First quarter 2023 net income of $38.7 million and net income available to common stockholders of $34.3 million,

or $0.70 per diluted share; both declining $1.0 million compared to first quarter 2022

First quarter 2023 Pre-Provision Net Revenue⁽¹⁾ grew $28.0 million (55%) compared to first quarter 2022

Top tier liquidity and capital ratios maintained, enabling continued execution of the strategic plan; Cash and

Securities to Total Assets of 28.0% and Tangible Common Equity to Tangible Assets⁽²⁾ of 9.7%

Total deposits declined 3%; continuing communicated execution of long-term

deposit mix shift away from highest cost sources

DALLAS, April 20, 2023 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2023.

Net income available to common stockholders was $34.3 million, or $0.70 per diluted share, for the first quarter of 2023, compared to $212.9 million, or $4.23 per diluted share, for the fourth quarter of 2022 and $35.3 million, or $0.69 per diluted share, for the first quarter of 2022. The fourth quarter of 2022 was significantly impacted by the following items, a $248.5 million ($3.83 per diluted share) gain and $13.0 million ($-0.20 per diluted share) in expenses related to the sale of the Company's insurance premium finance subsidiary, $9.8 million ($-0.15 per diluted share) in restructuring reserves related to the continued deployment of our target operating model and $8.0 million ($-0.12 per diluted share) in charitable contributions to the newly formed Texas Capital Bank Foundation.

"The transformative actions over the last two years were acutely focused on building a balance sheet and business model resilient to market and rate cycles," said Rob C. Holmes, President and CEO. "Through the quarter, we maintained industry leading liquidity and capital ratios, while adding a record number of new clients and delivering improved financial results for all of our stakeholders. As the banking industry is pressured nationwide, we remain committed to our strategic plan and focused actions to serve the best clients in our markets."

FINANCIAL RESULTS
(dollars and shares in thousands)
	1st Quarter			4th Quarter			1st Quarter
	2023			2022			2022
OPERATING RESULTS
Net income	$	38,661		$	217,251		$	39,650
Net income available to common stockholders	$	34,348		$	212,939		$	35,337
Diluted earnings per common share	$	0.70		$	4.23		$	0.69
Diluted common shares		48,881			50,283			51,324
Return on average assets		0.53	%		2.80	%		0.47	%
Return on average common equity		5.06	%		30.66	%		4.97	%

BALANCE SHEET
Loans held for investment	$	16,014,497		$	15,197,307		$	15,849,434
Loans held for investment, mortgage finance		4,060,570			4,090,033			5,827,965
Total loans held for investment		20,075,067			19,287,340			21,677,399
Loans held for sale		27,608			36,357			8,085
Total assets		28,596,653			28,414,642			31,085,377
Non-interest bearing deposits		9,500,583			9,618,081			13,434,723
Total deposits		22,179,697			22,856,880			25,377,938
Stockholders' equity		3,079,974			3,055,351			3,090,038

(1) Net interest income and non-interest income, less non-interest expense.

(2) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.

FIRST QUARTER 2023 COMPARED TO FOURTH QUARTER 2022

For the first quarter of 2023, net income available to common stockholders was $34.3 million, or $0.70 per diluted share, compared to $212.9 million, or $4.23 per diluted share, for the fourth quarter of 2022.

Provision for credit losses for the first quarter of 2023 was $28.0 million, compared to a $34.0 million provision for credit losses for the fourth quarter of 2022. The $28.0 million provision for credit losses recorded in the first quarter of 2023 resulted primarily from increases in loans held for investment ("LHI"), excluding mortgage finance, net charge-offs, and criticized loans.

Net interest income was $235.3 million for the first quarter of 2023, compared to $247.6 million for the fourth quarter of 2022. The decrease in net interest income was primarily due to a decrease in total average earning assets and an increase in funding costs, partially offset by an increase in yields on average earning assets. Net interest margin for the first quarter of 2023 was 3.33%, an increase of 7 basis points from the fourth quarter of 2022. LHI, excluding mortgage finance, yields increased 67 basis points from the fourth quarter of 2022 and LHI, mortgage finance yields decreased 53 basis points from the fourth quarter of 2022. Total cost of deposits was 2.06% for the first quarter of 2023, a 53 basis point increase from the fourth quarter of 2022.

Non-interest income for the first quarter of 2023 decreased $240.3 million, compared to the fourth quarter of 2022, primarily due to the inclusion of a $248.5 million gain recognized in the fourth quarter of 2022 on the sale of the Company's insurance premium finance subsidiary, partially offset by an increase in investment banking and trading income.

Non-interest expense for the first quarter of 2023 decreased $19.1 million, or 9%, compared to the fourth quarter of 2022, primarily due to decreases in occupancy expense, legal and professional expense and other non-interest expense, partially offset by an increase in salaries and benefits expense, primarily as a result of an increase in headcount and the effect of seasonal payroll expenses that peak in the first quarter. Fourth quarter 2022 expenses also included $13.0 million in legal and professional expense related to the sale of the Company's insurance premium finance subsidiary, restructuring reserves of $9.8 million, primarily related to occupancy expense, reflecting the expected costs of the continued implementation of the Company's target operating model and $8.0 million in charitable contributions to the Texas Capital Bank Foundation recorded in other non-interest expense, all of which did not recur in the first quarter of 2023.

FIRST QUARTER 2023 COMPARED TO FIRST QUARTER 2022

Net income available to common stockholders was $34.3 million, or $0.70 per diluted share, for the first quarter of 2023, compared to $35.3 million, or $0.69 per diluted share, for the first quarter of 2022.

The first quarter of 2023 included a $28.0 million provision for credit losses, resulting primarily from updated views on the downside risks to the economic forecast and increases in net charge-offs and criticized loans, compared to a $2.0 million negative provision for credit losses for the first quarter of 2022.

Net interest income increased to $235.3 million for the first quarter of 2023, compared to $183.5 million for the first quarter of 2022, primarily due to an increase in yields on average earning assets, partially offset by an increase in funding costs and a decrease in total average earning assets. Net interest margin increased 110 basis points to 3.33% for the first quarter of 2023, as compared to the first quarter of 2022. LHI, excluding mortgage finance, yields increased 324 basis points compared to the first quarter of 2022 and LHI, mortgage finance yields increased 45 basis points from the first quarter of 2022. Total cost of deposits increased 186 basis points compared to the first quarter of 2022.

Non-interest income for the first quarter of 2023 increased $17.1 million, compared to the first quarter of 2022. The increase was primarily due to increases in investment banking and trading income and other non-interest income, partially offset by a decrease in brokered loan fees.

Non-interest expense for the first quarter of 2023 increased $40.9 million, or 27%, compared to the first quarter of 2022 primarily due to an increase in salaries and benefits expense, resulting from an increase in headcount as compared to the first quarter of 2022, as well as increases in marketing, legal and professional and communications and technology expenses.

CREDIT QUALITY

Net charge-offs of $19.9 million were recorded during the first quarter of 2023, related primarily to a single commercial loan, compared to net charge-offs of $15.0 million during the fourth quarter of 2022 and net recoveries of $512,000 during the first quarter of 2022. Criticized loans totaled $561.1 million at March 31, 2023, compared to $513.2 million at December 31, 2022 and $476.1 million at March 31, 2022. Non-accrual LHI totaled $94.0 million at March 31, 2023, compared to $48.3 million at December 31, 2022 and $59.3 million at March 31, 2022. The ratio of non-accrual LHI to total LHI for the first quarter of 2023 was 0.47%, compared to 0.25% for the fourth quarter of 2022 and 0.27% for the first quarter of 2022. The ratio of total allowance for credit losses to total LHI was 1.41% at March 31, 2023, compared to 1.43% and 1.05% at December 31, 2022 and March 31, 2022, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of "well capitalized" requirements as of March 31, 2023. Our CET1, tier 1 capital, total capital and leverage ratios were 12.4%, 14.0%, 16.9% and 12.0%, respectively, at March 31, 2023, compared to 13.0%, 14.7%, 17.7% and 11.5%, respectively, at December 31, 2022 and 11.5%, 13.0%, 15.7% and 9.9% at March 31, 2022. At March 31, 2023, our ratio of tangible common equity to total tangible assets was 9.7%, compared to 9.7% at December 31, 2022 and 8.9% at March 31, 2022.

During the first quarter of 2023, the Company repurchased 1,011,909 shares of its common stock for an aggregate purchase price of $59.7 million, at a weighted average price of $58.98 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 parent company of Texas Capital Bank, 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 Bank 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, credit quality and risk, the unpredictability of economic and business conditions that may impact TCBI or its customers, recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these events, the Company's ability to effective manage its liquidity risk and any growth plans and the availability of capital and funding, the Company's ability to effectively manage information technology systems, cyber incidents or other failures, disruptions or security breaches, interest rates, including the impact of rising rates on the Company's securities portfolio and funding costs, commercial and residential real estate values, adverse or unexpected economic conditions, including inflation, recession, the threat of recession, and market conditions in Texas, the United States or globally, including governmental and consumer responses to those economic and market conditions, fund availability, accounting estimates and risk management processes, the transition away from the London Interbank Offered Rate (LIBOR), legislative and regulatory changes, enforcement actions and regulatory examinations and investigations, ratings or interpretations, business strategy execution, the failure to identify, attract and retain key personnel, increased or expanded competition from banks and other financial service providers in TCBI's markets, the failure to maintain adequate regulatory capital, environmental liability associated with properties related to TCBI's lending activities, and severe weather, natural disasters, acts of war, terrorism, global conflict, a material worsening of the COVID-19 pandemic or other health emergencies or other external events, climate change and related legislative and regulatory initiatives as well as the risks more fully described in TCBI's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in its 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
	2023			2022			2022			2022			2022
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	385,166		$	371,292		$	322,072		$	242,351		$	208,529
Interest expense		149,821			123,687			82,991			36,818			24,983
Net interest income		235,345			247,605			239,081			205,533			183,546
Provision for credit losses		28,000			34,000			12,000			22,000			(2,000	)
Net interest income after provision for credit losses		207,345			213,605			227,081			183,533			185,546
Non-interest income		37,403			277,667			25,332			26,240			20,283
Non-interest expense		194,027			213,090			197,047			164,303			153,092
Income before income taxes		50,721			278,182			55,366			45,470			52,737
Income tax expense		12,060			60,931			13,948			11,311			13,087
Net income		38,661			217,251			41,418			34,159			39,650
Preferred stock dividends		4,313			4,312			4,313			4,312			4,313
Net income available to common stockholders	$	34,348		$	212,939		$	37,105		$	29,847		$	35,337
Diluted earnings per common share	$	0.70		$	4.23		$	0.74		$	0.59		$	0.69
Diluted common shares		48,880,725			50,282,663			50,417,884			50,801,628			51,324,027

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	28,596,653		$	28,414,642		$	30,408,513		$	32,338,963		$	31,085,377
Loans held for investment		16,014,497			15,197,307			14,878,959			17,517,866			15,849,434
Loans held for investment, mortgage finance		4,060,570			4,090,033			4,908,822			6,549,507			5,827,965
Loans held for sale		27,608			36,357			3,142,178			4,266			8,085
Interest bearing cash and cash equivalents		3,385,494			4,778,623			3,399,638			4,032,931			5,136,680
Investment securities		4,345,969			3,585,114			3,369,622			3,552,699			3,642,015
Non-interest bearing deposits		9,500,583			9,618,081			11,494,685			12,555,367			13,434,723
Total deposits		22,179,697			22,856,880			24,498,563			25,440,021			25,377,938
Short-term borrowings		2,100,000			1,201,142			1,701,480			2,651,536			1,427,033
Long-term debt		932,119			931,442			930,766			917,098			929,414
Stockholders' equity		3,079,974			3,055,351			2,885,775			3,006,832			3,090,038

End of period shares outstanding		47,851,862			48,783,763			49,897,726			49,878,041			50,710,441
Book value per share	$	58.10		$	56.48		$	51.82		$	54.27		$	55.02
Tangible book value per share⁽¹⁾	$	58.06		$	56.45		$	51.48		$	53.93		$	54.68

SELECTED FINANCIAL RATIOS
Net interest margin		3.33	%		3.26	%		3.05	%		2.68	%		2.23	%
Return on average assets		0.53	%		2.80	%		0.52	%		0.44	%		0.47	%
Return on average common equity		5.06	%		30.66	%		5.36	%		4.35	%		4.97	%
Non-interest income to average earning assets		0.54	%		3.70	%		0.33	%		0.34	%		0.25	%
Efficiency ratio⁽²⁾		71.1	%		40.6	%		74.5	%		70.9	%		75.1	%
Non-interest expense to average earning assets		2.78	%		2.84	%		2.53	%		2.16	%		1.86	%
Common equity to total assets		9.7	%		9.7	%		8.5	%		8.4	%		9.0	%
Tangible common equity to total tangible assets⁽³⁾		9.7	%		9.7	%		8.5	%		8.3	%		8.9	%
Common Equity Tier 1		12.4	%		13.0	%		11.1	%		10.5	%		11.5	%
Tier 1 capital		14.0	%		14.7	%		12.6	%		11.9	%		13.0	%
Total capital		16.9	%		17.7	%		15.2	%		14.4	%		15.7	%
Leverage		12.0	%		11.5	%		10.7	%		10.7	%		9.9	%

(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, 2023			March 31, 2022			% Change
Assets
Cash and due from banks	$	264,211		$	234,853		13	%
Interest bearing cash and cash equivalents		3,385,494			5,136,680		(34)%
Available-for-sale debt securities		3,394,293			2,591,218		31	%
Held-to-maturity debt securities		918,962			1,009,972		(9)%
Equity securities		32,714			40,825		(20)%
Investment securities		4,345,969			3,642,015		19	%
Loans held for sale		27,608			8,085		N/M
Loans held for investment, mortgage finance		4,060,570			5,827,965		(30)%
Loans held for investment		16,014,497			15,849,434		1	%
Less: Allowance for credit losses on loans		260,928			211,151		24	%
Loans held for investment, net		19,814,139			21,466,248		(8)%
Premises and equipment, net		25,268			24,181		4	%
Accrued interest receivable and other assets		732,468			556,154		32	%
Goodwill and intangibles, net		1,496			17,161		(91)%
Total assets	$	28,596,653		$	31,085,377		(8)%

Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits	$	9,500,583		$	13,434,723		(29)%
Interest bearing deposits		12,679,114			11,943,215		6	%
Total deposits		22,179,697			25,377,938		(13)%
Accrued interest payable		31,198			8,560		N/M
Other liabilities		273,665			252,394		8	%
Short-term borrowings		2,100,000			1,427,033		47	%
Long-term debt		932,119			929,414		—	%
Total liabilities		25,516,679			27,995,339		(9)%

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, 2023 and 2022		300,000			300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 50,947,306 and 50,710,858 at March 31, 2023 and 2022, respectively		509			507		—	%
Additional paid-in capital		1,031,905			1,011,353		2	%
Retained earnings		2,297,850			1,983,611		16	%
Treasury stock - 3,095,444 and 417 shares at cost at March 31, 2023 and 2022, respectively		(175,528	)		(8	)	N/M
Accumulated other comprehensive loss, net of taxes		(374,762	)		(205,425	)	82	%
Total stockholders' equity		3,079,974			3,090,038		—	%
Total liabilities and stockholders' equity	$	28,596,653		$	31,085,377		(8)%

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended March 31,
		2023		2022
Interest income
Interest and fees on loans	$	297,438	$	187,656
Investment securities		25,292		17,302
Interest bearing cash and cash equivalents		62,436		3,571
Total interest income		385,166		208,529
Interest expense
Deposits		120,094		13,630
Short-term borrowings		14,744		758
Long-term debt		14,983		10,595
Total interest expense		149,821		24,983
Net interest income		235,345		183,546
Provision for credit losses		28,000		(2,000	)
Net interest income after provision for credit losses		207,345		185,546
Non-interest income
Service charges on deposit accounts		5,022		6,115
Wealth management and trust fee income		3,429		3,912
Brokered loan fees		1,895		3,970
Investment banking and trading income		18,768		4,179
Other		8,289		2,107
Total non-interest income		37,403		20,283
Non-interest expense
Salaries and benefits		128,670		99,859
Occupancy expense		9,619		8,885
Marketing		9,044		4,977
Legal and professional		14,514		10,302
Communications and technology		17,523		14,700
Federal Deposit Insurance Corporation insurance assessment		2,170		3,981
Other		12,487		10,388
Total non-interest expense		194,027		153,092
Income before income taxes		50,721		52,737
Income tax expense		12,060		13,087
Net income		38,661		39,650
Preferred stock dividends		4,313		4,313
Net income available to common stockholders	$	34,348	$	35,337

Basic earnings per common share	$	0.71	$	0.70
Diluted earnings per common share	$	0.70	$	0.69

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2023			2022			2022			2022			2022
Allowance for credit losses on loans:
Beginning balance	$	253,469		$	234,613		$	229,013		$	211,151		$	211,866
Loans charged-off:
Commercial		20,732			14,404			232			2,868			110
Energy		—			2,702			2,903			—			—
Real estate		—			—			—			—			350
Total charge-offs		20,732			17,106			3,135			2,868			460
Recoveries:
Commercial		816			133			113			219			217
Energy		6			1,974			289			—			755
Total recoveries		822			2,107			402			219			972
Net charge-offs		19,910			14,999			2,733			2,649			(512	)
Provision for credit losses on loans		27,369			33,855			8,333			20,511			(1,227	)
Ending balance	$	260,928		$	253,469		$	234,613		$	229,013		$	211,151

Allowance for off-balance sheet credit losses:
Beginning balance	$	21,793		$	21,648		$	17,981		$	16,492		$	17,265
Provision for off-balance sheet credit losses		631			145			3,667			1,489			(773	)
Ending balance	$	22,424		$	21,793		$	21,648		$	17,981		$	16,492

Total allowance for credit losses	$	283,352		$	275,262		$	256,261		$	246,994		$	227,643
Total provision for credit losses	$	28,000		$	34,000		$	12,000		$	22,000		$	(2,000	)

Allowance for credit losses on loans to total loans held for investment		1.30	%		1.31	%		1.19	%		0.95	%		0.97	%
Allowance for credit losses on loans to average total loans held for investment		1.38	%		1.31	%		1.06	%		1.02	%		0.99	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.43	%		0.31	%		0.05	%		0.05	%	(0.01		)%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.19	%		0.09	%		0.03	%		0.03	%		0.03	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.60	%		0.70	%		0.22	%		0.39	%	(0.04		)%
Total allowance for credit losses to total loans held for investment		1.41	%		1.43	%		1.30	%		1.03	%		1.05	%

(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
	2023			2022			2022			2022			2022
Non-accrual loans held for investment	$	93,951		$	48,338		$	35,864		$	50,526		$	59,327
Non-accrual loans held for sale⁽¹⁾		—			—			1,340			—			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	93,951		$	48,338		$	37,204		$	50,526		$	59,327

Non-accrual loans held for investment to total loans held for investment		0.47	%		0.25	%		0.18	%		0.21	%		0.27	%
Total non-performing assets to total assets		0.33	%		0.17	%		0.12	%		0.16	%		0.19	%
Allowance for credit losses on loans to non-accrual loans held for investment	2.8x			5.2x			6.5x			4.5x			3.6x

Loans held for investment past due 90 days and still accruing	$	3,098		$	131		$	30,664		$	3,206		$	6,031
Loans held for investment past due 90 days to total loans held for investment		0.02	%		—	%		0.15	%		0.01	%		0.03	%
Loans held for sale past due 90 days and still accruing⁽¹⁾⁽²⁾	$	—		$	—		$	4,877		$	1,602		$	3,865

(1) Third quarter 2022 includes $1.3 million in non-accrual loans and $3.1 million in loans past due 90 days and still accruing associated to our insurance premium finance subsidiary that were transferred from loans held for investment to loans held for sale as of September 30, 2022.

(2) Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as loans held for sale and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government.

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

	1st Quarter		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	2023		2022		2022		2022		2022
Interest income
Interest and fees on loans	$	297,438	$	295,372	$	282,474	$	218,292	$	187,656
Investment securities		25,292		16,210		15,002		14,665		17,302
Interest bearing deposits in other banks		62,436		59,710		24,596	$	9,394	$	3,571
Total interest income		385,166		371,292		322,072		242,351		208,529
Interest expense
Deposits		120,094		96,150		60,317		20,566		13,630
Short-term borrowings		14,744		13,449		10,011		4,859		758
Long-term debt		14,983		14,088		12,663		11,393		10,595
Total interest expense		149,821		123,687		82,991		36,818		24,983
Net interest income		235,345		247,605		239,081		205,533		183,546
Provision for credit losses		28,000		34,000		12,000		22,000		(2,000	)
Net interest income after provision for credit losses		207,345		213,605		227,081		183,533		185,546
Non-interest income
Service charges on deposit accounts		5,022		5,252		5,797		6,102		6,115
Wealth management and trust fee income		3,429		3,442		3,631		4,051		3,912
Brokered loan fees		1,895		2,655		3,401		4,133		3,970
Investment banking and trading income		18,768		11,937		7,812		11,126		4,179
Gain on disposal of subsidiary		—		248,526		—		—		—
Other		8,289		5,855		4,691		828		2,107
Total non-interest income		37,403		277,667		25,332		26,240		20,283
Non-interest expense
Salaries and benefits		128,670		102,925		128,764		103,358		99,859
Occupancy expense		9,619		17,030		9,433		8,874		8,885
Marketing		9,044		10,623		8,282		8,506		4,977
Legal and professional		14,514		37,493		16,775		11,288		10,302
Communications and technology		17,523		20,434		18,470		15,649		14,700
Federal Deposit Insurance Corporation insurance assessment		2,170		3,092		3,953		3,318		3,981
Other		12,487		21,493		11,370		13,310		10,388
Total non-interest expense		194,027		213,090		197,047		164,303		153,092
Income before income taxes		50,721		278,182		55,366		45,470		52,737
Income tax expense		12,060		60,931		13,948		11,311		13,087
Net income		38,661		217,251		41,418		34,159		39,650
Preferred stock dividends		4,313		4,312		4,313		4,312		4,313
Net income available to common shareholders	$	34,348	$	212,939	$	37,105	$	29,847	$	35,337

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	1st Quarter 2023						4th Quarter 2022						3rd Quarter 2022						2nd Quarter 2022						1st Quarter 2022
	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⁾	$	4,060,456	$	25,292	2.31	%	$	3,385,372	$	16,210	1.70	%	$	3,509,044	$	15,002	1.58	%	$	3,543,576	$	15,065	1.60	%	$	3,669,257	$	17,743	1.91	%
Interest bearing cash and cash equivalents		5,541,341		62,436	4.57	%		6,158,769		59,710	3.85	%		4,453,806		24,596	2.19	%		4,747,377		9,394	0.79	%		8,552,300		3,571	0.17	%
Loans held for sale		43,472		938	8.75	%		1,053,157		12,064	4.54	%		1,029,983		11,316	4.36	%		8,123		62	3.07	%		7,633		113	6.01	%
Loans held for investment, mortgage finance		3,286,804		28,528	3.52	%		4,279,367		43,708	4.05	%		5,287,531		52,756	3.96	%		5,858,599		49,914	3.42	%		5,732,901		43,466	3.07	%
Loans held for investment⁽³⁾		15,598,854		268,131	6.97	%		15,105,083		239,746	6.30	%		16,843,922		218,513	5.15	%		16,616,234		168,409	4.07	%		15,686,319		144,133	3.73	%
Less: Allowance for credit losses on loans		252,727		—	—			233,246		—	—			229,005		—	—			211,385		—	—			212,612		—	—
Loans held for investment, net		18,632,931		296,659	6.46	%		19,151,204		283,454	5.87	%		21,902,448		271,269	4.91	%		22,263,448		218,323	3.93	%		21,206,608		187,599	3.59	%
Total earning assets		28,278,200		385,325	5.45	%		29,748,502		371,438	4.89	%		30,895,281		322,183	4.10	%		30,562,524		242,844	3.16	%		33,435,798		209,026	2.54	%
Cash and other assets		1,041,745						989,900						918,630						870,396						819,486
Total assets	$	29,319,945					$	30,738,402					$	31,813,911					$	31,432,920					$	34,255,284

Liabilities and Stockholders' Equity
Transaction deposits	$	776,500	$	3,853	2.01	%	$	1,105,466	$	4,977	1.79	%	$	1,444,964	$	5,239	1.44	%	$	1,671,729	$	3,920	0.94	%	$	2,432,687	$	3,962	0.66	%
Savings deposits		11,195,402		105,707	3.83	%		10,563,049		80,801	3.03	%		10,249,387		46,555	1.80	%		8,696,819		15,462	0.71	%		10,420,545		8,583	0.33	%
Time deposits		1,430,657		10,534	2.99	%		1,625,857		10,372	2.53	%		1,701,238		8,523	1.99	%		877,399		1,184	0.54	%		1,038,722		1,085	0.42	%
Total interest bearing deposits		13,402,559		120,094	3.63	%		13,294,372		96,150	2.87	%		13,395,589		60,317	1.79	%		11,245,947		20,566	0.73	%		13,891,954		13,630	0.40	%
Short-term borrowings		1,242,881		14,744	4.81	%		1,387,660		13,449	3.84	%		1,931,537		10,011	2.06	%		2,232,119		4,859	0.87	%		1,770,781		758	0.17	%
Long-term debt		931,796		14,983	6.52	%		931,107		14,088	6.00	%		921,707		12,663	5.45	%		929,616		11,393	4.92	%		929,005		10,595	4.63	%
Total interest bearing liabilities		15,577,236		149,821	3.90	%		15,613,139		123,687	3.14	%		16,248,833		82,991	2.03	%		14,407,682		36,818	1.02	%		16,591,740		24,983	0.61	%
Non-interest bearing deposits		10,253,731						11,642,969						12,214,531						13,747,876						14,235,749
Other liabilities		436,621						426,543						305,554						227,701						243,141
Stockholders' equity		3,052,357						3,055,751						3,044,993						3,049,661						3,184,654
Total liabilities and stockholders' equity	$	29,319,945					$	30,738,402					$	31,813,911					$	31,432,920					$	34,255,284
Net interest income			$	235,504					$	247,751					$	239,192					$	206,026					$	184,043
Net interest margin					3.33	%					3.26	%					3.05	%					2.68	%					2.23	%

(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.

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 2023 Results