2023

Our Values in Action
Environmental, Social & Governance Report

Table ofContents
INTRODUCTION•

5E N V I R O N M E N TA L•

A Message from Rob C. Holmes
Meet Our ESG Council
Our Approach to ESG
Texas Capital Overview
Business Entities
Our Goals

Digital First
Sustainability
Technology & Operations Centers
Branches
Corporate Offices

SOCIAL

WHAT IS ESGREPORTING?
An ESG report is a way for
us to share our risks andopportunities in the areas ofenvironmental stewardship,social relations and governancepractices. It gives prospective
clients and others a transparent
look into our actions as we holdourselves accountable to ourvalues and goals.

•

15

11

Social Investments
Human Capital
Diversifying Our Talent
Investing in Our People
Celebrating Diversity
Committing to Employee Health, Wellness & Safety
Employer of Choice
Training Our People
Community Impact
Empowering the Communities We Serve
Community Development Lending
Community Investing
Recognition
Volunteering in Action

GOVERNANCE

Background
Ongoing Education
Privacy & Data Security
Privacy Notice
Online Privacy Policy
Know Your Customer
Internal Audit

Appendix • 40•

35

INTRODUCTIONA MESSAGE FROMRob C. Holmes

President and Chief Executive Officer
Texas Capital Bancshares, Inc., and Texas Capital Bank

We supported the Texas business sector, funding
more than $206 million in loans through the second
round of the Paycheck Protection Program as ourstate rebounded from the COVID-19 crisis of early
2020.

The past year has confirmed the core convictions
I have had since joining Texas Capital Bank as
President and Chief Executive Officer two years ago:
Texas businesses are resilient, innovative and poisedfor strong growth over the coming decade. The futureof our state is bright, and our bank is well-positioned toserve, and grow with, the best clients in all our markets
to truly become the premier financial services firm
headquartered in the state of Texas.

We reshaped our leadership team to better enable
us to execute on our core strategy. Each memberof the Operating Committee is a high-energy, client-obsessed, collaborative business builder. They
embody our core values of candor, transparency, trust,and accountability, and commit to our mission andstrategy every day.

We accomplished every initiative we set out to do in
2022 and, thanks to the hard work and tenacity of ouremployees, we have the results to prove it.

With our first ESG report, I am excited to sharewith you the ways Texas Capital Bank is striving tocreate greatness for our clients, our employees andour communities. Our focus on building a financial
services firm that puts clients first, holds itself to thehighest standards and invests in the communities
where we are privileged to do business has struck achord among business leaders throughout our state.
We believe we are building something unique in Texas,
and people want to be a part of it.

Our Strengthening Talent for Accelerated Results(STARs) training program, one of the few programsof its kind in Texas, finished its second year strong
for our emerging professionals and launched atransformational leadership development framework
focused on firm-wide systems for talent development,
decision-making and execution.
We expanded our Diversity, Equity and Inclusion
Council to focus on the development of goals that will
be further ingrained in our business strategy as wemove forward.
We continue to prioritize strategic investments inlow- and moderate-income communities to help
remove barriers that stand in the way of communities
becoming healthy, resilient and prosperous.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

5

ASHLEY AHNAssociate General Counsel

ANNA ALVARADO
Chief Legal Officer &Corporate Secretary

EFFIE DENNISONHead of Community
Development

ELLEN DETRICH
Controller & Chief
Accounting Officer

DANIEL HEID
Director of Procurement

COLIN HEINRICH
Senior In-houseCounselBETH HOPKINSHR Business Partner &Head of DEI

SHANNON JURECKA
Chief Human Resources
Officer

BRIAN MAKSYMOWICZHead of Marketing

SANDRA MEDINA
Third Party Risk Manager

MATT SCURLOCK
Chief Financial Officer

JAY SHAH
Technology Chief
Operating Officer

CATHERINE ZALATORISHead of Corporate Real Estate

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI“

Greatness isgreat on repeat.

6“

INTRODUCTION

Meet Our ESG Council

Throughout the past year, Texas Capital Bank embarked on a journey ofbuilding, refining and transforming our business and culture. We have utilized
grit to harness greatness. With our recognition as America’s most trusted bankby Newsweek as proof of our progress, Texas Capital Bank has set ambitious
goals and celebrated major milestones in our work toward becoming thepremier financial services firm headquartered in Texas.
At Texas Capital Bank, we believe that what we shape today will show up
tomorrow. That’s why, for the first time in the bank’s history, we are proud topublish this report — Our Values in Action — highlighting environmental, socialand governance issues in a way we’ve never done before. Historically, we
published an annual Corporate Social Responsibility Report, but our transition
to the Our Values in Action report demonstrates the firm’s commitment inshaping the next era for Texas Capital Bank as a prominent, leading corporate
citizen in Texas.
In 2021, the Environmental, Social & Governance Council (ESG Council) was
formed, consisting of leaders across the bank whose purpose is to identify
ESG opportunities, set goals, monitor progress and report outcomes. The ESG
Council is governed by the firm’s board of directors. We’re excited to reportwhat we’ve accomplished, what we’ve been working toward and where we’regoing.
In this report, we will share not only our continued work serving communities
in need, but also the initiatives the bank has undertaken in Diversity, Equity andInclusion; employee training programs; consumer protections; and more. In
many cases, the bank has been quietly going above and beyond as we serve
our clients, colleagues and communities, but this is the first time we are sharing
our story in this specific way. We are proud to report our progress and set boldgoals for the future.
As we say at Texas Capital Bank, “Greatness is great on repeat.” We intend
to uphold our standard of excellence in everything we do, we also commit tocontinuous improvement. We look forward to forging the path ahead.

Sincerely,

ESG Council

Texas Capital Bank ESG Council

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

7

INTRODUCTION

Our Approach to ESGINTRODUCTION

Rooted in theHeart of Texas
Headquartered in Dallas, TX,
Texas Capital Bank has offices
and full-service locations infive cities.

Our vision is to be a flagship financial services firm in
Texas serving the best clients in our markets. While our
ESG programs continue to evolve, we are focused on
creating value through the following prioritized areas:
governance, sustainable finance, diversity, equity andinclusion (DEI), engaging and empowering employees,
our philanthropy, employee giving and volunteerism,
and investment in affordable housing.
We continue to improve and deepen our ESG initiatives
by assessing our practices against industry bestpractices, incorporating stakeholder feedback andactively participating in and advocating for the causesthat matter most to our stakeholders.

Fort WorthAustinDallas

HoustonSan AntonioBANKESTABLISHEDTOTALASSETSTOTALEMPLOYEES

Dec. 18, 1998
Dallas, Texas$28.4B*~2,200*Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

8*As of 12/31/2022

Texas Capital Bank builds long-term
relationships that allow us to deliver
financial solutions for our valued clients
across the United States and in Texas.

In addition, we launched our Investment Banking
division last year. Broker dealer services within our
Investment Bank are performed by TCBI Securities,
Inc., doing business as Texas Capital Securities.
Our Investment Bank gives us the ability to provide
our established corporate, real estate and mortgage
finance client base with mergers and acquisitions
advisory, capital raising, securities underwriting, sales
and trading and hedging services.

Texas Capital Bank is a full-service bank headquarteredin Dallas, Texas. Founded on entrepreneurial spirit,
innovation and community, we’ve transformed overthe past two decades from a single office in Dallas
into a robust financial institution. We serve businesses
across the state with a commitment to building the
economy of Texas. In 2022, Newsweek recognized
Texas Capital Bank as the most trusted bank in
America, based on a first-of-its kind survey Newsweek
conducted with market research firm Statista.

Texas Capital Bank also operates Bask Bank, a wholly
digital entity and the first of its kind. Bask Bank offers
customers the ability to earn traditional interest or
redeemable American Airlines AAdvantage® miles
with an online savings account, rewarding customers
for saving (not spending).

The #1 Most Trusted
Bank in America

OUR GOALS• Be the employer of choice in Texas for people interested in growing theircareer in financial services• Provide strong execution on the core set of financial products coupled withindustry expertise and higher-touch service that earns us the right to provide
advice when it counts• Be a financially resilient bank that is easy to do business with, and is bothproactive and responsive to client, employee and community needs• Build trusted relationships in our core markets and industries that lead us tobeing a “first call” from top clients and prospects

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

9

INTRODUCTION

BUSINESS ENTITIES
Texas Capital Bank is one of the fastest growing
financial institutions in the country and in Texas.
We provide a wide variety of products and services
for commercial banking and lending, treasury
solutions, personal banking, private banking, wealthmanagement and investment banking.

E N V I R O N M E N TA LE N V I R O N M E N TA L

Digital First
HERE’S WHAT DIGITAL BANKING
ENHANCEMENTS MEAN FOR OUR CLIENTS:

We’ve strategically made the decision to be a branchlight financial services firm. While we do meet withour customers face-to-face to help them achieve theirfinancial goals, we acknowledge the role of technology
and its importance to our business.

More convenience

As we’ve embraced a digital-first approach, we’ve
invested heavily in our technology and operating
platform. We internally developed and delivered amarket-leading cloud native software called Texas
Capital Initio™, our proprietary account opening andonboarding solution. This new platform supports
digital banking, private wealth and, launching soon,commercial banking.

More features

Initio has already received praise from our beta clients.
We expect that by Q2 2023, the majority of all treasury
onboarding requests will be completed digitally. Thismeans that new and existing commercial clients havethe option to self-serve when opening new accounts,
and they can use the new account the same day —taking a complex process of multiple days down to amatter of hours.

More security

More control

We’ve also transformed our technology infrastructure
through Texas Capital CoreTex™, our completely
modernized API-driven services platform, and Texas
Capital C360™, a cross-organizational operations
management system and a completely modernized
cloud-based data platform.
These improvements are generating efficiencies inoperations while elevating the client experience withvastly improved onboarding times.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

12

SUSTAINABILITY
From offices to operations centers, when it comes to leaving a smaller carbon footprint, we’re aligned to support theenvironment. We lease our corporate real estate in LEED or ENERGY STAR® certified buildings. The interior designsof all of our upcoming projects will thoughtfully balance man-made and natural environments with only sustainable
materials and finishes. “We are renovating our existing Texas Capital Center space to prioritize recycling and avoid thelandfill, with a zero waste goal in mind,” said Catherine Zalatoris, Head of Corporate Real Estate.

BRANCHESLEED Gold certified, ENERGY STARin the process of receiving
80% orENERGYSTAR Certification

60%

Either LEED Gold Certified and/or
ENERGY STAR Rated Buildings

Austin, Dallas – Texas Capital Center, Plano,
Houston Post Oak, Houston Westway and San
Antonio Quarry Heights

50%

LEED Gold Certified Buildings

Austin, Dallas – Texas Capital Center, Plano,
Houston Post Oak and Houston Westway

In the process of being ENERGY STAR

20% certified by landlords

San Antonio Mulberry and Fort WorthCORPORATE OFFICES

60%

40% IN THE PROCESS

AustinDallas
HoustonSan Antonio Mulberry
Fort WorthLEED GOLDCERTIFIEDOF RECEIVING ENERGY STAR
CERTIFICATIONE N V I R O N M E N TA LTECHNOLOGY & OPERATIONS CENTERS
Our technology and operations centers will be relocating to the LEED Silver certified Blue Cross Blue Shield
Campus Q4 2023 – Q1 2024.

SOCIAL

SocialInvestments
HUMAN CAPITALAt Texas Capital Bank, we believe our people are
our greatest asset, and one of our goals is to be theemployer of choice in Texas for finance professionals.
That’s why we’re committed to investing in our
employees’ personal and professional development
and ensuring they have the tools needed to succeed.

DIVERSIFYING OUR TALENT
We’re dedicated to building a workplace with strong
representation, where all employees feel welcome andhave a sense of belonging. We know that an inclusive
culture allows innovation to grow, drives success andmakes our whole team better.

SOCIAL

Our goal is to attract, develop and engage the best andbrightest talent from all walks of life and backgrounds.
To help us achieve our goal, we’ve developed ahiring strategy for building and sustaining a diverse,
equitable and inclusive environment that includes
internship programs, new hiring processes andstrategic partnerships with historically Black colleges
and universities (HBCUs) and Hispanic-serving
institutions (HSIs).

From employee resource groups to training aroundhealthy workplaces, we provide a variety of ways for
employees to engage, grow and thrive throughout
their careers.

In 2021, we launched the STARs (Strengthening
Talent for Accelerated Results) Program to ensurethat recent college graduates have the support theyneed as their careers begin. STARs provides intensive
in-person banking training followed by on-the-job, lineof-business-specific leadership skills training. STARs
participants are a diverse group of college graduates
recruited from university campuses, including HBCUs,
throughout Texas and surrounding areas. In ourinaugural year, we welcomed 58 young professionals
into the program; in August 2022, we welcomed 60
more. Forty-four percent of the STARs Analysts hired
were female and 25 percent were ethnically diverse.
“I am thrilled to be joining the Texas Capital Bank
internship program and am eager to contribute to theteam. I believe this experience will be invaluable inhelping me grow both personally and professionally,”
said Chase Fitzpatrick, a student at Texas Southern
University who will join our internship program thisyear. “I am grateful for the opportunity.”

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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SOCIAL“As Texas Capital Bank solidifies
its commitment to diversity,
equity and inclusion, it is a
privilege to be a part of building
and maintaining a culture
centered around belonging.”

But simply making early career opportunities available
to young professionals isn’t enough — we also wantto provide equitable access to these opportunities.
That’s why, in 2021, Texas Capital Bank launched an
American Bankers Association Commercial Lending
Certificate program for HBCUs.

— Beth Hopkins

HR Business Partner & Head of DEI

Many HBCUs lack a dedicated school of banking,widening the opportunity gap and limiting the numberof early career and educational opportunities available
to students. Our program began with Prairie View
A&M University in Prairie View, Texas, and, in 2022,
expanded to Huston-Tillotson University in Austin.
Currently, Prairie View A&M University will have 25
students in summer 2023.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBIIn August 2022, our Commercial Lending Certificate
program also expanded to UNT-Dallas, an HSI. Our
pilot program began with 21 students and includes
quarterly engagements on campus, including visitsfrom our recruiting team to help with resumes and job
interviews.

17

In fall 2021, in partnership with the Texas Bankers
Association and other banks, we helped launch the
Future Bankers Leadership Program (FBLP) at Texas
Southern University. This first-of-its-kind program
introduces students to the banking industry througha formal curriculum and interaction with executive
and industry mentors; it also offers paid banking
internships. By the end of 2022, there were 15 students
in the Texas Southern University program.
Texas Capital Bank also provides guidance to theprogram through a dedicated executive sponsor who
serves on the Advisory Committee. This partnership
includes an opportunity for a paid internship at Texas
Capital Bank for students in the program. In June
2022, the FBLP recorded a 100 percent pass rate forstudents for the second consecutive semester.

SOCIAL“As Texas Capital Bank solidifies its commitment todiversity, equity and inclusion, it is a privilege to be apart of building and maintaining a culture centeredaround belonging,” said Beth Hopkins, HR Business

Partner & Head of DEI. “We are proud of the work wehave put forth thus far and look forward to continuing
the momentum for even greater success in the future.”“We strive to be the employerof choice. We endeavor toprovide a great employee
experience while promoting ahigh performing environment
to best serve our clients.”— Shannon Jurecka

Chief Human Resources Officer

To foster career growth, we’ve created Success Profiles that provide insight into the knowledge, competencies,
experience and personal attributes needed to excel in every role here. These profiles equip employees with information
not only to advance their careers but also to learn more about other roles and paths within the company.
Our Success Profiles are also integrated with our TCBI Leadership Model, a framework designed to integrate theorganization’s core values with targeted behaviors to ensure we’re doing the right things and developing corecapabilities. The model consists of four distinct categories: client obsession, driving, partnering and achieving. Eachcategory has four sets of behaviors and actions, and is segmented by four levels of leadership: leading self, leading
others, leading leaders and leading the business.
As employees continue their careers at Texas Capital Bank, we also provide additional managerial developmenttraining.
“At Texas Capital Bank, we believe in equipping our employees with the best training and resources needed to succeedin their careers,” said Marci MacKay, Director of Talent Management. “We have a robust early career program, whichempowers our talent to grow their careers and achieve the level of success to which they aspire. We are proud of thework we have done to recruit, retain and train diverse talent, and look forward to the continued growth of this program.”

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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SOCIALINVESTING IN OUR PEOPLE
As we strive to be the employer of choice in Texas, we remain committed to providing our employees with theinformation and guidance they need to find professional success. We want to empower them to take charge of theircareers, engage with their managers about development opportunities and gain the experience needed to grow at
Texas Capital Bank and beyond.

Celebrating
Diversity
In 2022, we continued to create space for ongoing learning throughcultural celebrations and employee engagement. We enhanced ourcommunication internally and externally to highlight the stories andexperiences of diverse leaders from across the firm.
We also provided employees with the opportunity to join five
employee resource groups:

Emerging Professionals supports the growth of emerging professionals by creating opportunities

SOCIALfor leaders to build meaningful relationships across markets and age groups. In 2022, Emerging
Professionals partnered with local nonprofits to promote financial literacy, Junior Achievement Daysand a networking event and workshop for Texas Capital Bank employees.

Veterans & Employees Together (VET) supports veterans rejoining the workplace and helps
grow relationships within our communities. In 2022, VET hosted volunteer events across our markets,
including Carry the Load, Flags for Fallen Vets, Lace Up America and more.

Professionals Respecting Others’ Unique Differences (PROUD) cultivates an inclusive
environment that supports and encourages LGBTQ and allies to advance their professional skills
and leadership abilities through connection, mentorship, dialogue and bringing their authentic selves
to work. In 2022, PROUD celebrated Pride month by volunteering at the Elevate North Texas Youth
Shelter. Our volunteers assembled more than 100 essential kits for homeless youth and young adults
across North Texas.

Multi-Ethnic Resource Group (MERG) serves all employees by celebrating, uplifting andprioritizing the importance of diversity and inclusion across all ethnicities, both within the bank andin our communities. In 2022, MERG hosted an event where employees from different backgrounds
discussed various topics, from race to intersectionality, resulting in recognition of their similarities
regardless of race and/or ethnicity.
Women of TCB fosters an inclusive environment that supports and encourages women to advancetheir professional skills and leadership abilities through connection, mentorship and dialogue. In
2022, Women of TCB sponsored the Bold Idea Coding Club, where volunteers worked weekly withat-risk elementary students to teach coding skills and develop websites. Additionally, Women of
TCB sponsored several events for Women’s History Month, including the celebration of International
Women’s Day, and closed the year with several events supporting Breast Cancer Awareness Month.
Women of TCB also celebrated Nancy McDonnell, Head of Treasury Solutions, who was named a
Dallas Business Journal 2022 Women in Business Honoree.
Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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Committing to Employee
Health, Wellness & Safety
Our policy is to provide a safe and healthy workplace for all employees, and in 2022, we continued to offer employee
support to address work, life, financial and health-related issues.
We focused on programs and benefits to ease challenges and address medical and other support needs of those
directly impacted by COVID-19. We also took significant measures to provide employees with a sense of safety,
security and certainty in response to the COVID-19 pandemic. To protect the health and safety of employees andclients, we established social distancing and hygiene and environmental safety protocols for on-site workers at ourbanking centers and offices. We also provided free COVID-19 testing for employees enrolled in our medical coverage.
In addition, we developed tracking and reporting solutions to monitor employee circumstances related to the COVID-19
pandemic.

VITALITY

GINGERREAL APPEAL

Vitality is an engagement
platform that rewards andencourages efforts to improveor maintain a healthy lifestyle.
All activities are designed toempower employees withthe tools necessary to reach
their optimal health, andemployees earn redeemable
Vitality Points by participatingin health-related activities
that can be tracked andmeasured. Employees whoearn Vitality Points are eligible
to receive an extra Employer
contribution to their Health
Savings Account.

Ginger is an emotional
support program that helps
manage individual and family
total health. Ginger provides
access to on-demand,
confidential mental healthcare
through coaching via textbased chats, self-guided
activities and video-based
therapy and psychiatry —all from the privacy of asmartphone. Employees also
have access to four therapy
sessions and the Ginger for
Teens program.

Real Appeal is an online
weight loss program that isavailable to employees andeligible family members at
no additional cost throughtheir health benefits plan.
By enrolling in Real Appeal,
employees can access a
Transformation Coach who
leads online group sessions,
online tools to track food andactivity, and a Success Kit
with recipes, scales and moredelivered to their door.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

21

SOCIALTo further promote overall health and wellness and as part of our regular benefits package, we provide employeeswith access to:Employer of Choice

SOCIALWe’ve invested in giving employees opportunities
to develop and grow throughout their careers. But
we know that it’s not just our professional lives thatmatter. That’s why we’ve curated a suite of non-salarybenefits that promote strong work-life harmony andgive employees the space to invest in what mattersmost to them.

Beyond our PTO and leave policies, employees receive
other benefits to support their quality of life away fromthe office. They’re eligible for LifeMart, a member
savings platform that provides employee access todiscounted products and services around education,
financial wellness, legal matters and other everyday
responsibilities.

In 2022, we offered a paid time-off policy based on
years of service, alongside paid bereavement leave,
federal holidays and additional floating holidays.
We also extended our time off for parental bonding,including maternity, paternity and adoption leave.
Birth moms can receive up to 16 weeks full pay whencombined with short term disability.

Additionally, our employees have access to an
employee stock purchase plan, as well as our premium
consumer checking and savings account products.
When direct deposit is set up, these checking andsaving products are available at no cost.

Giving back to our communities is part of our DNA at
Texas Capital Bank, which is why we’re proud to provide
employees with generous volunteer time, separate
from their PTO. This gives them the opportunity toinvest in causes they’re passionate about during
working hours.

SOCIAL

Training Our
PeopleAs our company has grown, we’ve scaled our training
and learning opportunities and elevated the methods
used to deliver them. In 2022, employees completed arecord number of training hours across our different
programs, from our Analyst Learning program to our
Operations Learning program.
In 2022, the Learning Experience team also partneredwith our compliance team to refine the regulatory andcorporate compliance learning program, and more
effectively deliver online compliance courses to bothnew hires and tenured employees.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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SOCIAL

Community Impact
Texas Capital Bank’s community development program exists to remove barriers that stand in the way of communities
becoming healthy, resilient and prosperous. Giving back has always been a core part of who we are at Texas Capital
Bank. We’re committed to implementing progressive initiatives that support a better tomorrow for both our employees
and the communities we serve.
We invest in the people and places we serve through our Community Impact Program, which is supported by three
key pillars:

Live.
Basic needs tosupport qualityof life

Learn.

Lift.
Supportive services
for individuals, small
businesses andveterans

Educational
opportunities for a
lifetime of success

413

multifamily
units createdTexas Capital Bank // Member FDIC // NASDAQ®:TCBI

9,373

135

volunteerhours

nonprofitboards served

24

50

new jobs
created$3 million

in philanthropy

We envision communities where all families haveaccess to a great quality of life, an education thatwill prepare them to succeed and the support theyneed to thrive. Through financial education initiatives,
community impact grants, community reinvestment
and disaster recovery efforts, we’re committed toputting our values into action far beyond our own walls.
In 2022, we continued our robust commitment tocommunity development. Through $3 million inphilanthropy, we served more than 100 nonprofits
across Texas Capital Bank’s markets in Texas.

SOCIALEMPOWERING THE COMMUNITIES WE SERVE
Giving back has always been part of who we are — that’s why we’re proud to announce the launch of the Texas Capital
Bank Foundation. By investing our time, attention, and financial resources, we believe we can inspire hope and create
lasting change. From philanthropy to volunteer service to financial wellness, we are committed to serving ourcommunities and helping them thrive. We’re honored and excited as we embark on our most ambitious giving
year yet.

Community Development Lending
SOCIAL

Small businesses are the cornerstone of Texas, and minority business owners are a vital part of our state’s success. In
2022, we took steps to further drive small business development and better respond to the needs of small businesses
in the communities we serve.
Our new business banking function has CRA goals to bank minority- and women-owned businesses in low- andmoderate-income communities. In 2022, Texas Capital Bank sought to launch two new products for small
businesses: the Small Business Banking Account and the SBA Express Lending product, which went live in Q1
2023. We have set a goal to have business bankers in our branches serving businesses with loans less than $5
million, as well as a new team for loans from $5 to $25 million. 2022 marked a concerted effort to better serve
small business owners with products and services, and our goal is to continue to expand our capabilities.

COMMUNITY DEVELOPMENT LENDING HIGHLIGHTS•JEFFERSON WATERS CREEK \\ Located just north of Dallas, Jefferson Waters Creek is a new multifamily
development where 51 percent of units will be at 80 percent Area Median Income (AMI), providing access forlow- and moderate-income renters to obtain affordable housing in an upscale property. The units boast upgradedfinishes, a resort-style pool, fitness center, pickleball court and more.

•

WINDSOR VILLAGE \\ Located in rapidly gentrifying East Austin, Windsor Village is a new mixed-use developmentthat will include multifamily and retail. The ground floor includes a restaurant and coffee shop currently, withmore retail space becoming available upon completion. Ten percent of these units will be classified as affordable
under Austin S.M.A.R.T. housing, which is 60 percent Area Median Income (AMI) or less.

•

HOMEBUILDER FINANCE \\ Texas Capital Bank provided homebuilder finance for small volume homebuilders(less than 25 units per year) with a goal to fund small homebuilders who may struggle with obtaining traditional
financing — particularly minority- and women-owned builders. The first deal closed in January 2023, and with thisfunding from Texas Capital Bank, these small homebuilders have access to deals and more ability to grow andscale their businesses.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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OUR APPROACH TO LENDING
Community Development Lending has at least one of four purposes:

Affordable Housing

Small Business/Economic Development

Community Services

Revitalization/Stabilization$10.49B$349M

IN COMMUNITYDEVELOPMENTLENDINGIN SMALL BUSINESS LENDING

resulting in 48,761 small business loans$10M IN IMPACT INVESTING

Community Investing
COMMUNITY DEVELOPMENT INVESTMENT HIGHLIGHT: A New Partnership with Lendistry
In 2022, Texas Capital Community Development Corporation provided $5 million in funding to Lendistry,, a minorityfounded and led FinTech CDFI, to seed its expansion into Texas. Lendistry is also the only Black-led lender to receive
the Small Business Lending Company License from the SBA (Small Business Administration). The Los Angeles-based
company now has offices in Dallas and Austin.
Lendistry focuses not only on providing small loans for small businesses but also delivering the technical assistancethey need to thrive. For small businesses that aren’t yet “bankable,” Lendistry issues a small loan with flexible credit
requirements and offers help with financial documents and business planning. Through Lendistry, our goal is to serve
small-, minority- and women-owned businesses at every stage in their lifecycle as they grow and scale.
We announced our new partnership in August 2022 at the Dallas Entrepreneur Center’s Startup Week, thelargest gathering of entrepreneurs and small businesses in North Texas. Texas Capital Bank had a table in“Startup Alley,” and led a feature session about capital funding for small businesses. The panel included Effie
Dennison, Head of Community Development and Corporate Responsibility at Texas Capital Bank; Janet Perez
Shensky, SVP of Strategic Partnerships at Lendistry; and Tarsha Hearns, Senior Director at The DEC Network.
INVESTING IN MINORITY DEPOSITORY INSTITUTIONS
We’re committed to working with minority depository institutions (MDIs), defined as a federally insured depository
institution for which 51 percent or more of the voting stock is owned by minority individuals; or a majority of the boardof directors is minority and the community that the institution serves is predominantly minority. In 2022, we continued
to uphold this promise. We now work with 13 MDI partners nationwide. In 2022 we established a $5 million deposit
relationship with OneUnited Bank, the nation’s largest Black-owned bank.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

27

SOCIAL

into equity
funds for real estate development, small business, publicwelfare and minority depository institutions

Beyond launching the foundation, we had a major
impact through our investments and engagementin the communities we serve.

SOCIAL
Junior Achievement Finance Park \\ San Antonio

Prosper West \\ San Antonio

Junior Achievement Finance Park is an innovative
program that addresses the need for at-riskyouth to understand and master effective money
management and personal finance. Through a$10,000 donation and 160 volunteer hours, Texas
Capital Bank helped expand this essential financial
education for 4,350 students from South Texas
middle and high schools. With the guidance andinspiration from JA volunteer mentors, students set
financial goals and learn more about what it takes tonavigate today’s complex economy.

In 2022, Texas Capital Bank sponsored Prosper West’sRoundtable Accelerator, an intensive four-monthprogram designed to assist a cohort of Westside
small businesses. Upon completion of the program,businesses were eligible to receive a $2,500 grant
to use toward implementing the Roundtable
recommendations. Our bankers served on Prosper
West’s roundtable of advisors and helped threebusinesses complete the program.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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SOCIALWest Dallas Community Fair \\ Dallas

First Annual Nonprofit Summit \\ Houston

In March 2022, we announced expanded hours at our
Trinity Groves branch in West Dallas, which is now open
on Saturdays. To celebrate, we hosted a community
fair at the branch, attended by our entire Operating
Committee. At the fair, West Dallas nonprofits set up
tables to talk with community members about theirservices, and our Mobile Center was on-site to offer
financial literacy education. Guests could enter a raffle
to go into the “cash grab” if they completed a moduleand visited the nonprofit tables. We also had foodtrucks, balloon art, face painting and a DJ, and thebranch ran a special promotion on account opening.

In June, Texas Capital Bank hosted our First Annual
2022 Nonprofit Strategy Summit, an event designed
to encourage networking and peer-to-peer thought
leadership as nonprofits navigate a dynamic andunprecedented landscape. Held in Houston at
Avenue Community Development Corporation, thefeatured topics included fundraising and cultivating
new funding sources, strategic growth, planning andorganization evolution. After the success of the 2022
Nonprofit Strategy Summit, similar events are being
planned for all markets, with the next one to be heldin Dallas.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

29

SOCIAL

Hope Farm \\ Fort Worth & Dallas

Texas Women’s Foundation \\ Dallas

Leadership and mentorship nonprofit Hope Farmprovides a safe place for young boys during outof-school time. In 2022, Texas Capital Bank helped
Hope Farm find a new space in South Dallas andexpand from Fort Worth. Through an innovative
partnership with Bold Idea, we also gave the young
men the opportunity to attend a summer camp tolearn coding skills as well as have exposure to careerand mentorship opportunities. “Our boys thoroughly
enjoyed the new learning experience,” said Hope
Farm Executive Director Sacher Dawson. “Some ofthe experiences that they talked about were realworld applications, hands-on learning and how
creative the mentors made the class. I am so happy
that our young men got a chance to experience thisin a fun but productive manner.”

We partnered with the Texas Women’s Foundation andthe Dallas Federal Reserve to host a forum centered on
the economic issues facing women in Texas. A 2022
study from Texas Women’s Foundation, Economic
Issues for Women in Texas, found that the COVID-19
pandemic profoundly impacted Texas women andexacerbated long-term issues and inequities. At theforum, which was attended by 150 people, the study
findings were shared and then followed by a Solutions
Panel to discuss the report and how we can help
Texas women.

Women’s Resource Center \\ Houston
The Women’s Resource Center partners with other nonprofits, community centers, schools and other agencies todeliver financial education at a convenient place and time for clients. Many of the women served in the program areliving in shelters or transitional living facilities or are recovering from substance abuse or reintegrating into society
following incarceration. Eighty-seven percent of clients served were low- to moderate-income, with 41 percent
reporting a monthly income of less than $600. Through a grant of $15,000, we helped 1,576 women through the
YourLife Finance Program. This six-class series teaches women to budget, save, repair credit and plan for long-term
financial success. Clients leave each class with a guideline for how to implement the concepts learned in class into
their everyday lives. The series is provided in both English and Spanish.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

30

SOCIAL“Texas Capital Bank’s commitment to our community remains stronger than ever, andwith the launch of our foundation, we are excited to expand our philanthropic giving
to make the biggest impact yet. But beyond philanthropy, Texas Capital Bank is also
committed to investing in our communities through affordable housing, small businessand economic development.”— Effie Dennison

Head of Community Development

D CEO Corporate Citizen Award: Collaboration of the Year
The Bottom District \\ Dallas
In 2021, Texas Capital Bank — in partnership with Texas Heavenly Homes, the City of Dallas and Golden S.E.E.D.S.
Foundation — broke ground on the revitalization of The Bottom District. We provided financing for the project, which
will create up to 400 new homes in this historically Black neighborhood, where a lack of investment and outdated
infrastructure left many residents with 150-year-old plumbing and limited internet access. Along with adding
streetlights and connecting streets, plumbing was overhauled, homes were removed from the flood plain and Wi-Fi
access was improved to help close the digital divide. As progress continued in 2022 to help this vibrant neighborhood
thrive, we received the D CEO Corporate Citizenship Award, in partnership with the city, for our work.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

31

RECOGNITION
We were also honored to receive a Leader in Financial
Education (LiFE) Award from the Texas Bankers
Foundation, the charitable arm of the Texas Bankers
Association. LiFE Awards are given to banks that havedemonstrated excellence in community involvement
or have promoted financial education in theircommunities. Our award was in recognition of our
financial literacy program — we custom-built a virtual
financial literacy curriculum during the pandemic tospecifically address the unique needs and financial
situations brought about by COVID-19.

SOCIAL

VOLUNTEERING IN ACTION
We empower our employees to volunteer for causesthat matter to them, and in 2022, we continued ourrecord of strong community involvement. In eachof our offices, we’ve established Impact Teams, orcommittees that coordinate volunteer projects toserve their local community. In total in 2022, ouremployees volunteered for 7,600 hours in companysponsored projects, teaching financial literacy andskills-based volunteering.

Other volunteer events throughout the year included
a STARs-led toy drive to support Vogel Alcove, anorganization that supports homeless families withchildren.
Austin Street Center: In 2022, our Retail Banking
division and our Community Development teampartnered to support Austin Street Center, one of
Dallas’ largest homeless shelters, for a holiday blanket
drive. Sixty volunteers dedicated 130 hours to the drive
and donated more than 100 blankets. “Bringing backthe human element lost during the pandemic of caring
for one another was humbling, knowing we were able
to affect the lives of others needing blankets to keep
warm during these winter months,” said Shannon
Moore, VP Banking Center Manager. “Helping one
another is the greatest act of service.”

Our employees’ passion for volunteering is embodied
by our December 2022 Week of Caring. In one week,
our statewide team dedicated more than 300 hours
toward different organizations focused on impacting
homelessness. These nonprofits included Austin Street
Center in Dallas, Caritas in Austin, the Salvation Army in
San Antonio, the Houston Food Bank and PresbyterianNight Shelter in Fort Worth.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

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SOCIALGOVERNANCE

How we steward
ourselves is a reflection
to all those around us.
Strong corporate governance practices support ouroverall effectiveness and enable us to manage ourbusiness and maintain our integrity in the marketplace.
We believe strong governance is essential andconstructive at all levels, from the board of directors to
executive management and throughout our company.

BACKGROUND
As the bank has transformed this year, so has the
Learning Experience team. We have expanded ourofferings and elevated the methods utilized to deliverand scale as our company has grown. In our effort
to build a learning culture, we’ve encouraged a selfdriven approach and have observed 65 percent of
our employees accessing our portal for independent
learning activities.

Strong governance policies are essential to maintaining the trust of ourcustomers, partners, associates and communities.

GOVERNANCE

Ongoing
Education

88,000LEARNING CATEGORIESTOTAL HOURS

Regulatory
Corporate
Leadership
Board Governance			Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

36

Compliance Learning
Program \\ Every year, all
Texas Capital Bank employees
complete mandatorycompliance training so thatevery employee at every levelof the organization has aknowledge of all the federal
regulations that govern banks
and protect consumers.

Sales Learning Programs \\To support our frontline sales
teams, we established regularlearning routines to provide
content not only on our tools
but also on evolving processes.
Frontline employees attend
internally hosted conference
events where they learn about
new tools, technologies andfunctionalities that equip them
to better serve their clients.

Intern and Analyst Learning
Programs \\ During 2022,
analysts and interns split theirfocus between product training
in the classroom and handson experience with our linesof business. The 2022 Analyst
Learning program increased
the number of hours spent inperson with instructors, as well
as expanded its curriculum
around relevant industry
expertise and the developmentof leadership skills.

Succession Planning \\ This has been a major theme as part of our strategic review. We’ve delved deeper
into the organization than ever before, and we’ve paired succession planning practices with updates to our
performance management process. We saw a need for strong accountability frameworks and met it with new
systems and a focus on need-based hiring. The result will give us more long-term resilience throughout theorganization.

Operations Learning Program \\ Ouroperations teams received job-specific content
to ensure success and consistency in both newand tenured roles.

Leadership Training \\ Every year, the Texas Capital Bank board of directors completes a training programthat covers various governance topics, including regulatory compliance.

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37

GOVERNANCE

Leadership Development Program \\ Topics
supporting our leaders’ growth were offeredmonthly, delivered via virtual instructor-led training
and recorded for asynchronous learning.

Privacy & Data
Security
A Focus on Cybersecurity

In the past year, we’ve continued to develop anddeploy best-in-class security controls and processes.
These included network detection and response,
data security, secure logins, establishment of an
insider risk program and the continued evolution of
third-party cybersecurity protocols and processes.
Improvements like this contribute to our ability toprotect employees, clients and third-party partners.
Additionally, we’re continuing to enhance our capability
to address cyber threats — a growing, industry-widerisk that is ever evolving. We’ve bolstered our security
operations by expanding the cyber intelligence teamand other detection and prevention capabilities. We’renow better positioned to protect client funds, take down
impersonating websites and provide peace of mind while
reinforcing the trust of employees and clients.

A

GOVERNANCE

PRIVACY NOTICE
Our privacy notice details our privacy and security
practices regarding our relationship with clients,
including how we share their information. This noticedoes not apply to business or commercial customers.

In addition, we’ve rolled out a large-scale Cyber
Education and Awareness program that includes
new phish testing, educational videos, improved
cybersecurity training and multiple cybersecurity
presentations from the FBI. This highlights the strong
partnership we maintain with law enforcement andour clients in each market to educate and highlight
how cyber threats may affect them — and what we
can do to protect them and combat these threats.

ONLINE PRIVACY POLICYThe Online Privacy Policy explains the collection,use, sharing and protection of data and informationthat we gather when clients use our website andmobile applications.

Ronald Banks
Chief Information Security Officer

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI“A” Rating
in Cybersecurity From
SecurityScorecard

38

KNOW YOUR CUSTOMER
Texas Capital Bank is committed to establishing highstandards for regulatory compliance and the protectionof its clients. Our Know Your Customer (KYC) programis a critical component of these safeguards and isdesigned to help the government fight the funding ofterrorism and money laundering activities. Federal law
requires all financial institutions to obtain, verify andrecord information that identifies each person who
opens an account.

INTERNAL AUDITThe vision of the Internal Audit Department is to bea high-performing entity that meets the expectationsof our stakeholders and adheres to The Instituteof Internal Auditors International Standards for theProfessional Practice of Internal Auditing and theattributes of high performance recognized by leadinginternal audit activities. This will enable the Internal
Audit Department to be a business partner and atrusted advisor, recognized as a driving force behinda culture of governance, accountability, complianceand execution that helps in the achievement of theorganization’s objectives. Our vision is excellence infulfilling our responsibilities to our customers and to
our profession.

Know Your Customer (KYC):
The due diligence process
financial institutions complete
to identify and verify aprospective client’s identity
when they open an account.
This helps prevent fraud
and supports data privacy
protections.

The mission of the Internal Audit Department is toenhance and protect the bank’s value by providing riskbased and objective assurance, advice and insight. To
achieve our mission, Internal Audit has been created
to be an independent, objective assurance andconsulting activity designed to add value and improve
the Bank’s operations. Further, Internal Audit helps the
Bank accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve theeffectiveness of governance, risk management, control
and compliance processes. The Internal Audit function
is established by the board of directors and the function’s
responsibilities are defined by the Audit Committee aspart of their oversight role.

GOVERNANCE

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Appendix

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (“SASB”)-ALIGNED INDEXThe tables below are based on the SASB criteria for the Financial Sector most relevant to Texas Capital Bancshares,
Inc., and its subsidiaries’ (collectively “TCBI”) core business, Commercial Banks. As TCBI’s business lines and overall
environmental social, and governance disclosure practices evolve, this index and the relevant disclosures may changeover time. We have provided information for our fiscal year ended December 31, 2022, or as of that date as applicable,
unless otherwise noted. Certain information is not disclosed because the information: (i) is not considered material
or is privileged/confidential, (ii) could result in a competitive disadvantage if publicly disseminated, and/or (iii) is not
currently collected in a manner consistent with the SASB metric.
All disclosures are based on Version 2018-10 of the SASB standards.
Data Security

Topic

SASB Code

MetricResponse

FN-CB-230a.1(1) Number of data breaches,(2) percentage involving
personally identifiable
information (PII), (3) numberof account holders affected

Any material cybersecurity incidents would be reported in the2022 Annal Report. See: Form 10-K Annual Report for 2022,
Item 1, Privacy and Data Security, p. 10.

Description of approach toidentifying and addressing
data security risks

TCBI’s Information Security team is responsible for data
security with overall oversight occurring at the executive
level and board level via the Risk Committee, which formallymonitors information technology and cybersecurity. TCBI’s
information security professionals conduct active monitoringof our networks to identify and remediate malicious events.
The Information Security team reviews our systems andthe operating environment frequently, including on amonthly and annual basis. Third-party providers provide
regular benchmarking and stress-testing of our systems
and program. All TCBI employees and service providers
are subject to our information security policies, including
requirements for mandatory training at least annually.

FN-CB-230a.2
Data
Security

Please see responses to FN-CB-230a.2 for more information
about TCBI’s approach to information security risk
management.

See: Form 10-K Annual Report for 2022, Item 1A, p. 21-22.

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Financial Inclusion and Capacity Building

Topic

SASB Code

MetricResponse

FN-CB-240a.1(1) Number and (2) amountof loans outstanding qualified
to programs designed topromote small business andcommunity development

Small Business Lending:2022: $10.49 billion
2021: $2.39 billion
Community Development Lending:2022: $349 million
2021: $342.5 million
For more information on our small business and community
lending activities, please refer to our 2022 CSR report and Our
Values in Action report.

FN-CB-240a.2
Financial
Inclusion&
Capacity
Building
FN-CB-240a.3

FN-CB-240a.4(1) Number and (2) amountof past due and nonaccrualloans qualified to programs
designed to promote small
business and community
development

Not disclosed.

Number of no-cost retailchecking accounts provided
to previously unbanked orunderbanked customers

Not disclosed.

Number of participants infinancial literacy initiatives forunbanked, underbanked orunderserved customers

Not disclosed.

See: Form 10-K Annual Report for 2022, Item 7, NonPerforming Assets, p. 43 for general information.

TCBI’s customer base is primarily commercial in nature.
However, we offer FDIC-insured consumer savings accounts
with no minimum monthly balance and no monthly accountfees. We do not currently report on the number of customer
accounts or report on the categorization between unbanked
and underbanked customers.

For more information on our philanthropic activities, pleaserefer to Our Values in Action report.

Incorporation of ESG Factors in Credit Analysis

Topic

SASB Code

MetricResponse

FN-CB-410a.1

Commercial and industrial
credit exposure by industry

See: Form 10-K Annual Report for 2022,
Item 7, Portfolio Concentrations, p. 39-41.

Description of approach

During 2021, TCBI incorporated

to incorporation ofEnvironmental, Social and Governanceenvironmental, social andconsiderations into a policy statement.

governance (ESG) factors in

The statement sets forth expectations thatcredit analysis

as part of TCBI’s “Know Your Customer”

FN-CB-410a.2
Incorporation ofEnvironmental, Social andGovernance Factors in
Credit Analysis

program and due diligence efforts, it willconsider potential environmental, social andgovernance risk factors, including thoserelated to our Enhanced Due Diligenceindustry list, which covers a range of highrisk industries.

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI

41

Business Ethics

Topic

SASB Code

MetricResponse

FN-CB-510a.1

Total amount of monetary

See: Form 10-K Annual Report for 2022, Item 3, Legal
Proceedings, p. 29.

losses as a result of legal
proceedings associatedWe do not currently expect the disposition of any relevant
matters to have a material adverse impact on TCBI’s financial
statements or results of operations.

with fraud, insider trading,anti-trust, anti-competitive
behavior, market
manipulation, malpractice orBusiness
Ethicsother related financial industry
laws or regulations
FN-CB-510a.2

Description of approach

During 2021, TCBI incorporated Environmental, Social andto incorporation ofGovernance considerations into a policy statement. The

environmental, social andstatement sets forth expectations that as part of TCBI’s

governance (ESG) factors in“Know Your Customer” program and due diligence efforts, itcredit analysis

will consider potential environmental, social and governancerisk factors, including those related to our Enhanced Due
Diligence industry list, which covers a range of high-risk
industries.

Systematic Risk Management

Topic

SASB Code

MetricResponse

FN-CB-550a.1

Globally Systematically

Not applicable.

Important Bank (G-SIB) score,by category

Texas Capital Bank is not currently considered a
Global Systematically Important Bank and does
not have a score to report.

Systematic Risk
Management

FN-CB-550a.2

Description of approach to

See: Form 10-K Annual Report for 2022, Item 1,

incorporation of results ofRegulation and Supervision, p. 6-13.

mandatory and voluntarystress tests into capital
adequacy planning, long-term
corporate strategy and otherbusiness activities

Texas Capital Bank // Member FDIC // NASDAQ®:TCBI42

Table 2. Activity Metrics

Topic

SASB Code

MetricResponse

FN-CB-000.A(1) Number and (2) value

TCBI does not generally report account dataof checking and savings

by segment, and its customer base is primarily

accounts by segment: (a)commercial in nature.

personal and (b) small
business
Activity Metrics

Please see: Form 10-K Annual Report for 2022,
Item 7, Deposits, p. 44-45 for general information.

FN-CB-000.B(1) Number and (2) value

TCBI does not generally report loan data byof loans by segment: (a)segment, and its customer base is primarily

personal, (b) small business,

commercial in nature.

and (c) corporate
See: Form 10-K Annual Report for 2022, Item 7,
Portfolio Concentrations, p. 39-41.

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About Texas Capital Bank
Texas Capital Bank delivers highly personalized financial services
to businesses, the individuals and families who run them, and othermembers of our communities. We are headquartered in Texas and workwith clients throughout the state and across the country. Texas Capital
Bank is a wholly owned subsidiary of Texas Capital Bancshares, Inc.
(NASDAQ®: TCBI).
Investment Banking activities referenced herein are performed by TCBI
Securities, Inc., doing business as Texas Capital Securities. TCBI Securities,
Inc., is a member of FINRA and SIPC and has registered with the SEC andother state securities regulators as a broker/dealer. TCBI Securities, Inc.,is a subsidiary of Texas Capital Bank. Texas Capital Bancshares, Inc., isthe parent company of Texas Capital Bank. Securities and other investment
products offered by TCBI Securities, Inc., are not FDIC insured, may lose
value and are not bank guaranteed.

For more information, please visit our website
www.texascapitalbank.com©2023 Texas Capital Bank. All Rights Reserved. Member FDIC.