About Texas Capital Bancshares

Texas Capital Bancshares, Inc. (TCBI) operates as the bank holding company for Texas Capital Bank that provides banking products and services. The company is a registered bank holding company and a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. TCBI with primary banking offices in Austin, Dallas, Fort Worth, Houston and San Antonio, and has built a network of clients across the country. Business Strategy and Markets The company was founded with an entrepreneurial culture and a mission to build a commercial banking presence across Texas. Drawing on the banking experience and business and community ties of management, the company’s strategy has evolved to become a Texas-based full-service financial services firm that can seamlessly serve the best clients in its markets through the entirety of their life cycles. A core tenant of this strategy is the maintenance of financial resiliency through market and rate cycles enabling the company to serve its clients, access markets, and support its communities through changing market conditions. The company is well positioned with a wide range of relevant products and services along with best-in-class levels of liquidity, credit reserves and capital. Products and Services The company offers a variety of loan, deposit account and other financial products and services to its customers. Business Customers: The company offers a full range of products and services oriented to the needs of its business customers, including commercial loans for general corporate purposes, including financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending and mortgage finance services; treasury management services, including online banking and debit and credit card services; investment banking and advisory services; and letters of credit. Individual Customers: The company also provides comprehensive banking services for its individual customers including personal wealth management and trust services; certificates of deposit; interest bearing and non-interest bearing checking accounts; traditional money market and savings accounts; loans, both secured and unsecured; online and mobile banking; investment banking and advisory services; and Bask Bank. Lending Activities The company targets its lending to commercial businesses, entrepreneurs and professionals who meet certain desired client characteristics and credit standards. The credit standards for commercial borrowers are based on numerous criteria with respect to the borrower, including historical and projected financial information, strength of management, acceptable collateral and associated advance rates, and market conditions and trends in the borrower’s industry. In addition, prospective loans are analyzed based on current industry concentrations in the loan portfolio to prevent an unacceptable concentration of loans in any particular industry. The company generally extends variable rate loans in which the interest rate fluctuates with a specified reference rate and may provide for a minimum floor rate. The use of variable rate loans is designed to protect the company from risks associated with interest rate fluctuations since the rates of interest earned will automatically reflect such fluctuations. Treasury Solutions and Deposit Products Texas Capital Bank offers treasury solutions and deposit products to meet its customers evolving needs. For commercial business customers, the company offers a full suite of deposit solutions, including checking, money market savings, and sweep accounts with competitive industry rates. Treasury products offered include state of the art payment and receivables solutions ranging from instant payments, wire, ACH, commercial card, merchant, and lockbox solutions underpinned by a commercial grade digital platform supporting a broad range of payment initiation, information reporting and liquidity management solutions. Personal banking deposit products offered by the bank include checking accounts, savings accounts, money market accounts and certificates of deposit. Personal banking deposit customers have online and mobile access to fully manage their accounts leveraging features that include funds transfers, peer-to-peer payments, bill pay, wire transfer requests, remote check deposit and more. Wealth Management and Trust Texas Capital Bank Private Wealth Advisors (PWA) services include investment management, lending, depository products, financial planning, trust and estate services, as well as insurance services. The PWA professionals work with clients to define objectives, goals, and strategies. Investment managers work alongside the client to choose an individually tailored program that matches their financial goals and aspirations while managing their risk tolerance. PWA also offers all clients a financial plan which is used to ensure that they are on track to achieve their long term objectives. Throughout the relationship PWA also offers insurance solutions as well as trust and estate planning services that work towards a tax efficient transition of assets to family or charitable types of organizations. Investment Banking Texas Capital Securities (TCS) offers a full suite of investment banking products and services to clients. TCS professionals leverage their knowledge of industry dynamics, transaction structure and market conditions complemented by a network of investors, buyers, lenders and other capital sources, to assist clients in completing underwritten and privately placed offerings of debt, convertible and equity securities, buy-side and sell-side mergers and acquisitions and other transactions. Additionally, TCS offers services to manage interest rate, foreign exchange, and commodity risks, and enable market access by offering sales, trading and other institutional services. Investment Portfolio As of December 31, 2023, the company’s investment portfolio included the U.S. Treasury securities; the U.S. government agency securities; residential mortgage-backed securities; and CRT securities. Regulation and Supervision The company is subject to extensive federal and state laws and regulations that impose specific requirements and provide regulatory oversight of virtually all aspects of its operations. These laws and regulations generally are intended for the protection of depositors, the Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Corporation (FDIC) and the stability of the U.S. banking system as a whole, rather than for the protection of stockholders and creditors. TCBI’s activities are governed by the Bank Holding Company Act of 1956, as amended (the BHCA). It is subject to primary regulation, supervision and examination by the Federal Reserve pursuant to the BHCA. The company files quarterly reports and other information with the Federal Reserve. As a public company, the company also files reports with the U.S. Securities and Exchange Commission (SEC) and is subject to its regulatory authority, including the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, with respect to the company’s securities, financial reporting and certain governance matters. Because TCBI’s securities are listed on the Nasdaq Global Select Market (Nasdaq), the company is subject to Nasdaq's rules for listed companies, including rules relating to corporate governance. The bank is organized as a Texas state-chartered bank, and is subject to primary regulation, supervision and examination by the Texas Department of Banking and the FDIC. The bank’s activities are also subject to regulation by the Consumer Financial Protection Bureau (the CFPB) and by certain other federal and state agencies. The bank files quarterly reports of condition and income with the FDIC, which provides insurance for certain of its deposits. The bank has a wholly owned non-bank subsidiary, TCBI Securities, Inc. (TCBI Securities), doing business as Texas Capital Securities, that is a registered broker-dealer with the SEC and a member of the Financial Industry Regulatory Authority (FINRA). TCBI Securities is subject to the jurisdiction of several regulatory bodies, including the SEC, FINRA, and state securities regulators. The BHCA limits the company’s business to banking, managing or controlling banks and other activities that the Federal Reserve has determined to be closely related to banking. The Gramm-Leach-Bliley Act of 1999, as amended (the GLB Act), allows bank holding companies meeting certain management, capital and Community Reinvestment Act standards to elect to be treated as a financial holding company that may offer customers a more comprehensive array of financial products and services. The company has elected to register with the Federal Reserve as a financial holding company. This authorizes it to engage in any activity that is either financial in nature or incidental to such financial activity, as determined by the Federal Reserve, or complementary to a financial activity, so long as the activity does not pose a substantial risk to the safety and soundness of the bank or the financial system generally, as determined by the Federal Reserve. In order for the company to undertake certain new activities permitted by the BHCA, the company must be considered well capitalized and well managed, the bank must have received a rating of at least satisfactory in its most recent examination under the Community Reinvestment Act, and must notify the Federal Reserve within 30 days of engaging in the new activity. The bank is subject to continuous regulation, supervision and examination by the Texas Department of Banking and the FDIC. The regulators monitor all areas of the bank’s operations, including security devices and procedures, adequacy of capitalization and loss reserves, accounting treatment and impact on capital determinations, loans, investments, borrowings, deposits, liquidity, mergers, issuances of securities, payment of dividends, interest rate risk management, establishment of branches, corporate reorganizations, maintenance of books and records, and adequacy of staff training to carry on safe and sound lending and deposit gathering practices. The CFPB has regulation, supervision and examination authority over the bank with respect to substantially all federal statutes and regulations protecting the interests of consumers of financial services, including but not limited to the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Truth in Savings Act, the Right to Financial Privacy Act and the Electronic Funds Transfer Act and their respective related regulations. The bank is required to comply with state laws regarding consumer privacy if they are more protective than the Gramm-Leach-Bliley Act of 1999, as amended (the GLB Act). The bank is subject to Section 23A of the Federal Reserve Act, as amended (the FRA), which places limits on, among other covered transactions, the amount of loans or extensions of credit to affiliates that may be made by the bank. Extensions of credit to affiliates must be adequately collateralized by specified amounts and types of collateral. Section 23A also limits the amount of loans or advances made by the bank to third party borrowers that are collateralized by securities or obligations of the bank’s affiliates. The bank is also subject to Section 23B of the FRA, which, among other things, prohibits an institution from engaging in transactions with affiliates unless the transactions are on terms substantially the same, or at least as favorable to such institution or its subsidiaries, as those prevailing at the time for comparable transactions with non-affiliates. The bank is subject to examination by the FDIC. In order for a financial holding company to commence new activity permitted by the BHCA, each insured depository institution subsidiary of the financial holding company must have received a rating of at least satisfactory in its most recent examination under the Community Reinvestment Act of 1977 (CRA). The bank's strategic focus on serving commercial customers in regional and national markets from a limited number of branches makes it more challenging for it to satisfy CRA requirements as compared to banks of comparable size that focus on providing retail banking services in markets where they maintain a network of full-service branches. The company is subject to restrictions on extensions of credit to insiders (namely executive officers, directors, and 10% stockholders) and their related interests. These restrictions are contained in the FRA and Federal Reserve Regulation O and apply to all insured depository institutions, as well as their subsidiaries and holding companies. The bank’s deposits are insured through the DIF, which is administered by the FDIC, up to limits established by applicable law, $250,000 per depositor. The FDIC determines quarterly deposit insurance assessments consisting of a percentage of an assessment base equal to the bank’s average consolidated total assets less average tangible equity capital and the assignment of one of four risk categories based on supervisory evaluations, regulatory capital levels and certain other factors. History Texas Capital Bancshares, Inc., a Delaware corporation, was founded in 1996. The company was incorporated in 1996 and commenced banking operations in 1998.