EX-99.1 2 a10192022exhibit991.htm EX-99.1 EARNINGS RELEASE Document

Exhibit 99.1
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INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapitalbank.com
MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapitalbank.com

TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2022 RESULTS
Third quarter 2022 net income of $41.4 million and net income available to common
stockholders of $37.1 million, or $0.74 per diluted share
Achieved year-over-year operating leverage ahead of guidance

DALLAS - October 19, 2022 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2022.
Net income available to common stockholders was $37.1 million, or $0.74 per diluted share, for the third quarter of 2022, compared to $29.8 million, or $0.59 per diluted share, for the second quarter of 2022 and $39.1 million, or $0.76 per diluted share, for the third quarter of 2021.
“The quarterly financial results demonstrate dedication towards our stated goals as we achieved year-over-year quarterly operating leverage,” said Rob C. Holmes, President and CEO. “Additionally, we calibrated our capital and expenses and built a financially resilient balance sheet with strong reserves and capital geared towards supporting our clients through market and rate driven cycles.”

FINANCIAL RESULTS
(dollars and shares in thousands)
3rd Quarter2nd Quarter3rd Quarter
202220222021
OPERATING RESULTS
Net income$41,418 $34,159 $43,390 
Net income available to common stockholders$37,105 $29,847 $39,078 
Diluted earnings per common share$0.74 $0.59 $0.76 
Diluted common shares50,418 50,802 51,140 
Return on average assets0.52 %0.44 %0.47 %
Return on average common equity5.36 %4.35 %5.41 %
BALANCE SHEET
Loans held for investment$14,878,959 $17,517,866 $15,221,404 
Loans held for investment, mortgage finance4,908,822 6,549,507 8,528,313 
Total loans held for investment19,787,781 24,067,373 23,749,717 
Loans held for sale3,142,178 4,266 9,660 
Total assets30,408,513 32,338,963 36,404,320 
Non-interest bearing deposits11,494,685 12,555,367 14,970,462 
Total deposits24,498,563 25,440,021 29,813,668 
Stockholders’ equity2,885,775 3,006,832 3,147,752 





THIRD QUARTER 2022 COMPARED TO SECOND QUARTER 2022
For the third quarter of 2022, net income available to common stockholders was $37.1 million, or $0.74 per diluted share, compared to $29.8 million, or $0.59 per diluted share, for the second quarter of 2022.
We recorded a $12.0 million provision for credit losses for the third quarter of 2022, compared to a $22.0 million provision for credit losses for the second quarter of 2022. The $12.0 million provision for credit losses recorded in the third quarter of 2022 resulted primarily from updated views on the downside risks to the economic forecast, partially offset by a decline in criticized loans.
Net interest income was $239.1 million for the third quarter of 2022, compared to $205.5 million for the second quarter of 2022. The increase in net interest income was primarily due to an increase in yields on earning assets, partially offset by an increase in funding costs. Net interest margin for the third quarter of 2022 was 3.05%, an increase of 37 basis points from the second quarter of 2022. Loans held for investment (“LHI”), excluding mortgage finance, yields increased 108 basis points from the second quarter of 2022 and LHI, mortgage finance yields increased 54 basis points from the second quarter of 2022. Total cost of deposits was 0.93% for the third quarter of 2022, a 60 basis point increase from the second quarter of 2022.
Non-interest income for the third quarter of 2022 decreased $909,000, or 3%, compared to the second quarter of 2022, primarily due to decreases in brokered loan fees and investment banking and trading income, partially offset by an increase in other non-interest income.
Non-interest expense for the third quarter of 2022 increased $32.7 million, or 20%, compared to the second quarter of 2022. The third quarter of 2022 included $13.7 million in salaries and benefits expense and $3.0 million in legal and professional expense related to the sale of our insurance premium finance subsidiary. The remaining increase in non-interest expense for the third quarter of 2022 was primarily due to an increase in salaries and benefits expense resulting from an increase in headcount.
THIRD QUARTER 2022 COMPARED TO THIRD QUARTER 2021
Net income available to common stockholders was $37.1 million, or $0.74 per diluted share, for the third quarter of 2022, compared to $39.1 million, or $0.76 per diluted share, for the third quarter of 2021.
The third quarter of 2022 included a $12.0 million provision for credit losses, resulting primarily from updated views on the downside risks to the economic forecast, partially offset by a decline in criticized loans, compared to a $5.0 million provision for credit losses for the third quarter of 2021.
Net interest income increased to $239.1 million for the third quarter of 2022, compared to $190.5 million for the third quarter of 2021, primarily due to an increase in yields on average earning assets, partially offset by an increase in funding costs. Net interest margin increased 94 basis points to 3.05% for the third quarter of 2022, as compared to the third quarter of 2021. LHI, excluding mortgage finance, yields increased 141 basis points compared to the third quarter of 2021 and LHI, mortgage finance yields increased 103 basis points from the third quarter of 2021. Total cost of deposits increased 74 basis points compared to the third quarter of 2021.
Non-interest income for the third quarter of 2022 increased $554,000, or 2%, compared to the third quarter of 2021. The increase was primarily due to increases in service charges on deposit accounts and investment banking and trading income, as well as the elimination of net losses recorded in the prior year on the sale of loans held for sale, partially offset by decreases in brokered loan fees and other non-interest income.
Non-interest expense for the third quarter of 2022 increased $44.1 million, or 29%, compared to the third quarter of 2021. The third quarter of 2022 included $13.7 million in salaries and benefits expense and $3.0 million in legal and professional expense related to the sale of our insurance premium finance subsidiary. Also contributing to the increase in non-interest expense were increases in salaries and benefits expense, resulting from an increase in headcount, and marketing expense, partially offset by a decrease in communications and technology expense related to the elimination of write-offs of certain software assets recorded in the prior year.
CREDIT QUALITY
We recorded $2.7 million in net charge-offs during the third quarter of 2022, compared to net charge-offs of $2.6 million and of $3.1 million during the second quarter of 2022 and the third quarter of 2021, respectively. Criticized loans totaled $484.0 million at September 30, 2022, compared to $603.5 million at June 30, 2022 and $728.9 million at September 30, 2021. Non-accrual LHI totaled $35.9 million at September 30, 2022, compared to $50.5 million at June 30, 2022 and $87.5 million at September 30, 2021. The ratio of non-accrual LHI to total LHI for the third quarter of 2022 was 0.18%, compared to 0.21% for the second quarter of 2022 and 0.37% for the third quarter of 2021.
REGULATORY RATIOS AND CAPITAL
All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2022. Our CET 1, tier 1 capital, total capital and leverage ratios were 11.1%, 12.6%, 15.2% and 10.7%, respectively, at September 30, 2022, compared to 10.5%, 11.9%, 14.4% and 10.7%, respectively, at June 30, 2022 and 10.7%, 12.2%, 14.9% and 9.0% at September 30, 2021. At September 30, 2022, our ratio of tangible common equity to total tangible assets was 8.5%, compared to 8.3% at June 30, 2022 and 7.8% at September 30, 2021.
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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, a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital Bank has established commercial banking, consumer banking, investment banking and wealth management capabilities.
Forward Looking Statements
This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “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. Several 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. These factors include, but are not limited to, credit quality and risk, the COVID-19 pandemic, industry and technological changes, uncertainties related to our sale of BankDirect Capital Finance, LLC, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real estate values, economic conditions, including inflation, recession, the threat of recession, and market conditions in Texas, the United States or globally, including governmental and consumer responses to those economic and market conditions, fund availability, accounting estimates and risk management processes, the transition away from the London Interbank Offered Rate (LIBOR), legislative and regulatory changes, ratings or interpretations, business strategy execution, key personnel, competition, mortgage markets, fraud, environmental liability and severe weather, natural disasters, acts of war, terrorism, global conflict or other external events.
These and other factors that could cause actual results for TCBI on a consolidated basis to differ materially from those described in the forward-looking statements, including a discussion of the risks and uncertainties that may affect TCBI’s business, can be found in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in 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.



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TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20222022202220212021
CONSOLIDATED STATEMENTS OF INCOME
Interest income$322,071 $242,349 $208,530 $219,892 $216,589 
Interest expense82,991 36,818 24,983 25,860 26,053 
Net interest income239,080 205,531 183,547 194,032 190,536 
Provision for credit losses12,000 22,000 (2,000)(10,000)5,000 
Net interest income after provision for credit losses227,080 183,531 185,547 204,032 185,536 
Non-interest income25,333 26,242 20,282 31,459 24,779 
Non-interest expense197,047 164,303 153,092 146,649 152,987 
Income before income taxes55,366 45,470 52,737 88,842 57,328 
Income tax expense13,948 11,311 13,087 23,712 13,938 
Net income41,418 34,159 39,650 65,130 43,390 
Preferred stock dividends4,313 4,312 4,313 4,313 4,312 
Net income available to common stockholders$37,105 $29,847 $35,337 $60,817 $39,078 
Diluted earnings per common share$0.74 $0.59 $0.69 $1.19 $0.76 
Diluted common shares50,417,884 50,801,628 51,324,027 51,208,161 51,139,555 
CONSOLIDATED BALANCE SHEET DATA
Total assets$30,408,513 $32,338,963 $31,085,377 $34,731,738 $36,404,320 
Loans held for investment14,878,959 17,517,866 15,849,434 15,331,457 15,221,404 
Loans held for investment, mortgage finance4,908,822 6,549,507 5,827,965 7,475,497 8,528,313 
Loans held for sale3,142,178 4,266 8,085 8,123 9,660 
Interest bearing cash and cash equivalents3,399,638 4,032,931 5,136,680 7,765,996 8,317,926 
Investment securities3,369,622 3,552.699 3,642,015 3,583,808 3,663,874 
Non-interest bearing deposits11,494,685 12,555,367 13,434,723 13,390,370 14,970,462 
Total deposits24,498,563 25,440,021 25,377,938 28,109,365 29,813,668 
Short-term borrowings1,701,480 2,651,536 1,427,033 2,202,832 2,203,470 
Long-term debt930,766 917,098 929,414 928,738 928,062 
Stockholders’ equity2,885,775 3,006,832 3,090,038 3,209,616 3,147,752 
End of period shares outstanding49,897,726 49,878,041 50,710,441 50,618,494 50,605,626 
Book value$51.82 $54.27 $55.02 $57.48 $56.27 
Tangible book value(1)
$51.48 $53.93 $54.68 $57.14 $55.93 
SELECTED FINANCIAL RATIOS
Net interest margin3.05 %2.68 %2.23 %2.12 %2.11 %
Return on average assets0.52 %0.44 %0.47 %0.69 %0.47 %
Return on average common equity5.36 %4.35 %4.97 %8.36 %5.41 %
Non-interest income to average earning assets0.33 %0.34 %0.25 %0.34 %0.27 %
Efficiency ratio(2)
74.5 %70.9 %75.1 %65.0 %71.1 %
Non-interest expense to average earning assets2.53 %2.16 %1.86 %1.60 %1.69 %
Tangible common equity to total tangible assets(3)
8.5 %8.3 %8.9 %8.3 %7.8 %
Common Equity Tier 111.1 %10.5 %11.5 %11.1 %10.7 %
Tier 1 capital12.6 %11.9 %13.0 %12.6 %12.2 %
Total capital15.2 %14.4 %15.7 %15.3 %14.9 %
Leverage10.7 %10.7 %9.9 %9.0 %9.0 %
(1)     Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2)    Non-interest expense divided by the sum of net interest income and non-interest income.
(3)    Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
    
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
September 30, 2022September 30, 2021% Change
Assets
Cash and due from banks$240,609 $217,125 11 %
Interest bearing cash and cash equivalents3,399,638 8,317,926 (59)%
Available-for-sale debt securities2,380,774 3,623,266 (34)%
Held-to-maturity debt securities955,875 — 100 %
Equity securities32,973 40,608 (19)%
Investment securities3,369,622 3,663,874 (8)%
Loans held for sale3,142,178 9,660 N/M
Loans held for investment, mortgage finance4,908,822 8,528,313 (42)%
Loans held for investment14,878,959 15,221,404 (2)%
Less: Allowance for credit losses on loans234,613 221,957 %
Loans held for investment, net19,553,168 23,527,760 (17)%
Mortgage servicing rights, net— 1,158 (100)%
Premises and equipment, net27,180 21,119 29 %
Accrued interest receivable and other assets648,172 628,335 %
Other assets held for sale26,450 — 100 %
Goodwill and intangibles, net1,496 17,363 (91)%
Total assets$30,408,513 $36,404,320 (16)%
Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits$11,494,685 $14,970,462 (23)%
Interest bearing deposits13,003,878 14,843,206 (12)%
Total deposits24,498,563 29,813,668 (18)%
Accrued interest payable18,465 8,920 107 %
Other liabilities297,900 302,448 (2)%
Other liabilities held for sale75,564 — 100 %
Short-term borrowings1,701,480 2,203,470 (23)%
Long-term debt930,766 928,062 — %
Total liabilities27,522,738 33,256,568 (17)%
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at September 30, 2022 and 2021
300,000 300,000 — %
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 50,840,022 and 50,606,043 at September 30, 2022 and 2021, respectively
509 506 %
Additional paid-in capital1,020,153 1,000,509 %
Retained earnings2,050,563 1,887,457 %
Treasury stock - 942,296 and 417 shares at cost at September 30, 2022 and 2021, respectively
(50,031)(8)N/M
Accumulated other comprehensive loss, net of taxes(435,419)(40,712)N/M
Total stockholders’ equity2,885,775 3,147,752 (8)%
Total liabilities and stockholders’ equity$30,408,513 $36,404,320 (16)%
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Interest income
Interest and fees on loans$282,473 $202,748 $688,420 $616,153 
Investment securities15,002 10,235 46,969 31,040 
Interest bearing cash and cash equivalents24,596 3,606 37,561 9,500 
Total interest income322,071 216,589 772,950 656,693 
Interest expense
Deposits60,317 14,719 94,513 50,994 
Short-term borrowings10,011 748 15,628 3,842 
Long-term debt12,663 10,586 34,651 27,052 
Total interest expense82,991 26,053 144,792 81,888 
Net interest income239,080 190,536 628,158 574,805 
Provision for credit losses12,000 5,000 32,000 (20,000)
Net interest income after provision for credit losses227,080 185,536 596,158 594,805 
Non-interest income
Service charges on deposit accounts5,701 4,622 17,726 13,972 
Wealth management and trust fee income3,631 3,382 11,594 9,380 
Brokered loan fees3,401 6,032 11,504 22,276 
Servicing income212 292 677 15,236 
Investment banking and trading income7,812 4,127 23,117 17,985 
Net gain/(loss) on sale of loans held for sale— (1,185)— 1,317 
Other4,576 7,509 7,239 26,605 
Total non-interest income25,333 24,779 71,857 106,771 
Non-interest expense
Salaries and benefits129,336 87,503 333,319 261,855 
Occupancy expense9,433 8,324 27,192 24,463 
Marketing8,282 2,123 21,765 5,720 
Legal and professional16,775 11,055 38,365 28,479 
Communications and technology18,470 28,374 48,819 58,695 
Federal Deposit Insurance Corporation insurance assessment3,953 4,500 11,252 16,339 
Servicing-related expenses— 2,396 — 27,740 
Other10,798 8,712 33,730 29,072 
Total non-interest expense197,047 152,987 514,442 452,363 
Income before income taxes55,366 57,328 153,573 249,213 
Income tax expense13,948 13,938 38,346 60,404 
Net income41,418 43,390 115,227 188,809 
Preferred stock dividends4,313 4,312 12,938 14,408 
Net income available to common stockholders$37,105 $39,078 $102,289 $174,401 
Basic earnings per common share$0.74 $0.77 $2.03 $3.45 
Diluted earnings per common share$0.74 $0.76 $2.00 $3.41 
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TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20222022202220212021
Allowance for credit losses on loans:
Beginning balance$229,013 $211,151 $211,866 $221,957 $221,511 
Loans charged-off:
Commercial232 2,868 110 3,776 4,348 
Energy2,903 — — — — 
Real estate— — 350 — — 
Total charge-offs3,135 2,868 460 3,776 4,348 
Recoveries:
Commercial113 219 217 1,933 1,104 
Energy289 — 755 601 42 
Real estate— — — 205 112 
Total recoveries402 219 972 2,739 1,258 
Net charge-offs2,733 2,649 (512)1,037 3,090 
Provision for credit losses on loans8,333 20,511 (1,227)(9,054)3,536 
Ending balance$234,613 $229,013 $211,151 $211,866 $221,957 
Allowance for off-balance sheet credit losses:
Beginning balance$17,981 $16,492 $17,265 $18,211 $16,747 
Provision for off-balance sheet credit losses3,667 1,489 (773)(946)1,464 
Ending balance$21,648 $17,981 $16,492 $17,265 $18,211 
Total allowance for credit losses$256,261 $246,994 $227,643 $229,131 $240,168 
Total provision for credit losses$12,000 $22,000 $(2,000)$(10,000)$5,000 
Allowance for credit losses on loans to total loans held for investment1.19 %0.95 %0.97 %0.93 %0.93 %
Allowance for credit losses on loans to average total loans held for investment1.06 %1.02 %0.99 %0.91 %0.95 %
Net charge-offs to average total loans held for investment(1)
0.05 %0.05 %(0.01)%0.02 %0.05 %
Net charge-offs to average total loans held for investment for last 12 months(1)
0.03 %0.03 %0.03 %0.06 %0.33 %
Total provision for credit losses to average total loans held for investment(1)
0.22 %0.39 %(0.04)%(0.17)%0.09 %
Total allowance for credit losses to total loans held for investment
1.30 %1.03 %1.05 %1.00 %1.01 %
(1)Interim period ratios are annualized.
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TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
(dollars in thousands)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20222022202220212021
Non-accrual loans held for investment$35,864 $50,526 $59,327 $72,502 $87,532 
Non-accrual loans held for sale(1)
1,340 — — — — 
Other real estate owned— — — — — 
Total non-performing assets$37,204 $50,526 $59,327 $72,502 $87,532 
Non-accrual loans held for investment to total loans held for investment0.18 %0.21 %0.27 %0.32 %0.37 %
Total non-performing assets to total assets0.12 %0.16 %0.19 %0.21 %0.24 %
Allowance for credit losses on loans to non-accrual loans held for investment6.5x4.5x3.6x2.9x2.5x
Loans held for investment past due 90 days and still accruing
$30,664 $3,206 $6,031 $3,467 $3,405 
Loans held for investment past due 90 days to total loans held for investment0.15 %0.01 %0.03 %0.02 %0.01 %
Loans held for sale past due 90 days and still accruing(1)(2)
$4,877 $1,602 $3,865 $3,986 $3,808 
(1)Third quarter 2022 includes $1.3 million in non-accrual loans and $3.1 million in loans past due 90 days and still accruing associated to our insurance premium finance subsidiary that were transferred from loans held for investment to loans held for sale as of September 30, 2022.
(2)Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as loans held for sale and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government.
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)
3rd Quarter2nd Quarter1st Quarter4th Quarter3rd Quarter
20222022202220212021
Interest income
Interest and fees on loans$282,473 $218,290 $187,657 $204,379 $202,748 
Investment securities15,002 14,665 17,302 11,780 10,235 
Interest bearing deposits in other banks24,596 9,394 3,571 $3,733 $3,606 
Total interest income322,071 242,349 208,530 219,892 216,589 
Interest expense
Deposits60,317 20,566 13,630 14,513 14,719 
Short-term borrowings10,011 4,859 758 771 748 
Long-term debt12,663 11,393 10,595 10,576 10,586 
Total interest expense82,991 36,818 24,983 25,860 26,053 
Net interest income239,080 205,531 183,547 194,032 190,536 
Provision for credit losses12,000 22,000 (2,000)(10,000)5,000 
Net interest income after provision for credit losses227,080 183,531 185,547 204,032 185,536 
Non-interest income
Service charges on deposit accounts5,701 6,003 6,022 4,702 4,622 
Wealth management and trust fee income3,631 4,051 3,912 3,793 3,382 
Brokered loan fees3,401 4,133 3,970 5,678 6,032 
Servicing income212 228 237 277 292 
Investment banking and trading income7,812 11,126 4,179 6,456 4,127 
Net gain/(loss) on sale of loans held for sale— — — — (1,185)
Other4,576 701 1,962 10,553 7,509 
Total non-interest income25,333 26,242 20,282 31,459 24,779 
Non-interest expense
Salaries and benefits129,336 103,885 100,098 89,075 87,503 
Occupancy expense9,433 8,874 8,885 8,769 8,324 
Marketing8,282 8,506 4,977 4,286 2,123 
Legal and professional16,775 11,288 10,302 12,673 11,055 
Communications and technology18,470 15,649 14,700 16,490 28,374 
Federal Deposit Insurance Corporation insurance assessment3,953 3,318 3,981 4,688 4,500 
Servicing-related expenses— — — 25 2,396 
Other 10,798 12,783 10,149 10,643 8,712 
Total non-interest expense197,047 164,303 153,092 146,649 152,987 
Income before income taxes55,366 45,470 52,737 88,842 57,328 
Income tax expense13,948 11,311 13,087 23,712 13,938 
Net income41,418 34,159 39,650 65,130 43,390 
Preferred stock dividends4,313 4,312 4,313 4,313 4,312 
Net income available to common shareholders$37,105 $29,847 $35,337 $60,817 $39,078 

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TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
3rd Quarter 20222nd Quarter 20221st Quarter 20224th Quarter 20213rd Quarter 2021
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)
$3,509,044 $15,002 1.58 %$3,543,576 $15,065 1.60 %$3,669.257 $17,743 1.91 %$3,608,503 $12,225 1.34 %$3,775,812 $10,684 1.12 %
Interest bearing cash and cash equivalents4,453,806 24,596 2.19 %4,747,377 9,394 0.79 %8,552,300 3,571 0.17 %9,760,735 3,733 0.15 %9,046,095 3,606 0.16 %
Loans held for sale1,029,983 11,316 4.36 %8,123 62 3.07 %7,633 113 6.01 %8,348 51 2.41 %18,791 54 1.14 %
Loans held for investment, mortgage finance5,287,531 52,756 3.96 %5,858,599 49,914 3.42 %5,732,901 43,466 3.07 %7,901,534 57,949 2.91 %7,987,521 58,913 2.93 %
Loans held for investment(3)
16,843,922 218,512 5.15 %16,616,234 168,407 4.07 %15,686.319 144,134 3.73 %15,348,322 146,436 3.79 %15,266,167 143,864 3.74 %
Less: Allowance for credit losses on loans
229,005 — — 211,385 — — 212,612 — — 223,034 — — 220,984 — — 
Loans held for investment, net21,902,448 271,268 4.91 %22,263,448 218,321 3.93 %21,206,608 187,600 3.59 %23,026,822 204,385 3.52 %23,032,704 202,777 3.49 %
Total earning assets30,895,281 322,182 4.10 %30,562,524 242,842 3.16 %33,435,798 209,027 2.54 %36,404,408 220,394 2.40 %35,873,402 217,121 2.40 %
Cash and other assets918,630 870,396 819,486 835,293 855,555 
Total assets$31,813,911 $31,432,920 $34,255,284 $37,239,701 $36,728,957 
Liabilities and Stockholders’ Equity
Transaction deposits$1,444,964 $5,239 1.44 %$1,671,729 $3,920 0.94 %$2,432,687 $3,962 0.66 %$3,007,337 $4,664 0.62 %$3,012,547 $4,737 0.62 %
Savings deposits10,249,387 46,555 1.80 %8,696,819 15,462 0.71 %10,420,545 8,583 0.33 %10,529,645 8,419 0.32 %10,044,995 8,262 0.33 %
Time deposits1,701,238 8,523 1.99 %877,399 1,184 0.54 %1,038,722 1,085 0.42 %1,276,800 1,430 0.44 %1,640,562 1,720 0.42 %
Total interest bearing deposits13,395,589 60,317 1.79 %11,245,947 20,566 0.73 %13,891,954 13,630 0.40 %14,813,782 14,513 0.39 %14,698,104 14,719 0.40 %
Short-term borrowings1,931,537 10,011 2.06 %2,232,119 4,859 0.87 %1,770,781 758 0.17 %2,267,013 771 0.13 %2,299,692 748 0.13 %
Long-term debt921,707 12,663 5.45 %929,616 11,393 4.92 %929,005 10,595 4.63 %928,307 10,576 4.52 %927,626 10,586 4.53 %
Total interest bearing liabilities16,248,833 82,991 2.03 %14,407,682 36,818 1.02 %16,591,740 24,983 0.61 %18,009,102 25,860 0.57 %17,925,422 26,053 0.58 %
Non-interest bearing deposits12,214,531 13,747,876 14,235,749 15,804,061 15,363,568 
Other liabilities305,554 227,701 243,141 238,833 275,317 
Stockholders’ equity3,044,993 3,049,661 3,184,654 3,187,705 3,164,650 
Total liabilities and stockholders’ equity$31,813,911 $31,432,920 $34,255,284 $37,239,701 $36,728,957 
Net interest income
$239,191 $206,024 $184,044 $194,534 $191,068 
Net interest margin3.05 %2.68 %2.23 %2.12 %2.11 %
(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.
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