Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 76

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 8
Chunk 76
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5,462 5,299 4,824 52 31 Interest rate contracts:Swaps6,273,301 45,771 45,771 5,673,822 65,247 69,863 Caps and floors written970,451 1,066 2,529 637,971 1,654 2,228 Caps and floors purchased970,451 2,529 1,066 637,971 2,228 1,654 Forward contracts20,237,917 41,896 41,035 8,665,675 39,123 38,570 Gross derivatives96,978 118,965 108,972 170,307 Netting adjustment - offsetting derivative assets/liabilities(44,097)(44,097)(37,346)(37,346)Netting adjustment - cash collateral received/posted(29,679)(16,962)(38,682)(62,044)Net derivatives included on the consolidated balance sheets$23,202 $57,906 $32,944 $70,917 The Company’s credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases, collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $23.2 million at December 31, 2024 and approximately $32.9 million at December 31, 2023. Collateral levels are monitored and adjusted on a regular basis for changes in the value of derivative instruments. At December 31, 2024, the Company had $71.3 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $31.0 million in cash collateral received from counterparties included in interest bearing deposits on the consolidated balance sheet. The comparative amounts at December 31, 2023, were $119.0 million in cash collateral pledged to counterparties and $42.3 million cash collateral received from counterparties.The Company also enters into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which the Company is either a participant or a lead bank. The risk participation agreements entered into by the Company as a participant bank provide credit protection to the financial institution counterparty