tcbi-20240118

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): January 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.

(a)On January 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 and year ended December 31, 2023. 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.

Announcement of Share Repurchase Program

On January 17, 2024, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $150.0 million in shares of its outstanding common stock. Any repurchases under the repurchase program will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will be at management’s discretion and will depend upon a variety of factors, including market conditions, our capital position and amount of retained earnings, regulatory requirements and other considerations. The share repurchase program is set to expire on January 31, 2025, and the program may be suspended or discontinued at any time. Remaining repurchase authorization under the January 18, 2023 share repurchase program was terminated upon authorization of this new program.

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:

January 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 FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Fourth quarter 2023 net income of $20.2 million and net income available to common

stockholders of $15.8 million, or $0.33 per diluted share

Book Value and Tangible Book Value(1) per share both increased 6.1%, reaching record levels, after

giving effect to the repurchase of $44.8 million in shares

Capital ratios continue to be strong, including 12.6% CET1 and 17.1% Total Capital

DALLAS - January 18, 2024 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the fourth quarter and full year of 2023.

Net income available to common stockholders was $15.8 million, or $0.33 per diluted share, for the fourth quarter of 2023, compared to $57.4 million, or $1.18 per diluted share, for the third quarter of 2023 and $212.9 million, or $4.23 per diluted share, for the fourth quarter of 2022. The fourth quarter of 2023 included Federal Deposit Insurance Corporation (“FDIC”) special assessment expense of $19.9 million ($0.32 per diluted share).

“The firm continued to execute on its strategic plan to deliver something unique and differentiated for our clients in the midst of tremendous industry pressure in 2023,” said Rob C. Holmes, President and CEO. “Continued client adoption of our broad platform coupled with significant structural improvements in our operating model and near record levels of capital and liquidity provide the foundation for long-term value creation.”


FINANCIAL RESULTS
(dollars and shares in thousands)
	4th Quarter			3rd Quarter			4th Quarter			Full Year			Full Year
	2023			2023			2022			2023			2022
OPERATING RESULTS
Net income	$	20,150		$	61,679		$	217,251		$	189,141		$	332,478
Net income available to common stockholders	$	15,838		$	57,366		$	212,939		$	171,891		$	315,228
Diluted earnings per common share	$	0.33		$	1.18		$	4.23		$	3.54		$	6.18
Diluted common shares	48,098			48,529			50,283			48,610			51,047
Return on average assets	0.27		%	0.81		%	2.80		%	0.64		%	1.04		%
Return on average common equity	2.25		%	8.08		%	30.66		%	6.15		%	11.33		%

BALANCE SHEET
Loans held for investment	$	16,362,230		$	16,183,882		$	15,197,307
Loans held for investment, mortgage finance	3,978,328			4,429,489			4,090,033
Total loans held for investment	20,340,558			20,613,371			19,287,340
Loans held for sale	44,105			155,073			36,357
Total assets	28,356,266			29,628,249			28,414,642
Non-interest bearing deposits	7,328,276			9,352,883			9,618,081
Total deposits	22,371,839			23,878,978			22,856,880
Stockholders’ equity	3,199,142			3,077,700			3,055,351

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

FOURTH QUARTER 2023 COMPARED TO THIRD QUARTER 2023

For the fourth quarter of 2023, net income available to common stockholders was $15.8 million, or $0.33 per diluted share, compared to $57.4 million, or $1.18 per diluted share, for the third quarter of 2023.

Provision for credit losses for the fourth quarter of 2023 was $19.0 million, compared to $18.0 million for the third quarter of 2023. The $19.0 million provision for credit losses recorded in the fourth quarter of 2023 resulted primarily from increases in criticized and non-accrual loans, as well as $13.8 million in net charge-offs.

Net interest income was $214.7 million for the fourth quarter of 2023, compared to $232.1 million for the third quarter of 2023. The decrease in net interest income was primarily due to a decrease in loans held for investment (“LHI”), mortgage finance yields, as well as increases in funding costs and average interest-bearing liabilities. Net interest margin for the fourth quarter of 2023 was 2.93%, a decrease of 20 basis points from the third quarter of 2023. LHI, excluding mortgage finance, yields increased 7 basis points from the third quarter of 2023 and LHI, mortgage finance yields decreased 152 basis points from the third quarter of 2023. Total cost of deposits was 2.82% for the fourth quarter of 2023, a 20 basis point increase from the third quarter of 2023.

Non-interest income for the fourth quarter of 2023 decreased $15.7 million, or 34%, compared to the third quarter of 2023, primarily due to a decrease in investment banking and trading income.

Non-interest expense for the fourth quarter of 2023 increased $21.5 million, or 12%, compared to the third quarter of 2023, primarily due to an increase in FDIC insurance assessment expense, which included $19.9 million in special assessment expense recorded in the fourth quarter of 2023.

FOURTH QUARTER 2023 COMPARED TO FOURTH QUARTER 2022

Net income available to common stockholders was $15.8 million, or $0.33 per diluted share, for the fourth quarter of 2023, compared to $212.9 million, or $4.23 per diluted share, for the fourth quarter of 2022.

The fourth quarter of 2023 included a $19.0 million provision for credit losses, reflecting increases in criticized and non-accrual loans and net charge-offs of $13.8 million, compared to a $34.0 million provision for credit losses for the fourth quarter of 2022.

Net interest income decreased to $214.7 million for the fourth quarter of 2023, compared to $247.6 million for the fourth quarter of 2022, primarily due to an increase in funding costs and a decrease in average earning assets, partially offset by an increase in yields on average earning assets. Net interest margin decreased 33 basis points to 2.93% for the fourth quarter of 2023, as compared to the fourth quarter of 2022. LHI, excluding mortgage finance, yields increased 139 basis points compared to the fourth quarter of 2022 and LHI, mortgage finance yields decreased 293 basis points from the fourth quarter of 2022. Total cost of deposits increased 129 basis points compared to the fourth quarter of 2022.

Non-interest income for the fourth quarter of 2023 decreased $246.5 million, or 89%, compared to the fourth quarter of 2022. The decrease was primarily due to a non-recurring $248.5 million gain related to the sale of our premium finance subsidiary recorded in the fourth quarter of 2022.

Non-interest expense for the fourth quarter of 2023 decreased $11.7 million, or 5%, compared to the fourth quarter of 2022, primarily due to decreases in occupancy, marketing, legal and professional and other expenses, partially offset by an increase in FDIC insurance assessment expense, resulting from the FDIC special assessment described above. The fourth quarter of 2022 included $13.0 million in legal and professional expense related to the sale of our premium finance subsidiary, $9.8 million in restructuring reserves, primarily related to occupancy expense, and $8.0 million in charitable contributions recorded in other non-interest expense.

Net charge-offs of $13.8 million were recorded during the fourth quarter of 2023, compared to net charge-offs of $8.9 million and $15.0 million during the third quarter of 2023 and the fourth quarter of 2022, respectively. Criticized loans totaled $738.2 million at December 31, 2023, compared to $677.4 million at September 30, 2023 and $513.2 million at December 31, 2022. Non-accrual LHI totaled $81.4 million at December 31, 2023, compared to $63.1 million at September 30, 2023 and $48.3 million at December 31, 2022. The ratio of non-accrual LHI to total LHI for the fourth quarter of 2023 was 0.40%, compared to 0.31% for the third quarter of 2023 and 0.25% for the fourth quarter of 2022. The ratio of total allowance for credit losses to total LHI was 1.46% at December 31, 2023, compared to 1.41% and 1.43% at September 30, 2023 and December 31, 2022, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of December 31, 2023. Our CET1, tier 1 capital, total capital and leverage ratios were 12.6%, 14.2%, 17.1% and 12.2%, respectively, at December 31, 2023, compared to 12.7%, 14.3%, 17.1% and 12.1%, respectively, at September 30, 2023 and 13.0%, 14.7%, 17.7% and 11.5%, respectively, at December 31, 2022. At December 31, 2023, our ratio of tangible common equity to total tangible assets was 10.2%, compared to 9.4% at September 30, 2023 and 9.7% at December 31, 2022.

During the fourth quarter of 2023, the Company repurchased 809,623 shares of its common stock for an aggregate purchase price, including excise tax expense, of $44.8 million, at a weighted average price of $54.90 per share. On January 17, 2024, the

Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to $150.0 million in shares of its outstanding common stock through January 31, 2025. Remaining repurchase authorization under the January 18, 2023 share repurchase program was terminated upon authorization of this new program.

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 holding 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 firm is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital Bank has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

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

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: 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; legislative and regulatory changes; 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)
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2023			2023			2023			2023			2022
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	417,072		$	425,769		$	401,916		$	385,166		$	371,292
Interest expense	202,355			193,698			169,926			149,821			123,687
Net interest income	214,717			232,071			231,990			235,345			247,605
Provision for credit losses	19,000			18,000			7,000			28,000			34,000
Net interest income after provision for credit losses	195,717			214,071			224,990			207,345			213,605
Non-interest income	31,133			46,872			46,011			37,403			277,667
Non-interest expense	201,385			179,891			181,644			194,027			213,090
Income before income taxes	25,465			81,052			89,357			50,721			278,182
Income tax expense	5,315			19,373			20,706			12,060			60,931
Net income	20,150			61,679			68,651			38,661			217,251
Preferred stock dividends	4,312			4,313			4,312			4,313			4,312
Net income available to common stockholders	$	15,838		$	57,366		$	64,339		$	34,348		$	212,939
Diluted earnings per common share	$	0.33		$	1.18		$	1.33		$	0.70		$	4.23
Diluted common shares	48,097,517			48,528,698			48,421,276			48,880,725			50,282,663

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	28,356,266		$	29,628,249		$	28,976,544		$	28,596,653		$	28,414,642
Loans held for investment	16,362,230			16,183,882			16,227,203			16,014,497			15,197,307
Loans held for investment, mortgage finance	3,978,328			4,429,489			5,098,812			4,060,570			4,090,033
Loans held for sale	44,105			155,073			29,097			27,608			36,357
Interest bearing cash and cash equivalents	3,042,357			3,975,860			2,587,131			3,385,494			4,778,623
Investment securities	4,143,194			4,069,717			4,226,653			4,345,969			3,585,114
Non-interest bearing deposits	7,328,276			9,352,883			9,429,352			9,500,583			9,618,081
Total deposits	22,371,839			23,878,978			23,318,240			22,179,697			22,856,880
Short-term borrowings	1,500,000			1,400,000			1,350,000			2,100,000			1,201,142
Long-term debt	859,147			858,471			857,795			932,119			931,442
Stockholders’ equity	3,199,142			3,077,700			3,081,927			3,079,974			3,055,351

End of period shares outstanding	47,237,912			48,015,003			47,992,521			47,851,862			48,783,763
Book value per share	$	61.37		$	57.85		$	57.97		$	58.10		$	56.48
Tangible book value per share(1)	$	61.34		$	57.82		$	57.93		$	58.06		$	56.45

SELECTED FINANCIAL RATIOS
Net interest margin	2.93		%	3.13		%	3.29		%	3.33		%	3.26		%
Return on average assets	0.27		%	0.81		%	0.95		%	0.53		%	2.80		%
Return on average common equity	2.25		%	8.08		%	9.17		%	5.06		%	30.66		%
Non-interest income to average earning assets	0.43		%	0.64		%	0.66		%	0.54		%	3.70		%
Efficiency ratio(2)	81.9		%	64.5		%	65.3		%	71.1		%	40.6		%
Non-interest expense to average earning assets	2.79		%	2.46		%	2.61		%	2.78		%	2.84		%
Common equity to total assets	10.2		%	9.4		%	9.6		%	9.7		%	9.7		%
Tangible common equity to total tangible assets(3)	10.2		%	9.4		%	9.6		%	9.7		%	9.7		%
Common Equity Tier 1	12.6		%	12.7		%	12.2		%	12.4		%	13.0		%
Tier 1 capital	14.2		%	14.3		%	13.7		%	14.0		%	14.7		%
Total capital	17.1		%	17.1		%	16.4		%	16.9		%	17.7		%
Leverage	12.2		%	12.1		%	12.4		%	12.0		%	11.5		%

(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)
	December 31, 2023		December 31, 2022		% Change
Assets
Cash and due from banks	$	200,493	$	233,637	(14)	%
Interest bearing cash and cash equivalents	3,042,357		4,778,623		(36)	%
Available-for-sale debt securities	3,225,892		2,615,644		23	%
Held-to-maturity debt securities	865,477		935,514		(7)	%
Equity securities	51,825		33,956		53	%
Investment securities	4,143,194		3,585,114		16	%
Loans held for sale	44,105		36,357		21	%
Loans held for investment, mortgage finance	3,978,328		4,090,033		(3)	%
Loans held for investment	16,362,230		15,197,307		8	%
Less: Allowance for credit losses on loans	249,973		253,469		(1)	%
Loans held for investment, net	20,090,585		19,033,871		6	%

Premises and equipment, net	32,366		26,382		23	%
Accrued interest receivable and other assets	801,670		719,162		11	%
Goodwill and intangibles, net	1,496		1,496		—	%
Total assets	$	28,356,266	$	28,414,642	—	%

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	7,328,276	$	9,618,081	(24)	%
Interest bearing deposits	15,043,563		13,238,799		14	%
Total deposits	22,371,839		22,856,880		(2)	%
Accrued interest payable	33,234		24,000		38	%
Other liabilities	392,904		345,827		14	%
Short-term borrowings	1,500,000		1,201,142		25	%
Long-term debt	859,147		931,442		(8)	%
Total liabilities	25,157,124		25,359,291		(1)	%

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at December 31, 2023 and 2022	300,000		300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,142,979 and 50,867,298 at December 31, 2023 and 2022, respectively	511		509		—	%
Additional paid-in capital	1,045,576		1,025,593		2	%
Retained earnings	2,435,393		2,263,502		8	%
Treasury stock - 3,905,067 and 2,083,535 shares at cost at December 31, 2023 and 2022, respectively	(220,334)		(115,310)		91	%
Accumulated other comprehensive loss, net of taxes	(362,004)		(418,943)		(14)	%
Total stockholders’ equity	3,199,142		3,055,351		5	%
Total liabilities and stockholders’ equity	$	28,356,266	$	28,414,642	—	%


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,
	2023		2022		2023		2022
Interest income
Interest and fees on loans	$	325,210	$	295,372	$	1,300,653	$	983,794
Investment securities	28,454		16,210		108,294		63,179
Interest bearing cash and cash equivalents	63,408		59,710		220,976		97,271
Total interest income	417,072		371,292		1,629,923		1,144,244
Interest expense
Deposits	170,173		96,150		587,775		190,663
Short-term borrowings	18,069		13,449		70,642		29,077
Long-term debt	14,113		14,088		57,383		48,739
Total interest expense	202,355		123,687		715,800		268,479
Net interest income	214,717		247,605		914,123		875,765
Provision for credit losses	19,000		34,000		72,000		66,000
Net interest income after provision for credit losses	195,717		213,605		842,123		809,765
Non-interest income
Service charges on deposit accounts	5,397		5,252		20,874		23,266
Wealth management and trust fee income	3,302		3,442		13,955		15,036
Brokered loan fees	2,076		2,655		8,918		14,159


Investment banking and trading income	10,725		11,937		86,182		35,054

Gain on disposal of subsidiary	—		248,526		—		248,526
Other	9,633		5,855		31,490		13,481
Total non-interest income	31,133		277,667		161,419		349,522
Non-interest expense
Salaries and benefits	107,970		102,925		459,700		434,906
Occupancy expense	9,483		17,030		38,494		44,222
Marketing	5,686		10,623		25,854		32,388
Legal and professional	17,127		37,493		64,924		75,858
Communications and technology	23,607		20,434		81,262		69,253
Federal Deposit Insurance Corporation insurance assessment	25,143		3,092		36,775		14,344


Other	12,369		21,493		49,938		56,561
Total non-interest expense	201,385		213,090		756,947		727,532
Income before income taxes	25,465		278,182		246,595		431,755
Income tax expense	5,315		60,931		57,454		99,277
Net income	20,150		217,251		189,141		332,478
Preferred stock dividends	4,312		4,312		17,250		17,250
Net income available to common stockholders	$	15,838	$	212,939	$	171,891	$	315,228

Basic earnings per common share	$	0.33	$	4.28	$	3.58	$	6.25
Diluted earnings per common share	$	0.33	$	4.23	$	3.54	$	6.18


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2023			2023			2023			2023			2022
Allowance for credit losses on loans:
Beginning balance	$	244,902		$	237,343		$	260,928		$	253,469		$	234,613
Loans charged-off:
Commercial	8,356			13,246			8,852			20,732			17,106

Commercial real estate	5,500			—			—			—			—
Consumer	—			41			—			—			—
Total charge-offs	13,856			13,287			8,852			20,732			17,106
Recoveries:
Commercial	15			4,346			611			819			2,105

Commercial real estate	4			—			—			—			—
Consumer	—			—			2			3			2
Total recoveries	19			4,346			613			822			2,107
Net charge-offs	13,837			8,941			8,239			19,910			14,999
Provision for credit losses on loans	18,908			16,500			(15,346)			27,369			33,855
Ending balance	$	249,973		$	244,902		$	237,343		$	260,928		$	253,469

Allowance for off-balance sheet credit losses:
Beginning balance	$	46,270		$	44,770		$	22,424		$	21,793		$	21,648
Provision for off-balance sheet credit losses	92			1,500			22,346			631			145
Ending balance	$	46,362		$	46,270		$	44,770		$	22,424		$	21,793

Total allowance for credit losses	$	296,335		$	291,172		$	282,113		$	283,352		$	275,262
Total provision for credit losses	$	19,000		$	18,000		$	7,000		$	28,000		$	34,000

Allowance for credit losses on loans to total loans held for investment	1.23		%	1.19		%	1.11		%	1.30		%	1.31		%
Allowance for credit losses on loans to average total loans held for investment	1.24		%	1.17		%	1.15		%	1.38		%	1.31		%
Net charge-offs to average total loans held for investment(1)	0.27		%	0.17		%	0.16		%	0.43		%	0.31		%
Net charge-offs to average total loans held for investment for last 12 months(1)	0.25		%	0.26		%	0.23		%	0.19		%	0.09		%
Total provision for credit losses to average total loans held for investment(1)	0.37		%	0.34		%	0.14		%	0.60		%	0.70		%
Total allowance for credit losses to total loans held for investment	1.46		%	1.41		%	1.32		%	1.41		%	1.43		%

(1)Interim period ratios are annualized.


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
	2023			2023			2023			2023			2022
Non-accrual loans held for investment	$	81,398		$	63,129		$	81,039		$	93,951		$	48,338
Non-accrual loans held for sale	—			—			—			—			—
Other real estate owned	—			—			—			—			—
Total non-performing assets	$	81,398		$	63,129		$	81,039		$	93,951		$	48,338

Non-accrual loans held for investment to total loans held for investment	0.40		%	0.31		%	0.38		%	0.47		%	0.25		%
Total non-performing assets to total assets	0.29		%	0.21		%	0.28		%	0.33		%	0.17		%
Allowance for credit losses on loans to non-accrual loans held for investment	3.1x			3.9x			2.9x			2.8x			5.2x
Total allowance for credit losses to non-accrual loans held for investment	3.6x			4.6x			3.5x			3.0x			5.7x


Loans held for investment past due 90 days and still accruing	$	19,523		$	4,602		$	64		$	3,098		$	131
Loans held for investment past due 90 days to total loans held for investment	0.10		%	0.02		%	—		%	0.02		%	—		%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	—		$	—


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

	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter		4th Quarter
	2023		2023		2023		2023		2022
Interest income
Interest and fees on loans	$	325,210	$	345,138	$	332,867	$	297,438	$	295,372
Investment securities	28,454		27,070		27,478		25,292		16,210
Interest bearing deposits in other banks	63,408		53,561		41,571		62,436		59,710
Total interest income	417,072		425,769		401,916		385,166		371,292
Interest expense
Deposits	170,173		160,117		137,391		120,094		96,150
Short-term borrowings	18,069		19,576		18,253		14,744		13,449
Long-term debt	14,113		14,005		14,282		14,983		14,088
Total interest expense	202,355		193,698		169,926		149,821		123,687
Net interest income	214,717		232,071		231,990		235,345		247,605
Provision for credit losses	19,000		18,000		7,000		28,000		34,000
Net interest income after provision for credit losses	195,717		214,071		224,990		207,345		213,605
Non-interest income
Service charges on deposit accounts	5,397		5,297		5,158		5,022		5,252
Wealth management and trust fee income	3,302		3,509		3,715		3,429		3,442
Brokered loan fees	2,076		2,532		2,415		1,895		2,655


Investment banking and trading income	10,725		29,191		27,498		18,768		11,937

Gain on disposal of subsidiary	—		—		—		—		248,526
Other	9,633		6,343		7,225		8,289		5,855
Total non-interest income	31,133		46,872		46,011		37,403		277,667
Non-interest expense
Salaries and benefits	107,970		110,010		113,050		128,670		102,925
Occupancy expense	9,483		9,910		9,482		9,619		17,030
Marketing	5,686		4,757		6,367		9,044		10,623
Legal and professional	17,127		17,614		15,669		14,514		37,493
Communications and technology	23,607		19,607		20,525		17,523		20,434
Federal Deposit Insurance Corporation insurance assessment	25,143		5,769		3,693		2,170		3,092

Other	12,369		12,224		12,858		12,487		21,493
Total non-interest expense	201,385		179,891		181,644		194,027		213,090
Income before income taxes	25,465		81,052		89,357		50,721		278,182
Income tax expense	5,315		19,373		20,706		12,060		60,931
Net income	20,150		61,679		68,651		38,661		217,251
Preferred stock dividends	4,312		4,313		4,312		4,313		4,312
Net income available to common shareholders	$	15,838	$	57,366	$	64,339	$	34,348	$	212,939


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
	4th Quarter 2023						3rd Quarter 2023						2nd Quarter 2023						1st Quarter 2023						4th Quarter 2022
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities(2)	$	4,078,975	$	28,454	2.48	%	$	4,204,749	$	27,070	2.33	%	$	4,306,881	$	27,478	2.36	%	$	4,060,456	$	25,292	2.31	%	$	3,385,372	$	16,210	1.70	%
Interest bearing cash and cash equivalents	4,637,374		63,408		5.42	%	3,965,045		53,561		5.36	%	3,286,091		41,571		5.07	%	5,541,341		62,436		4.57	%	6,158,769		59,710		3.85	%
Loans held for sale	29,071		672		9.17	%	31,878		647		8.06	%	28,414		599		8.46	%	43,472		938		8.75	%	1,053,157		12,064		4.54	%
Loans held for investment, mortgage finance	3,946,280		11,168		1.12	%	4,697,702		31,217		2.64	%	4,376,235		36,198		3.32	%	3,286,804		28,528		3.52	%	4,279,367		43,708		4.05	%
Loans held for investment(3)	16,164,233		313,438		7.69	%	16,317,324		313,346		7.62	%	16,217,314		296,183		7.33	%	15,598,854		268,131		6.97	%	15,105,083		239,746		6.30	%
Less: Allowance for credit losses on loans	244,287		—		—		238,883		—		—		261,027		—		—		252,727		—		—		233,246		—		—
Loans held for investment, net	19,866,226		324,606		6.48	%	20,776,143		344,563		6.58	%	20,332,522		332,381		6.56	%	18,632,931		296,659		6.46	%	19,151,204		283,454		5.87	%
Total earning assets	28,611,646		417,140		5.69	%	28,977,815		425,841		5.75	%	27,953,908		402,029		5.69	%	28,278,200		385,325		5.45	%	29,748,502		371,438		4.89	%
Cash and other assets	1,120,354						1,106,031						1,049,145						1,041,745						989,900
Total assets	$	29,732,000					$	30,083,846					$	29,003,053					$	29,319,945					$	30,738,402

Liabilities and Stockholders’ Equity
Transaction deposits	$	1,972,324	$	15,613	3.14	%	$	1,755,451	$	13,627	3.08	%	$	1,345,742	$	9,468	2.82	%	$	776,500	$	3,853	2.01	%	$	1,105,466	$	4,977	1.79	%
Savings deposits	11,043,155		132,801		4.77	%	10,858,306		127,323		4.65	%	10,590,558		114,275		4.33	%	11,195,402		105,707		3.83	%	10,563,049		80,801		3.03	%
Time deposits	1,716,812		21,759		5.03	%	1,610,235		19,167		4.72	%	1,531,922		13,648		3.57	%	1,430,657		10,534		2.99	%	1,625,857		10,372		2.53	%
Total interest bearing deposits	14,732,291		170,173		4.58	%	14,223,992		160,117		4.47	%	13,468,222		137,391		4.09	%	13,402,559		120,094		3.63	%	13,294,372		96,150		2.87	%
Short-term borrowings	1,257,609		18,069		5.70	%	1,393,478		19,576		5.57	%	1,397,253		18,253		5.24	%	1,242,881		14,744		4.81	%	1,387,660		13,449		3.84	%
Long-term debt	858,858		14,113		6.52	%	858,167		14,005		6.47	%	883,871		14,282		6.48	%	931,796		14,983		6.52	%	931,107		14,088		6.00	%
Total interest bearing liabilities	16,848,758		202,355		4.76	%	16,475,637		193,698		4.66	%	15,749,346		169,926		4.33	%	15,577,236		149,821		3.90	%	15,613,139		123,687		3.14	%
Non-interest bearing deposits	9,247,491						10,016,579						9,749,105						10,253,731						11,642,969
Other liabilities	541,162						474,869						389,155						436,621						426,543
Stockholders’ equity	3,094,589						3,116,761						3,115,447						3,052,357						3,055,751
Total liabilities and stockholders’ equity	$	29,732,000					$	30,083,846					$	29,003,053					$	29,319,945					$	30,738,402
Net interest income			$	214,785					$	232,143					$	232,103					$	235,504					$	247,751
Net interest margin					2.93	%					3.13	%					3.29	%					3.33	%					3.26	%

(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.

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; legislative and regulatory changes; 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 2021 Strategic Performance Drivers Where We Are Going Where We Started Where We Are Going Where We Started 2025 FY 2023 FY 2022 FY 2021 FY 2020Performance Metrics2025 FY 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.64%1.04%0.67%0.18%Return on Average Assets~10%8.0%2.9%2.7%2.2%Investment Banking and Trading Income (% of Total Revenue) >12.5%6.2%11.4%8.4%2.1%Return on Average Tangible Common Equity3~5%2.8%2.4%2.5%1.4%Treasury Product Fees1 (% of Total Revenue) >1.10%0.69%0.55%0.69%0.33%Adj. Return on Average Assets415%–20% 15.0%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%6.7%5.8%8.7%4.2%Adj. Return on Average Tangible Common Equity315%–20%15.0%10.3%13.4%11.2%Adj. Non-Interest Income2 (% of Adj. Total Revenue2) >10%12.6%13.0%11.1%9.4%CET1Balance Sheet >20%30%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%7%16%27%36%Average Indexed Deposits (% of Total Deposits) Treasury Solutions Private Wealth Investment Banking  FY23 Gross PxV increased 11% as focus remains earning the right to become our clients’ operating bank  Strong momentum across broad product suite; 10% growth in YoY quarterly Treasury Product Fees and up 3% full-year  Annual growth of $51.1mm or 146% demonstrates clients’ receptivity to a full-service Texas-based platform  Loan Syndications, Capital Solutions, Capital Markets, M&A and Sales & Trading each generated over $10mm in fees in 2023 Annual Growth FY 2023 FY 2022Q4 ‘23Q3 ‘23Q2 ‘23Q1 ‘23Q4 ‘22Financial Performance 8%$3.3$3.0$3.3$3.1$3.5$3.3$3.0Assets Under Management ($bn) 3%$30.3$29.4$7.8$7.8$7.4$7.3$7.0Treasury Product Fees1 ($mm) (7%)$14.0$15.0$3.3$3.5$3.7$3.4$3.4Wealth Management & Trust Fee Income ($mm) 146%$86.2$35.1$10.7$29.2$27.5$18.8$11.9Investment Banking & Trading Income ($mm) 64%$130.4$79.5$21.8$40.5$38.6$29.5$22.4Income from Areas of Focus ($mm)  Annual growth of 8% in 2023 alongside continued product, service, and coverage buildout  FY23 Wealth Fees down ~7% given change in underlying portfolio composition; continued focus on growing client assets

5 Financial Performance // Income Statement Adjusted (Non-GAAP)4 Adjusted (Non-GAAP)4 Adjusted (Non-GAAP)4 Adjusted (Non-GAAP)4 Financial Highlights ($mm) Q4 2023Q4 2023Q3 2023Q4 2022Q4 20222023202320222022 $214.7$214.7$232.1$247.6$247.6$914.1$914.1$875.8$875.8Net Interest Income 31.131.146.929.2277.7161.4161.4101.0349.5Non-Interest Revenue 245.9245.9278.9276.7525.31,075.51,075.5976.81,225.3Total Revenue 181.5201.4179.9182.3213.1737.1756.9680.1727.5Non-Interest Expense 64.444.599.194.4312.2338.5318.6296.6497.8PPNR5 19.019.018.034.034.072.072.066.066.0Provision for Credit Losses 9.95.319.411.860.962.257.553.999.3Income Tax Expense 35.420.261.748.6217.3204.3189.1176.8332.5Net Income 4.34.34.34.34.317.317.317.317.3Preferred Stock Dividends 31.115.857.444.3212.9187.0171.9159.5315.2Net Income to Common Performance Metrics 0.47%0.27%0.81%0.63%2.80%0.69%0.64%0.55%1.04%Return on Average Assets 0.86%0.59%1.31%1.22%4.03%1.15%1.08%0.93%1.55%PPNR5 / Average Assets 73.8%81.9%64.5%65.9%40.6%68.5%70.4%69.6%59.4%Efficiency Ratio6 4.4%2.2%8.1%6.4%30.7%6.7%6.2%5.7%11.3%Return on Average Common Equity $0.65$0.33$1.18$0.88$4.23$3.85$3.54$3.13$6.18Earnings Per Share Q4 2023Q4 2022Non-GAAP Adjustments4 ($mm) 31.1277.7Non-Interest Expense 0.0248.5Transaction Costs 31.129.2Non-Interest Expense, Adjusted 201.4213.1Non-Interest Expense 0.013.0Transaction Costs 0.09.8Restructuring Expenses 0.08.0Charitable Contribution 19.90.0FDIC Special Assessment 181.5182.3Non-Interest Expense, Adjusted 20232022Non-GAAP Adjustments4 ($mm) 161.4349.5Non-Interest Revenue 0.0248.5Gain on Sale of BDCF 161.4101.0Non-interest Revenue, Adjusted 756.9727.5Non-Interest Expense 0.029.6Transaction Costs 0.09.8Restructuring Expenses 0.08.0Charitable Contribution 19.90.0FDIC Special Assessment 737.1680.1Non-Interest Expense, Adjusted

6 Balance Sheet Highlights ($mm) Ending Balances YoYQoQQ4 2023Q3 2023Q4 2022 Assets (35%)(23%)3,2434,1935,012Cash and Equivalents 16%2%4,1434,0703,585Total Securities 6%0%10,41110,3669,833Commercial Loans (3%)(10%)3,9784,4294,090Mortgage Finance Loans 13%3%5,5015,3594,875CRE Loans (4%)(1%)531537553Consumer Loans 6%(1%)20,42120,69119,351Gross LHI (1%)2%(250)(245)(253)Allowance for Credit Losses on Loans (0%)(4%)28,35629,62828,415Total Assets Financial Performance // Balance Sheet Highlights Balance Sheet Metrics 26%28%30%Cash & Securities % of Assets 51%50%51%Commercial Loans % of Gross LHI (296)(291)(275)Total Allowance for Credit Losses ($M) 1.46%1.41%1.43%Total ACL / Total LHI YoYQoQQ4 2023Q3 2023Q4 2022 Liabilities (24%)(22%)7,3289,3539,618Non-Interest Bearing Deposits 14%4%15,04414,52613,239Interest Bearing Deposits (2%)(6%)22,37223,87922,857Total Deposits 25%7%1,5001,4001,200FHLB Borrowings (1%)(5%)25,15726,55125,359Total Liabilities Equity 3%(1%)3,2613,2843,174Common Equity, Excl AOCI (14%)(28%)(362)(506)(419)AOCI 5%4%3,1993,0783,055Total Shareholder’s Equity (3%)(2%)47,237,912 48,015,003 48,783,763 Common Shares Outstanding 91%86%84%Total LHI % of Deposits 33%39%42%Non-Interest Bearing % of Deposits $61.37$57.85$56.48Book Value Per Share $61.34$57.82$56.45Tangible Book Value Per Share7

7  Commercial loans increased $45mm QoQ  Utilization remains in the low 50% range consistent with recent historical averages  Impact of multi-year capital recycling on loan balances should begin to lessen heading into ‘24  Commercial real estate loans increased $142mm QoQ  Office is $452mm or 8% of CRE Loans  Strong characteristics: 58% avg. current LTV, 92% recourse and 73% Class A  Mortgage Finance loan balances driven by anticipated Q4 seasonality resulting in a $751mm, or 16%, QoQ decrease on an average basis, compared to a 19% decline in the comparable quarter last year  For the year, average Mortgage Finance loans decreased $1.2bn or 23% to $4.1bn compared to overall market decline of approximately 30% $4.9 $5.0 $5.3 $5.4 $5.5 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $9.8 $10.6 $10.5 $10.4 $10.4 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $5.7 $5.9 $5.3 $4.3 $3.3 $4.4 $4.7 $3.9 $5.8 $6.5 $4.9 $4.1 $4.1 $5.1 $4.4 $4.0 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Loan Portfolio Composition Mortgage Finance Loans ($bn) Average Period End Commercial Loans ($bn) Commercial Real Estate Loans ($bn)

8 $6.3 $5.6 $4.4 $4.0 $3.6 $3.3 $5.3 $4.6 $5.3 $6.0 $5.6 $4.0 $11.5 $11.9 $12.0 $12.8 $13.6 $14.1 $1.8 $1.5 $1.5 $1.4 $1.1 $0.9 $24.9 $23.7 $23.2 $24.2 $24.0 $22.4 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2023 1.53% 2.06% 2.37% 2.62% 2.82% 1.62% 2.10% 2.38% 2.60% 2.75% 2.87% 3.63% 4.09% 4.47% 4.58% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2023 EOP Deposit and Funding Composition  Funding base continuing multi-year transition to target state composition  Total deposit balances decreased $485mm or 2% YoY  Excluding MF8, Indexed and Brokered deposits, YoY growth of $568mm or 4% reemphasizes our focus on core commercial clients  Average cost of total deposits increased 20bps QoQ; a cumulative beta9 of 50% since Q4 2021  Average Mortgage Finance non-interest bearing deposits declined to $5.6bn and were 142% of avg Mortgage Finance loans in Q4 compared to 128% in Q3  End of period balances at $4bn are depressed due to seasonal property tax payments from escrow accounts and will rebuild over the course of ‘24  Of the $5.6bn of avg deposits, a significant portion are compensated via relationship pricing on the loan yield through an interest credit rate; the compensated portion has increased materially during the rising rate environment Average Deposit Trends ($bn) Period End Deposit Flows ($mm) Funding Costs Non-Interest Bearing, excl MF8 MF8 Non-Interest Bearing Interest Bearing Interest Bearing Brokered Change %$Q4 2023Q3 2023 (34%)($477)$917 $1,394 Brokered Deposits 35%328 1,256 928 Insured Sweep Deposits 5%666 12,871 12,205 Other Interest Bearing 4%517 15,044 14,526 Total Interest Bearing (30%)(1,686)3,989 5,675 MF8 Non-Interest Bearing (9%)(339)3,339 3,678 Non-Interest Bearing, excl MF8 (22%)(2,025)7,328 9,353 Non-interest Bearing (6%)($1,507)$22,372 $23,879 Total Deposits Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits

9 $3.1B $2.6B $0.4B 3.63% 3.60% 3.31% Q4 2023 Q4 2024 Q4 2025 Notional Receive Rate (8.5%) (9.1%) (4.3%) (4.4%) 3.0% 1.6% 6.0% 3.2% (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% Q3 2023 Q4 2023 -200bps Shock -100bps Shock +100bps Shock +200bps Shock Net Interest Income Sensitivity Standard Model Assumptions10 100bp & 200bp Parallel Shocks  Loan Balances: Static  Deposit Balances: Static  Loan Spreads: Current Levels  Up Scenario Int. Bearing Deposit Beta: ~80%  Down Scenario Int. Bearing Deposit Beta: ~60%  Investment Portfolio: Ratio held constant Hedging Profile ($bn) Net Interest Income Sensitivity – Static Balance Sheet ($mm) $901mm$972mmBase NII11 $58 $29 ($42) Earning Assets Profile (Average) Q4 2023Q3 2023 YieldBalance ($mm)YieldBalance ($mm) 5.42%$4,6375.36%$3,965Interest Bearing Cash and Equivalents 2.48%$4,0792.33%$4,205Securities 9.17%$298.06%$32Loans Held for Sale 7.69%$16,1647.62%$16,317LHI excl Mortgage Finance LHI 1.12%$3,9462.64%$4,698Mortgage Finance LHI --($244)--($239)ACL on Loans 5.69%$28,6125.75%$28,978Earning Assets ($83)  $1.1bn of loans, or 7% of LHI excluding Mortgage Finance LHI are fixed  6% maturing in the next 12 months  Duration of the securities portfolio is approximately 4 years with Q4 cash flows of $71mm  100bps decline in rates could improve AOCI by ~$130mm Impacts of Mortgage Finance  Mortgage Finance represents 19% of the total loan portfolio with the majority tied to 1-month SOFR which rose 4bps in Q4  Mortgage Finance loan yield expansion is expected in Q1 as average Mortgage Finance deposits anticipated to be ~120% of average Mortgage Finance loans  Bank’s overall net interest income sensitivity (per the chart above) 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 $28 $14 ($40) ($82)

10 $100.9 $128.7 $113.0 $110.0 $108.0 $81.4 $65.3 $68.6 $69.9 $73.5 $30.8 $19.9 $213.1 $194.0 $181.6 $179.9 $201.4 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $247.6 $235.3 $232.0 $232.1 $214.7 3.26% 3.33% 3.29% 3.13% 2.93% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Interest Income Net Interest Margin $232.1 ($2.9) $1.7 ($2.1) ($17.9) $1.3 $11.2 ($5.9) ($4.2) $1.4 $214.7 Q3 2023 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Loan Yield Loan Fees Investment Securities & Cash Interest Bearing Deposit Volume Interest Bearing Deposit Cost Borrowings Q4 2023 $29.2 $37.4 $46.0 $46.9 $31.1 $248.5 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4-2023 Earnings Overview Net Interest Margin ($mm)Net Interest Income ($mm) Non-Interest Income ($mm) Non-Interest Expense ($mm) 13%17%17%14%11%% of Adj Revenue4 Non-Interest Income Gain on Sale of Insur. Prem. Finance4 Salaries & Benefits Non-Recurring Items4Other NIE 47% 66% 62% 39% 34% 38% 14% 10% 61% 39% 54% 36%  Net interest income declined 7% QoQ with net interest margin declining by 0.20%, driven primarily by expected MF8 seasonality depressing MF8 Loan Yield  Quarterly non-interest income declined $15.7mm or 34% QoQ off two consecutive quarterly highs on the new platform, but increased 7% compared to Q4 2022 adjusted non-interest income4  Full year adjusted non-interest income4 increased $60.4mm or 60% compared to FY22 adjusted non-interest income4  Quarterly non-interest expense excluding non-recurring items4 was nearly flat both QoQ and YoY 8 8 8 8

11 1.43% 1.41% 1.46% 1.74% 1.76% 1.79% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Q4 2022 Q3 2023 Q4 2023 77% 81% 83% 78% 81% 23% 19% 17% 22% 19% $255.1 $271.5 $281.1 $245.6 $247.0 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000 500,000,000 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Commercial Mortgage Finance Real Estate Consumer 67% 73% 52% 60% 47% 33% 27% 48% 40% 53% $258.0 $289.6 $338.2 $431.8 $491.2 - 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Commercial Mortgage Finance Real Estate Consumer 0.17% 0.33% 0.28% 0.21% 0.29%0.31% 0.43% 0.16% 0.17% 0.27% 2.66% 2.79% 2.90% 3.29% 3.63% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 5.7x 4.6x 3.6x – 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x 6.0 x 7.0 x 8.0 x 9.0 x 10.0 x Q4 2022 Q3 2023 Q4 2023 Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($mm) Substandard Composition ($mm) $13.8$8.9$8.2$19.9$15.0Net Charge-Offs ($mm) NPAs/Total Assets Criticized/LHI NCOs/Avg. LHI Q4 2022 Q3 2023 Q4 2023 Total ACL / Non- accrual Loans HFI  ACL on Loans increased $5mm QoQ to $250 million  Total ACL, excl. MF8 increased to $292 million in Q4 from $285mm in Q3  Total ACL, excl. MF8 to LHI, excl. MF8 in the top 5 percent among Peers12 Total ACL to LHI  $13.8mm of net charge-offs or 0.27% of average LHI  Net downward grade migrations to special mention in Q4 predominantly related to commercial real estate  Substandard loans were nearly flat increasing by $1.4mm or <1% QoQ but improved 3% from Q4 2022  Nonperforming assets increased $18.3mm QoQ to $81.4mm  Nonperforming assets are 0.29% of total assets or 0.40% of LHI  Total criticized loans increased $60.8mm QoQ to $738.2mm and make up 3.6% of total LHI Total ACL / LHI Total ACL, ex MF8 / LHI ex MF8

12 13.00% 12.42% 12.18% 12.70% 12.65% > 11.00% 1.67% 1.61% 1.54% 1.58% 1.59% 3.03% 2.83% 2.71% 2.81% 2.83% 17.70% 16.86% 16.43% 17.09% 17.07% 0.00% 5.00% 10.00% 15.00% 20.00% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 Target $56.45 $58.06 $57.93 $57.82 $61.34 $56.48 $58.10 $57.97 $57.85 $61.37 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 9.69% 9.72% 9.60% 9.37% 10.22%9.70% 9.72% 9.60% 9.38% 10.22% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 Target Capital Position and Trends  Regulatory capital ratios remain exceptionally strong  Total capital ratio of 17.07%, in the top decile of the peer group12, and CET1 ratio of 12.65% in Q4 2023  Tangible common equity / tangible assets13 finished the year at 10.22%, 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 decile of peer group12  Tangible book value per share7 grew 6.1% QoQ as net income available to common of $15.8mm was augmented by a $143.9mm increase in AOCI, and supplemented by share repurchase activity below TBVPS  During Q4, repurchased 810 thousand shares, 1.7% of Q3 shares outstanding, for $44.8mm, at a weighted average price of $54.90 per share  During 2023, repurchased 1.8mm shares, 3.7% of year end 2022 shares outstanding, for a total of $105mm at a weighted average price approximately 100% of prior month tangible book value Regulatory Capital Levels Tangible Common Equity / Tangible Assets13 Tangible Book Value per Share7 Period End AOCI ($M) ($362)($506)($440)($375)($419) AOCI per Share ($7.66)($10.54)($9.17)($7.83)($8.59) Tangible Common Equity / Tangible Assets13 Common Equity / Total Assets Peer12 Tangible Common Equity / Tangible Assets13 7.15%7.22%7.13%7.09% Tangible Book Value per Share7 Book Value per Share CET1 Tier 2 CapitalTier 1 Capital

13 Full Year 2024 Guidance FY 2023 Adjusted (Non-GAAP4) Mid single-digit % growth$1,075.5Total Revenue Low single-digit % growth$737.1Non-Interest Expense, Adjusted4 2H2024--Quarterly Operating Leverage (YoY Growth in Quarterly PPNR5, 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 4.89% and an exit rate of 4.25% 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, and $1.8 million, $2.3 million, $2.3 million, $2.5 million, and $2.4million for Q4 2022, Q1 2023, Q2 2023, Q3 2023, and Q4 2023 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. Net interest income and non-interest income, less non-interest expense 6. Non-interest expense divided by the sum of net interest income and non-interest income 7. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 8. “MF” used as abbreviation for Mortgage Finance 9. Beta taken as the difference of Q4 2023 and Q4 2021 cost of total deposits and cost of interest-bearing deposits, by the change in fed funds upper target over the same period 10. Model assumptions are only for Q4 2023; 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 $20-100 billion in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; Data as of Q3 2023 13. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 14. Forward curve as of December 18, 2023 Appendix // Footnotes 2022 ($M)2021 ($M)2020 ($M) 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 2023 ($M)2022 ($M)2021 ($M)2020 ($M) Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported Adjusted1As Reported $187.1$171.9$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $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 1.51.514.514.517.417.417.917.9Less: Average Goodwill & Intangibles $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 6.7%6.2%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 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 2023202220212020Q4 2023 Q4 2022 ($M, Except per Share) $914.1 $875.8 $768.8 $851.3 $214.7 $247.6 Net Interest Income 161.4 349.5 138.3 203.0 31.1 277.7 Non-Interest Revenue Adjustments for Non Recurring Items: -(248.5)---(248.5)Gain on Sale of Insur. Prem. Finance 161.4 101.0 138.3 203.0 31.1 29.2 Non-Interest Revenue, Adjusted 756.9 727.5 599.0 704.4 201.4 213.1 Non-Interest Expense Adjustments: --(12.0)(36.0)--Software Write-offs -(29.6)-(17.8)-(13.0)Transaction Costs -(9.8)-(18.0)-(9.8)Restructuring Expense -(8.0)---(8.0)Charitable Contribution (19.9)---(19.9)-FDIC Special Assessment 737.1 680.1 587.0 632.6 181.5 182.3 Non-Interest Expense, Adjusted 318.6 497.8 308.1 349.9 44.5 312.2 PPNR 338.5 296.6 320.1 421.7 64.4 94.4 PPNR, Adjusted 72.0 66.0 (30.0)258.0 19.0 34.0 Provision for Credit Losses 57.5 99.3 84.1 25.7 5.3 60.9 Income Tax Expenses 4.6 (45.4)2.7 15.6 4.6 (49.2)Tax Impact of Adjustments Above 62.1 53.9 86.8 41.3 9.9 11.8 Income Tax Expenses, Adjusted 189.1 332.5 253.9 66.3 20.2 217.3 Net Income 204.4 176.8 263.2 122.4 35.4 48.6 Net Income, Adjusted 17.3 17.3 18.7 9.8 4.3 4.3 Preferred Stock Dividends 171.9 315.2 235.2 56.5 15.8 212.9 Net Income to Common 187.1 159.5 244.5 112.7 31.1 44.3 Net Income to Common, Adjusted $29,537.3 $32,049.8 $38,140.3 $37,516.2 $29,732.0 $30,738.4 Average Assets 0.64%1.04%0.67%0.18%0.27%2.80%Return on Average Assets 0.69%0.55%0.69%0.33%0.47%0.63%Return on Average Assets, Adjusted 1.08%1.55%0.81%0.93%0.59%4.03%PPNR / Average Assets 1.15%0.93%0.84%1.12%0.86%1.22%PPNR, Adjusted / Average Assets $2,795.0 $2,783.3 $2,815.7 $2,686.7 $2,794.6 $2,755.8 Average Common Equity 6.15%11.33%8.35%2.10%2.25%30.66%Return on Average Common Equity 6.70%5.73%8.68%4.19%4.41%6.38%Return on Average Common Equity, Adjusted 48,610,206 51,046,742 51,140,974 50,582,979 48,097,517 50,282,663 Dilute Common Shares $3.54 $6.18 $4.60 $1.12 $0.33 $4.23 Earnings per Share $3.85 $3.13 $4.78 $2.23 $0.65 $0.88 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	Jan. 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	Jan. 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