Company: TCBI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001077428-25-000136
Chunk: 84

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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/(recoveries) as a percentage of average total loans by portfolio segment:

Six Months Ended June 30,20252024(dollars in thousands)NetCharge-offsNet Charge-offsto AverageLoans(1)NetCharge-offsNet Charge-offsto AverageLoans(1)Commercial$22,248 0.39 %$17,283 0.33 %Mortgage finance— — %— — %Commercial real estate518 0.02 %5,436 0.19 %Consumer(4)— %— — %Total$22,762 0.20 %$22,719 0.22 %

(1)Ratios are annualized utilizing net charge-offs for the six months ended June 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

Liquidity

In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. The Company’s objectives in managing its liquidity are to maintain the ability to meet loan commitments, repurchase investment securities and repay deposits and other liabilities in accordance with their terms, without an adverse impact on current or future earnings. The Company’s liquidity strategy is guided by policies, formulated and monitored by senior management and the Asset and Liability Management Committee (“ALCO”), which take into account the demonstrated marketability of the Company’s assets, the sources and stability of its funding and the level of unfunded commitments. The Company regularly evaluates all of its various funding sources with an emphasis on accessibility, stability, reliability and cost-effectiveness. The Company’s principal source of funding is customer deposits, supplemented by short-term borrowings, primarily from federal funds purchased and Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits and long-term debt. The Company also relies on the availability of the mortgage secondary market provided by Ginnie Mae and government sponsored entities to support the liquidity of mortgage finance loans.

The following table summarizes the Company’s interest bearing cash and cash equivalents:

(dollars in thousands)June 30, 2025December 31, 2024Interest bearing cash and cash equivalents$2,507,691 $3,012,307 Interest bearing cash and cash equivalents as a percent of:Total loans held for investment10.5 %13.4 %Total earning assets8.2 %10.2 %Total deposits9.6 %11.9 %

The Company aims to obtain