8-K

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): January 20, 2022

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.

(a)On January 20, 2022, 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 and year ended December 31, 2021. 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 8.01.    Other Events.

As previously announced, the Company will host a conference call and webcast today at 4:30 p.m. EDT to review the Company’s financial results for the period ended December 31, 2021.

Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibits

99.1     Press Release, dated January 20, 2022 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter and year ended December 31, 2021

99.2    Presentation dated January 20, 2022 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter and year ended December 31, 2021

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:	January 20, 2022	TEXAS CAPITAL BANCSHARES, INC.
		By:	/s/ J. Matthew Scurlock
			J. Matthew Scurlock Chief Financial Officer

EX-99.1

Exhibit 99.1

INVESTOR CONTACT

Jamie Britton, 214.932.6721

jamie.britton@texascapitalbank.com

MEDIA CONTACT

Shannon Wherry, 469.399.8527

shannon.wherry@texascapitalbank.com

TEXAS CAPITAL BANCSHARES, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

Fourth quarter 2021 net income of $65.1 million, or $1.19 per diluted share

Continued improvement in credit quality drove a provision release of $10.0 million

Necessary regulatory approvals obtained for launch of Texas Capital Securities

Full year 2021 net income of $253.9 million, or $4.60 per diluted share

DALLAS - January 20, 2022 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI) (the “Company”), the parent company of Texas Capital Bank, today reported results for the fourth quarter and full year of 2021.

Net income was $65.1 million, or $1.19 per diluted share, for the fourth quarter of 2021, compared to $43.4 million, or $0.76 per diluted share, for the third quarter of 2021 and $60.2 million, or $1.14 per diluted share, for the fourth quarter of 2020. Full year 2021 net income was $253.9 million, or $4.60 per diluted share, compared to $66.3 million, or $1.12 per diluted share, for full year 2020.

“This quarter’s results conclude a year full of new initiatives and accomplishments designed to best position the Company for yet another important year ahead,” said Rob C. Holmes, President and CEO. “Our entire team is poised to continue delivering on our goals outlined in September. With our organizational discipline improving and financial results trending favorably, I am confident we will continue realizing progress towards our vision of becoming the flagship financial services firm headquartered in Texas.”

FINANCIAL RESULTS
(dollars and shares in thousands)
	4th Quarter			3rd Quarter			4th Quarter			Full Year			Full Year
	2021			2021			2020			2021			2020
OPERATING RESULTS
Net income	$	65,130		$	43,390		$	60,176		$	253,939		$	66,289
Net income available to common stockholders	$	60,817		$	39,078		$	57,739		$	235,218		$	56,539
Diluted earnings per common share	$	1.19		$	0.76		$	1.14		$	4.60		$	1.12
Diluted common shares	51,208			51,140			50,794			51,141			50,583
Return on average assets	0.69		%	0.47		%	0.61		%	0.67		%	0.18		%
Return on average common equity	8.36		%	5.41		%	8.50		%	8.35		%	2.10		%
BALANCE SHEET
Loans held for investment (“LHI”)	$	15,331,457		$	15,221,404		$	15,351,451
LHI, mortgage finance	7,475,497			8,528,313			9,079,409
Total LHI	22,806,954			23,749,717			24,430,860
Loans held for sale (“LHS”)	8,123			9,660			283,165
Total assets	34,731,738			36,404,320			37,726,096
Demand deposits	13,390,370			14,970,462			12,740,947
Total deposits	28,109,365			29,813,668			30,996,589
Stockholders’ equity	3,209,616			3,147,752			2,871,224

FOURTH QUARTER 2021 COMPARED TO THIRD QUARTER 2021

For the fourth quarter of 2021, net income was $65.1 million, or $1.19 per diluted share, compared to $43.4 million, or $0.76 per diluted share, for the third quarter of 2021.

We recorded a $10.0 million negative provision for credit losses for the fourth quarter of 2021, compared to a $5.0 million provision for credit losses for the third quarter of 2021, resulting primarily from a decrease in criticized loans.

Net interest income was $194.0 million for the fourth quarter of 2021, compared to $190.5 million for the third quarter of 2021. The increase in net interest income was primarily driven by increases in LHI and investment securities yields. Net interest margin for the fourth quarter of 2021 was 2.12%, an increase of 1 basis point from the third quarter of 2021. LHI, excluding mortgage finance, yields increased 5 basis points from the third quarter of 2021 and LHI, mortgage finance yields decreased 2 basis points from the third quarter of 2021. Total cost of deposits of 0.19% for the fourth quarter of 2021 remained unchanged as compared to the third quarter of 2021.

Non-interest income for the fourth quarter of 2021 increased $6.7 million, or 27%, compared to the third quarter of 2021. The increase was primarily related to increases in investment banking and trading income, resulting from an increase in loan syndication fees, and other non-interest income. The increase in other non-interest income resulted from a one-time gain recognized in the fourth quarter of 2021 on the sale of a foreclosed asset.

Non-interest expense for the fourth quarter of 2021 decreased $6.3 million, or 4%, compared to the third quarter of 2021. The decrease was primarily due to decreases in communications and technology expense and servicing-related expenses, partially offset by less significant broad-based increases across all remaining non-interest expense categories. These broad-based increases were as expected and in support of our long-term strategy. The decrease in communications and technology expense resulted from a $12.0 million write-off of certain software assets in the third quarter of 2021. The decline in servicing-related expenses resulted primarily from the sale of our mortgage servicing rights (“MSR”) portfolio and transition of the mortgage correspondent aggregation (“MCA”) program to a third party earlier in 2021.

FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020

Net income was $65.1 million, or $1.19 per diluted share, for the fourth quarter of 2021, compared to $60.2 million, or $1.14 per diluted share, for the fourth quarter of 2020.

The fourth quarter of 2021 included a $10.0 million negative provision for credit losses, compared to a $32.0 million provision for credit losses for the fourth quarter of 2020. The decrease resulted primarily from improvements in the economic outlook as the economy recovered from the impacts of the COVID-19 pandemic during 2021 and a decrease in criticized loans.

Net interest income decreased to $194.0 million for the fourth quarter of 2021, compared to $213.2 million for the fourth quarter of 2020, primarily due to declines in total average loans and LHI yields, partially offset by decreases in average interest-bearing deposits and cost of deposits. Net interest margin decreased 10 basis points to 2.12% for the fourth quarter of 2021, as compared to the fourth quarter of 2020. LHI, excluding mortgage finance loans, yields decreased 8 basis point compared to the fourth quarter of 2020 and LHI, mortgage finance yields decreased 38 basis points compared to the fourth quarter of 2020. Total cost of deposits decreased 10 basis points compared to the fourth quarter of 2020.

Non-interest income for the fourth quarter of 2021 decreased $21.2 million, or 40%, compared to the fourth quarter of 2020, as net gain/(loss) on sale of LHS, brokered loan fees and servicing income all decreased as a result of the MSR sale and MCA program transition earlier in 2021.

Non-interest expense for the fourth quarter of 2021 decreased $4.2 million, or 3%, compared to the fourth quarter of 2020. The decrease was primarily due to a decrease in servicing-related expenses, resulting from the MSR sale and MCA program transition earlier in 2021, partially offset by an increase in salaries and employee benefits.

CREDIT QUALITY

We recorded $1.0 million in net charge-offs during the fourth quarter of 2021, compared to $3.1 million during the third quarter of 2021 and $65.4 million during the fourth quarter of 2020. Criticized loans totaled $582.9 million at December 31, 2021, compared to $728.9 million at September 30, 2021 and $918.4 million at December 31, 2020. LHI non-performing assets (“LHI NPAs”) totaled $72.5 million at December 31, 2021, compared to $87.5 million at September 30, 2021 and $122.0 million at December 31, 2020. The ratio of LHI NPAs to total LHI for the fourth quarter of 2021 was 0.32%, compared to 0.37% for the third quarter of 2021 and 0.50% for the fourth quarter of 2020.

CAPITAL RATIOS

All regulatory ratios continue to be in excess of “well-capitalized” requirements as of December 31, 2021. Our CET 1, tier 1 capital, total capital and leverage ratios were 11.1%, 12.6%, 15.3% and 9.0%, respectively, at December 31, 2021, compared to 10.7%, 12.2%, 14.9% and 9.0%, respectively, at September 30, 2021, and 9.4%, 10.3%, 12.1% and 7.5%, respectively, at December 31, 2020. At December 31, 2021, our ratio of tangible common equity to total tangible assets was 8.3% compared to 7.8% at September 30, 2021 and 7.2% at December 31, 2020.

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About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000 Index and the S&P MidCap 400, is the parent company of Texas Capital Bank (the “Bank”), a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, our financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,” “continue,” “become,” “intend” and similar expressions.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, but are not limited to, (1) deterioration of the credit quality of our loan portfolio or declines in the value of collateral due to external factors or otherwise, (2) the unpredictability of economic and business conditions that may impact us or our customers, (3) the COVID-19 pandemic on us and our customers, employees and third-party service providers, (4) our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding to us, (5) our ability to effectively manage our information technology systems, (5) the costs and effects of cyber-incidents or other failures, disruptions or security breaches of our systems or those of our third-party providers, (6) changes in interest rates, (7) changes in the method of determining the London Interbank Offered Rate, or LIBOR, or the replacement of LIBOR with an alternative reference rate, (8) adverse or unexpected economic or market conditions and other factors in Texas, the United States or internationally, (9) the concentration of our business in Texas and with the energy industry, (10) the failure to effectively balance our funding sources with cash demands by depositors and borrowers, the failure to maintain capital ratio as a result of adverse changes in our operating performance or financial condition or changes in applicable regulations or interpretations of regulations that impact our business or the characterization or risk weight of our assets, (11) material failures of our accounting estimates and risk management processes based on management judgment or the supporting assumptions or models, (12) the failure to effectively manage our interest rate risk, (13) the failure of our enterprise risk management framework, (14) uncertainty regarding the upcoming transition away from LIBOR, (15) our ability to comply with applicable governmental regulations, (16) risks related to U.S. federal government actions impacting us, (17) claims and litigation that may arise in the ordinary course of business, (18) the failure to successfully execute our business strategy, (19) the failure to identify, attract and retain key personnel, (20) increased or more competition from banks and other financial service providers in our markets, (21) the susceptibility of fraud on our business, (22) the failure to maintain adequate regulatory capital to support our business, (23) environmental liability associated with properties related to our lending activities, (24) severe weather, natural disasters, acts of war or terrorism and other external events and (25) risks relating to our securities.

These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

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TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2021			2021			2021			2021			2020
CONSOLIDATED STATEMENTS OF INCOME
Interest income(1)	$	219,892		$	216,589		$	216,953		$	223,151		$	245,348
Interest expense	25,860			26,053			27,496			28,339			32,153
Net interest income	194,032			190,536			189,457			194,812			213,195
Provision for credit losses	(10,000)			5,000			(19,000)			(6,000)			32,000
Net interest income after provision for credit losses	204,032			185,536			208,457			200,812			181,195
Non-interest income(1)	31,459			24,779			37,639			44,353			52,678
Non-interest expense	146,649			152,987			149,060			150,316			150,863
Income before income taxes	88,842			57,328			97,036			94,849			83,010
Income tax expense	23,712			13,938			23,555			22,911			22,834
Net income	65,130			43,390			73,481			71,938			60,176
Preferred stock dividends	4,313			4,312			6,317			3,779			2,437
Net income available to common stockholders	$	60,817		$	39,078		$	67,164		$	68,159		$	57,739
Diluted earnings per common share	$	1.19		$	0.76		$	1.31		$	1.33		$	1.14
Diluted common shares	51,208,161			51,139,555			51,093,660			51,069,511			50,794,421
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	34,731,738		$	36,404,320		$	35,228,542		$	40,054,433		$	37,726,096
LHI	15,331,457			15,221,404			15,168,565			15,399,174			15,351,451
LHI, mortgage finance	7,475,497			8,528,313			8,772,799			9,009,081			9,079,409
LHS	8,123			9,660			63,747			176,286			283,165
Interest-bearing deposits in other banks	7,765,996			8,317,926			6,768,650			11,212,276			9,032,807
Investment securities	3,583,808			3,663,874			3,798,275			3,443,058			3,196,970
Demand deposits	13,390,370			14,970,462			14,228,038			15,174,642			12,740,947
Total deposits	28,109,365			29,813,668			28,839,563			33,391,970			30,996,589
Other borrowings	2,202,832			2,203,470			2,014,481			2,515,587			3,111,751
Long-term debt	928,738			928,062			927,386			664,968			395,896
Stockholders’ equity	3,209,616			3,147,752			3,114,957			3,159,482			2,871,224
End of period shares outstanding	50,618,494			50,605,626			50,592,201			50,557,767			50,470,450
Book value	$	57.48		$	56.27		$	55.64		$	53.59		$	53.92
Tangible book value(2)	$	57.14		$	55.93		$	55.29		$	53.24		$	53.57
SELECTED FINANCIAL RATIOS
Net interest margin	2.12		%	2.11		%	2.02		%	2.04		%	2.22		%
Return on average assets	0.69		%	0.47		%	0.76		%	0.73		%	0.61		%
Return on average common equity	8.36		%	5.41		%	9.74		%	10.08		%	8.50		%
Non-interest income to average earning assets	0.34		%	0.27		%	0.40		%	0.46		%	0.55		%
Efficiency ratio(3)	65.0		%	71.1		%	65.6		%	62.9		%	56.7		%
Non-interest expense to average earning assets	1.60		%	1.69		%	1.59		%	1.57		%	1.56		%
Tangible common equity to total tangible assets(4)	8.3		%	7.8		%	7.9		%	6.7		%	7.2		%
Common Equity Tier 1	11.1		%	10.7		%	10.5		%	10.2		%	9.4		%
Tier 1 capital	12.6		%	12.2		%	12.1		%	12.2		%	10.3		%
Total capital	15.3		%	14.9		%	14.8		%	14.0		%	12.1		%
Leverage	9.0		%	9.0		%	8.4		%	8.3		%	7.5		%

(1)In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.

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

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

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

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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	December 31, 2021		December 31, 2020		% Change
Assets
Cash and due from banks	$	180,663	$	173,573	4	%
Interest-bearing deposits in other banks	7,765,996		9,032,807		(14)	%
Investment securities	3,583,808		3,196,970		12	%
LHS ($8.1 million and $239.1 million at December 31, 2021 and 2020, respectively, at fair value)	8,123		283,165		(97)	%
LHI, mortgage finance	7,475,497		9,079,409		(18)	%
LHI (net of unearned income)	15,331,457		15,351,451		—	%
Less: Allowance for credit losses on loans	211,866		254,615		(17)	%
LHI, net	22,595,088		24,176,245		(7)	%
Mortgage servicing rights, net	—		105,424		(100)	%
Premises and equipment, net	20,901		24,546		(15)	%
Accrued interest receivable and other assets	559,897		715,699		(22)	%
Goodwill and intangibles, net	17,262		17,667		(2)	%
Total assets	$	34,731,738	$	37,726,096	(8)	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	13,390,370	$	12,740,947	5	%
Interest bearing	14,718,995		18,255,642		(19)	%
Total deposits	28,109,365		30,996,589		(9)	%
Accrued interest payable	7,699		11,150		(31)	%
Other liabilities	273,488		339,486		(19)	%
Federal funds purchased and repurchase agreements	2,832		111,751		(97)	%
Other borrowings	2,200,000		3,000,000		(27)	%
Long-term debt	928,738		395,896		135	%
Total liabilities	31,522,122		34,854,872		(10)	%
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 and 6,000,000 shares issued at December 31, 2021 and 2020, respectively	300,000		150,000		100	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 50,618,911 and 50,470,867 at December 31, 2021 and 2020, respectively	506		504		—	%
Additional paid-in capital	1,008,559		991,898		2	%
Retained earnings	1,948,274		1,713,056		14	%
Treasury stock (shares at cost: 417 at December 31, 2021 and 2020)	(8)		(8)		—	%
Accumulated other comprehensive income/(loss), net of taxes	(47,715)		15,774		N/M
Total stockholders’ equity	3,209,616		2,871,224		12	%
Total liabilities and stockholders’ equity	$	34,731,738	$	37,726,096	(8)	%

5

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2021		2020		2021		2020
Interest income
Interest and fees on loans(1)	$	204,379	$	232,961	$	820,532	$	993,670
Investment securities	11,780		9,594		42,820		17,475
Federal funds sold	—		1		1		693
Interest-bearing deposits in other banks	3,733		2,792		13,232		27,569
Total interest income	219,892		245,348		876,585		1,039,407
Interest expense
Deposits	14,513		23,819		65,507		146,117
Federal funds purchased	—		110		131		1,083
Other borrowings	771		3,407		4,482		20,923
Long-term debt	10,576		4,817		37,628		19,963
Total interest expense	25,860		32,153		107,748		188,086
Net interest income	194,032		213,195		768,837		851,321
Provision for credit losses	(10,000)		32,000		(30,000)		258,000
Net interest income after provision for credit losses	204,032		181,195		798,837		593,321
Non-interest income
Service charges on deposit accounts	4,702		3,004		18,674		11,620
Wealth management and trust fee income	3,793		2,681		13,173		9,998
Brokered loan fees	5,678		12,610		27,954		46,423
Servicing income	277		8,834		15,513		27,029
Investment banking and trading income(1)	6,456		10,288		24,441		22,687
Net gain/(loss) on sale of LHS	—		6,761		1,317		58,026
Other	10,553		8,500		37,158		27,198
Total non-interest income	31,459		52,678		138,230		202,981
Non-interest expense
Salaries and employee benefits	89,075		78,449		350,930		340,529
Net occupancy expense	8,769		8,373		33,232		34,955
Marketing	4,286		3,435		10,006		23,581
Legal and professional	12,673		12,129		41,152		52,132
Communications and technology	16,490		15,405		75,185		103,054
FDIC insurance assessment	4,688		6,592		21,027		25,955
Servicing-related expenses	25		15,844		27,765		64,585
Merger-related expenses	—		—		—		17,756
Other	10,643		10,636		39,715		41,809
Total non-interest expense	146,649		150,863		599,012		704,356
Income before income taxes	88,842		83,010		338,055		91,946
Income tax expense	23,712		22,834		84,116		25,657
Net income	65,130		60,176		253,939		66,289
Preferred stock dividends	4,313		2,437		18,721		9,750
Net income available to common stockholders	$	60,817	$	57,739	$	235,218	$	56,539
Basic earnings per common share	$	1.20	$	1.14	$	4.65	$	1.12
Diluted earnings per common share	$	1.19	$	1.14	$	4.60	$	1.12

(1)In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.

6

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2021			2021			2021			2021			2020
Allowance for credit losses on loans:
Beginning balance	$	221,957		$	221,511		$	242,484		$	254,615		$	290,165
Loans charged-off:
Commercial	3,776			4,348			1,412			2,451			37,984
Energy	—			—			686			5,732			33,283
Real estate	—			—			1,192			—			180
Total charge-offs	3,776			4,348			3,290			8,183			71,447
Recoveries:
Commercial	1,933			1,104			308			1,050			394
Energy	601			42			609			715			5,696
Real estate	205			112			—			—			—
Total recoveries	2,739			1,258			917			1,765			6,090
Net charge-offs	1,037			3,090			2,373			6,418			65,357
Provision for credit losses on loans	(9,054)			3,536			(18,600)			(5,713)			29,807
Ending balance	$	211,866		$	221,957		$	221,511		$	242,484		$	254,615
Allowance for off-balance sheet credit losses:
Beginning balance	$	18,211		$	16,747		$	17,147		$	17,434		$	15,241
Provision for off-balance sheet credit losses	(946)			1,464			(400)			(287)			2,193
Ending balance	$	17,265		$	18,211		$	16,747		$	17,147		$	17,434
Total allowance for credit losses	$	229,131		$	240,168		$	238,258		$	259,631		$	272,049
Total provision for credit losses	$	(10,000)		$	5,000		$	(19,000)		$	(6,000)		$	32,000
Allowance for credit losses on loans to LHI	0.93		%	0.93		%	0.93		%	0.99		%	1.04		%
Allowance for credit losses on loans to average LHI	0.91		%	0.95		%	0.98		%	1.03		%	1.01		%
Net charge-offs to average LHI(1)	0.02		%	0.05		%	0.04		%	0.11		%	1.03		%
Net charge-offs to average LHI for last twelve months(1)	0.06		%	0.33		%	0.31		%	0.59		%	0.80		%
Total provision for credit losses to average LHI(1)	(0.17)		%	0.09		%	(0.34)		%	(0.10)		%	0.51		%
Total allowance for credit losses to LHI	1.00		%	1.01		%	1.00		%	1.06		%	1.11		%

(1)Interim period ratios are annualized.

7

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
(dollars in thousands)
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2021			2021			2021			2021			2020
LHI non-performing assets (NPAs):
Non-accrual LHI	$	72,502		$	87,532		$	86,636		$	97,730		$	121,989
Other real estate owned (OREO)	—			—			—			—			—
Total LHI NPAs	$	72,502		$	87,532		$	86,636		$	97,730		$	121,989
Non-accrual LHI to total LHI	0.32		%	0.37		%	0.36		%	0.40		%	0.50		%
Total LHI NPAs to earning assets	0.21		%	0.25		%	0.25		%	0.25		%	0.33		%
Allowance for credit losses on loans to non-accrual LHI	2.9x			2.5x			2.6x			2.5x			2.1x
LHI past due 90 days and still accruing(1)	$	3,467		$	3,405		$	7,671		$	6,187		$	12,541
LHI past due 90 days to total LHI	0.02		%	0.01		%	0.03		%	0.03		%	0.05		%
LHS non-accrual(2)	$	—		$	—		$	—		$	—		$	6,966
LHS past due 90 days and still accruing(3)	$	3,986		$	3,808		$	2,695		$	16,359		$	16,667

(1)At December 31, 2021, loans past due 90 days and still accruing included premium finance loans of $3.3 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.

(2)Includes one non-accrual loan previously reported in loans HFI that was transferred to loans HFS as of December 31, 2020 and subsequently sold at carrying value.

(3)Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as LHS and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. The first quarter of 2021 and fourth quarter of 2020 also include loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not obligation, to repurchase and thus must record as LHS on our balance sheet regardless of whether the repurchase option has been exercised.

8

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)
	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter		4th Quarter
	2021		2021		2021		2021		2020
Interest income
Interest and fees on loans(1)	$	204,379	$	202,748	$	203,074	$	210,331	$	232,961
Investment securities	11,780		10,235		10,918		9,887		9,594
Federal funds sold	—		—		—		1		1
Interest-bearing deposits in other banks	3,733		3,606		2,961		2,932		2,792
Total interest income	219,892		216,589		216,953		223,151		245,348
Interest expense
Deposits	14,513		14,719		16,271		20,004		23,819
Federal funds purchased	—		5		51		75		110
Other borrowings	771		743		451		2,517		3,407
Long-term debt	10,576		10,586		10,723		5,743		4,817
Total interest expense	25,860		26,053		27,496		28,339		32,153
Net interest income	194,032		190,536		189,457		194,812		213,195
Provision for credit losses	(10,000)		5,000		(19,000)		(6,000)		32,000
Net interest income after provision for credit losses	204,032		185,536		208,457		200,812		181,195
Non-interest income
Service charges on deposit accounts	4,702		4,622		4,634		4,716		3,004
Wealth management and trust fee income	3,793		3,382		3,143		2,855		2,681
Brokered loan fees	5,678		6,032		6,933		9,311		12,610
Servicing income	277		292		5,935		9,009		8,834
Investment banking and trading income(1)	6,456		4,127		8,071		5,787		10,288
Net gain/(loss) on sale of LHS	—		(1,185)		(3,070)		5,572		6,761
Other	10,553		7,509		11,993		7,103		8,500
Total non-interest income	31,459		24,779		37,639		44,353		52,678
Non-interest expense
Salaries and employee benefits	89,075		87,503		86,830		87,522		78,449
Net occupancy expense	8,769		8,324		7,865		8,274		8,373
Marketing	4,286		2,123		1,900		1,697		3,435
Legal and professional	12,673		11,055		9,147		8,277		12,129
Communications and technology	16,490		28,374		14,352		15,969		15,405
FDIC insurance assessment	4,688		4,500		5,226		6,613		6,592
Servicing-related expenses	25		2,396		12,355		12,989		15,844
Other	10,643		8,712		11,385		8,975		10,636
Total non-interest expense	146,649		152,987		149,060		150,316		150,863
Income before income taxes	88,842		57,328		97,036		94,849		83,010
Income tax expense	23,712		13,938		23,555		22,911		22,834
Net income	65,130		43,390		73,481		71,938		60,176
Preferred stock dividends	4,313		4,312		6,317		3,779		2,437
Net income available to common shareholders	$	60,817	$	39,078	$	67,164	$	68,159	$	57,739

(1)In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.

9

TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY - UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
(dollars in thousands)
	4th Quarter 2021						3rd Quarter 2021						2nd Quarter 2021						1st Quarter 2021						4th Quarter 2020
	Average Balance		Revenue/ Expense		Yield/ Rate		Average Balance		Revenue/ Expense		Yield/ Rate		Average Balance		Revenue/ Expense		Yield/ Rate		Average Balance		Revenue/ Expense		Yield/ Rate		Average Balance		Revenue/ Expense		Yield/ Rate
Assets
Investment securities - taxable	$	3,423,903	$	10,106	1.17	%	$	3,590,591	$	8,546	0.94	%	$	3,361,696	$	9,222	1.10	%	$	3,225,786	$	8,112	1.02	%	$	2,137,481	$	7,748	1.44	%
Investment securities - non-taxable(2)	184,600		2,119		4.55	%	185,221		2,138		4.58	%	181,574		2,147		4.74	%	196,785		2,247		4.63	%	200,781		2,337		4.63	%
Federal funds sold	131		—		0.25	%	653		—		0.12	%	713		—		0.18	%	4,605		1		0.07	%	1,709		1		0.13	%
Interest-bearing deposits in other banks	9,760,604		3,733		0.15	%	9,045,442		3,606		0.16	%	11,583,046		2,961		0.10	%	11,840,942		2,932		0.10	%	10,808,548		2,792		0.10	%
LHS, at fair value	8,348		51		2.41	%	18,791		54		1.14	%	93,164		781		3.36	%	243,326		1,595		2.66	%	410,637		2,475		2.40	%
LHI, mortgage finance loans	7,901,534		57,949		2.91	%	7,987,521		58,913		2.93	%	7,462,223		57,401		3.09	%	8,177,759		64,942		3.22	%	9,550,119		78,906		3.29	%
LHI(1)(2)(3)	15,348,322		146,436		3.79	%	15,266,167		143,864		3.74	%	15,242,975		144,978		3.81	%	15,457,888		143,935		3.78	%	15,620,410		151,935		3.87	%
Less allowance for credit        losses on loans	223,034		—		—		220,984		—		—		241,676		—		—		254,697		—		—		290,189		—		—
LHI, net of allowance	23,026,822		204,385		3.52	%	23,032,704		202,777		3.49	%	22,463,522		202,379		3.61	%	23,380,950		208,877		3.62	%	24,880,340		230,841		3.69	%
Total earning assets	36,404,408		220,394		2.40	%	35,873,402		217,121		2.40	%	37,683,715		217,490		2.31	%	38,892,394		223,764		2.33	%	38,439,496		246,194		2.55	%
Cash and other assets	835,293						855,555						996,946						1,064,679						1,031,195
Total assets	$	37,239,701					$	36,728,957					$	38,680,661					$	39,957,073					$	39,470,691
Liabilities and Stockholders’ Equity
Transaction deposits	$	3,007,337	$	4,664	0.62	%	$	3,012,547	$	4,737	0.62	%	$	3,795,152	$	5,395	0.57	%	$	3,991,966	$	5,861	0.60	%	$	4,384,493	$	6,604	0.60	%
Savings deposits	10,529,645		8,419		0.32	%	10,044,995		8,262		0.33	%	11,296,382		8,990		0.32	%	12,889,974		10,788		0.34	%	12,982,189		12,671		0.39	%
Time deposits	1,276,800		1,430		0.44	%	1,640,562		1,720		0.42	%	1,755,993		1,886		0.43	%	2,204,242		3,355		0.62	%	2,355,199		4,544		0.77	%
Total interest bearing deposits	14,813,782		14,513		0.39	%	14,698,104		14,719		0.40	%	16,847,527		16,271		0.39	%	19,086,182		20,004		0.43	%	19,721,881		23,819		0.48	%
Other borrowings	2,267,013		771		0.13	%	2,299,692		748		0.13	%	2,349,718		502		0.09	%	2,686,398		2,592		0.39	%	3,022,077		3,517		0.46	%
Long-term debt	928,307		10,576		4.52	%	927,626		10,586		4.53	%	881,309		10,723		4.88	%	464,731		5,743		5.01	%	395,841		4,817		4.84	%
Total interest bearing liabilities	18,009,102		25,860		0.57	%	17,925,422		26,053		0.58	%	20,078,554		27,496		0.55	%	22,237,311		28,339		0.52	%	23,139,799		32,153		0.55	%
Demand deposits	15,804,061						15,363,568						15,139,546						14,421,505						13,174,114
Other liabilities	238,833						275,317						274,401						309,644						303,480
Stockholders’ equity	3,187,705						3,164,650						3,188,160						2,988,613						2,853,298
Total liabilities and stockholders’ equity	$	37,239,701					$	36,728,957					$	38,680,661					$	39,957,073					$	39,470,691
Net interest income(2)			$	194,534					$	191,068					$	189,994					$	195,425					$	214,041
Net interest margin					2.12	%					2.11	%					2.02	%					2.04	%					2.22	%

(1)The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.

(2)Taxable equivalent rates used where applicable.

(3)In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.

EX-99.2

© 2022 Texas Capital Bank Member FDIC January 20, 2022 Q4-2021 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, our financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,” “continue,” “become,” “intend” and similar expressions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, but are not limited to, (1) deterioration of the credit quality of our loan portfolio or declines in the value of collateral due to external factors or otherwise, (2) the unpredictability of economic and business conditions that may impact us or our customers, (3) the COVID-19 pandemic on us and our customers, employees and third-party service providers, (4) our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding to us, (5) our ability to effectively manage our information technology systems, (5) the costs and effects of cyber- incidents or other failures, disruptions or security breaches of our systems or those of our third-party providers, (6) changes in interest rates, (7) changes in the method of determining the London Interbank Offered Rate, or LIBOR, or the replacement of LIBOR with an alternative reference rate, (8) adverse or unexpected economic or market conditions and other factors in Texas, the United States or internationally, (9) the concentration of our business in Texas and with the energy industry, (10) the failure to effectively balance our funding sources with cash demands by depositors and borrowers, the failure to maintain capital ratio as a result of adverse changes in our operating performance or financial condition or changes in applicable regulations or interpretations of regulations that impact our business or the characterization or risk weight of our assets, (11) material failures of our accounting estimates and risk management processes based on management judgment or the supporting assumptions or models, (12) the failure to effectively manage our interest rate risk, (13) the failure of our enterprise risk management framework, (14) uncertainty regarding the upcoming transition away from LIBOR, (15) our ability to comply with applicable governmental regulations, (16) risks related to U.S. federal government actions impacting us, (17) claims and litigation that may arise in the ordinary course of business, (18) the failure to successfully execute our business strategy, (19) the failure to identify, attract and retain key personnel, (20) increased or more competition from banks and other financial service providers in our markets, (21) the susceptibility of fraud on our business, (22) the failure to maintain adequate regulatory capital to support our business, (23) environmental liability associated with properties related to our lending activities, (24) severe weather, natural disasters, acts of war or terrorism and other external events and (25) risks relating to our securities. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

3 Serving strong core Texas markets with expanded coverage and a complete set of capabilities Improving client relevance and diversifying our revenue base Attracting high-quality talent with significant experience Our Distinct Opportunity Operating from a de-risked position of financial strength

4 Strategic Performance Drivers Announced September 1st Income Statement Where We Started Where We Are1 Where We Are Going Investment Banking and Trading Income (% of Total Revenue)2 2020 2.5% 2.9% ~10% Treasury Product Fees3 (% of Total Revenue)2 2020 1.6% 2.7% ~5% Non-interest Income4 (% of Total Revenue)2 2020 11.2% 14.0% 15%–20% Balance Sheet Where We Started Where We Are1 Where We Are Going FY Average Liquidity Assets5 (% of Total Average Assets) 2020 28% 36% >20% FY Average Indexed Deposits (% of Total Deposits) 2020 36% 24% <15% Performance Metrics Return on Average Assets 2020 0.18% 0.69% >1.10% Return on Average Tangible Common Equity6 2020 2.1% 8.4% >12.5% CET1 2020 9.4% 11.1% 9%–10% Talent Frontline Talent Growth 2020 1.0x 1.4x 2.3x

5 Our Path Forward Operating Model Aligned to our Vision, Grounded in our Values Clear Strategic Direction and Fortitude to Deliver Organized Around Client Delivery  Product & Industry Specialization  Frontline Growth  Technology New Products and Services  Treasury Solutions  Private Wealth  Investment Banking Expanding Coverage  Business Banking  Middle Market Banking  Corporate Banking Evaluating Opportunities for Growth  Disciplined Capital Management  Structured Criteria Guiding Programmatic Investment  Optimizing Capital Allocation Across the Portfolio Committed to Financial Resilience Resulting business model poised to generate structurally higher, more sustainable earnings through enhanced fee income and decreased thru-cycle asset sensitivity Our ability to serve our clients, access markets, and support our community through cycles is a strategic multiplier Risk Management  Granular Risk Rating System  Values Driven Culture  Improved Portfolio Positioning Capital and Liquidity  4Q21 CET1: 11.1%  4Q21 Avg. Liquidity Assets5: 36% of Avg. Assets  YoY TBV7 Growth: 7.0%

6 Treasury Solutions Private Wealth Investment Banking Focused on What Matters  Driving new operating-account relationships to improve balances and fee income  Continuing to advance our Private Wealth platform through banker partnership and potential acquisitions  Establishing competitive offering of advisory-based products and services to help our clients access the capital markets and mitigate risk to grow fees in partnership with existing lines of business Financial Performance Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 YoY Assets Under Management ($B) $1.8 $2.0 $2.2 $2.5 $2.7 48% Investment Banking and Trading Income8 ($M) $10.3 $5.8 $8.1 $4.1 $6.5 -37% Treasury Product Fees3 ($M) $3.8 $5.5 $5.7 $5.8 $6.0 57% Wealth Management & Trust Fee Income ($M) $2.7 $2.9 $3.1 $3.4 $3.8 42% Income From Areas of Focus ($M) $16.8 $14.2 $16.9 $13.3 $16.3 -3% New Products and Services Upcoming MilestonesvRecent Progress  New healthcare-specific Revenue Cycle Management capability now launched and recognizing revenue with new clients  Business Banking treasury bundles launched and recognizing revenue with new clients, demonstrating benefits of driving segmentation and product partnership  Continue scaling newly launched commercial card program and capitalize on strong pipeline built over the past several quarters to build scale  Execute against digital products roadmap and establish fintech review counsel to deliver multiple new products over the coming quarters  Private client advisors team grew consistent with expectations in 2021  Drove full-year organic (new money) flow of over $600 million  Ending AUM increased almost $900 million  Texas Capital Securities completed FINRA and SIPC membership applications and registered with SEC and state securities regulators  High engagement and collaboration across syndicated finance, rates, and capital markets, with multiple active M&A engagements referred to Investment Banking by Private Wealth and C&I bankers  Continue delivering disciplined talent acquisition plan with the goal of doubling team size by year-end 2022  New Chief Administrative Officer, John Cummings, to perform strategic business review to identify opportunities to further accelerate growth and profitability  Continue business-wide talent acquisition efforts and fill initial staffing model by year-end 2022  Launch full suite of products and services for corporate client by Q3-2022, including pilot for mortgage (gestation and TBA hedging)

7 Expanding Coverage Business Banking Middle Market Banking Corporate Banking Upcoming MilestonesvRecent Progress Financial Performance (Period End) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 YoY Business, Middle Market, and Corporate Banking Talent 1.0x 1.0x 1.2x 1.4x 1.7x Business, Middle Market, and Corporate Banking Deposits ($B) $5.7 $6.3 $7.0 $7.0 $7.7 35% C&I Loans9 ($B) $9.0 $8.9 $9.3 $9.9 $10.5 17% Real Estate Loans ($B) $5.8 $5.8 $5.6 $5.2 $4.8 -18%  Rolled out new Business Banking line of business with frontline, treasury, and risk leaders in place and engaged in four of five major markets  End-to-end integration with loan operating system to enhance internal process efficiency and improve client experience  Complete leadership buildout in our remaining Texas market and fill out coverage model  Exceeded execution on ambitious talent plan—30% more new bankers than projected by year-end provides significant momentum into 2022  Drove meaningful increases in commitments, Price x Volume fees, and new client relationships through the year  Leadership now in place across diversified and all industry specialization verticals (e.g., Technology, Healthcare, FIG, Energy)  2H2021 momentum in new client acquisition anticipated to carry over into 2022 with strong pipelines across industry and geographic coverage area  Fully leverage newly arrived junior resources and risk partners to create best-in-class market coverage and portfolio management processes  Complete team build in all markets by adding targeted identified bankers and maintaining active talent pipelines in each market  Continue partnering with the Investment Bank to establish qualified pipeline of client opportunities by each product’s launch Focused on What Matters  Filling out highly differentiated coverage model that better aligns banker, product, and expertise to support existing and new clients  Positioning expanded industry specialization alongside local market coverage and decision-making to do what is right for the client  Focus programmatic technology investment agenda on earning the right to be there for our clients and ensure our client experience remains a competitive advantage

8 Focused on the Future Current Financial Priorities 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 that can be maintained through all cycles

9 Financial Performance Financial Highlights ($M) Q4 2020 Q3 2021 Q4 2021 Net Interest Income $213.2 $190.5 $194.0 Non-Interest Revenue 52.7 24.8 31.5 Total Revenue 265.9 215.3 225.5 Non-Interest Expense 150.9 153.0 146.6 PPNR10 115.0 62.3 78.8 Provision for Credit Losses 32.0 5.0 -10.0 Income Tax Expense 22.8 13.9 23.7 Net Income 60.2 43.4 65.1 Preferred Stock Dividends 2.4 4.3 4.3 Net Income to Common 57.8 39.1 60.8 Key Performance Metrics Return on Average Assets 0.61% 0.47% 0.69% PPNR10 / Average Assets 1.16% 0.67% 0.84% Efficiency Ratio11 56.7% 71.1% 65.0% EPS $1.14 $0.76 $1.19 Return on Average Common Equity 8.50% 5.41% 8.36%  Net income to common of $60.8 million, or $1.19 per diluted share  Focused investments in C&I lines of business continue to drive broad-based loan growth and firming commitment pipelines, which benefitted net interest income QoQ and offset the impacts of lower contribution from declining real estate and Warehouse loans  Declines in average quarterly real estate and Mortgage Finance Loan balances were the primary factors driving a YoY decrease in net interest income  Favorable grade migration combined with a decrease in criticized balances to drive a negative $10.0 million provision expense  Criticized loans declined $146.1 million QoQ and $335.5 million YoY  Strategic focus on expanding products and services continues to drive steady growth in core fee categories—service charges on deposits and wealth management fees are higher both YoY and QoQ (57% and 41% YoY, respectively)  Investment banking and trading income lower YoY due to a large Q4- 2020 loan syndication fee12, but significant progress is being made in this business and will only accelerate with the recent launch of Texas Capital Securities  Execution against our strategic priorities requires significant 2022 investment—excluding the $12.0 million write-off in Q3-2021, non-interest expense grew $5.6 million this quarter  On continued success against an ambitious talent plan, salaries and benefits increased $1.6 million QoQ, are 14% higher YoY, and are driving a higher portion of total non-interest expense  Continued improvement in both credit quality and regulatory capital levels leave the Bank well-positioned for the critical year ahead

10 Loan Fees (excl. PPP) and Loan Syndication Fees12 Loan Fees (excl. PPP) LHI Yield Contribution NIM Contribution Q4 2020 0.21% 0.08% Q1 2021 0.20% 0.08% Q2 2021 0.22% 0.09% Q3 2021 0.22% 0.10% Q4 2021 0.23% 0.10% $3.4M $5.1M $3.4M $2.8M 1.00% 0.98% 0.97% 0.95% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Noteworthy Items // Loan Fees and PPP PPP Loans Beginning PPP ($M) $617.5 $728.1 $364.4 $207.3 Forgiven PPP ($M) $88.2 $367.1 $157.1 $124.9 Originations ($M) $198.8 $3.4 $- $- Period-end PPP ($M) $728.1 $364.4 $207.3 $82.4 PPP Fees Yield on PPP Loans (excl. Fees) $8.8M $8.6M $8.2M $7.6M $8.1M $5.6M $3.6M $7.5M $5.3M $9.8M Loan Syndication Fees12

11 Q4 2021 EOP $9.1B $9.6B $10.0B $8.4B $7.6B $8.0B $7.9B $7.5B Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 MFLs $9.0B $8.9B $9.3B $9.9B $10.5B Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 3.38% 3.29% 3.37% 3.36% 3.41% 3.30% 3.34% 3.81% 3.65% 3.67% 3.61% 3.61% 3.49% 3.52% Total Loans Spread Total Loan Yield Loan Portfolio 14 Average Mortgage Finance Loans14 Period End Loan Trends (excl. PPP) 13 Quarterly Trend in Yields and Spreads Broad-based C&I9 loan growth continues to benefit Traditional LHI, despite continued above-average real estate payoffs and expected declines in PPP Mortgage Finance Loans14 down modestly QoQ ahead of seasonally low first quarter 1 FY Average MFLs14 Decline High-teens % decline 2 FY MFLs14 Yields 2.70-2.90% $5.8B $5.8B $5.6B $5.2B $4.8B Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 C&I Loans9 Real Estate Loans

12 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Q4 2015 EOP 42% 40% 51% 52% 26% 26% 26% 24% 32% 34% 23% 24% Q4 2021 EOP $17.0B $17.5B $17.9B $17.5B $15.7B $13.6B $13.9B $13.9B $2.9B $2.4B $1.8B $1.6B $1.2B $1.1B $0.9B $0.8B $10.9B $12.2B $13.2B $14.4B $15.1B $15.4B $15.8B $13.4B Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Interest-bearing Core Interest-bearing Brokered DDAs 0.29% 0.24% 0.20% 0.19% 0.19% 0.33% 0.29% 0.29% 0.28% 0.28% Avg Cost of Deposits Total Funding Costs Deposits and Fundings Funding Costs Deposit Composition (Average) Average Deposit Trends Non-interest BearingIndexed Average non-interest bearing DDA growth continues to outpace interest-bearing deposits, stabilizing deposit costs, and providing valuable liquidity for anticipated growth A $4.9 billion YoY decline in average interest- bearing balances (primarily from the indexed portfolio) positions the Bank well for the expected tightening cycle Historical Rates Paid Betas Interest Bearing Interest Bearing Rate Interest Bearing excl. Indexed Rate Fed Funds Upper Target 89% Cumulative Beta 76% Cumulative Beta

13 4.5% 5.9% 6.8% 6.6% 8.5% 10.6% Q4 2020 Q3 2021 Q4 2021 $52.7M $24.8M $31.5M $3.0M $4.6M $4.7M $2.7M $3.4M $3.8M $10.3M $4.1M $6.5M Q4 2020 Q3 2021 Q4 2021 $213.2M $190.5M $194.0M 2.22% 2.11% 2.12% Q4 2020 Q3 2021 Q4 2021 Q4-2021 Earnings Overview N e t In te re s t In co m e N o n -i n te re s t In co m e Non-Interest Income Fee Income Detail Net Interest Income & Margin NII Shock Sensitivity | 12-month % of Revenue 20% 12% 14% Deposit Service Charges Wealth Management Investment Banking and Trading $16.0M $12.1M $15.0M $19.3M $33.4M Loans at Floor15 36% 42% 37% Floor Yield 3.95% 3.55% 3.82% +100bp Shock +200bp Shock 11.1% 14.4% 17.4% Correspondent Lending16 5 FY Revenue Growth Low-to-mid single-digit Strategically important fee businesses continue favorable trends and exit the year with strengthening momentum Including loan syndication fees in non- interest income provides visibility to ongoing strategic investments Q4 2020 Q3 2021 Q4 2021 $26.0M –$1.2M Standard Model Assumptions 100bp & 200bp Parallel Shocks  Investment Portfolio: Held Constant  Loan Balances: Static  Loan Spreads: Current Levels  Deposit Balances: Static  Deposit Beta: ~55% Summary Balance Sheet Positioning  Fixed Loans (excl. MFLs14): 13%  Variable Loans (excl. MFLs14): 87%  Avg. Liquidity Above Target: $5.9B  Investment Portfolio Duration: 4.6 Years

14 Q4 2020 Q3 2021 Q4 2021 44% 43% 15% 11% 41% 46% Q4 2020 Q4 2021 Commercial Energy Real Estate $150.9M $153.0M $146.6M Q4 2020 Q3 2021 Q4 2021 Q4-2021 Earnings Overview N o n -i n te re s t E xp e n se R is k -C a p it al B al an c e Non-interest Expense Salary & Employee Benefits % of NIE 52% 57% 61%Correspondent Lending16 and Q3 Write-off $17.0M $136.0M $21.9M $129.0M $1.2M $145.4M $0.4M $87.1M $3.4M $75.0M Credit Quality Criticized Composition | YoY Regulatory Capital Levels 1.63% 2.1x 0.33% 1.42% 2.5x 0.25% 1.34% 2.9x 0.21% ACL on Loans / Loans HFI excl MFLs ACL on Loans / NPAs NPAs / Earning Assets Medium-term Target 9.35% 11.06% 10.00% 0.90% 1.54% 1.83% 2.72% 1.5x 1.7x 1.2x 12.08% 15.32% Q4 2020 Q4 2021 37% $918M $583M Correspondent Lending16 Successful deployment of identified savings into frontline talent and new capabilities continues at our desired pace Sustained and deliberate efforts to improve the Bank’s credit portfolio and actions taken to enhance capital provide confidence and stability as we approach a year of significant investment 7 FY Non-interest Expense Growth Low double-digit CET1 Tier 1 Capital Tier 2 CapitalQ4 2020 Q3 2021 Q4 2021 $87.5M $78.4M $89.1M $88.8M $0.3M

15 Self-funding Investment 2020 Run Rate 2021 CL Wind-down Rationalizing Deposit Verticals Realized Internal Opportunities 2021 Run Rate After Savings Strategic Investments Future Investment YE 2022 Run Rate ~$130-145M in Expense Saves to Date ~$100-110M in Expense Reinvestment to Date  Established routines and discipline are enhancing execution and allowing us to systematically identify opportunities to self-fund investment  Following the decision to wind-down Correspondent Lending, our strategic review of the remaining businesses, the balance sheet, and our internal processes identified opportunities to further reduce run-rate expense (~$130-145 million)  Reinvestment has accelerated through the year, on pace with our strategic plan, and is already benefitting performance. We remain confident in our full-year 2022 non-interest expense guidance and are committed to providing further clarity to our progress as we invest in the new year ~$70M ~$10-15M ~$50-60M ~$100-110M

16 Appendix // Footnotes 1. Results for Q4 2021 2. Total Revenue in 2020 excludes Correspondent Lending; See slide: Appendix // Correspondent Lending Historical Contribution 3. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, wire fees, and FX transactions, all of which are included in other non-interest income and totaled $3.1M for FY 2020, and $1.3M, $1.2M, $1.1M, $0.8M, and $0.8M for Q4 2021, Q3 2021, Q2 2021, Q1 2021, and Q4 2020, respectively 4. Non-interest Income for 2020 excludes Correspondent Lending; See slide: Appendix // Correspondent Lending Historical Contribution 5. Includes fed funds sold, interest-bearing deposits in other banks, and investment securities 6. See slide: Appendix // Return on Average Tangible Common Equity (ROTCE) 7. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 8. Q4 2020 includes a large syndicated fee 9. C&I Loans includes Commercial and Energy loans and excludes PPP loans 10. Net interest income and non-interest income, less non-interest expense 11. Non-interest expense divided by the sum of net interest income and non-interest income 12. Loan syndication fees reclassified from interest income to Investment Banking and Trading Income in non-interest income for all periods presented. See forthcoming Annual Report on form 10-K for additional details when it is filed with the SEC; See Slide Appendix // Loan Syndication Fees Historical Reclassification 13. Total Loans Spread = Yield on total loans (HFI & HFS), less total cost of deposits and other borrowings 14. Total MFLs include Mortgage Warehouse loans and Correspondent Lending LHS 15. Floors stated as a percentage of floating rate loans, excluding Mortgage Finance loans 16. See slide: Appendix // Correspondent Lending Historical Contribution

17 Appendix // Return on Average Tangible Common Equity (ROTCE) ROTCE is a non-GAAP financial measure. ROTCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROTCE is used by management in assessing financial performance and use of equity. A reconcilement of ROTCE to the most directly comparable U.S. GAAP measure, ROCE, for all periods presented below. 2020 ($000s) Q4 20211 ($000s) Net Income Available to Common Stockholders Average Common Equity Less: Average Goodwill and Intangibles Average Tangible Common Equity ROCE ROTCE (1) Ratios are annualized $56,539 $2,686,747 17,857 $2,668,890 2.1% 2.1% $60,817 $2,877,705 17,296 $2,860,409 8.4% 8.4%

18 Appendix // Loan Syndication Fees Historical Reclassification ($000s) Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2021 YTD As Reported Interest & Fees on Loans $283,625 $247,595 $237,179 $242,776 $1,011,175 $215,592 $210,611 $206,307 $632,510 Interest Income 306,008 252,010 243,731 255,163 1,056,912 228,412 224,490 220,148 673,050 Net Interest Income 228,319 209,928 207,569 223,010 868,826 200,073 196,994 194,095 591,162 Non-interest Income 11,780 70,485 60,348 42,863 185,476 39,092 30,102 21,220 90,414 Yield, LHI 4.89% 4.04% 3.84% 4.12% 4.22% 3.91% 4.01% 3.83% 3.92% Net Interest Margin 2.78% 2.30% 2.22% 2.32% 2.39% 2.09% 2.10% 2.15% 2.12% As Revised Interest & Fees on Loans $281,474 $244,233 $235,002 $232,961 $993,670 $210,331 $203,074 $202,748 $616,153 Interest Income 303,857 248,648 241,554 245,348 1,039,407 223,151 216,953 216,589 656,693 Net Interest Income 226,168 206,566 205,392 213,195 851,321 194,812 189,457 190,536 574,805 Non-interest Income 13,931 73,847 62,525 52,678 202,981 44,353 37,639 24,779 106,771 Yield, LHI 4.84% 3.96% 3.79% 3.87% 4.12% 3.78% 3.81% 3.74% 3.78% Net Interest Margin 2.75% 2.27% 2.19% 2.22% 2.34% 2.04% 2.02% 2.11% 2.06% Change Net Interest Income -$2,151 -$3,362 -$2,177 -$9,815 -$17,505 -$5,261 -$7,537 -$3,559 -$16,357 Non-interest Income 2,151 3,362 2,177 9,815 17,505 5,261 7,537 3,559 16,357 Yield, LHI -0.05% -0.08% -0.05% -0.25% -0.10% -0.13% -0.20% -0.09% -0.14% Net Interest Margin -0.03% -0.03% -0.03% -0.10% -0.05% -0.05% -0.08% -0.04% -0.06%

19 Appendix // Correspondent Lending Historical Contribution Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 LHS (Average) LHS (Period-end) $70.6M $75.5M $95.3M $105.4M $121.1M $1.3M $1.2M $0.0M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 MSR (Period-end) Risk Weighted ~50% Risk Weighted 250% ($M) Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Net Interest Income 24.5 1.5 2.8 1.4 30.2 0.9 0.3 0.0 0.0 1.2 Non-interest Income Brokered Loan Fees 2.6 2.8 5.8 3.9 15.1 2.2 0.7 0.0 0.0 2.9 Servicing Fee Income 4.6 5.9 7.1 8.6 26.2 8.8 5.7 0.0 0.0 14.5 Gain/(Loss) on Sale of LHS (13.0) 39.0 25.2 6.8 58.0 5.6 (3.1) (1.2) 0.0 1.3 Non-Interest Expense Salaries & Benefits 3.6 3.5 4.5 3.4 15.0 3.0 3.1 0.4 0.3 6.8 Marketing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Legal & Professional 0.8 0.6 0.8 0.9 3.1 1.0 0.8 0.3 0.2 2.3 Communications & Tech 0.7 1.4 1.0 1.0 4.1 0.4 0.3 1.3 0.5 2.5 Servicing Related Expenses 16.4 20.1 12.3 15.9 64.7 13.0 12.4 2.4 0.0 27.8 Other Expense 0.5 0.5 0.4 0.7 2.1 0.7 0.6 0.6 0.2 2.1

XML

Document And Entity Information Document	Jan. 20, 2022
Entity Information [Line Items]
Entity Registrant Name	TEXAS CAPITAL BANCSHARES INC/TX
Entity Emerging Growth Company	false
Entity Incorporation, State or Country Code	DE
Written Communications	false
Document Type	8-K
Document Period End Date	Jan. 20, 2022
Entity Address, Address Line One	2000 McKinney Avenue
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	(214)
Local Phone Number	932-6600
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity File Number	001-34657
Entity Tax Identification Number	75-2679109
Entity Central Index Key	0001077428
Amendment Flag	false
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TCBI
Security Exchange Name	NASDAQ
Series B Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share
Trading Symbol	TCBIO
Security Exchange Name	NASDAQ