Company: TCBI
Filing Date: 2025-04-17
Form Type: 10-Q
Source: 0001077428-25-000078
Chunk: 42

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-04-17
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 commercial real estate33,777 34,637 Consumer:Single family residences— 964 Total consumer— 964 Total non-accrual loans held for investment93,565 111,165 Non-accrual loans held for sale— — Other real estate owned (“OREO”)— — Total non-performing assets$93,565 $111,165 Non-accrual loans held for investment to total loans held for investment0.42 %0.50 %Total non-performing assets to total assets0.30 %0.36 %Allowance for credit losses on loans to non-accrual loans held for investment3.0x2.4xLoans held for investment past due 90 days and accruing$791 $4,265 Loans held for investment past due 90 days to total loans held for investment— %0.02 %Loans held for sale past due 90 days and accruing$— $— 

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 $17.0 million for the three months ended March 31, 2025, compared to a provision of $19.0 million for the three months ended March 31, 2024. The provision for credit losses for the three months ended March 31, 2025 reflects an increase in criticized loans, $9.8 million in net charge-offs recorded during the three months ended March 31, 2025 and uncertainty in the economic outlook. Criticized loans totaled $762.9 million at March 31, 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: 

March 31, 2025March 31, 2024Allowance for credit losses on loans to total loans held for investment1.24 %1.27 %Allowance for credit losses on loans to average total loans held for investment(1)1.29 %1.32 %Total allowance for credit losses to total loans held for investment1.48