Company: TCBI
Filing Date: 2025-04-17
Form Type: 10-Q
Source: 0001077428-25-000078
Chunk: 43

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-04-17
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 %1.46 %Total provision for credit losses to average total loans held for investment(1)(2)0.32 %0.38 %

(1)Ratios are calculated using average balance for the three months ended March 31, 2025 and 2024, respectively.

(2)Ratios are annualized utilizing provision for credit losses for the three months ended March 31, 2025 and 2024, respectively.

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

Three Months Ended March 31,20252024(dollars in thousands)NetCharge-offsNet Charge-offsto AverageLoans(1)NetCharge-offsNet Charge-offsto AverageLoans(1)Commercial$9,714 0.35 %$7,439 0.29 %Mortgage finance— — %— — %Commercial real estate87 0.01 %3,325 0.24 %Consumer(4)— %— — %Total$9,797 0.18 %$10,764 0.22 %

(1)Ratios are annualized utilizing net charge-offs for the three months ended March 31, 2025 and 2024, respectively.

Liquidity and Capital Resources

Liquidity

In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. The Company’s objectives in managing its liquidity are to maintain the ability to meet loan commitments, repurchase investment securities and repay deposits and other liabilities in accordance with their terms, without an adverse impact on current or future earnings. The Company’s liquidity strategy is guided by policies, formulated and monitored by senior management and the Asset and Liability Management Committee (“ALCO”), which take into account the demonstrated marketability of the Company’s assets, the sources and stability of its funding and the 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, which are generally used to fund mortgage finance loans, 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