株探米国株
日本語 英語
エドガーで原本を確認する
TEXAS CAPITAL BANCSHARES INC/TX0001077428false00010774282024-10-172024-10-170001077428us-gaap:CommonStockMember2024-10-172024-10-170001077428us-gaap:SeriesBPreferredStockMember2024-10-172024-10-17

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): October 17, 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 October 17, 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 September 30, 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 9.01.    Financial Statements and Exhibits.

(d)    Exhibits
99.1    Press Release, dated October 17, 2024 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended September 30, 2024

99.2    Presentation dated October 17, 2024 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended September 30, 2024

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: October 17, 2024 TEXAS CAPITAL BANCSHARES, INC.
  By:   /s/ J. Matthew Scurlock
    J. Matthew Scurlock
Chief Financial Officer


EX-99.1 2 a10172024exhibit991.htm EX-99.1 EARNINGS RELEASE Document

Exhibit 99.1
tcbicolorlogoforrelease.jpg
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 THIRD QUARTER 2024 RESULTS
Record level of income in fee areas of focus(1)
Quarterly strategic actions include acquisition of $332 million commercial loan portfolio and balance sheet
repositioning of the proceeds from $1.2 billion sale of lower-yielding available-for-sale securities into higher yielding securities
Book Value and Tangible Book Value(2) per share both increased 14% year over year, reaching record levels
Capital ratios continue to be strong, including 11.2% CET1 and 15.2% Total Capital
DALLAS - October 17, 2024 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2024.
Net loss available to common stockholders was $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024, compared to net income available to common stockholders of $37.4 million, or $0.80 net income per diluted share, and $57.4 million, or $1.18 per diluted share, for the for the second quarter of 2024 and third quarter of 2023, respectively.
The third quarter of 2024 included a $179.6 million loss on sale of available-for-sale debt securities ($2.92 net loss per diluted share) and restructuring expense of $5.9 million ($0.10 net loss per diluted share), partially offset by a $651,000 release of Federal Deposit Insurance Corporation (“FDIC”) special assessment accrual ($0.01 net income per diluted share).
“We achieved significant financial milestones this quarter as our multi-year transformation is increasingly delivering financial outcomes consistent with realized success delivering our proven and differentiated strategy,” said Rob C. Holmes, President and CEO. “Our current business momentum coupled with our sustained leading capital and liquidity levels positions us well to effectively drive execution through 2025.”
FINANCIAL RESULTS
(dollars and shares in thousands)
3rd Quarter 2nd Quarter 3rd Quarter
2024 2024 2023
OPERATING RESULTS
Net income/(loss) $ (61,319) $ 41,662  $ 61,679 
Net income/(loss) available to common stockholders $ (65,632) $ 37,350  $ 57,366 
Diluted earnings/(loss) per common share $ (1.41) $ 0.80  $ 1.18 
Diluted common shares 46,609  46,872  48,529 
Return on average assets (0.78) % 0.56  % 0.81  %
Return on average common equity (8.87) % 5.26  % 8.08  %
BALANCE SHEET
Loans held for investment $ 16,764,512  $ 16,700,569  $ 16,183,882 
Loans held for investment, mortgage finance 5,529,659  5,078,161  4,429,489 
Total loans held for investment 22,294,171  21,778,730  20,613,371 
Loans held for sale 9,022  36,785  155,073 
Total assets 31,629,299  29,854,994  29,628,249 
Non-interest bearing deposits 9,070,804  7,987,715  9,352,883 
Total deposits 25,865,255  23,818,327  23,878,978 
Stockholders’ equity 3,354,044  3,175,601  3,077,700 
(1)    Fee areas of focus include service charges on deposit accounts, wealth managment and trust fee income, investment banking and advisory fees and trading income.
(2)    Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.


THIRD QUARTER 2024 COMPARED TO SECOND QUARTER 2024
For the third quarter of 2024, net loss available to common stockholders was $65.6 million, or $1.41 net loss per diluted share, compared to net income available to common stockholders of $37.4 million, or $0.80 net income per diluted share, for the second quarter of 2024. The net loss for the third quarter of 2024 resulted primarily from the $179.6 million loss on the sale of available-for-sale debt securities ($2.92 net loss per diluted share).
Provision for credit losses for the third quarter of 2024 was $10.0 million, compared to $20.0 million for the second quarter of 2024. The $10.0 million provision for credit losses recorded in the third quarter of 2024 resulted primarily from growth in total loans held for investment (“LHI”) and $6.1 million in net charge-offs.
Net interest income was $240.1 million for the third quarter of 2024, compared to $216.6 million for the second quarter of 2024, as increases in average earning assets and yields on average earning assets were partially offset by an increase in average interest bearing deposits. Net interest margin for the third quarter of 2024 was 3.16%, an increase of 15 basis points from the second quarter of 2024. LHI, excluding mortgage finance, yields increased 1 basis point from the second quarter of 2024 and LHI, mortgage finance, yields increased 26 basis points from the second quarter of 2024. Total cost of deposits was 2.94% for the third quarter of 2024, a 5 basis point decrease from the second quarter of 2024.
Non-interest income for the third quarter of 2024 decreased $165.2 million compared to the second quarter of 2024, primarily due to the $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, partially offset by increases in investment banking and advisory fees and other non-interest income.
Non-interest expense for the third quarter of 2024 increased $6.9 million, or 4%, compared to the second quarter of 2024, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by decreases in FDIC assessment expense and other non-interest expense. The third quarter of 2024 included restructuring expenses of $2.4 million recorded in salaries and benefits, $476,000 recorded in occupancy expense and $3.1 million recorded in communications and technology expense. The third quarter of 2024 also included a $651,000 release of FDIC special assessment accrual.
THIRD QUARTER 2024 COMPARED TO THIRD QUARTER 2023
Net loss available to common stockholders was $65.6 million, or $1.41 net loss per diluted share, for the third quarter of 2024, compared to net income available to common stockholders of $57.4 million, or $1.18 net income per diluted share, for the third quarter of 2023.
The third quarter of 2024 included a $10.0 million provision for credit losses, reflecting growth in total LHI and $6.1 million in net charge-offs, compared to an $18.0 million provision for the third quarter of 2023.
Net interest income increased to $240.1 million for the third quarter of 2024, compared to $232.1 million for the third quarter of 2023, primarily due to increases in average total LHI and yields on average earning assets, partially offset by an increase in average interest bearing liabilities. Net interest margin increased 3 basis points to 3.16% for the third quarter of 2024 compared to the third quarter of 2023. LHI, excluding mortgage finance, yields increased 12 basis points compared to the third quarter of 2023 and LHI, mortgage finance yields decreased 9 basis points from the third quarter of 2023. Total cost of deposits increased 32 basis points compared to the third quarter of 2023.
Non-interest income for the third quarter of 2024 decreased $161.6 million compared to the third quarter of 2023. The decrease was primarily due to the $179.6 million loss on sale of available-for-sale debt securities recognized during the third quarter of 2024, partially offset by increases in investment banking and advisory fees and other non-interest income.
Non-interest expense for the third quarter of 2024 increased $15.4 million, or 9%, compared to the third quarter of 2023, primarily due to increases in salaries and benefits, occupancy expense and communications and technology expense, partially offset by decreases in legal and professional expense.
CREDIT QUALITY
Net charge-offs of $6.1 million were recorded during the third quarter of 2024, compared to net charge-offs of $12.0 million and $8.9 million during the second quarter of 2024 and the third quarter of 2023, respectively. Criticized loans totaled $897.7 million at September 30, 2024, compared to $859.7 million at June 30, 2024 and $677.4 million at September 30, 2023. Non-accrual LHI totaled $89.0 million at September 30, 2024, compared to $85.0 million at June 30, 2024 and $63.1 million at September 30, 2023. The ratio of non-accrual LHI to total LHI for the third quarter of 2024 was 0.40%, compared to 0.39% for the second quarter of 2024 and 0.31% for the third quarter of 2023. The ratio of total allowance for credit losses to total LHI was 1.43% at September 30, 2024, compared to 1.44% and 1.41% at June 30, 2024 and September 30, 2023, respectively.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2024. CET1, tier 1 capital, total capital and leverage ratios were 11.2%, 12.6%, 15.2% and 11.4%, respectively, at September 30, 2024, compared to 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024 and 12.7%, 14.3%, 17.1% and 12.1%, respectively, at September 30, 2023. At September 30, 2024, our ratio of tangible common equity to total tangible assets was 9.7%, compared to 9.6% at June 30, 2024 and 9.4% at September 30, 2023.
2

About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, the parent company of Texas Capital Bank d/b/a Texas Capital, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution 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 its strategic plan and 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

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
2024 2024 2024 2023 2023
CONSOLIDATED STATEMENTS OF INCOME
Interest income $ 452,533  $ 422,068  $ 417,378  $ 417,072  $ 425,769 
Interest expense 212,431  205,486  202,369  202,355  193,698 
Net interest income 240,102  216,582  215,009  214,717  232,071 
Provision for credit losses 10,000  20,000  19,000  19,000  18,000 
Net interest income after provision for credit losses 230,102  196,582  196,009  195,717  214,071 
Non-interest income (114,771) 50,424  41,319  31,133  46,872 
Non-interest expense 195,324  188,409  202,393  201,385  179,891 
Income/(loss) before income taxes (79,993) 58,597  34,935  25,465  81,052 
Income tax expense/(benefit) (18,674) 16,935  8,793  5,315  19,373 
Net income/(loss) (61,319) 41,662  26,142  20,150  61,679 
Preferred stock dividends 4,313  4,312  4,313  4,312  4,313 
Net income/(loss) available to common stockholders $ (65,632) $ 37,350  $ 21,829  $ 15,838  $ 57,366 
Diluted earnings/(loss) per common share $ (1.41) $ 0.80  $ 0.46  $ 0.33  $ 1.18 
Diluted common shares 46,608,742  46,872,498  47,711,192  48,097,517  48,528,698 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 31,629,299  $ 29,854,994  $ 29,180,585  $ 28,356,266  $ 29,628,249 
Loans held for investment 16,764,512  16,700,569  16,677,691  16,362,230  16,183,882 
Loans held for investment, mortgage finance 5,529,659  5,078,161  4,153,313  3,978,328  4,429,489 
Loans held for sale 9,022  36,785  37,750  44,105  155,073 
Interest bearing cash and cash equivalents 3,894,537  2,691,352  3,148,157  3,042,357  3,975,860 
Investment securities 4,405,520  4,388,976  4,414,280  4,143,194  4,069,717 
Non-interest bearing deposits 9,070,804  7,987,715  8,478,215  7,328,276  9,352,883 
Total deposits 25,865,255  23,818,327  23,954,037  22,371,839  23,878,978 
Short-term borrowings 1,035,000  1,675,000  750,000  1,500,000  1,400,000 
Long-term debt 660,172  659,997  859,823  859,147  858,471 
Stockholders’ equity 3,354,044  3,175,601  3,170,662  3,199,142  3,077,700 
End of period shares outstanding 46,207,757  46,188,078  46,986,275  47,237,912  48,015,003 
Book value per share $ 66.09  $ 62.26  $ 61.10  $ 61.37  $ 57.85 
Tangible book value per share(1)
 $ 66.06  $ 62.23  $ 61.06  $ 61.34  $ 57.82 
SELECTED FINANCIAL RATIOS
Net interest margin 3.16  % 3.01  % 3.03  % 2.93  % 3.13  %
Return on average assets (0.78) % 0.56  % 0.36  % 0.27  % 0.81  %
Return on average common equity (8.87) % 5.26  % 3.03  % 2.25  % 8.08  %
Non-interest income to average earning assets (1.52) % 0.71  % 0.59  % 0.43  % 0.64  %
Efficiency ratio(2)
 155.8  % 70.6  % 79.0  % 81.9  % 64.5  %
Non-interest expense to average earning assets 2.59  % 2.65  % 2.89  % 2.79  % 2.46  %
Common equity to total assets 9.7  % 9.6  % 9.8  % 10.2  % 9.4  %
Tangible common equity to total tangible assets(3)
 9.7  % 9.6  % 9.8  % 10.2  % 9.4  %
Common Equity Tier 1 11.2  % 11.6  % 12.4  % 12.6  % 12.7  %
Tier 1 capital 12.6  % 13.1  % 13.9  % 14.2  % 14.3  %
Total capital 15.2  % 15.7  % 16.6  % 17.1  % 17.1  %
Leverage 11.4  % 12.2  % 12.4  % 12.2  % 12.1  %
(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.
    
4

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
September 30, 2024 September 30, 2023 % Change
Assets
Cash and due from banks $ 297,048  $ 216,916  37  %
Interest bearing cash and cash equivalents 3,894,537  3,975,860  (2) %
Available-for-sale debt securities 3,518,662  3,147,865  12  %
Held-to-maturity debt securities 812,432  881,352  (8) %
Equity securities 74,426  40,500  84  %
Investment securities 4,405,520  4,069,717  8  %
Loans held for sale 9,022  155,073  (94) %
Loans held for investment, mortgage finance 5,529,659  4,429,489  25  %
Loans held for investment 16,764,512  16,183,882  4  %
Less: Allowance for credit losses on loans 273,143  244,902  12  %
Loans held for investment, net 22,021,028  20,368,469  8  %
Premises and equipment, net 81,577  31,050  163  %
Accrued interest receivable and other assets 919,071  809,668  14  %
Goodwill and intangibles, net 1,496  1,496  —  %
Total assets $ 31,629,299  $ 29,628,249  7  %
Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits $ 9,070,804  $ 9,352,883  (3) %
Interest bearing deposits 16,794,451  14,526,095  16  %
Total deposits 25,865,255  23,878,978  8  %
Accrued interest payable 18,679  31,149  (40) %
Other liabilities 696,149  381,951  82  %
Short-term borrowings 1,035,000  1,400,000  (26) %
Long-term debt 660,172  858,471  (23) %
Total liabilities 28,275,255  26,550,549  6  %
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at September 30, 2024 and 2023
 300,000  300,000  —  %
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,494,260 and 51,110,447 at September 30, 2024 and 2023, respectively
 515  511  1  %
Additional paid-in capital 1,054,614  1,039,074  1  %
Retained earnings 2,428,940  2,419,555  —  %
Treasury stock - 5,286,503 and 3,095,444 shares at cost at September 30, 2024 and 2023, respectively
 (301,868) (175,528) 72  %
Accumulated other comprehensive loss, net of taxes (128,157) (505,912) (75) %
Total stockholders’ equity 3,354,044  3,077,700  9  %
Total liabilities and stockholders’ equity $ 31,629,299  $ 29,628,249  7  %
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,
2024 2023 2024 2023
Interest income
Interest and fees on loans $ 361,407  $ 345,138  $ 1,037,537  $ 975,443 
Investment securities 38,389  27,070  104,117  79,840 
Interest bearing cash and cash equivalents 52,737  53,561  150,325  157,568 
Total interest income 452,533  425,769  1,291,979  1,212,851 
Interest expense
Deposits 190,255  160,117  547,135  417,602 
Short-term borrowings 13,784  19,576  39,316  52,573 
Long-term debt 8,392  14,005  33,835  43,270 
Total interest expense 212,431  193,698  620,286  513,445 
Net interest income 240,102  232,071  671,693  699,406 
Provision for credit losses 10,000  18,000  49,000  53,000 
Net interest income after provision for credit losses 230,102  214,071  622,693  646,406 
Non-interest income
Service charges on deposit accounts 6,307  5,297  18,557  15,477 
Wealth management and trust fee income 4,040  3,509  11,306  10,653 
Brokered loan fees 2,400  2,532  6,442  6,842 
Investment banking and advisory fees 34,753  23,099  78,225  56,764 
Trading income 5,786  6,092  16,148  18,693 
Available-for-sale debt securities gains/(losses), net
 (179,581) —  (179,581) 489 
Other 11,524  6,343  25,875  21,368 
Total non-interest income (114,771) 46,872  (23,028) 130,286 
Non-interest expense
Salaries and benefits 121,138  110,010  368,705  351,730 
Occupancy expense 12,937  9,910  33,340  29,011 
Marketing 5,863  4,757  17,895  20,168 
Legal and professional 11,135  17,614  38,603  47,797 
Communications and technology 25,951  19,607  69,078  57,655 
Federal Deposit Insurance Corporation insurance assessment 4,906  5,769  18,897  11,632 
Other 13,394  12,224  39,608  37,569 
Total non-interest expense 195,324  179,891  586,126  555,562 
Income/(loss) before income taxes (79,993) 81,052  13,539  221,130 
Income tax expense/(benefit) (18,674) 19,373  7,054  52,139 
Net income/(loss) (61,319) 61,679  6,485  168,991 
Preferred stock dividends 4,313  4,313  12,938  12,938 
Net income/(loss) available to common stockholders $ (65,632) $ 57,366  $ (6,453) $ 156,053 
Basic earnings/(loss) per common share $ (1.42) $ 1.19  $ (0.14) $ 3.24 
Diluted earnings/(loss) per common share $ (1.41) $ 1.18  $ (0.14) $ 3.20 
6

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2024 2024 2024 2023 2023
Allowance for credit losses on loans:
Beginning balance $ 267,297  $ 263,962  $ 249,973  $ 244,902  $ 237,343 
Allowance established for acquired purchase credit deterioration loans 2,579  —  —  —  — 
Loans charged-off:
Commercial 6,120  9,997  7,544  8,356  13,246 
Commercial real estate 262  2,111  3,325  5,500  — 
Consumer 30  —  —  —  41 
Total charge-offs 6,412  12,108  10,869  13,856  13,287 
Recoveries:
Commercial 329  153  105  15  4,346 
Commercial real estate —  —  —  4  — 
Consumer —  —  —  —  — 
Total recoveries 329  153  105  19  4,346 
Net charge-offs 6,083  11,955  10,764  13,837  8,941 
Provision for credit losses on loans 9,350  15,290  24,753  18,908  16,500 
Ending balance $ 273,143  $ 267,297  $ 263,962  $ 249,973  $ 244,902 
Allowance for off-balance sheet credit losses:
Beginning balance $ 45,319  $ 40,609  $ 46,362  $ 46,270  $ 44,770 
Provision for off-balance sheet credit losses 650  4,710  (5,753) 92  1,500 
Ending balance $ 45,969  $ 45,319  $ 40,609  $ 46,362  $ 46,270 
Total allowance for credit losses $ 319,112  $ 312,616  $ 304,571  $ 296,335  $ 291,172 
Total provision for credit losses $ 10,000  $ 20,000  $ 19,000  $ 19,000  $ 18,000 
Allowance for credit losses on loans to total loans held for investment 1.23  % 1.23  % 1.27  % 1.23  % 1.19  %
Allowance for credit losses on loans to average total loans held for investment 1.24  % 1.27  % 1.32  % 1.24  % 1.17  %
Net charge-offs to average total loans held for investment(1)
 0.11  % 0.23  % 0.22  % 0.27  % 0.17  %
Net charge-offs to average total loans held for investment for last 12 months(1)
 0.20  % 0.22  % 0.20  % 0.25  % 0.26  %
Total provision for credit losses to average total loans held for investment(1)
 0.18  % 0.38  % 0.38  % 0.37  % 0.34  %
Total allowance for credit losses to total loans held for investment
1.43  % 1.44  % 1.46  % 1.46  % 1.41  %
(1)Interim period ratios are annualized.
7

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
2024 2024 2024 2023 2023
Non-accrual loans held for investment $ 88,960  $ 85,021  $ 92,849  $ 81,398  $ 63,129 
Non-accrual loans held for sale(1) —  —  9,250  —  — 
Other real estate owned —  —  —  —  — 
Total non-performing assets $ 88,960  $ 85,021  $ 102,099  $ 81,398  $ 63,129 
Non-accrual loans held for investment to total loans held for investment 0.40  % 0.39  % 0.45  % 0.40  % 0.31  %
Total non-performing assets to total assets 0.28  % 0.28  % 0.35  % 0.29  % 0.21  %
Allowance for credit losses on loans to non-accrual loans held for investment 3.1x 3.1x 2.8x 3.1x 3.9x
Total allowance for credit losses to non-accrual loans held for investment 3.6x 3.7x 3.3x 3.6x 4.6x
Loans held for investment past due 90 days and still accruing
 $ 5,281  $ 286  $ 3,674  $ 19,523  $ 4,602 
Loans held for investment past due 90 days to total loans held for investment 0.02  % —  % 0.02  % 0.10  % 0.02  %
Loans held for sale past due 90 days and still accruing
 $ —  $ 64  $ 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.

8

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2024 2024 2023 2023 2023
Interest income
Interest and fees on loans $ 361,407  $ 345,251  $ 330,879  $ 325,210  $ 345,138 
Investment securities 38,389  33,584  32,144  28,454  27,070 
Interest bearing deposits in other banks 52,737  43,233  54,355  63,408  53,561 
Total interest income 452,533  422,068  417,378  417,072  425,769 
Interest expense
Deposits 190,255  181,280  175,600  170,173  160,117 
Short-term borrowings 13,784  12,749  12,783  18,069  19,576 
Long-term debt 8,392  11,457  13,986  14,113  14,005 
Total interest expense 212,431  205,486  202,369  202,355  193,698 
Net interest income 240,102  216,582  215,009  214,717  232,071 
Provision for credit losses 10,000  20,000  19,000  19,000  18,000 
Net interest income after provision for credit losses 230,102  196,582  196,009  195,717  214,071 
Non-interest income
Service charges on deposit accounts 6,307  5,911  6,339  5,397  5,297 
Wealth management and trust fee income 4,040  3,699  3,567  3,302  3,509 
Brokered loan fees 2,400  2,131  1,911  2,076  2,532 
Investment banking and advisory fees 34,753  25,048  18,424  6,906  23,099 
Trading income 5,786  5,650  4,712  3,819  6,092 
Available-for-sale debt securities gains/(losses), net
 (179,581) —  —  —  — 
Other 11,524  7,985  6,366  9,633  6,343 
Total non-interest income (114,771) 50,424  41,319  31,133  46,872 
Non-interest expense
Salaries and benefits 121,138  118,840  128,727  107,970  110,010 
Occupancy expense 12,937  10,666  9,737  9,483  9,910 
Marketing 5,863  5,996  6,036  5,686  4,757 
Legal and professional 11,135  11,273  16,195  17,127  17,614 
Communications and technology 25,951  22,013  21,114  23,607  19,607 
Federal Deposit Insurance Corporation insurance assessment 4,906  5,570  8,421  25,143  5,769 
Other 13,394  14,051  12,163  12,369  12,224 
Total non-interest expense 195,324  188,409  202,393  201,385  179,891 
Income/(loss) before income taxes (79,993) 58,597  34,935  25,465  81,052 
Income tax expense/(benefit) (18,674) 16,935  8,793  5,315  19,373 
Net income/(loss) (61,319) 41,662  26,142  20,150  61,679 
Preferred stock dividends 4,313  4,312  4,313  4,312  4,313 
Net income/(loss) available to common shareholders $ (65,632) $ 37,350  $ 21,829  $ 15,838  $ 57,366 

9

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
3rd Quarter 2024 2nd Quarter 2024 1st Quarter 2024 4th Quarter 2023 3rd 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)
 $ 4,314,834  $ 38,389  3.34  % $ 4,427,023  $ 33,584  2.80  % $ 4,299,368  $ 32,144  2.77  % $ 4,078,975  $ 28,454  2.48  % $ 4,204,749  $ 27,070  2.33  %
Interest bearing cash and cash equivalents 3,958,843  52,737  5.30  % 3,273,069  43,233  5.31  % 4,051,627  54,355  5.40  % 4,637,374  63,408  5.42  % 3,965,045  53,561  5.36  %
Loans held for sale 23,793  565  9.44  % 28,768  683  9.55  % 51,164  1,184  9.31  % 29,071  672  9.17  % 31,878  647  8.06  %
Loans held for investment, mortgage finance(4)
 5,152,317  54,371  4.20  % 4,357,288  42,722  3.94  % 3,517,707  31,455  3.60  % 3,946,280  33,709  3.39  % 4,697,702  50,813  4.29  %
Loans held for investment(3)(4)
 16,792,446  306,541  7.26  % 16,750,788  301,910  7.25  % 16,522,089  298,306  7.26  % 16,164,233  290,897  7.14  % 16,317,324  293,750  7.14  %
Less: Allowance for credit losses on loans
 266,915  —  —  263,145  —  —  249,936  —  —  244,287  —  —  238,883  —  — 
Loans held for investment, net 21,677,848  360,912  6.62  % 20,844,931  344,632  6.65  % 19,789,860  329,761  6.70  % 19,866,226  324,606  6.48  % 20,776,143  344,563  6.58  %
Total earning assets 29,975,318  452,603  5.96  % 28,573,791  422,132  5.86  % 28,192,019  417,444  5.88  % 28,611,646  417,140  5.69  % 28,977,815  425,841  5.75  %
Cash and other assets 1,239,855  1,177,061  1,058,463  1,120,354  1,106,031 
Total assets $ 31,215,173  $ 29,750,852  $ 29,250,482  $ 29,732,000  $ 30,083,846 
Liabilities and Stockholders’ Equity
Transaction deposits $ 1,988,688  $ 15,972  3.20  % $ 2,061,622  $ 16,982  3.31  % $ 2,006,493  $ 16,858  3.38  % $ 1,972,324  $ 15,613  3.14  % $ 1,755,451  $ 13,627  3.08  %
Savings deposits 12,240,616  147,770  4.80  % 11,981,668  143,173  4.81  % 11,409,677  136,790  4.82  % 11,043,155  132,801  4.77  % 10,858,306  127,323  4.65  %
Time deposits 2,070,537  26,513  5.09  % 1,658,899  21,125  5.12  % 1,719,325  21,952  5.14  % 1,716,812  21,759  5.03  % 1,610,235  19,167  4.72  %
Total interest bearing deposits 16,299,841  190,255  4.64  % 15,702,189  181,280  4.64  % 15,135,495  175,600  4.67  % 14,732,291  170,173  4.58  % 14,223,992  160,117  4.47  %
Short-term borrowings 1,012,608  13,784  5.42  % 927,253  12,749  5.53  % 912,088  12,783  5.64  % 1,257,609  18,069  5.70  % 1,393,478  19,576  5.57  %
Long-term debt 660,098  8,392  5.06  % 778,401  11,457  5.92  % 859,509  13,986  6.54  % 858,858  14,113  6.52  % 858,167  14,005  6.47  %
Total interest bearing liabilities 17,972,547  212,431  4.70  % 17,407,843  205,486  4.75  % 16,907,092  202,369  4.81  % 16,848,758  202,355  4.76  % 16,475,637  193,698  4.66  %
Non-interest bearing deposits 9,439,020  8,647,594  8,637,775  9,247,491  10,016,579 
Other liabilities 558,368  537,754  509,286  541,162  474,869 
Stockholders’ equity 3,245,238  3,157,661  3,196,329  3,094,589  3,116,761 
Total liabilities and stockholders’ equity $ 31,215,173  $ 29,750,852  $ 29,250,482  $ 29,732,000  $ 30,083,846 
Net interest income
 $ 240,172  $ 216,646  $ 215,075  $ 214,785  $ 232,143 
Net interest margin 3.16  % 3.01  % 3.03  % 2.93  % 3.13  %
(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.
10
EX-99.2 3 a3q2024_earningsxpresent.htm EXHIBIT 99.2 EARNINGS PRESENTATION a3q2024_earningsxpresent
© 2024 Texas Capital Bank Member FDIC October 17, 2024 Q3-2024 Earnings

 
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 its strategic plan and 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%0.03%0.64%1.04%0.67%0.18%Return on Average Assets~10%14.5%8.0%2.9%2.7%2.2% Investment Banking and Trading Income (% of Total Revenue) >12.5%(0.3%)6.2%11.4%8.4%2.1%Return on Average Tangible Common Equity3~5%4.0%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.69%0.69%0.55%0.69%0.33%Adj. Return on Average Assets415%–20% (3.6%)15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%6.5%6.7%5.8%8.7%4.2%Adj. Return on Average Tangible Common Equity315%–20%18.9%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%11.2%12.6%13.0%11.1%9.4%CET1Balance Sheet >20%28%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%7%7%16%27%36%Average Indexed Deposits (% of Total Deposits) 2021 Strategic Performance Drivers Treasury Solutions Private Wealth Investment Banking  Treasury product fees reached record levels, up 7% QoQ, and 16% YoY, supported by broad product contributions  Continued growth in primary operating relationships; non-interest bearing deposits, excl MF9 increased $121 million or 4% QoQ  Investment Banking Fees achieved another record quarter driven by Capital Markets, Syndications, and Sales & Trading  After consecutive record quarters, expect modest pullback as pipeline rebuilds for a strong 2025 YoY GrowthQ3 ‘24Q2 ‘24Q1 ‘24Q4 ‘23Q3 ‘23Financial Performance 11%$4.1$4.0$4.0$3.8$3.7Assets Under Management5 ($bn) 16%$9.1 $8.5 $8.7 $7.8 $7.8 Treasury Product Fees1 ($mm) 15%$4.0 $3.7 $3.6 $3.3 $3.5 Wealth Management & Trust Fee Income ($mm) 39%$40.5 $30.7 $23.1 $10.7 $29.2 Investment Banking & Trading Income ($mm) 32%$53.7 $42.9 $35.4 $21.8 $40.5 Income from Areas of Focus ($mm)  Assets under management increased 11% YoY with wealth fees growing for the third consecutive quarter, up 15% YoY  Enhanced platform build is on track for completion this quarter and is expected to drive accelerated client adoption in ‘25

 
5 Financial Performance // Income Statement Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4)Financial Highlights ($mm) Q3 2024Q3 2024Q2 2024Q2 2024Q3 2023YTD 2024YTD 202420232023 $240.1 $240.1 $216.6 $216.6 $232.1 $671.7 $671.7 $914.1$914.1Net Interest Income 64.8 (114.8)50.4 50.4 46.9 156.6 (23.0)161.4161.4Non-Interest Revenue 304.9 125.3 267.0 267.0 278.9 828.2 648.7 1,075.51,075.5Total Revenue 190.1 195.3 187.9 188.4 179.9 570.4 586.1 737.1756.9Non-Interest Expense 114.9 (70.0)79.1 78.6 99.1 257.9 62.5 338.5318.6PPNR6 10.0 10.0 20.0 20.0 18.0 49.0 49.0 72.072.0Provision for Credit Losses 26.2 (18.7)17.0 16.9 19.4 54.3 7.1 62.157.5Income Tax Expense 78.7 (61.3)42.0 41.7 61.7 154.6 6.5 204.4189.1Net Income 4.3 4.3 4.3 4.3 4.3 12.9 12.9 17.317.3Preferred Stock Dividends 74.3 (65.6)37.7 37.4 57.4 141.6 (6.5)187.1171.9Net Income to Common Performance Metrics 1.00% (0.78%)0.57% 0.56% 0.81% 0.69% 0.03% 0.69%0.64%Return on Average Assets 1.46% (0.89%)1.07% 1.06% 1.31% 1.15% 0.28% 1.15%1.08%PPNR6 / Average Assets 62.3% 155.8% 70.4% 70.6% 64.5% 68.9% 90.4% 68.5%70.4%Efficiency Ratio7 10.0% (8.9%)5.3% 5.3% 8.1% 6.5% (0.3%)6.7%6.2%Return on Average Common Equity3 $1.59 ($1.41)$0.80 $0.80 $1.18 $3.01 ($0.14)$3.85$3.54Earnings Per Share Q3 2024Q2 2024Non-GAAP4 Adjustments ($mm) (114.8)50.4 Non-Interest Income 179.60.0Loss on AFS Securities Sale 64.8 50.4 Non-Interest Income, Adj. 195.3188.4Non-Interest Expense (0.7)0.5FDIC Special Assessment 5.90.0Restructuring Expenses 0.00.0Legal Settlement 190.1187.9 Non-Interest Expense, Adj. YTD 20242023Non-GAAP4 Adjustments ($mm) (23.0)161.4Non-Interest Income 179.60.0Loss on AFS Securities Sale 156.6 161.4Non-Interest Income, Adj. 586.1756.9Non-Interest Expense 2.819.9FDIC Special Assessment 7.90.0Restructuring Expenses 5.00.0Legal Settlement 570.4737.1Non-Interest Expense, Adj.

 
6 Balance Sheet Highlights ($mm) Ending Balances QoQQ3 2024Q2 2024Q3 2023 Assets 44% 4,192 2,913 4,193 Cash and Equivalents 0% 4,406 4,389 4,070 Total Securities 4% 10,968 10,534 10,366 Commercial Loans 9% 5,530 5,078 4,429 Mortgage Finance Loans (7%)5,315 5,689 5,359 CRE Loans 2% 569 558 537 Consumer Loans 2% 22,381 21,859 20,691 Gross LHI 2% (273)(267)(245)Allowance for Credit Losses on Loans 6% 31,629 29,855 29,628 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Performance Metrics 27% 24% 28% Cash & Securities % of Assets 49% 48% 50% Commercial Loans % of Gross LHI (319)(313)(291)Total Allowance for Credit Losses ($mm) 1.43% 1.44% 1.41% Total ACL / Total LHI QoQQ3 2024Q2 2024Q3 2023 Liabilities 14% 9,071 7,988 9,353 Non-Interest Bearing Deposits 6% 16,794 15,831 14,526 Interest Bearing Deposits 9% 25,865 23,818 23,879 Total Deposits (38%)1,035 1,675 1,400 FHLB Borrowings 6% 28,275 26,679 26,551 Total Liabilities Equity (2%)3,182 3,243 3,284 Common Equity, Excl AOCI (65%)(128)(368)(506)AOCI 6% 3,354 3,176 3,078 Total Shareholder’s Equity 0% 46,207,757 46,188,078 48,015,003 Common Shares Outstanding 86% 91% 86% Total LHI % of Deposits 35% 34% 39% Non-Interest Bearing % of Deposits $66.09 $62.26 $57.85 Book Value Per Share $66.06 $62.23 $57.82 Tangible Book Value Per Share8

 
7 $4.3 $3.3 $4.4 $4.7 $3.9 $3.5 $4.4 $5.2 $4.1 $4.1 $5.1 $4.4 $4.0 $4.2 $5.1 $5.5 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $5.4 $5.5 $5.8 $5.7 $5.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $10.4 $10.4 $10.4 $10.5 $11.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024  Commercial loans increased $434mm or 4% QoQ  Predominantly related to approx. $330 million of funded balances in the healthcare loan portfolio acquired at quarter end  Commercial real estate loans decreased $374mm QoQ as payoff rates remain elevated  Multi-family comprises $2.3bn or 44% of CRE loans  Over 55% located in Texas and total portfolio avg. LTV of 47%  Office balances declined to $408mm or 8% of CRE loans as several properties experienced paydowns or payoffs  Mortgage Finance loan balances driven by anticipated Q3 seasonality resulted in a $795mm, or 18%, QoQ increase on an average basis, compared to a 7% increase in the comparable quarter last year  Period end balances increased $451mm, or 9%  Modest mortgage rate improvements nationwide in mid-August and September resulted in increased activity Loan Portfolio Composition Mortgage Finance Loans ($bn) Average Period End Commercial Loans ($bn) Commercial Real Estate Loans ($bn)

 
8 2.62% 2.82% 2.97% 2.99% 2.94% 2.60% 2.75% 2.83% 2.83% 2.76% 4.47% 4.58% 4.67% 4.64% 4.64% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $4.0 $3.6 $3.4 $3.4 $3.5 $3.4 $6.0 $5.6 $5.2 $5.2 $6.0 $5.6 $12.8 $13.6 $14.4 $15.1 $15.8 $16.3 $1.4 $1.1 $0.8 $0.6 $0.5 $0.5 $24.2 $24.0 $23.8 $24.3 $25.7 $25.9 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2024 Q3 2024 EOP Deposit and Funding Composition  Total deposit balances increased $2bn or 9% QoQ  Excluding MF9 non-interest bearing and brokered deposits, QoQ growth of $1.1bn or 6% resulting from sustained focus on growing client relationships  Non-interest bearing, excl MF9 deposits grew $121 million or 4% QoQ as the firm continues to both onboard new clients and strengthen existing relationships through expanded product and service offerings  Average MF9 non-interest bearing deposits increased by $770mm, with the ratio to average mortgage finance loans declining to 116% in Q3 compared to 120% in Q2  End of period balances increased by $962mm QoQ or 21% consistent with historical seasonal trends  The majority of MF9 non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield  Average cost of interest bearing deposits remained flat at 4.64%, while average cost of total deposits declined by 5bps QoQ Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs Non-Interest Bearing, excl MF9 MF9 Non-Interest Bearing Interest Bearing Interest Bearing Brokered Change %$Q3 2024Q2 2024 4% 121 3,444 3,323 Non-Interest Bearing, excl MF9 21% 962 5,627 4,665 MF9 Non-Interest Bearing 14% 1,083 9,071 7,988 Total Non-Interest Bearing 6% 969 16,276 15,307 Interest Bearing (1%)($5)$518 $524 Brokered Deposits 6% 964 16,794 15,831 Total Interest Bearing 9% $2,047 $25,865 $23,818 Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits

 
9 (10.0%) (13.5%) (5.0%) (6.5%) 2.1% 3.1% 4.1% 6.1% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q2 2024 Q3 2024 -200bps Shock -100bps Shock +100bps Shock +200bps Shock Net Interest Income Sensitivity Standard Model Assumptions10 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 Net Interest Income Sensitivity – Static Balance Sheet ($mm) $925mm$992mmBase NII11 Earning Assets Profile (Average) Q3 2024Q2 2024 YieldBalance ($mm)YieldBalance ($mm) 5.30% $3,959 5.31% $3,273 Interest Bearing Cash and Equivalents 3.34% 4,315 2.80% 4,427 Securities 9.44% 24 9.55% 29 Loans Held for Sale 7.26% 16,792 7.25% 16,751 LHI excl Mortgage Finance LHI 4.20% 5,152 3.94% 4,357 Mortgage Finance LHI --(267)--(263)ACL on Loans 5.96% $29,975 5.86% $28,574 Earning Assets  93% of LHI excluding Mortgage Finance LHI are variable rate  $1.1bn of loans, or 7%, are fixed with 11% maturing or repricing in the next 12 months  During the quarter, the firm restructured a portion of the AFS securities portfolio  Sold $1.24bn of securities with a yield of 1.23% and reinvested proceeds into securities with a yield of 5.26%  Securities portfolio duration ~4 years  Loan hedges reduced interest income by $18.3 million this quarter and $54.4 million year to date Impacts of Mortgage Finance  Mortgage Finance represents 23% of the average total LHI portfolio with the majority tied to 1-month SOFR which declined 49bps in Q3  Given the current rate outlook and seasonality factors, the average Mortgage Finance self funding ratio is expected to decline modestly during Q4  Firm’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 $40 $20 ($49) ($99) $56 $29 ($60) ($125) Receive Rate Average Notional Balance ($bn) 3.66%2.9 Q3 2024 3.60%2.6 Q4 2024 3.60%2.6 Q1 2025 3.43%2.4 Q2 2025 3.09%1.3 Q3 2025 3.31%0.4 Q4 2025

 
10 $216.6 $0.6 $1.7 $8.3 $3.4 $2.2 $14.3 ($6.9) ($2.1) $2.0 $240.1 Q2 2024 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Yield Loan Fees Investment Securities & Cash Interest Bearing Deposits Volume Interest Bearing Deposit Cost Borrowings Q3 2024 $232.1 $214.7 $215.0 $216.6 $240.1 3.13% 2.93% 3.03% 3.01% 3.16% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Interest Income Net Interest Margin $46.9 $31.1 $41.3 $50.4 ($114.8) $64.8 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $110.0 $108.0 $126.7 $118.8 $118.7 $69.9 $73.5 $65.7 $69.1 $71.3 $19.9 $10.0 $0.5 $5.3 $179.9 $201.4 $202.4 $188.4 $195.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 10% 5% 0% 39% 36% 61% 54% 63% 63% Q3-2024 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) Salaries & Benefits Non-Recurring Items4Other NIE 60%  Net interest income increased $23.5mm QoQ from higher average loan balances for the quarter and securities interest income related to the AFS bond repositioning beginning in mid-August  Excluding the loss on sale of AFS securities4, non-interest income increased 29% QoQ  Record level of income in the fee areas of focus  Quarterly non-interest expense excluding non-recurring items4 increased $2.1mm to $190.1mm with salaries and benefits declining QoQ 9 9 9 9 37% 3% 37%32% % of Total Revenue, Adj.4 17% 13% 16% 19% 21% Non-Interest Income Non-Interest Income, Adj.4

 
11 60% 47% 50% 52% 75% 40% 53% 50% 48% 25% $431.8 $491.2 $584.5 $593.3 $579.8 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Commercial Mortgage Finance Real Estate Consumer 0.21% 0.29% 0.35% 0.28% 0.28% 0.17% 0.27% 0.22% 0.23% 0.11% 3.29% 3.63% 4.13% 3.95% 4.03% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 78% 81% 79% 80% 73% 22% 19% 21% 19% 26%1% 1% $245.6 $247.0 $275.0 $266.4 $317.9 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Commercial Mortgage Finance Real Estate Consumer Q3 2023 Q2 2024 Q3 2024Total ACL, ex MF9 / LHI ex MF9 Total ACL / LHI 4.6x 3.7x 3.6x 1.41% 1.44% 1.43% 1.76% 1.84% 1.87% Q3 2023 Q2 2024 Q3 2024 Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $6.1$12.0$10.8$13.8$8.9Net Charge-Offs ($mm) NPAs/Total Assets Criticized/LHI NCOs/Avg. LHI Total ACL / Non- accrual Loans HFI  ACL on Loans increased $5.8mm QoQ to $273mm, a continued build in the reserve to an all time high  Total ACL, excl. MF9 increased to $314mm in Q3 from $307mm in Q2  Total ACL, excl. MF9 to LHI, excl. MF9 in the top 5 percent among Peers12 Total ACL to LHI ratio  $6.1mm of net charge-offs, 0.11% of average LHI, related to several small commercial credits  Year-to-date annualized provision expense as a percentage of average LHI is 31bps, or 39bps when excl. MF  Criticized / LHI remained stable at 4.03% with total criticized loans increasing $38mm  Special mention loans declined $13.5mm QoQ to $580mm as material payoffs and upgrades in the real estate portfolio were offset by migration of certain commercial credits  Substandard loans increased $51.6mm QoQ to $318mm  Non-performing assets increased $3.9 million QoQ, flat at 0.28% of total assets

 
12 12.70% 12.65% 12.38% 11.62% 11.19% >11.00% 1.58% 1.59% 1.56% 1.47% 1.44% 2.81% 2.83% 2.70% 2.56% 2.54% 17.09% 17.07% 16.64% 15.65% 15.17% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2024 YE Target $57.82 $61.34 $61.06 $62.23 $66.06 $57.85 $61.37 $61.10 $62.26 $66.09 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 9.37% 10.22% 9.83% 9.63% 9.65% 9.38% 10.22% 9.84% 9.63% 9.66% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2024 YE Target Capital Position and Trends  Regulatory capital ratios remain exceptionally strong  Total capital ratio of 15.17%, in the top quartile of the peer group12, and CET1 ratio of 11.19%  CET1 declined 43bps QoQ primarily related to the loss on sale from repositioning AFS securities  Tangible common equity / tangible assets13 ended the quarter at 9.65%, 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 share8 increased by $3.83 driven by net income excluding the loss on the AFS securities portfolio transaction and additional AOCI improvement from end of period rate movements  TBVPS of $66.06 is an all-time high for the Firm Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Tangible Book Value per Share8 Period End AOCI ($mm) ($128)($368)($380)($362)($506) AOCI per Share ($2.77)($7.96)($8.09)($7.66)($10.54) Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets Peer12 Tangible Common Equity / Tangible Assets13 7.63%7.63%7.65%7.11% Tangible Book Value per Share8 Book Value per Share CET1 Tier 2 CapitalTier 1 Capital

 
13 Full Year 2024 Guidance FY 2023 Adjusted (Non-GAAP4) Low single-digit % growth$1,075.5mmTotal Revenue Low to mid single-digit % growth: Full Year Consensus$737.1mmNon-Interest Expense, Adjusted4 Maintained in Q4--Quarterly Operating Leverage (YoY Growth in Quarterly PPNR6, Adjusted4) >20%30%Average Cash & Total Securities (% of Average Total Assets) >11%12.6%CET1 Ratio Full Year 2024 Guidance  Forward curve14 assumes a 2024 exit rate of 4.25%  Total Revenue, Adjusted2 guidance decreased from low to mid single-digit percent annual growth  Non-Interest Expense, Adjusted4, remains unchanged  Quarterly Operating Leverage achieved in Q3 and expect to maintain in Q4  Average Cash & Total Securities remains unchanged  CET1 ratio target remains unchanged 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, $7.7 million for YTD 2024, and $2.5 million, $2.4 million, $2.4 million, $2.5 million, and $2.8 million for Q3 2023, Q4 2023, Q1 2024, Q2 2024, and Q3 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. Assets Under Management includes non-discretionary brokerage assets that the Firm earns wealth management and trust fee income on 6. “PPNR” used as an abbreviation for Pre-Provision Net Revenue which is the sum of net interest income and non-interest income, less non-interest expense 7. Non-interest expense divided by the sum of net interest income and non-interest income 8. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 9. “MF” used as abbreviation for Mortgage Finance 10. Model assumptions are only for Q3 2024; See prior TCBI Earnings Materials for prior model assumptions 11. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 12. Major exchange traded US peer banks with $20-100 billion in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; Data as of Q2 2024 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of October 4, 2024 YTD 2024 ($M)2023 ($M)2022 ($M)2021 ($M)2020 ($M) Adjusted3As Reported Adjusted As Reported Adjusted2As Reported Adjusted1As Reported Adjusted1As Reported $671.7 $671.7 $914.1 $914.1 $875.8 $875.8 $767.6 $768.8 $821.1 $851.3 Net Interest Income 156.6 (23.0)161.4 161.4 101.0 349.5 119.5 138.3 103.7 203.0 Non-Interest Income $828.2 $648.7 $1,075.5 $1,075.5 $976.8 $1,225.3 $887.1 $907.1 $924.8 $1,054.3 Total Revenue 18.9%(3.6%)15.0%15.0%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 3) Adjusted to remove non-recurring loss on sale of AFS securities Appendix // Footnotes

 
15 2024 YTD ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported $141.6 ($6.5)$187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $2,899.9 $2,899.9 $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 1.5 1.5 1.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $2,898.4 $2,898.4 $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 6.5%(0.3%)6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 6.5%(0.3%)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 Q3 2024 Q2 2024 ($mm, Except per Share) $671.7 $914.1 $875.8 $768.8 $851.3 $240.1 $216.6 Net Interest Income (23.0)161.4 349.5 138.3 203.0 (114.8)50.4 Non-Interest Revenue Adjustments for Non Recurring Items: --(248.5)----Gain on Sale of Insur. Prem. Finance 179.6----179.6-Loss on AFS Securities Sale 156.6 161.4 101.0 138.3 203.064.8 50.4 Non-Interest Revenue, Adjusted 586.1 756.9 727.5 599.0 704.4 195.3 188.4 Non-Interest Expense Adjustments: --(29.6)-(17.8)--Transaction Costs (7.9)-(9.8)(12.0)(54.0)(5.9)-Restructuring Expense (5.0)------Legal Settlement --(8.0)----Charitable Contribution (2.8)(19.9)---0.7 (0.5)FDIC Special Assessment 570.4 737.1 680.1 587.0 632.6 190.1 187.9 Non-Interest Expense, Adjusted 62.5 318.6 497.8 308.1 349.9 (70.0)78.6 PPNR6 257.9 338.5 296.6 320.1 421.7 114.9 79.1 PPNR6, Adjusted 49.0 72.0 66.0 (30.0)258.0 10.0 20.0 Provision for Credit Losses 7.1 57.5 99.3 84.1 25.7 (18.7)16.9 Income Tax Expenses 47.2 4.6 (45.4)2.7 15.6 44.9 0.1 Tax Impact of Adjustments Above 54.3 62.1 53.9 86.8 41.3 26.2 17.0 Income Tax Expenses, Adjusted 6.5 189.1 332.5 253.9 66.3 (61.3)41.7 Net Income 154.6 204.4 176.8 263.2 122.4 78.7 42.0 Net Income, Adjusted 12.9 17.3 17.3 18.7 9.8 4.3 4.3 Preferred Stock Dividends (6.5)171.9 315.2 235.2 56.5 (65.6)37.4 Net Income to Common 141.6 187.1 159.5 244.5 112.6 74.3 37.7 Net Income to Common, Adjusted $30,076.3 $29,537.3 $32,049.8 $38,140.3 $37,516.2 $31,215.2 $29,750.9 Average Assets 0.03% 0.64%1.04%0.67%0.18%(0.78%)0.56% Return on Average Assets 0.69% 0.69%0.55%0.69%0.33%1.00% 0.57% Return on Average Assets, Adjusted 0.28% 1.08%1.55%0.81%0.93%(0.89%)1.06% PPNR6 / Average Assets 1.15% 1.15%0.93%0.84%1.12%1.46% 1.07% PPNR6, Adjusted / Average Assets $2,899.9 $2,795.0 $2,783.3 $2,815.7 $2,686.7 $2,945.2 $2,857.7 Average Common Equity (0.30%)6.15%11.33%8.35%2.10%(8.87%)5.26% Return on Average Common Equity 6.52% 6.70%5.73%8.68%4.19%10.04% 5.31% Return on Average Common Equity, Adjusted 47,053,717 48,610,206 51,046,742 51,140,974 50,582,979 46,608,742 46,872,498 Diluted Common Shares ($0.14)$3.54 $6.18 $4.60 $1.12 ($1.41)$0.80 Earnings per Share $3.01 $3.85 $3.13 $4.78 $2.23 $1.59 $0.80 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.