Company: TCBI
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001077428-25-000145
Chunk: 116

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 116
---
299 Interest rate contracts:Swaps6,502,321 37,382 37,382 6,273,301 45,771 45,771 Caps and floors written2,055,925 4,028 1,417 970,451 1,066 2,529 Caps and floors purchased2,055,925 1,417 4,028 970,451 2,529 1,066 Forward contracts22,708,747 30,815 30,385 20,237,917 41,896 41,035 Gross derivatives79,314 76,371 96,978 118,965 Netting adjustment - offsetting derivative assets/liabilities(32,350)(32,350)(44,097)(44,097)Netting adjustment - cash collateral received/posted(9,667)(19,757)(29,679)(16,962)Net derivatives included on the consolidated balance sheets$37,297 $24,264 $23,202 $57,906 The Company’s credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases, collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $37.3 million at September 30, 2025 and approximately $23.2 million at December 31, 2024. Collateral levels are monitored and adjusted on a regular basis for changes in the value of derivative instruments. At September 30, 2025, the Company had $30.0 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $10.6 million in cash collateral received from counterparties included in interest bearing deposits on the consolidated balance sheet. The comparative amounts at December 31, 2024, were $71.3 million in cash collateral pledged to counterparties and $31.0 million cash collateral received from counterparties.The Company also enters into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which the Company is either a participant or a lead bank. The risk participation agreements entered into by the Company as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate