Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 14

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 14
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 investment0.02 %0.10 %Loans held for sale past due 90 days and accruing$— $— 

Summary of Credit Loss Experience

The provision for credit losses, comprised of a provision for loans and off-balance sheet credit losses, is a charge to earnings to maintain the allowance for credit losses at a level consistent with management’s assessment of expected losses at each balance sheet date.

The Company recorded a provision for credit losses of $67.0 million for the year ended December 31, 2024, compared to a provision of $72.0 million for the year ended December 31, 2023. The provision for credit losses for the year ended December 31, 2024 reflects growth in loans held for investment and $40.9 million in net charge-offs recorded during the year ended December 31, 2024, compared to $50.9 million in net charge-offs during the same period in 2023. Criticized loans totaled $714.0 million at December 31, 2024, compared to $738.2 million at December 31, 2023.

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

December 31, 2024December 31, 2023Allowance for credit losses on loans to total loans held for investment1.21 %1.23 %Allowance for credit losses on loans to average total loans held for investment1.27 %1.24 %Total allowance for credit losses to total loans held for investment1.45 %1.46 %Total provision for credit losses to average total loans held for investment0.31 %0.36 %

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

Year Ended December 31,20242023(dollars in thousands)NetCharge-offsNet Charge-offsto AverageLoansNetCharge-offsNet Charge-offsto AverageLoansCommercial$32,612 0.31 %$45,395 0.44 %Mortgage finance— — %— — %Commercial real estate8,246 0.15 %5,496 0.10 %Consumer15 — %36 0.01 %Total$40,873 0.19 %$50,927 0.25 %

The allowance