Company: TCBI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001077428-25-000136
Chunk: 117

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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million at June 30, 2025, compared to 17 risk participation agreements with a notional amount of $228.6 million at December 31, 2024. The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $1.4 million at June 30, 2025 and $4.1 million at December 31, 2024. The fair value of these exposures was insignificant to the consolidated financial statements at both June 30, 2025 and December 31, 2024. Risk participation agreements entered into by the Company as the lead bank provide credit protection should the borrower fail to perform on its interest rate derivative contract. The Company is party to 33 risk participation agreements where the Company acts as the lead bank having a notional amount of $423.3 million at June 30, 2025, compared to 25 agreements having a notional amount of $349.5 million at December 31, 2024.Derivatives Designated as Cash Flow HedgesThe Company enters into interest rate derivative contracts that are designated as qualifying cash flow hedges to hedge the exposure to variability in expected future cash flows attributable to changes in a contractually specified interest rate. During the six months ended June 30, 2025, the Company recorded $865,000 in unrealized gains to adjust its cash flow hedges to fair value, which was recorded net of tax to AOCI, and reclassified $17.1 million from AOCI as a decrease to interest income on loans. Based on current market conditions, the Company estimates that during the next 12 months, an additional $4.7 million will be reclassified from AOCI as a decrease to interest income. As of June 30, 2025, the maximum length of time over which forecasted transactions are hedged is 2.25 years.

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(11) Accumulated Other Comprehensive Income

The following table provides the change in AOCI by component:(in thousands)Cash Flow HedgesAvailable-for-Sale SecuritiesHeld-to-Maturity SecuritiesTotalThree Months Ended June 30, 2025Beginning balance$(8,020)$(93,114)$(35,028)$(136,162)Change in unrealized gain/(loss)207 19,831 — 20,038 Amounts reclassified into net income8,379 — 1,588 9,967 Total other