GlobeNewswire Inc | Jan 20, 2022 04:00PM EST

January 20, 2022

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

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

Necessary regulatory approvals obtained for launch of Texas Capital Securities

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

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

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

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

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

FOURTH QUARTER 2021 COMPARED TO THIRD QUARTER 2021

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

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

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

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

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

FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020

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

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

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

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

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

CREDIT QUALITY

We recorded $1.0 million in net charge-offs during the fourth quarter of 2021, compared to $3.1 million during the third quarter of 2021 and $65.4 million during the fourth quarter of 2020. Criticized loans totaled $582.9 million at December 31, 2021, compared to $728.9 million at September 30, 2021 and $918.4 million at December 31, 2020. LHI non-performing assets (LHI NPAs) totaled $72.5 million at December31, 2021, compared to $87.5 million at September 30, 2021 and $122.0 million at December31, 2020. The ratio of LHI NPAs to total LHI for the fourth quarter of 2021 was 0.32%, compared to 0.37% for the third quarter of 2021 and 0.50% for the fourth quarter of 2020.

CAPITAL RATIOS

All regulatory ratios continue to be in excess of well-capitalized requirements as of December31, 2021. Our CET 1, tier 1 capital, total capital and leverage ratios were 11.1%, 12.6%, 15.3% and 9.0%, respectively, at December31, 2021, compared to 10.7%, 12.2%, 14.9% and 9.0%, respectively, at September 30, 2021, and 9.4%, 10.3%, 12.1% and 7.5%, respectively, at December 31, 2020. At December31, 2021, our ratio of tangible common equity to total tangible assets was 8.3% compared to 7.8% at September 30, 2021 and 7.2% at December 31, 2020.

About Texas Capital Bancshares, Inc.

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

Forward Looking Statements

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

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on managements expectations and assumptions at the time the statements are made and are not guarantees of future results. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, but are not limited to, (1) deterioration of the credit quality of our loan portfolio or declines in the value of collateral due to external factors or otherwise, (2) the unpredictability of economic and business conditions that may impact us or our customers, (3) the COVID-19 pandemic on us and our customers, employees and third-party service providers, (4) our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding to us, (5) our ability to effectively manage our information technology systems, (6) the costs and effects of cyber-incidents or other failures, disruptions or security breaches of our systems or those of our third-party providers, (7) changes in interest rates, (8) changes in the method of determining the London Interbank Offered Rate, or LIBOR, or the replacement of LIBOR with an alternative reference rate, (9) adverse or unexpected economic or market conditions and other factors in Texas, the United States or internationally, (10) the concentration of our business in Texas and with the energy industry, (11) the failure to effectively balance our funding sources with cash demands by depositors and borrowers, the failure to maintain capital ratio as a result of adverse changes in our operating performance or financial condition or changes in applicable regulations or interpretations of regulations that impact our business or the characterization or risk weight of our assets, (12) material failures of our accounting estimates and risk management processes based on management judgment or the supporting assumptions or models, (13) the failure to effectively manage our interest rate risk, (14) the failure of our enterprise risk management framework, (15) uncertainty regarding the upcoming transition away from LIBOR, (16) our ability to comply with applicable governmental regulations, (17) risks related to U.S. federal government actions impacting us, (18) claims and litigation that may arise in the ordinary course of business, (19) the failure to successfully execute our business strategy, (20) the failure to identify, attract and retain key personnel, (21) increased or more competition from banks and other financial service providers in our markets, (22) the susceptibility of fraud on our business, (23) the failure to maintain adequate regulatory capital to support our business, (24) environmental liability associated with properties related to our lending activities, (25) severe weather, natural disasters, acts of war or terrorism and other external events and (26) risks relating to our securities.

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

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

(1) In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.(2) Stockholders equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.(3) Non-interest expense divided by the sum of net interest income and non-interest income.(4) Stockholders equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.

TEXAS CAPITAL BANCSHARES, INC.CONSOLIDATED BALANCE SHEETS (UNAUDITED)(dollars in thousands) December 31, December 31, % 2021 2020 ChangeAssets Cash and due from banks $ 180,663 $ 173,573 4 %Interest-bearing deposits in other 7,765,996 9,032,807 (14 )banks %Investment securities 3,583,808 3,196,970 12 %LHS ($8.1 million and $239.1 million )at December 31, 2021 and 2020, 8,123 283,165 (97 %respectively, at fair value)LHI, mortgage finance 7,475,497 9,079,409 (18 ) %LHI (net of unearned income) 15,331,457 15,351,451 ? %Less: Allowance for credit losses on 211,866 254,615 (17 )loans %LHI, net 22,595,088 24,176,245 (7 ) %Mortgage servicing rights, net ? 105,424 (100 ) %Premises and equipment, net 20,901 24,546 (15 ) %Accrued interest receivable and other 559,897 715,699 (22 )assets %Goodwill and intangibles, net 17,262 17,667 (2 ) %Total assets $ 34,731,738 $ 37,726,096 (8 ) % Liabilities and Stockholders? Equity Liabilities: Deposits: Non-interest bearing $ 13,390,370 $ 12,740,947 5 %Interest bearing 14,718,995 18,255,642 (19 ) %Total deposits 28,109,365 30,996,589 (9 ) % Accrued interest payable 7,699 11,150 (31 ) %Other liabilities 273,488 339,486 (19 ) %Federal funds purchased and repurchase 2,832 111,751 (97 )agreements %Other borrowings 2,200,000 3,000,000 (27 ) %Long-term debt 928,738 395,896 135 %Total liabilities 31,522,122 34,854,872 (10 ) % Stockholders? equity: Preferred stock, $.01 par value, $1,000 liquidation value:Authorized shares - 10,000,000 Issued shares - 300,000 and 6,000,000shares issued at December31, 2021 and 300,000 150,000 100 %2020, respectivelyCommon stock, $.01 par value: Authorized shares - 100,000,000 Issued shares - 50,618,911 and50,470,867 at December31, 2021 and 506 504 ? %2020, respectivelyAdditional paid-in capital 1,008,559 991,898 2 %Retained earnings 1,948,274 1,713,056 14 %Treasury stock (shares at cost: 417 at (8 ) (8 ) ? %December31, 2021 and 2020)Accumulated other comprehensive income (47,715 ) 15,774 N/M /(loss), net of taxesTotal stockholders? equity 3,209,616 2,871,224 12 %Total liabilities and stockholders? $ 34,731,738 $ 37,726,096 (8 )equity %

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

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

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

(1) Interim period ratios are annualized.

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

(1) At December31, 2021, loans past due 90 days and still accruing included premium finance loans of $3.3 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.(2) Includes one non-accrual loan previously reported in loans HFI that was transferred to loans HFS as of December 31, 2020 and subsequently sold at carrying value.(3) Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as LHS and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. The first quarter of 2021 and fourth quarter of 2020 also include loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not obligation, to repurchase and thus must record as LHS on our balance sheet regardless of whether the repurchase option has been exercised.

TEXAS CAPITAL BANCSHARES, INC.CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(dollars in thousands) 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 2021 2021 2021 2021 2020Interest income Interest and fees $ 204,379 $ 202,748 $ 203,074 $ 210,331 $ 232,961 on loans^(1)Investment 11,780 10,235 10,918 9,887 9,594 securitiesFederal funds ? ? ? 1 1 soldInterest-bearingdeposits in other 3,733 3,606 2,961 2,932 2,792 banksTotal interest 219,892 216,589 216,953 223,151 245,348 incomeInterest expense Deposits 14,513 14,719 16,271 20,004 23,819 Federal funds ? 5 51 75 110 purchasedOther borrowings 771 743 451 2,517 3,407 Long-term debt 10,576 10,586 10,723 5,743 4,817 Total interest 25,860 26,053 27,496 28,339 32,153 expenseNet interest 194,032 190,536 189,457 194,812 213,195 incomeProvision for (10,000 ) 5,000 (19,000 ) (6,000 ) 32,000 credit lossesNet interestincome after 204,032 185,536 208,457 200,812 181,195 provision forcredit lossesNon-interest incomeService chargeson deposit 4,702 4,622 4,634 4,716 3,004 accountsWealth managementand trust fee 3,793 3,382 3,143 2,855 2,681 incomeBrokered loan 5,678 6,032 6,933 9,311 12,610 feesServicing income 277 292 5,935 9,009 8,834 Investmentbanking and 6,456 4,127 8,071 5,787 10,288 trading income^(1)Net gain/(loss) ? (1,185 ) (3,070 ) 5,572 6,761 on sale of LHSOther 10,553 7,509 11,993 7,103 8,500 Totalnon-interest 31,459 24,779 37,639 44,353 52,678 incomeNon-interest expenseSalaries and 89,075 87,503 86,830 87,522 78,449 employee benefitsNet occupancy 8,769 8,324 7,865 8,274 8,373 expenseMarketing 4,286 2,123 1,900 1,697 3,435 Legal and 12,673 11,055 9,147 8,277 12,129 professionalCommunications 16,490 28,374 14,352 15,969 15,405 and technologyFDIC insurance 4,688 4,500 5,226 6,613 6,592 assessmentServicing-related 25 2,396 12,355 12,989 15,844 expensesOther 10,643 8,712 11,385 8,975 10,636 Totalnon-interest 146,649 152,987 149,060 150,316 150,863 expenseIncome before 88,842 57,328 97,036 94,849 83,010 income taxesIncome tax 23,712 13,938 23,555 22,911 22,834 expenseNet income 65,130 43,390 73,481 71,938 60,176 Preferred stock 4,313 4,312 6,317 3,779 2,437 dividendsNet incomeavailable to $ 60,817 $ 39,078 $ 67,164 $ 68,159 $ 57,739 commonshareholders

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

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

(1) The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.(2) Taxable equivalent rates used where applicable.(3) In the fourth quarter of 2021 and in connection with our approval from the Financial Industry Regulatory Authority to conduct securities transactions and business with the investing public, we established a policy regarding the accounting for loan syndication fees and reclassified these fees from interest and fees on loans in interest income to investment banking and trading income in non-interest income for all periods presented. Please see our forthcoming Annual Report on Form 10-K for additional details when it is filed with the U.S. Securities and Exchange Commission.

INVESTOR CONTACTJamie Britton, 214.932.6721jamie.britton@texascapitalbank.com

MEDIA CONTACTShannon Wherry, 469.399.8527shannon.wherry@texascapitalbank.com