Company: TCBI
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001077428-25-000145
Chunk: 85

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 85
---
 level of unfunded commitments. The Company regularly evaluates all of its various funding sources with an emphasis on accessibility, stability, reliability and cost-effectiveness. The Company’s principal source of funding is customer deposits, supplemented by short-term borrowings, primarily from federal funds purchased and Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits and long-term debt. The Company also relies on the availability of the mortgage secondary market provided by Ginnie Mae and government sponsored entities to support the liquidity of mortgage finance loans.

The following table summarizes the Company’s interest bearing cash and cash equivalents:

(dollars in thousands)September 30, 2025December 31, 2024Interest bearing cash and cash equivalents$2,852,387 $3,012,307 Interest bearing cash and cash equivalents as a percent of:Total loans held for investment11.8 %13.4 %Total earning assets9.1 %10.2 %Total deposits10.4 %11.9 %

The Company aims to obtain as much of its funding as possible from customer deposits, which are generated through digital acquisition or as a result of development of long-term customer relationships, with a significant focus on treasury management products. In addition, the Company also has access to deposits through brokered channels. The following table summarizes period-end total deposits:

September 30, 2025December 31, 2024(dollars in thousands)Balance% of TotalBalance% of TotalCustomer deposits$26,739,258 97.2 %$24,704,091 97.9 %Brokered deposits766,140 2.8 %534,508 2.1 %Total deposits$27,505,398 100.0 %$25,238,599 100.0 %

Estimated uninsured deposits, including accrued interest, were 42% of total deposits at September 30, 2025 and 41% at December 31, 2024. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

31

The Company has short-term borrowing sources available to supplement deposits and meet its funding needs. Such borrowings are generally used to fund mortgage finance loans, due to their liquidity, short duration and interest spreads available. These borrowing sources include federal funds purchased from downstream correspondent bank relationships (which consist of banks that are smaller than the Bank) and from upstream correspondent bank relationships (which consist of banks that