Company: TCBI
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001077428-25-000145
Chunk: 113

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 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.(3)Derivative assets and liabilities are measured at fair value on a recurring basis, generally monthly.(4)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.(5)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 September 30, 2025Available-for-sale debt securities:(1)Credit risk transfer securities$11,367 $— $(382)$— $8 $10,993 Three Months Ended September 30, 2024Available-for-sale debt securities:(1)Credit risk transfer securities$12,328 $— $(346)$— $20 $12,002 Nine Months Ended September 30, 2025Available-for-sale debt securities:(1)Credit risk transfer securities$11,926 $— $(1,019)$— $86 $10,993 Nine Months Ended September 30, 2024Available-for-sale debt securities:(1)Credit risk transfer securities$11,995 $— $(846)$— $853 $12,002 (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).

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Credit risk transfer securitiesThe fair value of credit risk transfer 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 September 30, 2025, the discount rates utilized ranged from 4.65% to 5.68% and the weighted-average life ranged from 3.88 years to 5.90 years.