tcbi-20240718

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 18, 2024

TEXAS CAPITAL BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


Delaware	001-34657	75-2679109
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A.

(Address of principal executive offices)

Registrant’s telephone number, including area code: (214) 932-6600

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

TCBI

Nasdaq Stock Market

5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share

TCBIO

Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 18, 2024, Texas Capital Bancshares, Inc. (the “Company”) issued a press release and made available presentation slides regarding its operating and financial results for its fiscal quarter ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.

The information in Item 2.02 of this report (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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:

July 18, 2024

TEXAS CAPITAL BANCSHARES, INC.

By:

/s/ J. Matthew Scurlock

J. Matthew Scurlock
Chief Financial Officer


						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 SECOND QUARTER 2024 RESULTS

Second quarter 2024 net income of $41.7 million and net income available to common

stockholders of $37.4 million, or $0.80 per diluted share

Book Value and Tangible Book Value(1) per share both increased 1.9%, reaching record levels,

after giving effect to the repurchase of $50.0 million in shares

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

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

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

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


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

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

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

SECOND QUARTER 2024 COMPARED TO FIRST QUARTER 2024

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

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

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

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

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

SECOND QUARTER 2024 COMPARED TO SECOND QUARTER 2023

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

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

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

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

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

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

REGULATORY RATIOS AND CAPITAL

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

During the second quarter of 2024, the Company repurchased 852,098 shares of its common stock for an aggregate purchase price, including excise tax expense, of $50.0 million, at a weighted average price of $58.14 per share.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, the parent company of Texas Capital Bank d/b/a Texas Capital, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.


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

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

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

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

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

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

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


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	June 30, 2024		June 30, 2023		% Change
Assets
Cash and due from banks	$	221,727	$	260,314	(15)	%
Interest bearing cash and cash equivalents	2,691,352		2,587,131		4	%
Available-for-sale debt securities	3,483,231		3,292,478		6	%
Held-to-maturity debt securities	831,513		900,315		(8)	%
Equity securities	74,232		33,860		119	%
Investment securities	4,388,976		4,226,653		4	%
Loans held for sale	36,785		29,097		26	%
Loans held for investment, mortgage finance	5,078,161		5,098,812		—	%
Loans held for investment	16,700,569		16,227,203		3	%
Less: Allowance for credit losses on loans	267,297		237,343		13	%
Loans held for investment, net	21,511,433		21,088,672		2	%

Premises and equipment, net	69,464		26,096		166	%
Accrued interest receivable and other assets	933,761		757,085		23	%
Goodwill and intangibles, net	1,496		1,496		—	%
Total assets	$	29,854,994	$	28,976,544	3	%

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

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


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Interest income
Interest and fees on loans	$	345,251	$	332,867	$	676,130	$	630,305
Investment securities	33,584		27,478		65,728		52,770
Interest bearing cash and cash equivalents	43,233		41,571		97,588		104,007
Total interest income	422,068		401,916		839,446		787,082
Interest expense
Deposits	181,280		137,391		356,880		257,485
Short-term borrowings	12,749		18,253		25,532		32,997
Long-term debt	11,457		14,282		25,443		29,265
Total interest expense	205,486		169,926		407,855		319,747
Net interest income	216,582		231,990		431,591		467,335
Provision for credit losses	20,000		7,000		39,000		35,000
Net interest income after provision for credit losses	196,582		224,990		392,591		432,335
Non-interest income
Service charges on deposit accounts	5,911		5,158		12,250		10,180
Wealth management and trust fee income	3,699		3,715		7,266		7,144
Brokered loan fees	2,131		2,415		4,042		4,310

Investment banking and advisory fees	25,048		19,101		43,472		33,665
Trading income	5,650		8,397		10,362		12,601



Other	7,985		7,225		14,351		15,514
Total non-interest income	50,424		46,011		91,743		83,414
Non-interest expense
Salaries and benefits	118,840		113,050		247,567		241,720
Occupancy expense	10,666		9,482		20,403		19,101
Marketing	5,996		6,367		12,032		15,411
Legal and professional	11,273		15,669		27,468		30,183
Communications and technology	22,013		20,525		43,127		38,048
Federal Deposit Insurance Corporation insurance assessment	5,570		3,693		13,991		5,863


Other	14,051		12,858		26,214		25,345
Total non-interest expense	188,409		181,644		390,802		375,671
Income before income taxes	58,597		89,357		93,532		140,078
Income tax expense	16,935		20,706		25,728		32,766
Net income	41,662		68,651		67,804		107,312
Preferred stock dividends	4,312		4,312		8,625		8,625
Net income available to common stockholders	$	37,350	$	64,339	$	59,179	$	98,687

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


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2024			2024			2023			2023			2023
Allowance for credit losses on loans:
Beginning balance	$	263,962		$	249,973		$	244,902		$	237,343		$	260,928
Loans charged-off:
Commercial	9,997			7,544			8,356			13,246			8,852

Commercial real estate	2,111			3,325			5,500			—			—
Consumer	—			—			—			41			—
Total charge-offs	12,108			10,869			13,856			13,287			8,852
Recoveries:
Commercial	153			105			15			4,346			611

Commercial real estate	—			—			4			—			—
Consumer	—			—			—			—			2
Total recoveries	153			105			19			4,346			613
Net charge-offs	11,955			10,764			13,837			8,941			8,239
Provision for credit losses on loans	15,290			24,753			18,908			16,500			(15,346)
Ending balance	$	267,297		$	263,962		$	249,973		$	244,902		$	237,343

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

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

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

(1)Interim period ratios are annualized.


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

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


Loans held for investment past due 90 days and still accruing	$	286		$	3,674		$	19,523		$	4,602		$	64
Loans held for investment past due 90 days to total loans held for investment	—		%	0.02		%	0.10		%	0.02		%	—		%
Loans held for sale past due 90 days and still accruing	$	64		$	147		$	—		$	—		$	—

(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.


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

	2nd Quarter		1st Quarter		4th Quarter		3rd Quarter		2nd Quarter
	2024		2024		2023		2023		2023
Interest income
Interest and fees on loans	$	345,251	$	330,879	$	325,210	$	345,138	$	332,867
Investment securities	33,584		32,144		28,454		27,070		27,478
Interest bearing deposits in other banks	43,233		54,355		63,408		53,561		41,571
Total interest income	422,068		417,378		417,072		425,769		401,916
Interest expense
Deposits	181,280		175,600		170,173		160,117		137,391
Short-term borrowings	12,749		12,783		18,069		19,576		18,253
Long-term debt	11,457		13,986		14,113		14,005		14,282
Total interest expense	205,486		202,369		202,355		193,698		169,926
Net interest income	216,582		215,009		214,717		232,071		231,990
Provision for credit losses	20,000		19,000		19,000		18,000		7,000
Net interest income after provision for credit losses	196,582		196,009		195,717		214,071		224,990
Non-interest income
Service charges on deposit accounts	5,911		6,339		5,397		5,297		5,158
Wealth management and trust fee income	3,699		3,567		3,302		3,509		3,715
Brokered loan fees	2,131		1,911		2,076		2,532		2,415

Investment banking and advisory fees	25,048		18,424		6,906		23,099		19,101
Trading income	5,650		4,712		3,819		6,092		8,397


Other	7,985		6,366		9,633		6,343		7,225
Total non-interest income	50,424		41,319		31,133		46,872		46,011
Non-interest expense
Salaries and benefits	118,840		128,727		107,970		110,010		113,050
Occupancy expense	10,666		9,737		9,483		9,910		9,482
Marketing	5,996		6,036		5,686		4,757		6,367
Legal and professional	11,273		16,195		17,127		17,614		15,669
Communications and technology	22,013		21,114		23,607		19,607		20,525
Federal Deposit Insurance Corporation insurance assessment	5,570		8,421		25,143		5,769		3,693

Other	14,051		12,163		12,369		12,224		12,858
Total non-interest expense	188,409		202,393		201,385		179,891		181,644
Income before income taxes	58,597		34,935		25,465		81,052		89,357
Income tax expense	16,935		8,793		5,315		19,373		20,706
Net income	41,662		26,142		20,150		61,679		68,651
Preferred stock dividends	4,312		4,313		4,312		4,313		4,312
Net income available to common shareholders	$	37,350	$	21,829	$	15,838	$	57,366	$	64,339


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
	2nd Quarter 2024						1st Quarter 2024						4th Quarter 2023						3rd Quarter 2023						2nd Quarter 2023
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities(2)	$	4,427,023	$	33,584	2.80	%	$	4,299,368	$	32,144	2.77	%	$	4,078,975	$	28,454	2.48	%	$	4,204,749	$	27,070	2.33	%	$	4,306,881	$	27,478	2.36	%
Interest bearing cash and cash equivalents	3,273,069		43,233		5.31	%	4,051,627		54,355		5.40	%	4,637,374		63,408		5.42	%	3,965,045		53,561		5.36	%	3,286,091		41,571		5.07	%
Loans held for sale	28,768		683		9.55	%	51,164		1,184		9.31	%	29,071		672		9.17	%	31,878		647		8.06	%	28,414		599		8.46	%
Loans held for investment, mortgage finance(4)	4,357,288		42,722		3.94	%	3,517,707		31,455		3.60	%	3,946,280		33,709		3.39	%	4,697,702		50,813		4.29	%	4,376,235		49,425		4.53	%
Loans held for investment(3)(4)	16,750,788		301,910		7.25	%	16,522,089		298,306		7.26	%	16,164,233		290,897		7.14	%	16,317,324		293,750		7.14	%	16,217,314		282,956		7.00	%
Less: Allowance for credit losses on loans	263,145		—		—		249,936		—		—		244,287		—		—		238,883		—		—		261,027		—		—
Loans held for investment, net	20,844,931		344,632		6.65	%	19,789,860		329,761		6.70	%	19,866,226		324,606		6.48	%	20,776,143		344,563		6.58	%	20,332,522		332,381		6.56	%
Total earning assets	28,573,791		422,132		5.86	%	28,192,019		417,444		5.88	%	28,611,646		417,140		5.69	%	28,977,815		425,841		5.75	%	27,953,908		402,029		5.69	%
Cash and other assets	1,177,061						1,058,463						1,120,354						1,106,031						1,049,145
Total assets	$	29,750,852					$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053

Liabilities and Stockholders’ Equity
Transaction deposits	$	2,061,622	$	16,982	3.31	%	$	2,006,493	$	16,858	3.38	%	$	1,972,324	$	15,613	3.14	%	$	1,755,451	$	13,627	3.08	%	$	1,345,742	$	9,468	2.82	%
Savings deposits	11,981,668		143,173		4.81	%	11,409,677		136,790		4.82	%	11,043,155		132,801		4.77	%	10,858,306		127,323		4.65	%	10,590,558		114,275		4.33	%
Time deposits	1,658,899		21,125		5.12	%	1,719,325		21,952		5.14	%	1,716,812		21,759		5.03	%	1,610,235		19,167		4.72	%	1,531,922		13,648		3.57	%
Total interest bearing deposits	15,702,189		181,280		4.64	%	15,135,495		175,600		4.67	%	14,732,291		170,173		4.58	%	14,223,992		160,117		4.47	%	13,468,222		137,391		4.09	%
Short-term borrowings	927,253		12,749		5.53	%	912,088		12,783		5.64	%	1,257,609		18,069		5.70	%	1,393,478		19,576		5.57	%	1,397,253		18,253		5.24	%
Long-term debt	778,401		11,457		5.92	%	859,509		13,986		6.54	%	858,858		14,113		6.52	%	858,167		14,005		6.47	%	883,871		14,282		6.48	%
Total interest bearing liabilities	17,407,843		205,486		4.75	%	16,907,092		202,369		4.81	%	16,848,758		202,355		4.76	%	16,475,637		193,698		4.66	%	15,749,346		169,926		4.33	%
Non-interest bearing deposits	8,647,594						8,637,775						9,247,491						10,016,579						9,749,105
Other liabilities	537,754						509,286						541,162						474,869						389,155
Stockholders’ equity	3,157,661						3,196,329						3,094,589						3,116,761						3,115,447
Total liabilities and stockholders’ equity	$	29,750,852					$	29,250,482					$	29,732,000					$	30,083,846					$	29,003,053
Net interest income			$	216,646					$	215,075					$	214,785					$	232,143					$	232,103
Net interest margin					3.01	%					3.03	%					2.93	%					3.13	%					3.29	%

(1) Taxable equivalent rates used where applicable.

(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.

(3) Average balances include non-accrual loans.

(4) In the first quarter of 2024, enhancements were made to our methodology for applying relationship pricing credits to mortgage client loans. To conform to the current period presentation, certain prior period interest income amounts have been reclassified from loans held for investment, mortgage finance to loans held for investment and related yields have been adjusted accordingly.

2 Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward- looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

3 Foundational Tenants of Value Creation in Place Financial Priorities Described 9/1/2021 Building Tangible Book Value // Reinvesting organically generated capital to improve client relevance and create a more valuable franchise Investment // Re-aligning the expense base to directly support the business and investing aggressively to take advantage of market opportunities that we are uniquely positioned to serve Revenue Growth // Growing top- line revenue as a result of expanded banking capabilities for best-in-class clients in our Texas and national markets Flagship Results Proactive, disciplined engagement with the best clients in our markets to provide the talent, products, and offerings they need through their entire life-cycles Structurally higher, more sustainable earnings driving greater performance and lower annual variability Consistent communication, enhanced accountability, and a bias for action ensure execution and delivery Commitment to financial resilience allowing us to serve clients, access markets, and support communities through all cycles Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns

4 Where We Are Going Where We Started Where We Are Going Where We Started 2025 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020Performance Metrics2025 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.46%0.64%1.04%0.67%0.18%Return on Average Assets~10%10.3%8.0%2.9%2.7%2.2% Investment Banking and Trading Income (% of Total Revenue) >12.5%4.1%6.2%11.4%8.4%2.1%Return on Average Tangible Common Equity3~5%3.3%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.52%0.69%0.55%0.69%0.33%Adj. Return on Average Assets415%–20% 17.5%15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%4.7%6.7%5.8%8.7%4.2%Adj. Return on Average Tangible Common Equity315%–20%17.5%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%11.6%12.6%13.0%11.1%9.4%CET1Balance Sheet >20%28%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%8%7%16%27%36%Average Indexed Deposits (% of Total Deposits) 2021 Strategic Performance Drivers Treasury Solutions Private Wealth Investment Banking  Treasury Product Fees down slightly QoQ after a seasonally strong Q1, but up 14% YoY with Card and PxV contributing  Sustained trends result of multi-year focus on earning the right to become our clients’ primary operating bank  Investment Banking Fees achieved record high quarter driven by Capital Markets, Syndications, and Sales & Trading  Depth, quality, and size of the pipelines continues to steadily improve consistent with a differentiated and maturing business YoY GrowthQ2 ‘24Q1 ‘24Q4 ‘23Q3 ‘23Q2 ‘23Financial Performance (1%)$4.0$4.0$3.8$3.7$4.1Assets Under Management5 ($bn) 14%$8.5 $8.7 $7.8 $7.8 $7.4 Treasury Product Fees1 ($mm) (0%)$3.7 $3.6 $3.3 $3.5 $3.7 Wealth Management & Trust Fee Income ($mm) 12%$30.7 $23.1 $10.7 $29.2 $27.5 Investment Banking & Trading Income ($mm) 11%$42.9 $35.4 $21.8 $40.5 $38.6 Income from Areas of Focus ($mm)  Assets under management were flat QoQ as fee growth continues to be pressured by managed liquidity assets  Enhanced platform is on track for completion before year end; expanded product suite should drive revenue expansion into ‘25

5 Financial Performance // Income Statement Q2 2024Q1 2024Non-GAAP4 Adjustments ($mm) 188.4202.4Non-Interest Expense 0.53.0FDIC Special Assessment 0.02.0Restructuring Expenses 0.05.0Legal Settlement 187.9 192.4Non-Interest Expense, Adj. YTD 20242023Non-GAAP4 Adjustments ($mm) 390.8756.9Non-Interest Expense 3.519.9FDIC Special Assessment 2.00.0Restructuring Expenses 5.00.0Legal Settlement 380.3 737.1Non-Interest Expense, Adj. Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4) Adjusted (Non-GAAP4)Financial Highlights ($mm) Q2 2024Q2 2024Q1 2024Q1 2024Q2 2023YTD 2024YTD 202420232023 $216.6 $216.6 $215.0$215.0$232.0 $431.6 $431.6 $914.1$914.1Net Interest Income 50.4 50.4 41.341.346.0 91.7 91.7 161.4161.4Non-Interest Revenue 267.0 267.0 256.3256.3278.0 523.3 523.3 1,075.51,075.5Total Revenue 187.9 188.4 192.4202.4181.6 380.3 390.8 737.1756.9Non-Interest Expense 79.1 78.6 64.053.996.4 143.0 132.5 338.5318.6PPNR6 20.0 20.0 19.019.07.0 39.0 39.0 72.072.0Provision for Credit Losses 17.0 16.9 11.18.820.7 28.1 25.7 62.157.5Income Tax Expense 42.0 41.7 33.926.168.7 75.9 67.8 204.4189.1Net Income 4.3 4.3 4.34.34.3 8.6 8.6 17.317.3Preferred Stock Dividends 37.7 37.4 29.621.864.3 67.3 59.2 187.1171.9Net Income to Common Performance Metrics 0.57% 0.56% 0.47%0.36%0.95% 0.52% 0.46% 0.69%0.64%Return on Average Assets 1.07% 1.06% 0.88%0.74%1.33% 0.97% 0.90% 1.15%1.08%PPNR6 / Average Assets 70.4% 70.6% 75.1%79.0%65.3% 72.7% 74.7% 68.5%70.4%Efficiency Ratio7 5.3% 5.3% 4.1%3.0%9.2% 4.7% 4.1% 6.7%6.2%Return on Average Common Equity $0.80 $0.80 $0.62$0.46$1.33 $1.42 $1.25 $3.85$3.54Earnings Per Share

6 Balance Sheet Highlights ($mm) Ending Balances QoQQ2 2024Q1 2024Q2 2023 Assets (12%)2,913 3,316 2,847 Cash and Equivalents (1%)4,389 4,414 4,227 Total Securities 1% 10,534 10,383 10,460 Commercial Loans 22% 5,078 4,153 5,099 Mortgage Finance Loans (2%)5,689 5,822 5,309 CRE Loans 1% 558 550 532 Consumer Loans 5% 21,859 20,909 21,399 Gross LHI 1% (267)(264)(237)Allowance for Credit Losses on Loans 2% 29,855 29,181 28,977 Total Assets Financial Performance // Quarterly Balance Sheet Highlights Performance Metrics 24% 26%24% Cash & Securities % of Assets 48% 50%49% Commercial Loans % of Gross LHI (313)(305)(282)Total Allowance for Credit Losses ($mm) 1.44% 1.46%1.32% Total ACL / Total LHI QoQQ2 2024Q1 2024Q2 2023 Liabilities (6%)7,988 8,478 9,429 Non-Interest Bearing Deposits 2% 15,831 15,476 13,889 Interest Bearing Deposits (1%)23,818 23,954 23,318 Total Deposits 123% 1,675 750 1,350 FHLB Borrowings 3% 26,679 26,010 25,895 Total Liabilities Equity (0%)3,243 3,251 3,222 Common Equity, Excl AOCI (3%)(368)(380)(440)AOCI 0% 3,176 3,171 3,082 Total Shareholder’s Equity (2%)46,188,078 46,986,275 47,992,521 Common Shares Outstanding 91% 87%91% Total LHI % of Deposits 34% 35%40% Non-Interest Bearing % of Deposits $62.26 $61.10$57.97 Book Value Per Share $62.23 $61.06$57.93 Tangible Book Value Per Share8

7 $5.3 $4.3 $3.3 $4.4 $4.7 $3.9 $3.5 $4.4 $4.9 $4.1 $4.1 $5.1 $4.4 $4.0 $4.2 $5.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $5.3 $5.4 $5.5 $5.8 $5.7 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $10.5 $10.4 $10.4 $10.4 $10.5 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024  Commercial loans increased $151mm or 1% QoQ  Impact of multi-year capital recycling on loan balances to lessen in 2H ’24  Commercial real estate loans decreased $133mm QoQ as payoff rates increased in Q2 relative to prior quarter  Multi-family comprises $2.4bn or 42% of CRE loans  Over 55% located in Texas and total portfolio avg. LTV of 48%  Office is $485mm or 9% of CRE Loans  57% avg. LTV and 69% Class A  Mortgage Finance loan balances driven by anticipated Q2 seasonality resulted in a $840mm, or 24%, QoQ increase on an average basis, compared to a 33% increase in the comparable quarter last year  Period end balances increased $925mm, or 22%, as the industry rebounded from a seasonally weaker mortgage origination period during Q4 and Q1 Loan Portfolio Composition Mortgage Finance Loans ($bn) Average Period End Commercial Loans ($bn) Commercial Real Estate Loans ($bn)

8 2.37% 2.62% 2.82% 2.97% 2.99% 2.38% 2.60% 2.75% 2.83% 2.83% 4.09% 4.47% 4.58% 4.67% 4.64% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2024 EOP Deposit and Funding Composition  Total deposit balances decreased $136mm or 1% QoQ  Excluding MF9 non-interest bearing and brokered deposits, QoQ growth of $415mm or 2% resulting from sustained focus on growing client relationships  Average MF9 non-interest bearing deposits remained flat at $5.2bn and decreased to 120% of average mortgage finance loans in Q2 compared to 148% in Q1  End of period balances decreased $473mm QoQ due to proactive reductions of select higher-cost deposits  The majority of MF9 non-interest bearing deposits are compensated through relationship pricing which results in application of an interest credit to either the client’s mortgage finance or commercial loan yield  Average cost of interest bearing deposits declined 3bps QoQ, compared to a 9bps increase the prior quarter Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs Non-Interest Bearing, excl MF9 MF9 Non-Interest Bearing Interest Bearing Interest Bearing Brokered Change %$Q2 2024Q1 2024 (13%)($78)$524 $602 Brokered Deposits 5% 57 1,179 1,122 Insured Sweep Deposits 3% 376 14,128 13,752 Other Interest Bearing 2%35515,83115,476 Total Interest Bearing (9%)(473)4,665 5,138 MF9 Non-Interest Bearing (1%)(18)3,323 3,340 Non-Interest Bearing, excl MF9 (6%)(491)7,9888,478 Non-interest Bearing (1%)($136)$23,818$23,954 Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits $4.4 $4.0 $3.6 $3.4 $3.4 $3.3 $5.3 $6.0 $5.6 $5.2 $5.2 $4.7 $12.0 $12.8 $13.6 $14.4 $15.1 $15.3 $1.5 $1.4 $1.1 $0.8 $0.6 $0.5 $23.2 $24.2 $24.0 $23.8 $24.3 $23.8 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2024

9 (9.2%) (10.0%) (4.5%) (5.0%) 1.5% 2.1% 2.8% 4.1% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q1 2024 Q2 2024 -200bps Shock -100bps Shock +100bps Shock +200bps Shock $2.9B $2.6B $0.4B 3.66% 3.60% 3.31% Q2 2024 Q4 2024 Q4 2025 Notional Receive Rate Net Interest Income Sensitivity Standard Model Assumptions10 100bp & 200bp Parallel Shocks  Loan Balances: Static  Deposit Balances: Static  Loan Spreads: Current Levels  Up Scenario Int. Bearing Deposit Beta: ~80%  Down Scenario Int. Bearing Deposit Beta: ~60%  Investment Portfolio: Ratio held constant Hedging Profile ($bn) Net Interest Income Sensitivity – Static Balance Sheet ($mm) $992mm$964mmBase NII11 Earning Assets Profile (Average) Q2 2024Q1 2024 YieldBalance ($mm)YieldBalance ($mm) 5.31% $3,273 5.40%$4,052 Interest Bearing Cash and Equivalents 2.80% 4,427 2.77%4,299 Securities 9.55% 29 9.31%51 Loans Held for Sale 7.25% 16,751 7.26%16,522 LHI excl Mortgage Finance LHI 3.94% 4,357 3.60%3,518 Mortgage Finance LHI --(263)--(250)ACL on Loans 5.86% $28,574 5.88% $28,192 Earning Assets  $1.2bn of loans, or 7% of LHI excluding Mortgage Finance LHI are fixed  16% maturing in the next 12 months  Duration of the securities portfolio is ~4 years with Q2 cash flows of $118mm  Q2 purchases of $97mm with an average coupon of ~6%  100bps decline in rates could improve AOCI by ~$120mm Impacts of Mortgage Finance  Mortgage Finance represents 21% of the average total LHI portfolio with the majority tied to 1-month SOFR which declined 1bp in Q2  Given the current rate outlook, the Mortgage Finance self funding ratio is expected to stay flat throughout the remainder of the year  Bank’s overall net interest income sensitivity (per the chart above) is inclusive of Mortgage Finance NII impact on a flat balance sheet and does not account for changes in warehouse volumes in either a lower or higher rate environment $27 $14 ($43) ($89) $40 $20 ($49) ($99)

10 $113.0 $110.0 $108.0 $126.7 $118.8 $68.6 $69.9 $73.5 $65.7 $69.1 $19.9 $10.0 $0.5 $181.6 $179.9 $201.4 $202.4 $188.4 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $46.0 $46.9 $31.1 $41.3 $50.4 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $215.0 $3.6 ($1.2) $8.2 $3.0 $0.7 ($9.7) ($6.5) $0.9 $2.6 $216.6 Q1 2024 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Loan Yield Loan Fees Investment Securities & Cash Interest Bearing Deposits Volume Interest Bearing Deposit Cost Borrowings Q2 2024 $232.0 $232.1 $214.7 $215.0 $216.6 3.29% 3.13% 2.93% 3.03% 3.01% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Interest Income Net Interest Margin Q2-2024 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) 19%16%13%17%17%% of Revenue Salaries & Benefits Non-Recurring Items4Other NIE 62% 61% 54% 38% 39% 36% 5% 63% 32% 63%  Net interest income increased $1.6mm QoQ from higher loan balances and modest funding cost improvements  Quarterly non-interest income increased $9.1mm or 22% QoQ and 10% YoY  Record level since the beginning of the transformation in 2021, excluding the impact of divestitures  Quarterly non-interest expense excluding non-recurring items4 decreased $4.4mm to $187.9mm and increased $6.3mm YoY  Q2 salaries and benefits expense declined from seasonality impacts in prior quarter 9 9 9 9 10% 37% 0%

11 83% 78% 81% 79% 80% 17% 22% 19% 21% 19% 1% $281.1 $245.6 $247.0 $275.0 $266.4 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Commercial Mortgage Finance Real Estate Consumer 52% 60% 47% 42% 44% 48% 40% 53% 58% 56% $338.2 $431.8 $491.2 $584.5 $593.3 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Commercial Mortgage Finance Real Estate Consumer 0.28% 0.21% 0.29% 0.35% 0.28% 0.16% 0.17% 0.27% 0.22% 0.23% 2.90% 3.29% 3.63% 4.13% 3.95% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 1.32% 1.46% 1.44% 1.69% 1.79% 1.84% Q2 2023 Q1 2024 Q2 2024 3.5x 3.3x 3.7x Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $12.0$10.8$13.8$8.9$8.2Net Charge-Offs ($mm) NPAs/Total Assets Criticized/LHI NCOs/Avg. LHI Q2 2023 Q1 2024 Q2 2024 Total ACL / Non- accrual Loans HFI  ACL on Loans increased $3.3mm QoQ to $267mm  Total ACL, excl. MF9 increased to $307mm in Q2 from $299mm in Q1  Total ACL, excl. MF9 to LHI, excl. MF9 in the top 5 percent among Peers12 Total ACL to LHI ratio  $12mm of net charge-offs, 0.23% of average LHI  Special mention migration in Q2 slowed relative to previous quarters  Substandard loans decreased $9mm or 3% QoQ to $266mm, down $15mm or 5% YoY  Nonperforming loans decreased $17mm QoQ to $85mm, predominantly related to continued legacy problem credit resolution  Nonperforming LHI are 0.28% of total assets or 0.39% of LHI  Total criticized loans stayed relatively flat QoQ increasing only $0.1mm to $859.7mm Total ACL / LHI Total ACL, ex MF9 / LHI ex MF9

12 $57.93 $57.82 $61.34 $61.06 $62.23 $57.97 $57.85 $61.37 $61.10 $62.26 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 2024 Target Capital Position and Trends  Regulatory capital ratios remain exceptionally strong  Total capital ratio of 15.65%, in the top quintile of the peer group12, and CET1 ratio of 11.62%  CET1 declined 76bps QoQ from higher loan balances, share repurchases, and maturity of credit linked note  CRT maturity accounted for 46bps of CET1 reduction  Tangible common equity / tangible assets13 ended the quarter at 9.63%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle  Tangible common equity / tangible assets13 in top quintile of peer group12  Tangible book value per share8 increased driven by net income available to common of $37.4mm, share repurchase activity, and a $12mm increase in AOCI  TBVPS of $62.26 is an all-time high for the Firm  During Q2, repurchased 852,098 shares, 1.8% of prior quarter shares outstanding, for $50mm, at a weighted average price of $58.14 per share Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Tangible Book Value per Share8 Period End AOCI ($mm) ($368)($380)($362)($506)($440) AOCI per Share ($7.96)($8.09)($7.66)($10.54)($9.17) Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets Peer12 Tangible Common Equity / Tangible Assets13 7.63%7.65%7.11%7.22% Tangible Book Value per Share8 Book Value per Share CET1 Tier 2 CapitalTier 1 Capital 9.60% 9.37% 10.22% 9.83% 9.63% 9.60% 9.38% 10.22% 9.84% 9.63% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 12.18% 12.70% 12.65% 12.38% 11.62% >11.00% 1.54% 1.58% 1.59% 1.56% 1.47% 2.71% 2.81% 2.83% 2.70% 2.56% 16.43% 17.09% 17.07% 16.64% 15.65% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 2024 Target

13 Full Year 2024 Guidance FY 2023 Adjusted (Non-GAAP4) Low to mid single-digit % growth$1,075.5Total Revenue Low to mid single-digit % growth$737.1Non-Interest Expense, Adjusted4 Q4 2024--Quarterly Operating Leverage (YoY Growth in Quarterly PPNR6, Adjusted4) >20%30%Average Cash & Total Securities (% of Average Total Assets) >11%12.6%CET1 Target Full Year 2024 Guidance  Forward curve14 assumes a 2024 average rate of 5.4% and an exit rate of 5.25%  Total Revenue guidance decreased from mid single-digit percent annual growth  Non-Interest Expense, Adjusted, increased from low single-digit percent annual growth  Quarterly Operating Leverage guidance moved from second half of the year to Q4  Average Cash & Total Securities remains unchanged  CET1 Target remains unchanged Guidance Commentary

14 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8 million for FY 2020, $4.0 million for FY 2021, $6.1 million for FY 2022, $9.4 million for FY 2023, $4.9 million for YTD 2024, and $2.3 million, $2.5 million, $2.4 million, $2.4 million, and $2.5 million for Q2 2023, Q3 2023, Q4 2023, Q1 2024, and Q2 2024 respectively 2. Non-GAAP Reconciliation // Adjusted Non-interest Income and Total Revenue 3. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 4. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 5. Reclassified Assets Under Management to also include non-discretionary brokerage assets that the Firm earns wealth management and trust fee income on 6. Net interest income and non-interest income, less non-interest expense 7. Non-interest expense divided by the sum of net interest income and non-interest income 8. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 9. “MF” used as abbreviation for Mortgage Finance 10. Model assumptions are only for Q2 2024; See prior TCBI Earnings Materials for prior model assumptions 11. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 12. Major exchange traded US peer banks with $20-100 billion in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; Data as of Q1 2024 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of June 13, 2024 Appendix // Footnotes 2022 ($mm)2021 ($mm)2020 ($mm) Adjusted2As ReportedAdjusted1As ReportedAdjusted1As Reported 875.8875.8767.6768.8821.1851.3Net Interest Income 101.0349.5119.5138.2103.7203.0Non-Interest Income 976.81,225.3887.1907.0924.81,054.3Total Revenue 10.3%28.5%13.4%15.2%11.2%19.3%Non-Interest Income % of Total Revenue 1) Adjusted to remove revenue contribution of exited Correspondent Lending Line of Business 2) Adjusted to remove non-recurring gain on sale of Insurance Premium Finance Loan Portfolio

15 2024 YTD ($mm)2023 ($mm)2022 ($mm)2021 ($mm)2020 ($mm) Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported $67.3 $59.2 $187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $2,877.0 $2,877.0 $2,795.0$2,795.0$2,783.3$2,783.3$2,815.7$2,815.7$2,686.7$2,686.7Average Common Equity 1.5 1.5 1.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $2,875.5 $2,875.5 $2,793.5$2,793.5$2,768.8$2,768.8$2,798.3$2,798.3$2,668.8$2,668.8Average Tangible Common Equity 4.7%4.1%6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 4.7%4.1%6.7%6.2%5.8%11.4%8.7%8.4%4.2%2.1%ROATCE Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios

16 YTD 2024 FY 2023 FY 2022 FY 2021 FY 2020 Q2 2024 Q1 2024 ($mm, Except per Share) $431.6 $914.1 $875.8 $768.8 $851.3 $216.6 $215.0 Net Interest Income 91.7 161.4 349.5 138.3 203.0 50.4 41.3 Non-Interest Revenue Adjustments for Non Recurring Items: --(248.5)----Gain on Sale of Insur. Prem. Finance 91.7 161.4 101.0 138.3 203.050.4 41.3 Non-Interest Revenue, Adjusted 390.8 756.9 727.5 599.0 704.4 188.4 202.4 Non-Interest Expense Adjustments: ---(12.0)(36.0)--Software Write-offs --(29.6)-(17.8)--Transaction Costs (2.0)-(9.8)-(18.0)-(2.0)Restructuring Expense (5.0)-----(5.0)Legal Settlement --(8.0)----Charitable Contribution (3.5)(19.9)---(0.5)(3.0)FDIC Special Assessment 380.3 737.1 680.1 587.0 632.6 187.9 192.4 Non-Interest Expense, Adjusted 132.5 318.6 497.8 308.1 349.9 78.6 53.9 PPNR6 143.0 338.5 296.6 320.1 421.7 79.1 64.0 PPNR6, Adjusted 39.0 72.0 66.0 (30.0)258.0 20.0 19.0 Provision for Credit Losses 25.7 57.5 99.3 84.1 25.7 16.9 8.8 Income Tax Expenses 2.4 4.6 (45.4)2.7 15.6 0.1 2.3 Tax Impact of Adjustments Above 28.1 62.1 53.9 86.8 41.3 17.0 11.1 Income Tax Expenses, Adjusted 67.8 189.1 332.5 253.9 66.3 41.7 26.1 Net Income 75.9 204.4 176.8 263.2 122.4 42.0 33.9 Net Income, Adjusted 8.6 17.3 17.3 18.7 9.8 4.3 4.3 Preferred Stock Dividends 59.2 171.9 315.2 235.2 56.5 37.4 21.8 Net Income to Common 67.3 187.1 159.5 244.5 112.7 37.7 29.6 Net Income to Common, Adjusted $29,500.7 $29,537.3 $32,049.8 $38,140.3 $37,516.2 $29,750.9 $29,250.5 Average Assets 0.46% 0.64%1.04%0.67%0.18%0.56% 0.36%Return on Average Assets 0.52% 0.69%0.55%0.69%0.33%0.57% 0.47%Return on Average Assets, Adjusted 0.90% 1.08%1.55%0.81%0.93%1.06% 0.74%PPNR6 / Average Assets 0.97% 1.15%0.93%0.84%1.12%1.07% 0.88%PPNR6, Adjusted / Average Assets $2,877.0 $2,795.0 $2,783.3 $2,815.7 $2,686.7 $2,857.7 $2,896.3 Average Common Equity 4.14% 6.15%11.33%8.35%2.10%5.26% 3.03%Return on Average Common Equity 4.70% 6.70%5.73%8.68%4.19%5.31% 4.11%Return on Average Common Equity, Adjusted 47,297,330 48,610,206 51,046,742 51,140,974 50,582,979 46,872,498 47,711,192 Diluted Common Shares $1.25 $3.54 $6.18 $4.60 $1.12 $0.80 $0.46 Earnings per Share $1.42 $3.85 $3.13 $4.78 $2.23 $0.80 $0.62 Earnings per Share, Adjusted Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments.

Document And Entity Information Document	Jul. 18, 2024
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	Jul. 18, 2024
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

Document And Entity Information Document