Company: TCBI
Filing Date: 2025-04-17
Form Type: 10-Q
Source: 0001077428-25-000078
Chunk: 71

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-04-17
Form: 10-Q
Item: Part I, Item 8
Chunk 71
---
 consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds.(3)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.(4)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.(5)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.(6)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 PeriodThree Months Ended March 31, 2025Available-for-sale debt securities:(1)CRT securities$11,926 $— $(301)$— $(31)$11,594 Three Months Ended March 31, 2024Available-for-sale debt securities:(1)CRT securities$11,995 $— $(209)$— $475 $12,261 (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).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 March 31, 2025, the discount rates utilized ranged from 4.90% to 

16

6.20% and the weighted-average life ranged from 4.31 years to 6.41 years. On a combined amortized cost weighted-average basis a discount rate of 5.42% and a weighted-average life of 5.15 years were utilized to determine the fair value of these securities at March 31, 2025. At December 31, 2024, the combined weighted-average discount rate and weighted-average life utilized were