Second quarter 2024 net income of $41.7 million and net income available to common stockholders of $37.4 million, or $0.80 per diluted share

Book Value and Tangible Book Value⁽¹⁾ per share both increased 1.9%, reaching record levels, after giving effect to the repurchase of $50.0 million in shares

Capital ratios continue to be strong, including 11.6% CET1 and 15.7% Total Capital

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

Net income available to common stockholders was $37.4 million, or $0.80 per diluted share, for the second quarter of 2024, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024 and $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.

"Building a platform resilient to market and rate cycles is a foundational tenant of our strategic plan," said Rob C. Holmes, President and CEO. "We continue to deliver differentiated solutions for clients across our markets and areas of industry focus at a pace that exceeds observed market behavior. We remain focused on realizing the clear strategic value of our platform through enhanced financial performance."

FINANCIAL RESULTS
(dollars and shares in thousands)
	2nd Quarter			1st Quarter			2nd Quarter
	2024			2024			2023
OPERATING RESULTS
Net income	$	41,662		$	26,142		$	68,651
Net income available to common stockholders	$	37,350		$	21,829		$	64,339
Diluted earnings per common share	$	0.80		$	0.46		$	1.33
Diluted common shares		46,872			47,711			48,421
Return on average assets		0.56	%		0.36	%		0.95	%
Return on average common equity		5.26	%		3.03	%		9.17	%

BALANCE SHEET
Loans held for investment	$	16,700,569		$	16,677,691		$	16,227,203
Loans held for investment, mortgage finance		5,078,161			4,153,313			5,098,812
Total loans held for investment		21,778,730			20,831,004			21,326,015
Loans held for sale		36,785			37,750			29,097
Total assets		29,854,994			29,180,585			28,976,544
Non-interest bearing deposits		7,987,715			8,478,215			9,429,352
Total deposits		23,818,327			23,954,037			23,318,240
Stockholders' equity		3,175,601			3,170,662			3,081,927

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

SECOND QUARTER 2024 COMPARED TO FIRST QUARTER 2024

For the second quarter of 2024, net income available to common stockholders was $37.4 million, or $0.80 per diluted share, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024.

Provision for credit losses for the second quarter of 2024 was $20.0 million, compared to $19.0 million for the first quarter of 2024. The $20.0 million provision for credit losses recorded in the second quarter of 2024 resulted primarily from growth in total loans held for investment ("LHI") and $12.0 million in net charge-offs.

Net interest income was $216.6 million for the second quarter of 2024, compared to $215.0 million for the first quarter of 2024, as an increase in average earning assets and a decline in funding costs was partially offset by an increase in average interest bearing deposits. Net interest margin for the second quarter of 2024 was 3.01%, a decrease of 2 basis points from the first quarter of 2024. LHI, excluding mortgage finance, yields decreased 1 basis point from the first quarter of 2024 and LHI, mortgage finance, yields increased 34 basis points from the first quarter of 2024. Total cost of deposits was 2.99% for the second quarter of 2024, a 2 basis point increase from the first quarter of 2024.

Non-interest income for the second quarter of 2024 increased $9.1 million, or 22%, compared to the first quarter of 2024, primarily due to increases in investment banking and advisory fees and other non-interest income.

Non-interest expense for the second quarter of 2024 decreased $14.0 million, or 7%, compared to the first quarter of 2024, primarily due to a $9.9 million decrease in salaries and benefits, related to the effect of seasonal payroll expenses that peak in the first quarter, as well as decreases in legal and professional expense and Federal Deposit Insurance Corporation ("FDIC") insurance assessment expense, partially offset by an increase in other non-interest expense. The second quarter of 2024 included $460,000 in FDIC special assessment expense, as compared to $3.0 million in the first quarter of 2024. Legal and professional expense in the first quarter of 2024 included a $5.0 million legal settlement expense.

SECOND QUARTER 2024 COMPARED TO SECOND QUARTER 2023

Net income available to common stockholders was $37.4 million, or $0.80 per diluted share, for the second quarter of 2024, compared to $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.

The second quarter of 2024 included a $20.0 million provision for credit losses, reflecting growth in total LHI and $12.0 million in net charge-offs, compared to a $7.0 million provision for the second quarter of 2023.

Net interest income decreased to $216.6 million for the second quarter of 2024, compared to $232.0 million for the second quarter of 2023, primarily due to increases in funding costs and average interest bearing deposits, partially offset by increases in yields on average earning assets and average LHI, excluding mortgage finance. Net interest margin decreased 28 basis points to 3.01% for the second quarter of 2024 compared to the second quarter of 2023. LHI, excluding mortgage finance, yields increased 25 basis points compared to the second quarter of 2023 and LHI, mortgage finance yields decreased 59 basis points from the second quarter of 2023. Total cost of deposits increased 62 basis points compared to the second quarter of 2023.

Non-interest income for the second quarter of 2024 increased $4.4 million, or 10%, compared to the second quarter of 2023. The increase was primarily due to an increase in investment banking and advisory fees, partially offset by a decrease in trading income.

Non-interest expense for the second quarter of 2024 increased $6.8 million, or 4%, compared to the second quarter of 2023, primarily due to increases in salaries and benefits, occupancy expense, communications and technology expense, FDIC insurance assessment expense and other non-interest expense, partially offset by a decrease in legal and professional expense.

CREDIT QUALITY

Net charge-offs of $12.0 million were recorded during the second quarter of 2024, compared to net charge-offs of $10.8 million and $8.2 million during the first quarter of 2024 and the second quarter of 2023, respectively. Criticized loans totaled $859.7 million at June 30, 2024, compared to $859.5 million at March 31, 2024 and $619.4 million at June 30, 2023. Non-accrual LHI totaled $85.0 million at June 30, 2024, compared to $92.8 million at March 31, 2024 and $81.0 million at June 30, 2023. The ratio of non-accrual LHI to total LHI for the second quarter of 2024 was 0.39%, compared to 0.45% for the first quarter of 2024 and 0.38% for the second quarter of 2023. The ratio of total allowance for credit losses to total LHI was 1.44% at June 30, 2024, compared to 1.46% and 1.32% at March 31, 2024 and June 30, 2023, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of "well capitalized" requirements as of June 30, 2024. CET1, tier 1 capital, total capital and leverage ratios were 11.6%, 13.1%, 15.7% and 12.2%, respectively, at June 30, 2024, compared to 12.4%, 13.9%, 16.6% and 12.4%, respectively, at March 31, 2024 and 12.2%, 13.7%, 16.4% and 12.4%, respectively, at June 30, 2023. The second quarter 2024 decline in regulatory ratios resulted primarily from the redemption in full of the bank-issued senior unsecured credit-linked notes of $275.0 million in the second quarter of 2024. At June 30, 2024, our ratio of tangible common equity to total tangible assets was 9.6%, compared to 9.8% at March 31, 2024 and 9.6% at June 30, 2023.

During the second quarter of 2024, the Company repurchased 852,098 shares of its common stock for an aggregate purchase price, including excise tax expense, of $50.0 million, at a weighted average price of $58.14 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®, 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 developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI's ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI's securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI's risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI's loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI's markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2024			2024			2023			2023			2023
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	422,068		$	417,378		$	417,072		$	425,769		$	401,916
Interest expense		205,486			202,369			202,355			193,698			169,926
Net interest income		216,582			215,009			214,717			232,071			231,990
Provision for credit losses		20,000			19,000			19,000			18,000			7,000
Net interest income after provision for credit losses		196,582			196,009			195,717			214,071			224,990
Non-interest income		50,424			41,319			31,133			46,872			46,011
Non-interest expense		188,409			202,393			201,385			179,891			181,644
Income before income taxes		58,597			34,935			25,465			81,052			89,357
Income tax expense		16,935			8,793			5,315			19,373			20,706
Net income		41,662			26,142			20,150			61,679			68,651
Preferred stock dividends		4,312			4,313			4,312			4,313			4,312
Net income available to common stockholders	$	37,350		$	21,829		$	15,838		$	57,366		$	64,339
Diluted earnings per common share	$	0.80		$	0.46		$	0.33		$	1.18		$	1.33
Diluted common shares		46,872,498			47,711,192			48,097,517			48,528,698			48,421,276

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	29,854,994		$	29,180,585		$	28,356,266		$	29,628,249		$	28,976,544
Loans held for investment		16,700,569			16,677,691			16,362,230			16,183,882			16,227,203
Loans held for investment, mortgage finance		5,078,161			4,153,313			3,978,328			4,429,489			5,098,812
Loans held for sale		36,785			37,750			44,105			155,073			29,097
Interest bearing cash and cash equivalents		2,691,352			3,148,157			3,042,357			3,975,860			2,587,131
Investment securities		4,388,976			4,414,280			4,143,194			4,069,717			4,226,653
Non-interest bearing deposits		7,987,715			8,478,215			7,328,276			9,352,883			9,429,352
Total deposits		23,818,327			23,954,037			22,371,839			23,878,978			23,318,240
Short-term borrowings		1,675,000			750,000			1,500,000			1,400,000			1,350,000
Long-term debt		659,997			859,823			859,147			858,471			857,795
Stockholders' equity		3,175,601			3,170,662			3,199,142			3,077,700			3,081,927

End of period shares outstanding		46,188,078			46,986,275			47,237,912			48,015,003			47,992,521
Book value per share	$	62.26		$	61.10		$	61.37		$	57.85		$	57.97
Tangible book value per share⁽¹⁾	$	62.23		$	61.06		$	61.34		$	57.82		$	57.93

SELECTED FINANCIAL RATIOS
Net interest margin		3.01	%		3.03	%		2.93	%		3.13	%		3.29	%
Return on average assets		0.56	%		0.36	%		0.27	%		0.81	%		0.95	%
Return on average common equity		5.26	%		3.03	%		2.25	%		8.08	%		9.17	%
Non-interest income to average earning assets		0.71	%		0.59	%		0.43	%		0.64	%		0.66	%
Efficiency ratio⁽²⁾		70.6	%		79.0	%		81.9	%		64.5	%		65.3	%
Non-interest expense to average earning assets		2.65	%		2.89	%		2.79	%		2.46	%		2.61	%
Common equity to total assets		9.6	%		9.8	%		10.2	%		9.4	%		9.6	%
Tangible common equity to total tangible assets⁽³⁾		9.6	%		9.8	%		10.2	%		9.4	%		9.6	%
Common Equity Tier 1		11.6	%		12.4	%		12.6	%		12.7	%		12.2	%
Tier 1 capital		13.1	%		13.9	%		14.2	%		14.3	%		13.7	%
Total capital		15.7	%		16.6	%		17.1	%		17.1	%		16.4	%
Leverage		12.2	%		12.4	%		12.2	%		12.1	%		12.4	%

⁽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)
	June 30, 2024			June 30, 2023			% Change
Assets
Cash and due from banks	$	221,727		$	260,314		(15	)%
Interest bearing cash and cash equivalents		2,691,352			2,587,131		4	%
Available-for-sale debt securities		3,483,231			3,292,478		6	%
Held-to-maturity debt securities		831,513			900,315		(8	)%
Equity securities		74,232			33,860		119	%
Investment securities		4,388,976			4,226,653		4	%
Loans held for sale		36,785			29,097		26	%
Loans held for investment, mortgage finance		5,078,161			5,098,812		—	%
Loans held for investment		16,700,569			16,227,203		3	%
Less: Allowance for credit losses on loans		267,297			237,343		13	%
Loans held for investment, net		21,511,433			21,088,672		2	%
Premises and equipment, net		69,464			26,096		166	%
Accrued interest receivable and other assets		933,761			757,085		23	%
Goodwill and intangibles, net		1,496			1,496		—	%
Total assets	$	29,854,994		$	28,976,544		3	%

Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits	$	7,987,715		$	9,429,352		(15	)%
Interest bearing deposits		15,830,612			13,888,888		14	%
Total deposits		23,818,327			23,318,240		2	%
Accrued interest payable		23,841			29,658		(20	)%
Other liabilities		502,228			338,924		48	%
Short-term borrowings		1,675,000			1,350,000		24	%
Long-term debt		659,997			857,795		(23	)%
Total liabilities		26,679,393			25,894,617		3	%

Stockholders' equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at June 30, 2024 and 2023		300,000			300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,474,581 and 51,087,965 at June 30, 2024 and 2023, respectively		515			511		1	%
Additional paid-in capital		1,050,114			1,035,063		1	%
Retained earnings		2,494,572			2,362,189		6	%
Treasury stock - 5,286,503 and 3,095,444 shares at cost at June 30, 2024 and 2023, respectively		(301,868	)		(175,528	)	72	%
Accumulated other comprehensive loss, net of taxes		(367,732	)		(440,308	)	(16	)%
Total stockholders' equity		3,175,601			3,081,927		3	%
Total liabilities and stockholders' equity	$	29,854,994		$	28,976,544		3	%

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Interest income
Interest and fees on loans	$	345,251	$	332,867	$	676,130	$	630,305
Investment securities		33,584		27,478		65,728		52,770
Interest bearing cash and cash equivalents		43,233		41,571		97,588		104,007
Total interest income		422,068		401,916		839,446		787,082
Interest expense
Deposits		181,280		137,391		356,880		257,485
Short-term borrowings		12,749		18,253		25,532		32,997
Long-term debt		11,457		14,282		25,443		29,265
Total interest expense		205,486		169,926		407,855		319,747
Net interest income		216,582		231,990		431,591		467,335
Provision for credit losses		20,000		7,000		39,000		35,000
Net interest income after provision for credit losses		196,582		224,990		392,591		432,335
Non-interest income
Service charges on deposit accounts		5,911		5,158		12,250		10,180
Wealth management and trust fee income		3,699		3,715		7,266		7,144
Brokered loan fees		2,131		2,415		4,042		4,310
Investment banking and advisory fees		25,048		19,101		43,472		33,665
Trading income		5,650		8,397		10,362		12,601
Other		7,985		7,225		14,351		15,514
Total non-interest income		50,424		46,011		91,743		83,414
Non-interest expense
Salaries and benefits		118,840		113,050		247,567		241,720
Occupancy expense		10,666		9,482		20,403		19,101
Marketing		5,996		6,367		12,032		15,411
Legal and professional		11,273		15,669		27,468		30,183
Communications and technology		22,013		20,525		43,127		38,048
Federal Deposit Insurance Corporation insurance assessment		5,570		3,693		13,991		5,863
Other		14,051		12,858		26,214		25,345
Total non-interest expense		188,409		181,644		390,802		375,671
Income before income taxes		58,597		89,357		93,532		140,078
Income tax expense		16,935		20,706		25,728		32,766
Net income		41,662		68,651		67,804		107,312
Preferred stock dividends		4,312		4,312		8,625		8,625
Net income available to common stockholders	$	37,350	$	64,339	$	59,179	$	98,687

Basic earnings per common share	$	0.80	$	1.34	$	1.26	$	2.05
Diluted earnings per common share	$	0.80	$	1.33	$	1.25	$	2.02

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2024			2024			2023			2023			2023
Allowance for credit losses on loans:
Beginning balance	$	263,962		$	249,973		$	244,902		$	237,343		$	260,928
Loans charged-off:
Commercial		9,997			7,544			8,356			13,246			8,852
Commercial real estate		2,111			3,325			5,500			—			—
Consumer		—			—			—			41			—
Total charge-offs		12,108			10,869			13,856			13,287			8,852
Recoveries:
Commercial		153			105			15			4,346			611
Commercial real estate		—			—			4			—			—
Consumer		—			—			—			—			2
Total recoveries		153			105			19			4,346			613
Net charge-offs		11,955			10,764			13,837			8,941			8,239
Provision for credit losses on loans		15,290			24,753			18,908			16,500			(15,346	)
Ending balance	$	267,297		$	263,962		$	249,973		$	244,902		$	237,343

Allowance for off-balance sheet credit losses:
Beginning balance	$	40,609		$	46,362		$	46,270		$	44,770		$	22,424
Provision for off-balance sheet credit losses		4,710			(5,753	)		92			1,500			22,346
Ending balance	$	45,319		$	40,609		$	46,362		$	46,270		$	44,770

Total allowance for credit losses	$	312,616		$	304,571		$	296,335		$	291,172		$	282,113
Total provision for credit losses	$	20,000		$	19,000		$	19,000		$	18,000		$	7,000

Allowance for credit losses on loans to total loans held for investment		1.23	%		1.27	%		1.23	%		1.19	%		1.11	%
Allowance for credit losses on loans to average total loans held for investment		1.27	%		1.32	%		1.24	%		1.17	%		1.15	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.23	%		0.22	%		0.27	%		0.17	%		0.16	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.22	%		0.20	%		0.25	%		0.26	%		0.23	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.38	%		0.38	%		0.37	%		0.34	%		0.14	%
Total allowance for credit losses to total loans held for investment		1.44	%		1.46	%		1.46	%		1.41	%		1.32	%

⁽¹⁾ Interim period ratios are annualized.

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2024			2024			2023			2023			2023
Non-accrual loans held for investment	$	85,021		$	92,849		$	81,398		$	63,129		$	81,039
Non-accrual loans held for sale⁽¹⁾		—			9,250			—			—			—
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	85,021		$	102,099		$	81,398		$	63,129		$	81,039

Non-accrual loans held for investment to total loans held for investment		0.39	%		0.45	%		0.40	%		0.31	%		0.38	%
Total non-performing assets to total assets		0.28	%		0.35	%		0.29	%		0.21	%		0.28	%
Allowance for credit losses on loans to non-accrual loans held for investment		3.1	x		2.8	x		3.1	x		3.9	x		2.9	x
Total allowance for credit losses to non-accrual loans held for investment		3.7	x		3.3	x		3.6	x		4.6	x		3.5	x

Loans held for investment past due 90 days and still accruing	$	286		$	3,674		$	19,523		$	4,602		$	64
Loans held for investment past due 90 days to total loans held for investment		—	%		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.


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

	2nd Quarter		1st Quarter		4th Quarter		3rd Quarter		2nd Quarter
	2024		2024		2023		2023		2023
Interest income
Interest and fees on loans	$	345,251	$	330,879	$	325,210	$	345,138	$	332,867
Investment securities		33,584		32,144		28,454		27,070		27,478
Interest bearing deposits in other banks		43,233		54,355		63,408		53,561		41,571
Total interest income		422,068		417,378		417,072		425,769		401,916
Interest expense
Deposits		181,280		175,600		170,173		160,117		137,391
Short-term borrowings		12,749		12,783		18,069		19,576		18,253
Long-term debt		11,457		13,986		14,113		14,005		14,282
Total interest expense		205,486		202,369		202,355		193,698		169,926
Net interest income		216,582		215,009		214,717		232,071		231,990
Provision for credit losses		20,000		19,000		19,000		18,000		7,000
Net interest income after provision for credit losses		196,582		196,009		195,717		214,071		224,990
Non-interest income
Service charges on deposit accounts		5,911		6,339		5,397		5,297		5,158
Wealth management and trust fee income		3,699		3,567		3,302		3,509		3,715
Brokered loan fees		2,131		1,911		2,076		2,532		2,415
Investment banking and advisory fees		25,048		18,424		6,906		23,099		19,101
Trading income		5,650		4,712		3,819		6,092		8,397
Other		7,985		6,366		9,633		6,343		7,225
Total non-interest income		50,424		41,319		31,133		46,872		46,011
Non-interest expense
Salaries and benefits		118,840		128,727		107,970		110,010		113,050
Occupancy expense		10,666		9,737		9,483		9,910		9,482
Marketing		5,996		6,036		5,686		4,757		6,367
Legal and professional		11,273		16,195		17,127		17,614		15,669
Communications and technology		22,013		21,114		23,607		19,607		20,525
Federal Deposit Insurance Corporation insurance assessment		5,570		8,421		25,143		5,769		3,693
Other		14,051		12,163		12,369		12,224		12,858
Total non-interest expense		188,409		202,393		201,385		179,891		181,644
Income before income taxes		58,597		34,935		25,465		81,052		89,357
Income tax expense		16,935		8,793		5,315		19,373		20,706
Net income		41,662		26,142		20,150		61,679		68,651
Preferred stock dividends		4,312		4,313		4,312		4,313		4,312
Net income available to common shareholders	$	37,350	$	21,829	$	15,838	$	57,366	$	64,339

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)

	2nd Quarter 2024						1st Quarter 2024						4th Quarter 2023						3rd Quarter 2023						2nd 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⁾	$	4,427,023	$	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	%	$	4,306,881	$	27,478	2.36	%
Interest bearing cash and cash equivalents		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	%		3,286,091		41,571	5.07	%
Loans held for sale		28,768		683	9.55	%		51,164		1,184	9.31	%		29,071		672	9.17	%		31,878		647	8.06	%		28,414		599	8.46	%
Loans held for investment, mortgage finance⁽⁴⁾		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	%		4,376,235		49,425	4.53	%
Loans held for investment⁽³⁾⁽⁴⁾		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	%		16,217,314		282,956	7.00	%
Less: Allowance for credit losses on loans		263,145		—	—			249,936		—	—			244,287		—	—			238,883		—	—			261,027		—	—
Loans held for investment, net		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	%		20,332,522		332,381	6.56	%
Total earning assets		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	%		27,953,908		402,029	5.69	%
Cash and other assets		1,177,061						1,058,463						1,120,354						1,106,031						1,049,145
Total assets	$	29,750,852					$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053

Liabilities and Stockholders' Equity
Transaction deposits	$	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	%	$	1,345,742	$	9,468	2.82	%
Savings deposits		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	%		10,590,558		114,275	4.33	%
Time deposits		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	%		1,531,922		13,648	3.57	%
Total interest bearing deposits		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	%		13,468,222		137,391	4.09	%
Short-term borrowings		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	%		1,397,253		18,253	5.24	%
Long-term debt		778,401		11,457	5.92	%		859,509		13,986	6.54	%		858,858		14,113	6.52	%		858,167		14,005	6.47	%		883,871		14,282	6.48	%
Total interest bearing liabilities		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	%		15,749,346		169,926	4.33	%
Non-interest bearing deposits		8,647,594						8,637,775						9,247,491						10,016,579						9,749,105
Other liabilities		537,754						509,286						541,162						474,869						389,155
Stockholders' equity		3,157,661						3,196,329						3,094,589						3,116,761						3,115,447
Total liabilities and stockholders' equity	$	29,750,852					$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053
Net interest income			$	216,646					$	215,075					$	214,785					$	232,143					$	232,103
Net interest margin					3.01	%					3.03	%					2.93	%					3.13	%					3.29	%

⁽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.

INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapitalbank.com
     
MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapitalbank.com