Company: TCBI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001077428-25-000136
Chunk: 13

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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 a level consistent with management’s assessment of expected losses at each balance sheet date.

The Company recorded a provision for credit losses of $32.0 million for the six months ended June 30, 2025, compared to a provision of $39.0 million for the six months ended June 30, 2024. The provision for credit losses for the six months ended June 30, 2025 reflects an increase in total loans held for investment and $22.8 million in net charge-offs recorded during the six months ended June 30, 2025, partially offset by a decline in criticized loans. Criticized loans totaled $637.5 million at June 30, 2025, compared to $714.0 million at December 31, 2024.

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

June 30, 2025June 30, 2024Allowance for credit losses on loans to total loans held for investment1.16 %1.23 %Allowance for credit losses on loans to average total loans held for investment(1)1.24 %1.30 %Total allowance for credit losses to total loans held for investment1.40 %1.44 %Total provision for credit losses to average total loans held for investment(1)(2)0.29 %0.20 %

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

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

The table below details net charge-offs/(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)R