Company: TCBI
Filing Date: 2025-04-17
Form Type: 10-Q
Source: 0001077428-25-000078
Chunk: 124

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-04-17
Form: 10-Q
Item: Part I, Item 2
Chunk 124
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 1,340,301 99,656 3,199 2,396,667 Total interest bearing deposits16,735,098 1,340,301 99,656 3,199 18,178,254 Short-term borrowings750,000 — — — 750,000 Long-term debt113,406 174,783 — 372,332 660,521 Total borrowings863,406 174,783 — 372,332 1,410,521 Total interest sensitive liabilities$17,598,504 $1,515,084 $99,656 $375,531 $19,588,775 GAP$7,035,637 $(977,398)$326,296 $4,633,953 $— Cumulative GAP$7,035,637 $6,058,239 $6,384,535 $11,018,488 $11,018,488 Non-interest bearing deposits7,874,780 Stockholders’ equity3,429,774 Total$11,304,554 

(1)Available-for-sale debt securities, equity securities and trading securities based on fair market value.

(2)Total loans include gross loans held for investment and loans held for sale.

29

While a gap interest table is useful in analyzing interest rate sensitivity, an interest rate sensitivity simulation provides a better illustration of the sensitivity of earnings to changes in interest rates. Earnings are also affected by the effects of changing interest rates on the value of funding derived from non-interest bearing deposits and stockholders’ equity. Management performs a sensitivity analysis to identify interest rate risk exposure on net interest income. Management also quantifies and measures interest rate risk exposure using a model to dynamically simulate the effect of changes in net interest income relative to changes in interest rates over the next twelve months based on different interest rate scenarios. These are a static rate scenario and “shock test” scenarios, as described below.

These scenarios are based on interest rates as of the last day of a reporting period published by independent sources and incorporate relevant spreads of instruments that are actively traded in the open market. The Federal Reserve’s federal funds target affects short-term borrowing; the prime lending rate, SOFR, Bloomberg Short Term Yield Index and other alternative indexes are the basis for most of the variable-rate loan pricing. The 10-year treasury rate is also monitored because of its effect on prepayment