Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 73

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 8
Chunk 73
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 deferred compensation plan liabilities(7)20,387 — — (1)Available-for-sale debt securities and equity securities are measured at fair value on a recurring basis, generally monthly.(2)Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds.(3)Loans held for sale are measured at fair value on a recurring basis, generally monthly.(4)Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions.(5)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.(6)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.(7)Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.Level 3 ValuationsThe following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis:Net Gains/(Losses)(in thousands)Balance at Beginning of PeriodPurchases / AdditionsSales / ReductionsRealizedUnrealizedBalance at End of PeriodYear Ended December 31, 2024Available-for-sale debt securities:(1)CRT securities$11,995 $— $(1,170)$— $1,101 $11,926 Year Ended December 31, 2023Available-for-sale debt securities:(1)CRT securities$11,861 $— $(1,077)$— $1,211 $11,995 (1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income on the consolidated statements of income and other comprehensive income/(loss).

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CRT securitiesThe fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3 inputs, the most significant of which were a discount rate and weighted-average life. At December 31, 2024, the discount rates utilized ranged from 5.02% to 6.58% and the weighted-average life ranged from 4.51 years