Company: TCBI
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001077428-25-000145
Chunk: 84

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 million at December 31, 2024.

The table below presents key metrics related to the Company’s credit loss experience: 

September 30, 2025September 30, 2024Allowance for credit losses on loans to total loans held for investment1.13 %1.23 %Allowance for credit losses on loans to average total loans held for investment(1)1.20 %1.30 %Total allowance for credit losses to total loans held for investment1.37 %1.43 %Total provision for credit losses to average total loans held for investment(1)(2)0.26 %0.31 %

(1)Ratios are calculated using average balance for the nine months ended September 30, 2025 and 2024, respectively.

(2)Ratios are annualized utilizing provision for credit losses for the nine months ended September 30, 2025 and 2024, respectively.

30

The table below details net charge-offs/(recoveries) as a percentage of average total loans by portfolio segment:

Nine Months Ended September 30,20252024(dollars in thousands)NetCharge-offsNet Charge-offsto AverageLoans(1)NetCharge-offsNet Charge-offsto AverageLoans(1)Commercial$35,992 0.41 %$23,074 0.29 %Mortgage finance— — %— — %Commercial real estate518 0.01 %5,698 0.13 %Consumer(8)— %30 0.01 %Total$36,502 0.21 %$28,802 0.18 %

(1)Ratios are annualized utilizing net charge-offs for the nine months ended September 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