ﾃｷｻｽｷｬﾋﾟﾀﾙﾊﾞﾝｸｼｪｱｰｽﾞの適時開示・決算・その他・総会結果

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 13, 2024

TEXAS CAPITAL BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


Delaware	001-34657	75-2679109
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A.

(Address of principal executive offices)

75201

(Zip Code)

Registrant’s telephone number, including area code: (214) 932-6600

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

TCBI

Nasdaq Stock Market

5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share

TCBIO

Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On April 18, 2024, Texas Capital Bancshares, Inc. (the “Company”) issued a press release and made available presentation slides regarding its operating and financial results for its fiscal quarter ended March 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.

The information in Item 2.02 of this report (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such a filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On April 13, 2024, Tim J. Storms, Managing Director and Chief Risk Officer of the Company and Texas Capital Bank, informed the Company that he plans to retire on or around June 15, 2024. The Company intends to conduct a search to fill the role of Chief Risk Officer. Following his retirement, it is expected that Mr. Storms will provide certain consulting and advisory services to the Company and Texas Capital Bank to ensure a smooth and orderly transition of his responsibilities.

Item 5.07. Submission of Matters to a Vote of Security Holders.

On April 16, 2024, the Company held its Annual Meeting. The matters voted on at the Annual Meeting and final voting results are summarized below.

Proposal 1 - A Company proposal to elect twelve directors each to serve until the next annual meeting of stockholders or until their successors are elected and qualified:


	Number of Shares
Nominee	Voted For	Votes Withheld	Broker Non-Votes
Paola M. Arbour	41,258,109	744,114	1,719,406
Jonathan E. Baliff	41,607,296	394,927	1,719,406
James H. Browning	40,664,844	1,321,332	1,735,453
Rob C. Holmes	41,227,661	758,515	1,735,453
David S. Huntley	41,273,495	728,728	1,719,406
Charles S. Hyle	41,493,111	509,112	1,719,406
Thomas E. Long	38,169,298	3,816,878	1,735,453
Elysia Holt Ragusa	39,940,311	2,045,865	1,735,453
Steven P. Rosenberg	40,622,983	1,363,193	1,735,453
Robert W. Stallings	40,887,808	1,098,368	1,735,453
Dale W. Tremblay	37,694,276	4,291,900	1,735,453
Laura L. Whitley	41,634,920	367,303	1,719,406

Each of the twelve director nominees was elected to serve until the next annual meeting of stockholders or until their successors are elected and qualified.

Proposal 2 - A Company proposal to ratify the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2024:


Number of Shares
Voted For	Voted Against	Abstentions	Broker Non-Votes
43,240,252	465,110	16,267	—

The appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2024 was ratified.

Proposal 3 - A Company proposal to approve, on an advisory basis, the 2023 compensation of the Company's named executive officers as disclosed in the Proxy Statement:


Number of Shares
Voted For	Voted Against	Abstentions	Broker Non-Votes
34,692,257	7,267,144	42,822	1,719,406

The 2023 compensation of the Company’s named executive officers was approved on an advisory basis.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release, dated April 18, 2024 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended March 31, 202 4

99.2 Presentation dated April 18, 2024 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 202 4

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:

April 18, 2024

TEXAS CAPITAL BANCSHARES, INC.

By:

/s/ J. Matthew Scurlock

J. Matthew Scurlock
Chief Financial Officer

EX-99.1 2 a4182024exhibit991.htm EX-99.1 EARNINGS RELEASE Document

Exhibit 99.1


						INVESTOR CONTACT
						Jocelyn Kukulka, 469.399.8544
						jocelyn.kukulka@texascapitalbank.com

						MEDIA CONTACT
						Julia Monter, 469.399.8425
						julia.monter@texascapitalbank.com

TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS

First quarter 2024 net income of $26.1 million and net income available to common

stockholders of $21.8 million, or $0.46 per diluted share

First quarter 2024 growth in loans held for investment of 2.4% and in total deposits of 7.1%

Capital ratios continue to be strong, including 12.4% CET1 and 16.6% Total Capital

DALLAS - April 18, 2024 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2024.

Net income available to common stockholders was $21.8 million, or $0.46 per diluted share, for the first quarter of 2024, compared to $15.8 million, or $0.33 per diluted share, for the fourth quarter of 2023 and $34.3 million, or $0.70 per diluted share, for the first quarter of 2023. The first quarter of 2024 included a $5.0 million ($0.08 per diluted share) legal settlement expense, Federal Deposit Insurance Corporation (“FDIC”) special assessment expense of $3.0 million ($0.05 per diluted share) and $2.0 million ($0.03 per diluted share) of restructuring expenses.

“We continue to leverage our unique balance sheet positioning and maturing product capabilities to build an enduring and valuable franchise,” said Rob C. Holmes, President and CEO. “Quality quarterly growth in areas of focus coupled with strong firm-wide pipelines signal emerging momentum moving into the second quarter.”


FINANCIAL RESULTS
(dollars and shares in thousands)
	1st Quarter			4th Quarter			1st Quarter
	2024			2023			2023
OPERATING RESULTS
Net income	$	26,142		$	20,150		$	38,661
Net income available to common stockholders	$	21,829		$	15,838		$	34,348
Diluted earnings per common share	$	0.46		$	0.33		$	0.70
Diluted common shares	47,711			48,098			48,881
Return on average assets	0.36		%	0.27		%	0.53		%
Return on average common equity	3.03		%	2.25		%	5.06		%

BALANCE SHEET
Loans held for investment	$	16,677,691		$	16,362,230		$	16,014,497
Loans held for investment, mortgage finance	4,153,313			3,978,328			4,060,570
Total loans held for investment	20,831,004			20,340,558			20,075,067
Loans held for sale	37,750			44,105			27,608
Total assets	29,180,585			28,356,266			28,596,653
Non-interest bearing deposits	8,478,215			7,328,276			9,500,583
Total deposits	23,954,037			22,371,839			22,179,697
Stockholders’ equity	3,170,662			3,199,142			3,079,974

FIRST QUARTER 2024 COMPARED TO FOURTH QUARTER 2023

For the first quarter of 2024, net income available to common stockholders was $21.8 million, or $0.46 per diluted share, compared to $15.8 million, or $0.33 per diluted share, for the fourth quarter of 2023.

Provision for credit losses for the first quarter of 2024 was $19.0 million, compared to $19.0 million for the fourth quarter of 2023. The $19.0 million provision for credit losses recorded in the first quarter of 2024 resulted primarily from increases in criticized and non-accrual loans, growth in loans held for investment (“LHI”) and $10.8 million in net charge-offs.

Net interest income was $215.0 million for the first quarter of 2024, compared to $214.7 million for the fourth quarter of 2023, as an increase in yields on earning assets was offset by a decrease in average earning assets. Net interest margin for the first quarter of 2024 was 3.03%, an increase of 10 basis points from the fourth quarter of 2023. LHI, excluding mortgage finance, yields increased 12 basis points from the fourth quarter of 2023 and LHI, mortgage finance yields increased 21 basis points from the fourth quarter of 2023. Total cost of deposits was 2.97% for the first quarter of 2024, a 15 basis point increase from the fourth quarter of 2023.

Non-interest income for the first quarter of 2024 increased $10.2 million, or 33%, compared to the fourth quarter of 2023, primarily due to an increase in investment banking and advisory fees, partially offset by a decrease in other non-interest income.

Non-interest expense for the first quarter of 2024 increased $1.0 million, or 1%, compared to the fourth quarter of 2023, primarily due to an increase in salaries and benefits, primarily as a result of the effect of seasonal payroll expenses that peak in the first quarter and $2.0 million of restructuring expenses, partially offset by decreases in legal and professional expense, communications and technology expense and FDIC insurance assessment. The fourth quarter of 2023 included $19.9 million in FDIC special assessment expense and the first quarter of 2024 included an additional special assessment expense of $3.0 million. Legal and professional expense in the first quarter of 2024 included a $5.0 million legal settlement expense, which was more than offset by declines in professional services.

FIRST QUARTER 2024 COMPARED TO FIRST QUARTER 2023

Net income available to common stockholders was $21.8 million, or $0.46 per diluted share, for the first quarter of 2024, compared to $34.3 million, or $0.70 per diluted share, for the first quarter of 2023.

The first quarter of 2024 included a $19.0 million provision for credit losses, reflecting increases in criticized and non-accrual loans, growth in LHI and $10.8 million in net charge-offs, compared to a $28.0 million provision for the first quarter of 2023.

Net interest income decreased to $215.0 million for the first quarter of 2024, compared to $235.3 million for the first quarter of 2023, primarily due to an increase in funding costs, partially offset by an increase in yields on average earning assets. Net interest margin decreased 30 basis points to 3.03% for the first quarter of 2024, as compared to the first quarter of 2023. LHI, excluding mortgage finance, yields increased 52 basis points compared to the first quarter of 2023 and LHI, mortgage finance yields decreased 102 basis points from the first quarter of 2023. Total cost of deposits increased 91 basis points compared to the first quarter of 2023.

Non-interest income for the first quarter of 2024 increased $3.9 million, or 10%, compared to the first quarter of 2023. The increase was primarily due to an increase in investment banking and advisory fees.

Non-interest expense for the first quarter of 2024 increased $8.4 million, or 4%, compared to the first quarter of 2023, primarily due to increases in legal and professional expense, communications and technology expense and FDIC insurance assessment resulting from an additional $3.0 million FDIC special assessment recorded in the first quarter of 2024, partially offset by a decrease in marketing expense. The increase in legal and professional expense in the first quarter of 2024 resulted from a $5.0 million legal settlement expense, partially offset by declines in professional services.

CREDIT QUALITY

Net charge-offs of $10.8 million were recorded during the first quarter of 2024, compared to net charge-offs of $13.8 million and $19.9 million during the fourth quarter of 2023 and the first quarter of 2023, respectively. Criticized loans totaled $859.5 million at March 31, 2024, compared to $738.2 million at December 31, 2023 and $561.1 million at March 31, 2023. Non-accrual LHI totaled $92.8 million at March 31, 2024, compared to $81.4 million at December 31, 2023 and $94.0 million at March 31, 2023. The ratio of non-accrual LHI to total LHI for the first quarter of 2024 was 0.45%, compared to 0.40% for the fourth quarter of 2023 and 0.47% for the first quarter of 2023. The ratio of total allowance for credit losses to total LHI was 1.46% at March 31, 2024, compared to 1.46% and 1.41% at September 30, 2023 and March 31, 2023, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of March 31, 2024. Our CET1, tier 1 capital, total capital and leverage ratios were 12.4%, 13.9%, 16.6% and 12.4%, respectively, at March 31, 2024, compared to 12.6%, 14.2%, 17.1% and 12.2%, respectively, at December 31, 2023 and 12.4%, 14.0%, 16.9% and 12.0%, respectively, at March 31, 2023. At March 31, 2024, our ratio of tangible common equity to total tangible assets was 9.8%, compared to 10.2% at December 31, 2023 and 9.7% at March 31, 2023.

During the first quarter of 2024, the Company repurchased 529,338 shares of its common stock for an aggregate purchase price, including excise tax expense, of $31.5 million, at a weighted average price of $59.27 per share.

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 holding company of Texas Capital, a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the firm is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.

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, 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,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

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. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. 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)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2024			2023			2023			2023			2023
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	417,378		$	417,072		$	425,769		$	401,916		$	385,166
Interest expense	202,369			202,355			193,698			169,926			149,821
Net interest income	215,009			214,717			232,071			231,990			235,345
Provision for credit losses	19,000			19,000			18,000			7,000			28,000
Net interest income after provision for credit losses	196,009			195,717			214,071			224,990			207,345
Non-interest income	41,319			31,133			46,872			46,011			37,403
Non-interest expense	202,393			201,385			179,891			181,644			194,027
Income before income taxes	34,935			25,465			81,052			89,357			50,721
Income tax expense	8,793			5,315			19,373			20,706			12,060
Net income	26,142			20,150			61,679			68,651			38,661
Preferred stock dividends	4,313			4,312			4,313			4,312			4,313
Net income available to common stockholders	$	21,829		$	15,838		$	57,366		$	64,339		$	34,348
Diluted earnings per common share	$	0.46		$	0.33		$	1.18		$	1.33		$	0.70
Diluted common shares	47,711,192			48,097,517			48,528,698			48,421,276			48,880,725

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	29,180,585		$	28,356,266		$	29,628,249		$	28,976,544		$	28,596,653
Loans held for investment	16,677,691			16,362,230			16,183,882			16,227,203			16,014,497
Loans held for investment, mortgage finance	4,153,313			3,978,328			4,429,489			5,098,812			4,060,570
Loans held for sale	37,750			44,105			155,073			29,097			27,608
Interest bearing cash and cash equivalents	3,148,157			3,042,357			3,975,860			2,587,131			3,385,494
Investment securities	4,414,280			4,143,194			4,069,717			4,226,653			4,345,969
Non-interest bearing deposits	8,478,215			7,328,276			9,352,883			9,429,352			9,500,583
Total deposits	23,954,037			22,371,839			23,878,978			23,318,240			22,179,697
Short-term borrowings	750,000			1,500,000			1,400,000			1,350,000			2,100,000
Long-term debt	859,823			859,147			858,471			857,795			932,119
Stockholders’ equity	3,170,662			3,199,142			3,077,700			3,081,927			3,079,974

End of period shares outstanding	46,986,275			47,237,912			48,015,003			47,992,521			47,851,862
Book value per share	$	61.10		$	61.37		$	57.85		$	57.97		$	58.10
Tangible book value per share(1)	$	61.06		$	61.34		$	57.82		$	57.93		$	58.06

SELECTED FINANCIAL RATIOS
Net interest margin	3.03		%	2.93		%	3.13		%	3.29		%	3.33		%
Return on average assets	0.36		%	0.27		%	0.81		%	0.95		%	0.53		%
Return on average common equity	3.03		%	2.25		%	8.08		%	9.17		%	5.06		%
Non-interest income to average earning assets	0.59		%	0.43		%	0.64		%	0.66		%	0.54		%
Efficiency ratio(2)	79.0		%	81.9		%	64.5		%	65.3		%	71.1		%
Non-interest expense to average earning assets	2.89		%	2.79		%	2.46		%	2.61		%	2.78		%
Common equity to total assets	9.8		%	10.2		%	9.4		%	9.6		%	9.7		%
Tangible common equity to total tangible assets(3)	9.8		%	10.2		%	9.4		%	9.6		%	9.7		%
Common Equity Tier 1	12.4		%	12.6		%	12.7		%	12.2		%	12.4		%
Tier 1 capital	13.9		%	14.2		%	14.3		%	13.7		%	14.0		%
Total capital	16.6		%	17.1		%	17.1		%	16.4		%	16.9		%
Leverage	12.4		%	12.2		%	12.1		%	12.4		%	12.0		%

(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.

(2) Non-interest expense divided by the sum of net interest income and non-interest income.

(3) 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)
	March 31, 2024		March 31, 2023		% Change
Assets
Cash and due from banks	$	167,985	$	264,211	(36)	%
Interest bearing cash and cash equivalents	3,148,157		3,385,494		(7)	%
Available-for-sale debt securities	3,491,510		3,394,293		3	%
Held-to-maturity debt securities	849,283		918,962		(8)	%
Equity securities	73,487		32,714		125	%
Investment securities	4,414,280		4,345,969		2	%
Loans held for sale	37,750		27,608		37	%
Loans held for investment, mortgage finance	4,153,313		4,060,570		2	%
Loans held for investment	16,677,691		16,014,497		4	%
Less: Allowance for credit losses on loans	263,962		260,928		1	%
Loans held for investment, net	20,567,042		19,814,139		4	%

Premises and equipment, net	49,899		25,268		97	%
Accrued interest receivable and other assets	793,976		732,468		8	%
Goodwill and intangibles, net	1,496		1,496		—	%
Total assets	$	29,180,585	$	28,596,653	2	%

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	8,478,215	$	9,500,583	(11)	%
Interest bearing deposits	15,475,822		12,679,114		22	%
Total deposits	23,954,037		22,179,697		8	%
Accrued interest payable	32,352		31,198		4	%
Other liabilities	413,711		273,665		51	%
Short-term borrowings	750,000		2,100,000		(64)	%
Long-term debt	859,823		932,119		(8)	%
Total liabilities	26,009,923		25,516,679		2	%

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at March 31, 2024 and 2023	300,000		300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,420,680 and 50,947,306 at March 31, 2024 and 2023, respectively	514		509		1	%
Additional paid-in capital	1,044,669		1,031,905		1	%
Retained earnings	2,457,222		2,297,850		7	%
Treasury stock - 4,434,405 and 3,095,444 shares at cost at March 31, 2024 and 2023, respectively	(251,857)		(175,528)		43	%
Accumulated other comprehensive loss, net of taxes	(379,886)		(374,762)		1	%
Total stockholders’ equity	3,170,662		3,079,974		3	%
Total liabilities and stockholders’ equity	$	29,180,585	$	28,596,653	2	%


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended March 31,
		2024		2023
Interest income
Interest and fees on loans		$	330,879	$	297,438
Investment securities		32,144		25,292
Interest bearing cash and cash equivalents		54,355		62,436
Total interest income		417,378		385,166
Interest expense
Deposits		175,600		120,094
Short-term borrowings		12,783		14,744
Long-term debt		13,986		14,983
Total interest expense		202,369		149,821
Net interest income		215,009		235,345
Provision for credit losses		19,000		28,000
Net interest income after provision for credit losses		196,009		207,345
Non-interest income
Service charges on deposit accounts		6,339		5,022
Wealth management and trust fee income		3,567		3,429
Brokered loan fees		1,911		1,895

Investment banking and advisory fees		18,424		14,564
Trading income		4,712		4,204



Other		6,366		8,289
Total non-interest income		41,319		37,403
Non-interest expense
Salaries and benefits		128,727		128,670
Occupancy expense		9,737		9,619
Marketing		6,036		9,044
Legal and professional		16,195		14,514
Communications and technology		21,114		17,523
Federal Deposit Insurance Corporation insurance assessment		8,421		2,170


Other		12,163		12,487
Total non-interest expense		202,393		194,027
Income before income taxes		34,935		50,721
Income tax expense		8,793		12,060
Net income		26,142		38,661
Preferred stock dividends		4,313		4,313
Net income available to common stockholders		$	21,829	$	34,348

Basic earnings per common share		$	0.46	$	0.71
Diluted earnings per common share		$	0.46	$	0.70


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2024			2023			2023			2023			2023
Allowance for credit losses on loans:
Beginning balance	$	249,973		$	244,902		$	237,343		$	260,928		$	253,469
Loans charged-off:
Commercial	7,544			8,356			13,246			8,852			20,732

Commercial real estate	3,325			5,500			—			—			—
Consumer	—			—			41			—			—
Total charge-offs	10,869			13,856			13,287			8,852			20,732
Recoveries:
Commercial	105			15			4,346			611			819

Commercial real estate	—			4			—			—			—
Consumer	—			—			—			2			3
Total recoveries	105			19			4,346			613			822
Net charge-offs	10,764			13,837			8,941			8,239			19,910
Provision for credit losses on loans	24,753			18,908			16,500			(15,346)			27,369
Ending balance	$	263,962		$	249,973		$	244,902		$	237,343		$	260,928

Allowance for off-balance sheet credit losses:
Beginning balance	$	46,362		$	46,270		$	44,770		$	22,424		$	21,793
Provision for off-balance sheet credit losses	(5,753)			92			1,500			22,346			631
Ending balance	$	40,609		$	46,362		$	46,270		$	44,770		$	22,424

Total allowance for credit losses	$	304,571		$	296,335		$	291,172		$	282,113		$	283,352
Total provision for credit losses	$	19,000		$	19,000		$	18,000		$	7,000		$	28,000

Allowance for credit losses on loans to total loans held for investment	1.27		%	1.23		%	1.19		%	1.11		%	1.30		%
Allowance for credit losses on loans to average total loans held for investment	1.32		%	1.24		%	1.17		%	1.15		%	1.38		%
Net charge-offs to average total loans held for investment(1)	0.22		%	0.27		%	0.17		%	0.16		%	0.43		%
Net charge-offs to average total loans held for investment for last 12 months(1)	0.20		%	0.25		%	0.26		%	0.23		%	0.19		%
Total provision for credit losses to average total loans held for investment(1)	0.38		%	0.37		%	0.34		%	0.14		%	0.60		%
Total allowance for credit losses to total loans held for investment	1.46		%	1.46		%	1.41		%	1.32		%	1.41		%

(1)Interim period ratios are annualized.


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2024			2023			2023			2023			2023
Non-accrual loans held for investment	$	92,849		$	81,398		$	63,129		$	81,039		$	93,951
Non-accrual loans held for sale(1)	9,250			—			—			—			—
Other real estate owned	—			—			—			—			—
Total non-performing assets	$	102,099		$	81,398		$	63,129		$	81,039		$	93,951

Non-accrual loans held for investment to total loans held for investment	0.45		%	0.40		%	0.31		%	0.38		%	0.47		%
Total non-performing assets to total assets	0.35		%	0.29		%	0.21		%	0.28		%	0.33		%
Allowance for credit losses on loans to non-accrual loans held for investment	2.8x			3.1x			3.9x			2.9x			2.8x
Total allowance for credit losses to non-accrual loans held for investment	3.3x			3.6x			4.6x			3.5x			3.0x


Loans held for investment past due 90 days and still accruing	$	3,674		$	19,523		$	4,602		$	64		$	3,098
Loans held for investment past due 90 days to total loans held for investment	0.02		%	0.10		%	0.02		%	—		%	0.02		%
Loans held for sale past due 90 days and still accruing	$	147		$	—		$	—		$	—		$	—

(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)

	1st Quarter		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	2024		2023		2023		2023		2023
Interest income
Interest and fees on loans	$	330,879	$	325,210	$	345,138	$	332,867	$	297,438
Investment securities	32,144		28,454		27,070		27,478		25,292
Interest bearing deposits in other banks	54,355		63,408		53,561		41,571		62,436
Total interest income	417,378		417,072		425,769		401,916		385,166
Interest expense
Deposits	175,600		170,173		160,117		137,391		120,094
Short-term borrowings	12,783		18,069		19,576		18,253		14,744
Long-term debt	13,986		14,113		14,005		14,282		14,983
Total interest expense	202,369		202,355		193,698		169,926		149,821
Net interest income	215,009		214,717		232,071		231,990		235,345
Provision for credit losses	19,000		19,000		18,000		7,000		28,000
Net interest income after provision for credit losses	196,009		195,717		214,071		224,990		207,345
Non-interest income
Service charges on deposit accounts	6,339		5,397		5,297		5,158		5,022
Wealth management and trust fee income	3,567		3,302		3,509		3,715		3,429
Brokered loan fees	1,911		2,076		2,532		2,415		1,895

Investment banking and advisory fees	18,424		6,906		23,099		19,101		14,564
Trading income	4,712		3,819		6,092		8,397		4,204


Other	6,366		9,633		6,343		7,225		8,289
Total non-interest income	41,319		31,133		46,872		46,011		37,403
Non-interest expense
Salaries and benefits	128,727		107,970		110,010		113,050		128,670
Occupancy expense	9,737		9,483		9,910		9,482		9,619
Marketing	6,036		5,686		4,757		6,367		9,044
Legal and professional	16,195		17,127		17,614		15,669		14,514
Communications and technology	21,114		23,607		19,607		20,525		17,523
Federal Deposit Insurance Corporation insurance assessment	8,421		25,143		5,769		3,693		2,170

Other	12,163		12,369		12,224		12,858		12,487
Total non-interest expense	202,393		201,385		179,891		181,644		194,027
Income before income taxes	34,935		25,465		81,052		89,357		50,721
Income tax expense	8,793		5,315		19,373		20,706		12,060
Net income	26,142		20,150		61,679		68,651		38,661
Preferred stock dividends	4,313		4,312		4,313		4,312		4,313
Net income available to common shareholders	$	21,829	$	15,838	$	57,366	$	64,339	$	34,348


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
	1st Quarter 2024						4th Quarter 2023						3rd Quarter 2023						2nd Quarter 2023						1st Quarter 2023
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities(2)	$	4,299,368	$	32,144	2.77	%	$	4,078,975	$	28,454	2.48	%	$	4,204,749	$	27,070	2.33	%	$	4,306,881	$	27,478	2.36	%	$	4,060,456	$	25,292	2.31	%
Interest bearing cash and cash equivalents	4,051,627		54,355		5.40	%	4,637,374		63,408		5.42	%	3,965,045		53,561		5.36	%	3,286,091		41,571		5.07	%	5,541,341		62,436		4.57	%
Loans held for sale	51,164		1,184		9.31	%	29,071		672		9.17	%	31,878		647		8.06	%	28,414		599		8.46	%	43,472		938		8.75	%
Loans held for investment, mortgage finance(4)	3,517,707		31,455		3.60	%	3,946,280		33,709		3.39	%	4,697,702		50,813		4.29	%	4,376,235		49,425		4.53	%	3,286,804		37,419		4.62	%
Loans held for investment(3)(4)	16,522,089		298,306		7.26	%	16,164,233		290,897		7.14	%	16,317,324		293,750		7.14	%	16,217,314		282,956		7.00	%	15,598,854		259,240		6.74	%
Less: Allowance for credit losses on loans	249,936		—		—		244,287		—		—		238,883		—		—		261,027		—		—		252,727		—		—
Loans held for investment, net	19,789,860		329,761		6.70	%	19,866,226		324,606		6.48	%	20,776,143		344,563		6.58	%	20,332,522		332,381		6.56	%	18,632,931		296,659		6.46	%
Total earning assets	28,192,019		417,444		5.88	%	28,611,646		417,140		5.69	%	28,977,815		425,841		5.75	%	27,953,908		402,029		5.69	%	28,278,200		385,325		5.45	%
Cash and other assets	1,058,463						1,120,354						1,106,031						1,049,145						1,041,745
Total assets	$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053					$	29,319,945

Liabilities and Stockholders’ Equity
Transaction deposits	$	2,006,493	$	16,858	3.38	%	$	1,972,324	$	15,613	3.14	%	$	1,755,451	$	13,627	3.08	%	$	1,345,742	$	9,468	2.82	%	$	776,500	$	3,853	2.01	%
Savings deposits	11,409,677		136,790		4.82	%	11,043,155		132,801		4.77	%	10,858,306		127,323		4.65	%	10,590,558		114,275		4.33	%	11,195,402		105,707		3.83	%
Time deposits	1,719,325		21,952		5.14	%	1,716,812		21,759		5.03	%	1,610,235		19,167		4.72	%	1,531,922		13,648		3.57	%	1,430,657		10,534		2.99	%
Total interest bearing deposits	15,135,495		175,600		4.67	%	14,732,291		170,173		4.58	%	14,223,992		160,117		4.47	%	13,468,222		137,391		4.09	%	13,402,559		120,094		3.63	%
Short-term borrowings	912,088		12,783		5.64	%	1,257,609		18,069		5.70	%	1,393,478		19,576		5.57	%	1,397,253		18,253		5.24	%	1,242,881		14,744		4.81	%
Long-term debt	859,509		13,986		6.54	%	858,858		14,113		6.52	%	858,167		14,005		6.47	%	883,871		14,282		6.48	%	931,796		14,983		6.52	%
Total interest bearing liabilities	16,907,092		202,369		4.81	%	16,848,758		202,355		4.76	%	16,475,637		193,698		4.66	%	15,749,346		169,926		4.33	%	15,577,236		149,821		3.90	%
Non-interest bearing deposits	8,637,775						9,247,491						10,016,579						9,749,105						10,253,731
Other liabilities	509,286						541,162						474,869						389,155						436,621
Stockholders’ equity	3,196,329						3,094,589						3,116,761						3,115,447						3,052,357
Total liabilities and stockholders’ equity	$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053					$	29,319,945
Net interest income			$	215,075					$	214,785					$	232,143					$	232,103					$	235,504
Net interest margin					3.03	%					2.93	%					3.13	%					3.29	%					3.33	%

(1) Taxable equivalent rates used where applicable.

(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.

(3) Average balances include non-accrual loans.

(4) In the first quarter of 2024, enhancements were made to our methodology for applying relationship pricing credits to mortgage client loans. To conform to the current period presentation, certain prior period interest income amounts have been reclassified from loans held for investment, mortgage finance to loans held for investment and related yields have been adjusted accordingly.

EX-99.2 3 a1q2024_earningsxpresent.htm EX-99.2 EARNINGS PRESENTATION a1q2024_earningsxpresent

2 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, 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,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. 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. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward- looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. 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.

3 Foundational Tenants of Value Creation in Place Financial Priorities Described 9/1/2021 Building Tangible Book Value // Reinvesting organically generated capital to improve client relevance and create a more valuable franchise Investment // Re-aligning the expense base to directly support the business and investing aggressively to take advantage of market opportunities that we are uniquely positioned to serve Revenue Growth // Growing top- line revenue as a result of expanded banking capabilities for best-in-class clients in our Texas and national markets Flagship Results Proactive, disciplined engagement with the best clients in our markets to provide the talent, products, and offerings they need through their entire life-cycles Structurally higher, more sustainable earnings driving greater performance and lower annual variability Consistent communication, enhanced accountability, and a bias for action ensure execution and delivery Commitment to financial resilience allowing us to serve clients, access markets, and support communities through all cycles Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns

4 Where We Are Going Where We Started Where We Are Going Where We Started 2025 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020Performance Metrics2025 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.36%0.64%1.04%0.67%0.18%Return on Average Assets~10%9.0%8.0%2.9%2.7%2.2% Investment Banking and Trading Income (% of Total Revenue) >12.5%3.0%6.2%11.4%8.4%2.1%Return on Average Tangible Common Equity3~5%3.4%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.47%0.69%0.55%0.69%0.33%Adj. Return on Average Assets415%–20% 16.1%15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%4.1%6.7%5.8%8.7%4.2%Adj. Return on Average Tangible Common Equity315%–20%16.1%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%12.4%12.6%13.0%11.1%9.4%CET1Balance Sheet >20%29%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%8%7%16%27%36%Average Indexed Deposits (% of Total Deposits) 2021 Strategic Performance Drivers Treasury Solutions Private Wealth Investment Banking  YoY gross PxV growth expanded to 14% as won operating relationships ramp and new client onboarding accelerated  Record high Treasury Product Fees supported by continued strong adoption of complete cash management suite  QoQ increase in revenue from each offering driven by increasing transaction volumes across the Investment Banking platform  Depth, quality, and size of the pipelines continue to steadily improve consistent with a differentiated and maturing business YoY GrowthQ1 ‘24Q4 ‘23Q3 ‘23Q2 ‘23Q1 ‘23Financial Performance 6%$3.5$3.3$3.1$3.5$3.3Assets Under Management ($bn) 19%$8.7$7.8$7.8$7.4$7.3Treasury Product Fees1 ($mm) 4%$3.6$3.3$3.5$3.7$3.4Wealth Management & Trust Fee Income ($mm) 23%$23.1$10.7$29.2$27.5$18.8Investment Banking & Trading Income ($mm) 20%$35.4$21.8$40.5$38.6$29.5Income from Areas of Focus ($mm)  8% increase QoQ in assets under management; near-term fee pull-through remains constrained by elevated managed liquidity  Platform modernization expected to deliver peer-leading product suite and client experience by year-end ‘24

5 Financial Performance // Income Statement Q1 2024Q4 2023Non-GAAP4 Adjustments ($mm) 202.4201.4Non-Interest Expense 3.019.9FDIC Special Assessment 2.00.0Restructuring Expenses 5.00.0Legal Settlement 192.4181.5Non-Interest Expense, Adjusted 2023Non-GAAP4 Adjustments ($mm) 756.9Non-Interest Expense 19.9FDIC Special Assessment 737.1Non-Interest Expense, Adjusted Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4)Financial Highlights ($mm) Q1 2024Q1 2024Q4 2023Q4 2023Q1 202320232023 $215.0$215.0$214.7$214.7$235.3$914.1$914.1Net Interest Income 41.341.331.131.137.4161.4161.4Non-Interest Revenue 256.3256.3245.9245.9272.71,075.51,075.5Total Revenue 192.4202.4181.5201.4194.0737.1756.9Non-Interest Expense 64.053.964.444.578.7338.5318.6PPNR5 19.019.019.019.028.072.072.0Provision for Credit Losses 11.18.89.95.312.162.157.5Income Tax Expense 33.926.135.420.238.7204.4189.1Net Income 4.34.34.34.34.317.317.3Preferred Stock Dividends 29.621.831.115.834.3187.1171.9Net Income to Common Performance Metrics 0.47%0.36%0.47%0.27%0.53%0.69%0.64%Return on Average Assets 0.88%0.74%0.86%0.59%1.09%1.15%1.08%PPNR5 / Average Assets 75.1%79.0%73.8%81.9%71.1%68.5%70.4%Efficiency Ratio6 4.1%3.0%4.4%2.2%5.1%6.7%6.2%Return on Average Common Equity $0.62$0.46$0.65$0.33$0.70$3.85$3.54Earnings Per Share

6 Balance Sheet Highlights ($mm) Ending Balances QoQQ1 2024Q4 2023Q1 2023 Assets 2%3,316 3,243 3,650 Cash and Equivalents 7%4,414 4,143 4,346 Total Securities 0%10,383 10,411 10,586 Commercial Loans 4%4,153 3,978 4,061 Mortgage Finance Loans 6%5,822 5,501 4,951CRE Loans 4%550 531 546 Consumer Loans 2%20,909 20,421 20,142 Gross LHI 6%(264)(250)(261)Allowance for Credit Losses on Loans 3%29,181 28,356 28,597 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Performance Metrics 26%26%28%Cash & Securities % of Assets 50%51%53%Commercial Loans % of Gross LHI (305)(296)(283)Total Allowance for Credit Losses ($mm) 1.46%1.46%1.41%Total ACL / Total LHI QoQQ1 2024Q4 2023Q1 2023 Liabilities 16%8,478 7,328 9,501 Non-Interest Bearing Deposits 3%15,476 15,044 12,679 Interest Bearing Deposits 7%23,954 22,372 22,180 Total Deposits (50%)750 1,500 2,100 FHLB Borrowings 3%26,010 25,157 25,517 Total Liabilities Equity 0%3,251 3,261 3,155 Common Equity, Excl AOCI 5%(380)(362)(375)AOCI (1%)3,171 3,199 3,080 Total Shareholder’s Equity (1%)46,986,275 47,237,912 47,851,862 Common Shares Outstanding 87%91%91%Total LHI % of Deposits 35%33%43%Non-Interest Bearing % of Deposits $61.10$61.37$58.10Book Value Per Share $61.06$61.34$58.06Tangible Book Value Per Share7

7 $5.9 $5.3 $4.3 $3.3 $4.4 $4.7 $3.9 $3.5 $6.5 $4.9 $4.1 $4.1 $5.1 $4.4 $4.0 $4.2 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $5.0 $5.3 $5.4 $5.5 $5.8 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $10.6 $10.5 $10.4 $10.4 $10.4 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024  Commercial loans decreased $28mm QoQ  Average commercial loans increased $225mm or 2% QoQ  Impact of multi-year capital recycling on loan balances should begin to lessen in ’24  Commercial real estate loans increased $322mm QoQ as slower prepayment speeds are driving increased loan balances  Multi-family comprises $2.4bn or 41% of CRE loans  Over 55% located in Texas and total portfolio avg. LTV of 52%  Office is $460mm or 8% of CRE Loans  58% avg. LTV, 92% recourse and 72% Class A  Mortgage Finance loan balances driven by anticipated Q1 seasonality resulted in a $429mm, or 11%, QoQ decrease on an average basis, compared to a 23% decline in the comparable quarter last year  Period end balances increased $175mm or 4% as the industry enters a seasonally stronger mortgage origination period Loan Portfolio Composition Mortgage Finance Loans ($bn) Average Period End Commercial Loans ($bn) Commercial Real Estate Loans ($bn)

8 3.63% 4.09% 4.47% 4.58% 4.67% 2.06% 2.37% 2.62% 2.82% 2.97% 2.10% 2.38% 2.60% 2.75% 2.83% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2024 EOP Deposit and Funding Composition  Total deposit balances increased $1.6bn or 7% QoQ  Excluding Mortgage Finance and brokered deposits, QoQ growth of $749mm or 4% resulting from sustained focus on growing client relationships  Average mortgage finance non-interest bearing deposits declined to $5.2bn and were 148% of average mortgage finance loans in Q1 compared to 142% in Q4  End of period balances increased $1.1bn QoQ as Q4 balances are the seasonal low point for escrow deposits associated with property tax payments; these balances will predictably rebuild over the course of the year  A significant portion of mortgage finance non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs Non-Interest Bearing, excl MF8 MF8 Non-Interest Bearing Interest Bearing Interest Bearing Brokered Change %$Q1 2024Q4 2023 (34%)($315)$602 $917 Brokered Deposits (11%)(134)1,122 1,256 Insured Sweep Deposits 7%881 13,752 12,871 Other Interest Bearing 3%432 15,476 15,044 Total Interest Bearing 29%1,149 5,138 3,989 MF8 Non-Interest Bearing 0%1 3,340 3,339 Non-Interest Bearing, excl MF8 16%1,150 8,478 7,328 Non-interest Bearing 7%$1,582 $23,954 $22,372 Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits $5.6 $4.4 $4.0 $3.6 $3.4 $3.3 $4.6 $5.3 $6.0 $5.6 $5.2 $5.1 $11.9 $12.0 $12.8 $13.6 $14.4 $14.9 $1.5 $1.5 $1.4 $1.1 $0.8 $0.6 $23.7 $23.2 $24.2 $24.0 $23.8 $24.0 - 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 25,000,000,000 30,000,000,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2024

9 (9.1%) (9.2%) (4.4%) (4.5%) 1.6% 1.5% 3.2% 2.8% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q4 2023 Q1 2024 -200bps Shock -100bps Shock +100bps Shock +200bps Shock $2.9B $2.6B $0.4B 3.66% 3.60% 3.31% 2.00% 2.50% 3.00% 3.50% 4.00% $- $0.3 $0.5 $0.8 $1.0 $1.3 $1.5 $1.8 $2.0 $2.3 $2.5 $2.8 $3.0 $3.3 $3.5 Q1 2024 Q4 2024 Q4 2025 Notional Receive Rate Net Interest Income Sensitivity Standard Model Assumptions9 100bp & 200bp Parallel Shocks  Loan Balances: Static  Deposit Balances: Static  Loan Spreads: Current Levels  Up Scenario Int. Bearing Deposit Beta: ~80%  Down Scenario Int. Bearing Deposit Beta: ~60%  Investment Portfolio: Ratio held constant Hedging Profile ($bn) Net Interest Income Sensitivity – Static Balance Sheet ($mm) $964mm$901mmBase NII10 Earning Assets Profile (Average) Q1 2024Q4 2023 YieldBalance ($mm)YieldBalance ($mm) 5.40%$4,052 5.42%$4,637Interest Bearing Cash and Equivalents 2.77%4,299 2.48%4,079Securities 9.31%51 9.17%29Loans Held for Sale 7.26%16,522 7.14%16,164LHI excl Mortgage Finance LHI11 3.60%3,518 3.39%3,946Mortgage Finance LHI11 --(250)--(244)ACL on Loans 5.88% $28,192 5.69%$28,612Earning Assets  $1.1bn of loans, or 7% of LHI excluding Mortgage Finance LHI are fixed  11% maturing in the next 12 months  Duration of the securities portfolio is ~4 years with Q1 cash flows of $334mm inclusive of $250mm in maturities  Q1 purchases of $597 million with an average coupon of ~6%  100bps decline in rates could improve AOCI by ~$130mm Impacts of Mortgage Finance  Mortgage Finance represents 18% of the average total LHI portfolio with the majority tied to 1-month SOFR which declined 2bps in Q1  Given the current rate outlook, the Mortgage Finance self funding ratio is expected to stay elevated throughout the year, pressuring yields  Bank’s overall net interest income sensitivity (per the chart above) is inclusive of Mortgage Finance NII impact on a flat balance sheet and does not account for changes in warehouse volumes in either a lower or higher rate environment $28 $14 ($40) ($82) $27 $14 ($43) ($89)

10 $214.7 $6.7 $2.7 ($3.9) $1.6 ($1.4) ($5.4) ($4.7) ($0.7) $5.4 $215.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $220.0 $240.0 $260.0 $280.0 $300.0 Q4 2023 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Loan Yield Loan Fees Investment Securities & Cash Interest Bearing Deposit Volume Interest Bearing Deposit Cost Borrowings Q1 2024 $128.7 $113.0 $110.0 $108.0 $126.7 $65.3 $68.6 $69.9 $73.5 $65.7 $19.9 $10.0 $194.0 $181.6 $179.9 $201.4 $202.4 $- $50.0 $100.0 $150.0 $200.0 $250.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $235.3 $232.0 $232.1 $214.7 $215.0 3.33% 3.29% 3.13% 2.93% 3.03% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $220.0 $240.0 $260.0 $280.0 $300.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Interest Income Net Interest Margin $37.4 $46.0 $46.9 $31.1 $41.3 - $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1-2024 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) 16%13%17%17%14%% of Revenue Salaries & Benefits Non-Recurring Items4Other NIE 66% 62% 61% 34% 38% 39% 10% 5% 54% 36% 63% 32%  Net interest income was flat QoQ while net interest margin expanded by 10bps, driven by higher yields on earning assets, offset by declines in average earning assets  Quarterly non-interest income increased $10.2mm or 33% QoQ and 10% YoY  Quarterly non-interest expense excluding non-recurring items4 increased $11mm to $192.4mm, a $1.6mm decline YoY  Q1 salaries and benefits expense is impacted by seasonal payroll and compensation expenses; approximately $10.7mm in Q1 compared to $9.1mm in Q1 of last year 8 8 8 8

11 1.41% 1.46% 1.46% 1.72% 1.79% 1.79% Q1 2023 Q4 2023 Q1 2024 0.33% 0.28% 0.21% 0.29% 0.35% 0.43% 0.16% 0.17% 0.27% 0.22% 2.79% 2.90% 3.29% 3.63% 4.13% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 3.0x 3.6x 3.3x – 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x 6.0 x 7.0 x 8.0 x 9.0 x 10.0 x Q1 2023 Q4 2023 Q1 2024 81% 83% 78% 81% 79% 19% 17% 22% 19% 21% $271.5 $281.1 $245.6 $247.0 $275.0 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000 500,000,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Commercial Mortgage Finance Real Estate Consumer 72% 52% 60% 47% 42% 27% 48% 40% 53% 58% $289.6 $338.2 $431.8 $491.2 $584.5 - 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Commercial Mortgage Finance Real Estate Consumer Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $10.8$13.8$8.9$8.2$19.9Net Charge-Offs ($mm) NPAs/Total Assets Criticized/LHI NCOs/Avg. LHI Q1 2023 Q4 2023 Q1 2024 Total ACL / Non- accrual Loans HFI  ACL on Loans increased $14mm QoQ to $264 million  Total ACL, excl. MF8 increased to $299 million in Q1 from $292mm in Q4  Total ACL, excl. MF8 to LHI, excl. MF8 in the top 5 percent among Peers12 Total ACL to LHI  $10.8mm of net charge-offs or 0.22% of average LHI  Net downward grade migrations to special mention in Q1 predominantly related to commercial real estate, as expected  Portfolio is well structured and supported by strong sponsors  Substandard loans increased $28mm or 11% QoQ to $275mm, nearly flat YoY  Nonperforming loans HFI increased $11.5mm QoQ to $92.8mm  Nonperforming loans HFI are 0.32% of total assets or 0.45% of LHI  Total criticized loans increased $121.3mm QoQ to $859.5mm Total ACL / LHI Total ACL, ex MF8 / LHI ex MF8

12 12.42% 12.18% 12.70% 12.65% 12.38% > 11.00% 1.61% 1.54% 1.58% 1.59% 1.56% 2.83% 2.71% 2.81% 2.83% 2.70% 16.86% 16.43% 17.09% 17.07% 16.64% 0.00% 5.00% 10.00% 15.00% 20.00% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 2024 Target 9.72% 9.60% 9.37% 10.22% 9.83%9.72% 9.60% 9.38% 10.22% 9.84% (1.0%) 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $58.06 $57.93 $57.82 $61.34 $61.06 $58.10 $57.97 $57.85 $61.37 $61.10 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 2024 Target Capital Position and Trends  Regulatory capital ratios remain exceptionally strong  Total capital ratio of 16.64%, in the top decile of the peer group12, and CET1 ratio of 12.38% in Q1 2024  Tangible common equity / tangible assets13 ended the quarter at 9.83%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle  Tangible common equity / tangible assets13 in top quintile of peer group12  Tangible book value per share7 was essentially flat as net income available to common of $21.8mm and share repurchase activity was offset by an $18mm decrease in AOCI  During Q1, repurchased 529 thousand shares, 1.12% of year end 2023 shares outstanding, for $31.5mm, at a weighted average price of $59.27 per share Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Tangible Book Value per Share7 Period End AOCI ($mm) ($380)($362)($506)($440)($375) AOCI per Share ($8.09)($7.66)($10.54)($9.17)($7.83) Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets Peer12 Tangible Common Equity / Tangible Assets13 7.65%7.11%7.22%7.13% Tangible Book Value per Share7 Book Value per Share CET1 Tier 2 CapitalTier 1 Capital

13 Full Year 2024 Guidance FY 2023 Adjusted (Non-GAAP4) Mid single-digit % growth$1,075.5Total Revenue Low single-digit % growth$737.1Non-Interest Expense, Adjusted4 2H2024--Quarterly Operating Leverage (YoY Growth in Quarterly PPNR5, Adjusted4) >20%30%Average Cash & Total Securities (% of Average Total Assets) >11%12.6%CET1 Target Full Year 2024 Guidance  Forward curve14 assumes a 2024 average rate of 5.3% and an exit rate of 5.0% Guidance Commentary

14 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8 million for FY 2020, $4.0 million for FY 2021, $6.1 million for FY 2022, $9.4 million for FY 2023, $2.4 million for YTD 2024, and $2.3 million, $2.3 million, $2.5 million, $2.4 million, and $2.4 million for Q1 2023, Q2 2023, Q3 2023, Q4 2023, and Q1 2024 respectively 2. Non-GAAP Reconciliation // Adjusted Non-interest Income and Total Revenue 3. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 4. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 5. Net interest income and non-interest income, less non-interest expense 6. Non-interest expense divided by the sum of net interest income and non-interest income 7. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 8. “MF” used as abbreviation for Mortgage Finance 9. Model assumptions are only for Q1 2024; See prior TCBI Earnings Materials for prior model assumptions 10. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 11. In Q1 2024, enhancements were made to our methodology for applying relationship pricing credits for mortgage client loans. To conform to the current period presentation, certain prior period interest income amounts have been reclassified from mortgage finance LHI to LHI, excluding mortgage finance and related yields have been adjusted accordingly 12. Major exchange traded US peer banks with $20-100 billion in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; Data as of Q4 2023 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of April 1, 2024 Appendix // Footnotes 2022 ($mm)2021 ($mm)2020 ($mm) Adjusted2As ReportedAdjusted1As ReportedAdjusted1As Reported 875.8875.8767.6768.8821.1851.3Net Interest Income 101.0349.5119.5138.2103.7203.0Non-Interest Income 976.81,225.3887.1907.0924.81,054.3Total Revenue 10.3%28.5%13.4%15.2%11.2%19.3%Non-Interest Income % of Total Revenue 1) Adjusted to remove revenue contribution of exited Correspondent Lending Line of Business 2) Adjusted to remove non-recurring gain on sale of Insurance Premium Finance Loan Portfolio

15 2024 YTD ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported $29.6$21.8$187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $2,896.3$2,896.3$2,795.0$2,795.0$2,783.3$2,783.3$2,815.7$2,815.7$2,686.7$2,686.7Average Common Equity 1.51.51.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $2,894.8$2,894.8$2,793.5$2,793.5$2,768.8$2,768.8$2,798.3$2,798.3$2,668.8$2,668.8Average Tangible Common Equity 4.1%3.0%6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 4.1%3.0%6.7%6.2%5.8%11.4%8.7%8.4%4.2%2.1%ROATCE Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios

16 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020 Q1 2024 Q4 2023 ($mm, Except per Share) $215.0 $914.1 $875.8 $768.8 $851.3 $215.0 $214.7 Net Interest Income 41.3 161.4 349.5 138.3 203.0 41.3 31.1 Non-Interest Revenue Adjustments for Non Recurring Items: --(248.5)----Gain on Sale of Insur. Prem. Finance 41.3 161.4 101.0 138.3 203.041.3 31.1 Non-Interest Revenue, Adjusted 202.4 756.9 727.5 599.0 704.4 202.4 201.4 Non-Interest Expense Adjustments: ---(12.0)(36.0)--Software Write-offs --(29.6)-(17.8)--Transaction Costs (2.0)-(9.8)-(18.0)(2.0)-Restructuring Expense (5.0)----(5.0)-Legal Settlement --(8.0)----Charitable Contribution (3.0)(19.9)---(3.0)(19.9)FDIC Special Assessment 192.4 737.1 680.1 587.0 632.6 192.4 181.5 Non-Interest Expense, Adjusted 53.9 318.6 497.8 308.1 349.9 53.9 44.5 PPNR5 64.0 338.5 296.6 320.1 421.7 64.0 64.4 PPNR5, Adjusted 19.0 72.0 66.0 (30.0)258.0 19.0 19.0 Provision for Credit Losses 8.8 57.5 99.3 84.1 25.7 8.8 5.3 Income Tax Expenses 2.3 4.6 (45.4)2.7 15.6 2.3 4.6 Tax Impact of Adjustments Above 11.1 62.1 53.9 86.8 41.3 11.1 9.9 Income Tax Expenses, Adjusted 26.1 189.1 332.5 253.9 66.3 26.1 20.2 Net Income 33.9 204.4 176.8 263.2 122.4 33.9 35.4 Net Income, Adjusted 4.3 17.3 17.3 18.7 9.8 4.3 4.3 Preferred Stock Dividends 21.8 171.9 315.2 235.2 56.5 21.8 15.8 Net Income to Common 29.6 187.1 159.5 244.5 112.7 29.6 31.1 Net Income to Common, Adjusted $29,250.5 $29,537.3 $32,049.8 $38,140.3 $37,516.2 $29,250.5 $29,732.0 Average Assets 0.36%0.64%1.04%0.67%0.18%0.36%0.27%Return on Average Assets 0.47%0.69%0.55%0.69%0.33%0.47%0.47%Return on Average Assets, Adjusted 0.74%1.08%1.55%0.81%0.93%0.74%0.59%PPNR5 / Average Assets 0.88%1.15%0.93%0.84%1.12%0.88%0.86%PPNR5, Adjusted / Average Assets $2,896.3 $2,795.0 $2,783.3 $2,815.7 $2,686.7 $2,896.3 $2,794.6 Average Common Equity 3.03%6.15%11.33%8.35%2.10%3.03%2.25%Return on Average Common Equity 4.11%6.70%5.73%8.68%4.19%4.11%4.41%Return on Average Common Equity, Adjusted 47,711,19248,610,206 51,046,742 51,140,974 50,582,979 47,711,192 48,097,517 Diluted Common Shares $0.46 $3.54 $6.18 $4.60 $1.12 $0.46 $0.33 Earnings per Share $0.62 $3.85 $3.13 $4.78 $2.23 $0.62 $0.65 Earnings per Share, Adjusted Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments.