ |
52.53 |
|
| Tangible book value(2) |
$ |
55.93 |
|
$ |
55.29 |
|
|
$ |
53.24 |
|
|
$ |
53.57 |
|
$ |
52.18 |
|
| SELECTED FINANCIAL RATIOS |
|
|
|
|
|
| Net interest margin |
2.15 |
% |
2.10 |
|
% |
2.09 |
|
% |
2.32 |
% |
2.22 |
% |
| Return on average assets |
0.47 |
% |
0.76 |
|
% |
0.73 |
|
% |
0.61 |
% |
0.59 |
% |
| Return on average common equity |
5.41 |
% |
9.74 |
|
% |
10.08 |
|
% |
8.50 |
% |
8.24 |
% |
| Non-interest income to average earning assets |
0.23 |
% |
0.32 |
|
% |
0.41 |
|
% |
0.44 |
% |
0.64 |
% |
| Efficiency ratio(3) |
71.1 |
% |
65.6 |
|
% |
62.9 |
|
% |
56.7 |
% |
61.9 |
% |
| Non-interest expense to average earning assets |
1.69 |
% |
1.59 |
|
% |
1.57 |
|
% |
1.56 |
% |
1.76 |
% |
| Tangible common equity to total tangible assets(4) |
7.8 |
% |
7.9 |
|
% |
6.7 |
|
% |
7.2 |
% |
6.9 |
% |
| Common Equity Tier 1 |
10.7 |
% |
10.5 |
|
% |
10.2 |
|
% |
9.4 |
% |
9.1 |
% |
| Tier 1 capital |
12.2 |
% |
12.1 |
|
% |
12.2 |
|
% |
10.3 |
% |
9.9 |
% |
| Total capital |
14.9 |
% |
14.8 |
|
% |
14.0 |
|
% |
12.1 |
% |
11.8 |
% |
| Leverage |
9.0 |
% |
8.4 |
|
% |
8.3 |
|
% |
7.5 |
% |
7.6 |
% |
(1) Liquidity assets include federal funds sold and interest-bearing deposits in other banks.
(2) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(3) Non-interest expense divided by the sum of net interest income and non-interest income.
(4) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
|
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
| (dollars in thousands) |
|
September 30, 2021 |
September 30, 2020 |
%
Change |
| Assets |
|
|
|
| Cash and due from banks |
$ |
217,125 |
|
|
$ |
185,242 |
|
|
17 |
|
% |
| Interest-bearing deposits |
8,317,926 |
|
|
10,461,544 |
|
|
(20 |
) |
% |
| Securities, available-for-sale |
3,663,874 |
|
|
1,367,313 |
|
|
N/M |
|
|
| LHS ($8.4 million and $639.0 million at September 30, 2021 and 2020, respectively, at fair value) |
9,660 |
|
|
648,009 |
|
|
(99 |
) |
% |
| LHI, mortgage finance |
8,528,313 |
|
|
9,378,104 |
|
|
(9 |
) |
% |
| LHI (net of unearned income) |
15,221,404 |
|
|
15,789,958 |
|
|
(4 |
) |
% |
| Less: Allowance for credit losses on loans |
221,957 |
|
|
290,165 |
|
|
(24 |
) |
% |
| LHI, net |
23,527,760 |
|
|
24,877,897 |
|
|
(5 |
) |
% |
| Mortgage servicing rights, net |
1,158 |
|
|
95,323 |
|
|
(99 |
) |
% |
| Premises and equipment, net |
21,119 |
|
|
26,653 |
|
|
(21 |
) |
% |
| Accrued interest receivable and other assets |
628,335 |
|
|
753,123 |
|
|
(17 |
) |
% |
| Goodwill and intangibles, net |
17,363 |
|
|
17,768 |
|
|
(2 |
) |
% |
| Total assets |
$ |
36,404,320 |
|
|
$ |
38,432,872 |
|
|
(5 |
) |
% |
|
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
| Liabilities: |
|
|
|
| Deposits: |
|
|
|
| Non-interest bearing |
$ |
14,970,462 |
|
|
$ |
12,339,212 |
|
|
21 |
|
% |
| Interest bearing |
14,843,206 |
|
|
19,620,275 |
|
|
(24 |
) |
% |
| Total deposits |
29,813,668 |
|
|
31,959,487 |
|
|
(7 |
) |
% |
|
|
|
|
| Accrued interest payable |
8,920 |
|
|
14,674 |
|
|
(39 |
) |
% |
| Other liabilities |
302,448 |
|
|
354,318 |
|
|
(15 |
) |
% |
| Federal funds purchased and repurchase agreements |
3,470 |
|
|
208,183 |
|
|
(98 |
) |
% |
| Other borrowings |
2,200,000 |
|
|
2,700,000 |
|
|
(19 |
) |
% |
| Long-term debt |
928,062 |
|
|
395,806 |
|
|
134 |
|
% |
| Total liabilities |
33,256,568 |
|
|
35,632,468 |
|
|
(7 |
) |
% |
|
|
|
|
| Stockholders’ equity: |
|
|
|
| Preferred stock, $.01 par value, $1,000 liquidation value: |
|
|
|
| Authorized shares - 10,000,000 |
|
|
|
| Issued shares - 300,000 and 6,000,000 shares issued at September 30, 2021 and 2020, respectively |
300,000 |
|
|
150,000 |
|
|
100 |
|
% |
| Common stock, $.01 par value: |
|
|
|
| Authorized shares - 100,000,000 |
|
|
|
| Issued shares - 50,606,043 and 50,455,969 at September 30, 2021 and 2020, respectively |
506 |
|
|
504 |
|
|
— |
|
% |
| Additional paid-in capital |
1,000,509 |
|
|
987,754 |
|
|
1 |
|
% |
| Retained earnings |
1,887,457 |
|
|
1,655,317 |
|
|
14 |
|
% |
| Treasury stock (shares at cost: 417 at September 30, 2021 and 2020) |
(8 |
) |
|
(8 |
) |
|
— |
|
% |
| Accumulated other comprehensive income/(loss), net of taxes |
(40,712 |
) |
|
6,837 |
|
|
N/M |
|
|
| Total stockholders’ equity |
3,147,752 |
|
|
2,800,404 |
|
|
12 |
|
% |
| Total liabilities and stockholders’ equity |
$ |
36,404,320 |
|
|
$ |
38,432,872 |
|
|
(5 |
) |
% |
|
|
|
|
|
| TEXAS CAPITAL BANCSHARES, INC. |
|
|
|
|
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
| (dollars in thousands except per share data) |
|
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|
2021 |
2020 |
2021 |
2020 |
| Interest income |
|
|
|
|
| Interest and fees on loans |
$ |
206,307 |
|
|
$ |
237,179 |
|
$ |
632,510 |
|
|
$ |
768,399 |
|
| Investment securities |
10,235 |
|
|
3,674 |
|
31,040 |
|
|
7,881 |
|
| Federal funds sold and securities purchased under resale agreements |
— |
|
|
1 |
|
1 |
|
|
692 |
|
| Interest-bearing deposits in other banks |
3,606 |
|
|
2,877 |
|
9,499 |
|
|
24,777 |
|
| Total interest income |
220,148 |
|
|
243,731 |
|
673,050 |
|
|
801,749 |
|
| Interest expense |
|
|
|
|
| Deposits |
14,719 |
|
|
27,830 |
|
50,994 |
|
|
122,298 |
|
| Federal funds purchased |
5 |
|
|
128 |
|
131 |
|
|
973 |
|
| Other borrowings |
743 |
|
|
3,365 |
|
3,711 |
|
|
17,516 |
|
| Long-term debt |
10,586 |
|
|
4,839 |
|
27,052 |
|
|
15,146 |
|
| Total interest expense |
26,053 |
|
|
36,162 |
|
81,888 |
|
|
155,933 |
|
| Net interest income |
194,095 |
|
|
207,569 |
|
591,162 |
|
|
645,816 |
|
| Provision for credit losses |
5,000 |
|
|
30,000 |
|
(20,000 |
) |
|
226,000 |
|
| Net interest income after provision for credit losses |
189,095 |
|
|
177,569 |
|
611,162 |
|
|
419,816 |
|
| Non-interest income |
|
|
|
|
| Service charges on deposit accounts |
4,622 |
|
|
2,864 |
|
13,972 |
|
|
8,616 |
|
| Wealth management and trust fee income |
3,382 |
|
|
2,502 |
|
9,380 |
|
|
7,317 |
|
| Brokered loan fees |
6,032 |
|
|
15,034 |
|
22,276 |
|
|
33,813 |
|
| Servicing income |
292 |
|
|
7,329 |
|
15,236 |
|
|
18,195 |
|
| Swap fees |
568 |
|
|
484 |
|
1,628 |
|
|
4,709 |
|
| Net gain/(loss) on sale of LHS |
(1,185 |
) |
|
25,242 |
|
1,317 |
|
|
51,265 |
|
| Other |
7,509 |
|
|
6,893 |
|
26,605 |
|
|
18,698 |
|
| Total non-interest income |
21,220 |
|
|
60,348 |
|
90,414 |
|
|
142,613 |
|
| Non-interest expense |
|
|
|
|
| Salaries and employee benefits |
87,503 |
|
|
84,096 |
|
261,855 |
|
|
262,080 |
|
| Net occupancy expense |
8,324 |
|
|
8,736 |
|
24,463 |
|
|
26,582 |
|
| Marketing |
2,123 |
|
|
3,636 |
|
5,720 |
|
|
20,146 |
|
| Legal and professional |
11,055 |
|
|
11,207 |
|
28,479 |
|
|
40,003 |
|
| Communications and technology |
28,374 |
|
|
31,098 |
|
58,695 |
|
|
87,649 |
|
| FDIC insurance assessment |
4,500 |
|
|
6,374 |
|
16,339 |
|
|
19,363 |
|
| Servicing-related expenses |
2,396 |
|
|
12,287 |
|
27,740 |
|
|
48,741 |
|
| Merger-related expenses |
— |
|
|
— |
|
— |
|
|
17,756 |
|
| Other |
8,712 |
|
|
8,307 |
|
29,072 |
|
|
31,173 |
|
| Total non-interest expense |
152,987 |
|
|
165,741 |
|
452,363 |
|
|
553,493 |
|
| Income before income taxes |
57,328 |
|
|
72,176 |
|
249,213 |
|
|
8,936 |
|
| Income tax expense |
13,938 |
|
|
15,060 |
|
60,404 |
|
|
2,823 |
|
| Net income |
43,390 |
|
|
57,116 |
|
188,809 |
|
|
6,113 |
|
| Preferred stock dividends |
4,312 |
|
|
2,438 |
|
14,408 |
|
|
7,313 |
|
| Net income/(loss) available to common stockholders |
$ |
39,078 |
|
|
$ |
54,678 |
|
$ |
174,401 |
|
|
$ |
(1,200 |
) |
|
|
|
|
|
| Basic earnings/(loss) per common share |
$ |
0.77 |
|
|
$ |
1.08 |
|
$ |
3.45 |
|
|
$ |
(0.02 |
) |
| Diluted earnings/(loss) per common share |
$ |
0.76 |
|
|
$ |
1.08 |
|
$ |
3.41 |
|
|
$ |
(0.02 |
) |
|
| TEXAS CAPITAL BANCSHARES, INC. |
| SUMMARY OF CREDIT LOSS EXPERIENCE |
| (dollars in thousands) |
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
2021 |
2021 |
2021 |
2020 |
2020 |
| Allowance for credit losses on loans: |
|
|
|
|
|
| Beginning balance |
$ |
221,511 |
|
$ |
242,484 |
|
|
$ |
254,615 |
|
|
$ |
290,165 |
|
$ |
264,722 |
|
| Loans charged-off: |
|
|
|
|
|
| Commercial |
4,348 |
|
1,412 |
|
|
2,451 |
|
|
37,984 |
|
2,436 |
|
| Energy |
— |
|
686 |
|
|
5,732 |
|
|
33,283 |
|
141 |
|
| Real estate |
— |
|
1,192 |
|
|
— |
|
|
180 |
|
— |
|
| Total charge-offs |
4,348 |
|
3,290 |
|
|
8,183 |
|
|
71,447 |
|
2,577 |
|
| Recoveries: |
|
|
|
|
|
| Commercial |
1,104 |
|
308 |
|
|
1,050 |
|
|
394 |
|
113 |
|
| Energy |
42 |
|
609 |
|
|
715 |
|
|
5,696 |
|
880 |
|
| Real estate |
112 |
|
— |
|
|
— |
|
|
— |
|
— |
|
| Total recoveries |
1,258 |
|
917 |
|
|
1,765 |
|
|
6,090 |
|
993 |
|
| Net charge-offs |
3,090 |
|
2,373 |
|
|
6,418 |
|
|
65,357 |
|
1,584 |
|
| Provision for credit losses on loans |
3,536 |
|
(18,600 |
) |
|
(5,713 |
) |
|
29,807 |
|
27,027 |
|
| Ending balance |
$ |
221,957 |
|
$ |
221,511 |
|
|
$ |
242,484 |
|
|
$ |
254,615 |
|
$ |
290,165 |
|
|
|
|
|
|
|
| Allowance for off-balance sheet credit losses: |
|
|
|
|
|
| Beginning balance |
$ |
16,747 |
|
$ |
17,147 |
|
|
$ |
17,434 |
|
|
$ |
15,241 |
|
$ |
12,268 |
|
| Provision for off-balance sheet credit losses |
1,464 |
|
(400 |
) |
|
(287 |
) |
|
2,193 |
|
2,973 |
|
| Ending balance |
$ |
18,211 |
|
$ |
16,747 |
|
|
$ |
17,147 |
|
|
$ |
17,434 |
|
$ |
15,241 |
|
|
|
|
|
|
|
| Total allowance for credit losses |
$ |
240,168 |
|
$ |
238,258 |
|
|
$ |
259,631 |
|
|
$ |
272,049 |
|
$ |
305,406 |
|
|
|
|
|
|
|
| Total provision for credit losses |
$ |
5,000 |
|
$ |
(19,000 |
) |
|
$ |
(6,000 |
) |
|
$ |
32,000 |
|
$ |
30,000 |
|
|
|
|
|
|
|
| Allowance for credit losses on loans to LHI |
0.93 |
% |
0.93 |
|
% |
0.99 |
|
% |
1.04 |
% |
1.15 |
% |
| Allowance for credit losses on loans to average LHI |
0.95 |
% |
0.98 |
|
% |
1.03 |
|
% |
1.01 |
% |
1.14 |
% |
| Net charge-offs to average LHI(1) |
0.05 |
% |
0.04 |
|
% |
0.11 |
|
% |
1.03 |
% |
0.02 |
% |
| Net charge-offs to average LHI for last twelve months(1) |
0.33 |
% |
0.31 |
|
% |
0.59 |
|
% |
0.80 |
% |
0.59 |
% |
| Total provision for credit losses to average LHI(1) |
0.09 |
% |
(0.34 |
) |
% |
(0.10 |
) |
% |
0.51 |
% |
0.47 |
% |
| Total allowance for credit losses to LHI |
1.01 |
% |
1.00 |
|
% |
1.06 |
|
% |
1.11 |
% |
1.21 |
% |
(1) Interim period ratios are annualized.
|
|
|
|
|
|
| TEXAS CAPITAL BANCSHARES, INC. |
|
|
|
|
|
| SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS |
|
|
|
| (dollars in thousands) |
|
|
|
|
|
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
2021 |
2021 |
2021 |
2020 |
2020 |
|
|
|
|
|
|
| Non-performing assets (NPAs): |
|
|
|
|
|
| Non-accrual loans |
$ |
87,532 |
|
$ |
86,636 |
|
$ |
97,730 |
|
$ |
121,989 |
|
$ |
161,946 |
|
| Other real estate owned (OREO) |
— |
|
— |
|
— |
|
— |
|
— |
|
| Total LHI NPAs |
$ |
87,532 |
|
$ |
86,636 |
|
$ |
97,730 |
|
$ |
121,989 |
|
$ |
161,946 |
|
|
|
|
|
|
|
| Non-accrual loans to LHI |
0.37 |
% |
0.36 |
% |
0.40 |
% |
0.50 |
% |
0.64 |
% |
| Total LHI NPAs to LHI plus OREO |
0.37 |
% |
0.36 |
% |
0.40 |
% |
0.50 |
% |
0.64 |
% |
| Total LHI NPAs to earning assets |
0.25 |
% |
0.25 |
% |
0.25 |
% |
0.33 |
% |
0.43 |
% |
| Allowance for credit losses on loans to non-accrual loans |
2.5x |
|
2.6x |
|
2.5x |
|
2.1x |
|
1.8x |
|
|
|
|
|
|
|
| LHI past due 90 days and still accruing(1) |
$ |
3,405 |
|
$ |
7,671 |
|
$ |
6,187 |
|
$ |
12,541 |
|
$ |
15,896 |
|
| LHI past due 90 days to LHI |
0.01 |
% |
0.03 |
% |
0.03 |
% |
0.05 |
% |
0.06 |
% |
| LHS non-accrual(2) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
6,966 |
|
$ |
— |
|
| LHS past due 90 days and still accruing(3) |
$ |
3,808 |
|
$ |
2,695 |
|
$ |
16,359 |
|
$ |
16,667 |
|
$ |
15,631 |
|
| (1) |
At September 30, 2021, loans past due 90 days and still accruing included premium finance loans of $2.3 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
|
| (2) |
Includes one non-accrual loan previously reported in loans HFI that was transferred to loans HFS as of December 31, 2020 and subsequently sold at carrying value. |
| (3) |
Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as LHS and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. The first quarter of 2021 and fourth and third quarters of 2020 also include loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not obligation, to repurchase and thus must record as LHS on our balance sheet regardless of whether the repurchase option has been exercised. |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| (dollars in thousands) |
|
|
|
|
|
|
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
2021 |
2021 |
2021 |
2020 |
2020 |
| Interest income |
|
|
|
|
|
| Interest and fees on loans |
$ |
206,307 |
|
|
$ |
210,611 |
|
|
$ |
215,592 |
|
|
$ |
242,776 |
|
$ |
237,179 |
| Investment securities |
10,235 |
|
|
10,918 |
|
|
9,887 |
|
|
9,594 |
|
3,674 |
| Federal funds sold and securities purchased under resale agreements |
— |
|
|
— |
|
|
1 |
|
|
1 |
|
1 |
| Interest-bearing deposits in other banks |
3,606 |
|
|
2,961 |
|
|
2,932 |
|
|
2,792 |
|
2,877 |
| Total interest income |
220,148 |
|
|
224,490 |
|
|
228,412 |
|
|
255,163 |
|
243,731 |
| Interest expense |
|
|
|
|
|
| Deposits |
14,719 |
|
|
16,271 |
|
|
20,004 |
|
|
23,819 |
|
27,830 |
| Federal funds purchased |
5 |
|
|
51 |
|
|
75 |
|
|
110 |
|
128 |
| Other borrowings |
743 |
|
|
451 |
|
|
2,517 |
|
|
3,407 |
|
3,365 |
| Long-term debt |
10,586 |
|
|
10,723 |
|
|
5,743 |
|
|
4,817 |
|
4,839 |
| Total interest expense |
26,053 |
|
|
27,496 |
|
|
28,339 |
|
|
32,153 |
|
36,162 |
| Net interest income |
194,095 |
|
|
196,994 |
|
|
200,073 |
|
|
223,010 |
|
207,569 |
| Provision for credit losses |
5,000 |
|
|
(19,000 |
) |
|
(6,000 |
) |
|
32,000 |
|
30,000 |
| Net interest income after provision for credit losses |
189,095 |
|
|
215,994 |
|
|
206,073 |
|
|
191,010 |
|
177,569 |
| Non-interest income |
|
|
|
|
|
| Service charges on deposit accounts |
4,622 |
|
|
4,634 |
|
|
4,716 |
|
|
3,004 |
|
2,864 |
| Wealth management and trust fee income |
3,382 |
|
|
3,143 |
|
|
2,855 |
|
|
2,681 |
|
2,502 |
| Brokered loan fees |
6,032 |
|
|
6,933 |
|
|
9,311 |
|
|
12,610 |
|
15,034 |
| Servicing income |
292 |
|
|
5,935 |
|
|
9,009 |
|
|
8,834 |
|
7,329 |
| Swap fees |
568 |
|
|
534 |
|
|
526 |
|
|
473 |
|
484 |
| Net gain/(loss) on sale of LHS |
(1,185 |
) |
|
(3,070 |
) |
|
5,572 |
|
|
6,761 |
|
25,242 |
| Other |
7,509 |
|
|
11,993 |
|
|
7,103 |
|
|
8,500 |
|
6,893 |
| Total non-interest income |
21,220 |
|
|
30,102 |
|
|
39,092 |
|
|
42,863 |
|
60,348 |
| Non-interest expense |
|
|
|
|
|
| Salaries and employee benefits |
87,503 |
|
|
86,830 |
|
|
87,522 |
|
|
78,449 |
|
84,096 |
| Net occupancy expense |
8,324 |
|
|
7,865 |
|
|
8,274 |
|
|
8,373 |
|
8,736 |
| Marketing |
2,123 |
|
|
1,900 |
|
|
1,697 |
|
|
3,435 |
|
3,636 |
| Legal and professional |
11,055 |
|
|
9,147 |
|
|
8,277 |
|
|
12,129 |
|
11,207 |
| Communications and technology |
28,374 |
|
|
14,352 |
|
|
15,969 |
|
|
15,405 |
|
31,098 |
| FDIC insurance assessment |
4,500 |
|
|
5,226 |
|
|
6,613 |
|
|
6,592 |
|
6,374 |
| Servicing-related expenses |
2,396 |
|
|
12,355 |
|
|
12,989 |
|
|
15,844 |
|
12,287 |
| Other |
8,712 |
|
|
11,385 |
|
|
8,975 |
|
|
10,636 |
|
8,307 |
| Total non-interest expense |
152,987 |
|
|
149,060 |
|
|
150,316 |
|
|
150,863 |
|
165,741 |
| Income before income taxes |
57,328 |
|
|
97,036 |
|
|
94,849 |
|
|
83,010 |
|
72,176 |
| Income tax expense |
13,938 |
|
|
23,555 |
|
|
22,911 |
|
|
22,834 |
|
15,060 |
| Net income |
43,390 |
|
|
73,481 |
|
|
71,938 |
|
|
60,176 |
|
57,116 |
| Preferred stock dividends |
4,312 |
|
|
6,317 |
|
|
3,779 |
|
|
2,437 |
|
2,438 |
| Net income available to common shareholders |
$ |
39,078 |
|
|
$ |
67,164 |
|
|
$ |
68,159 |
|
|
$ |
57,739 |
|
$ |
54,678 |
| TEXAS CAPITAL BANCSHARES, INC. |
| QUARTERLY FINANCIAL SUMMARY - UNAUDITED |
| Consolidated Daily Average Balances, Average Yields and Rates |
| (dollars in thousands) |
|
3rd Quarter 2021 |
|
2nd Quarter 2021 |
|
1st Quarter 2021 |
|
4th Quarter 2020 |
|
3rd Quarter 2020 |
|
Average
Balance |
Revenue/
Expense |
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense |
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense |
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense |
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense |
Yield/
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities - taxable |
$ |
3,590,591 |
|
$ |
8,546 |
|
0.94 |
% |
|
$ |
3,361,696 |
|
$ |
9,222 |
|
1.10 |
% |
|
$ |
3,225,786 |
|
$ |
8,112 |
|
1.02 |
% |
|
$ |
2,137,481 |
|
$ |
7,748 |
|
1.44 |
% |
|
$ |
525,149 |
|
$ |
1,905 |
|
1.44 |
% |
| Investment securities - non-taxable(2) |
185,221 |
|
2,138 |
|
4.58 |
% |
|
181,574 |
|
2,147 |
|
4.74 |
% |
|
196,785 |
|
2,247 |
|
4.63 |
% |
|
200,781 |
|
2,337 |
|
4.63 |
% |
|
190,797 |
|
2,239 |
|
4.67 |
% |
| Federal funds sold and securities purchased under resale agreements |
653 |
|
— |
|
0.12 |
% |
|
713 |
|
— |
|
0.18 |
% |
|
4,605 |
|
1 |
|
0.07 |
% |
|
1,709 |
|
1 |
|
0.13 |
% |
|
12,051 |
|
1 |
|
0.04 |
% |
| Interest-bearing deposits in other banks |
9,045,442 |
|
3,606 |
|
0.16 |
% |
|
11,583,046 |
|
2,961 |
|
0.10 |
% |
|
11,840,942 |
|
2,932 |
|
0.10 |
% |
|
10,808,548 |
|
2,792 |
|
0.10 |
% |
|
11,028,962 |
|
2,877 |
|
0.10 |
% |
| LHS, at fair value |
18,791 |
|
54 |
|
1.14 |
% |
|
93,164 |
|
781 |
|
3.36 |
% |
|
243,326 |
|
1,595 |
|
2.66 |
% |
|
410,637 |
|
2,475 |
|
2.40 |
% |
|
543,606 |
|
3,867 |
|
2.83 |
% |
| LHI, mortgage finance loans |
7,987,521 |
|
58,913 |
|
2.93 |
% |
|
7,462,223 |
|
57,401 |
|
3.09 |
% |
|
8,177,759 |
|
64,942 |
|
3.22 |
% |
|
9,550,119 |
|
78,906 |
|
3.29 |
% |
|
9,061,984 |
|
76,464 |
|
3.36 |
% |
| LHI(1)(2) |
15,266,167 |
|
147,423 |
|
3.83 |
% |
|
15,242,975 |
|
152,515 |
|
4.01 |
% |
|
15,457,888 |
|
149,196 |
|
3.91 |
% |
|
15,620,410 |
|
161,750 |
|
4.12 |
% |
|
16,286,036 |
|
157,230 |
|
3.84 |
% |
Less allowance for credit
losses on loans |
220,984 |
|
— |
|
— |
|
|
241,676 |
|
— |
|
— |
|
|
254,697 |
|
— |
|
— |
|
|
290,189 |
|
— |
|
— |
|
|
264,769 |
|
— |
|
— |
|
| LHI, net of allowance |
23,032,704 |
|
206,336 |
|
3.55 |
% |
|
22,463,522 |
|
209,916 |
|
3.75 |
% |
|
23,380,950 |
|
214,138 |
|
3.71 |
% |
|
24,880,340 |
|
240,656 |
|
3.85 |
% |
|
25,083,251 |
|
233,694 |
|
3.71 |
% |
| Total earning assets |
35,873,402 |
|
220,680 |
|
2.44 |
% |
|
37,683,715 |
|
225,027 |
|
2.40 |
% |
|
38,892,394 |
|
229,025 |
|
2.39 |
% |
|
38,439,496 |
|
256,009 |
|
2.65 |
% |
|
37,383,816 |
|
244,583 |
|
2.60 |
% |
| Cash and other assets |
855,555 |
|
|
|
|
996,946 |
|
|
|
|
1,064,679 |
|
|
|
|
1,031,195 |
|
|
|
|
1,037,760 |
|
|
|
| Total assets |
$ |
36,728,957 |
|
|
|
|
$ |
38,680,661 |
|
|
|
|
$ |
39,957,073 |
|
|
|
|
$ |
39,470,691 |
|
|
|
|
$ |
38,421,576 |
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transaction deposits |
$ |
3,012,547 |
|
$ |
4,737 |
|
0.62 |
% |
|
$ |
3,795,152 |
|
$ |
5,395 |
|
0.57 |
% |
|
$ |
3,991,966 |
|
$ |
5,861 |
|
0.60 |
% |
|
$ |
4,384,493 |
|
$ |
6,604 |
|
0.60 |
% |
|
$ |
4,275,574 |
|
$ |
6,652 |
|
0.62 |
% |
| Savings deposits |
10,044,995 |
|
8,262 |
|
0.33 |
% |
|
11,296,382 |
|
8,990 |
|
0.32 |
% |
|
12,889,974 |
|
10,788 |
|
0.34 |
% |
|
12,982,189 |
|
12,671 |
|
0.39 |
% |
|
12,786,719 |
|
12,808 |
|
0.40 |
% |
| Time deposits |
1,640,562 |
|
1,720 |
|
0.42 |
% |
|
1,755,993 |
|
1,886 |
|
0.43 |
% |
|
2,204,242 |
|
3,355 |
|
0.62 |
% |
|
2,355,199 |
|
4,544 |
|
0.77 |
% |
|
2,844,083 |
|
8,370 |
|
1.17 |
% |
| Total interest bearing deposits |
14,698,104 |
|
14,719 |
|
0.40 |
% |
|
16,847,527 |
|
16,271 |
|
0.39 |
% |
|
19,086,182 |
|
20,004 |
|
0.43 |
% |
|
19,721,881 |
|
23,819 |
|
0.48 |
% |
|
19,906,376 |
|
27,830 |
|
0.56 |
% |
| Other borrowings |
2,299,692 |
|
748 |
|
0.13 |
% |
|
2,349,718 |
|
502 |
|
0.09 |
% |
|
2,686,398 |
|
2,592 |
|
0.39 |
% |
|
3,022,077 |
|
3,517 |
|
0.46 |
% |
|
2,811,435 |
|
3,493 |
|
0.49 |
% |
| Long-term debt |
927,626 |
|
10,586 |
|
4.53 |
% |
|
881,309 |
|
10,723 |
|
4.88 |
% |
|
464,731 |
|
5,743 |
|
5.01 |
% |
|
395,841 |
|
4,817 |
|
4.84 |
% |
|
395,749 |
|
4,839 |
|
4.87 |
% |
| Total interest bearing liabilities |
17,925,422 |
|
26,053 |
|
0.58 |
% |
|
20,078,554 |
|
27,496 |
|
0.55 |
% |
|
22,237,311 |
|
28,339 |
|
0.52 |
% |
|
23,139,799 |
|
32,153 |
|
0.55 |
% |
|
23,113,560 |
|
36,162 |
|
0.62 |
% |
| Demand deposits |
15,363,568 |
|
|
|
|
15,139,546 |
|
|
|
|
14,421,505 |
|
|
|
|
13,174,114 |
|
|
|
|
12,202,065 |
|
|
|
| Other liabilities |
275,317 |
|
|
|
|
274,401 |
|
|
|
|
309,644 |
|
|
|
|
303,480 |
|
|
|
|
314,500 |
|
|
|
| Stockholders’ equity |
3,164,650 |
|
|
|
|
3,188,160 |
|
|
|
|
2,988,613 |
|
|
|
|
2,853,298 |
|
|
|
|
2,791,451 |
|
|
|
| Total liabilities and stockholders’ equity |
$ |
36,728,957 |
|
|
|
|
$ |
38,680,661 |
|
|
|
|
$ |
39,957,073 |
|
|
|
|
$ |
39,470,691 |
|
|
|
|
$ |
38,421,576 |
|
|
|
| Net interest income(2) |
|
$ |
194,627 |
|
|
|
|
$ |
197,531 |
|
|
|
|
$ |
200,686 |
|
|
|
|
$ |
223,856 |
|
|
|
|
$ |
208,421 |
|
|
| Net interest margin |
|
|
2.15 |
% |
|
|
|
2.10 |
% |
|
|
|
2.09 |
% |
|
|
|
2.32 |
% |
|
|
|
2.22 |
% |
(1) The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.
(2) Taxable equivalent rates used where applicable.
INVESTOR CONTACT Jamie Britton, 214.932.6721 jamie.britton@texascapitalbank.com MEDIA CONTACT Shannon Wherry, 469.399.8527 shannon.wherry@texascapitalbank.com
