Company: TCBI
Filing Date: 2025-04-17
Form Type: 10-Q
Source: 0001077428-25-000078
Chunk: 23

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-04-17
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 March 31, 2024Beginning balance$36,040 $6 $10,147 $169 $46,362 Provision for off-balance sheet credit losses(3,728)28 (2,048)(5)(5,753)Ending balance$32,312 $34 $8,099 $164 $40,609 (in thousands)March 31, 2025December 31, 2024Commitments to extend credit - period end balance$10,005,653 $9,694,406 Standby letters of credit - period end balance522,580 538,047 

(7) Regulatory Ratios and Capital

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.The Basel III Capital Rules adopted by U.S. federal banking agencies, among other things, (i) establish the capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 Capital” instruments meeting stated requirements, (iii) require that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) define the scope of the deductions/adjustments to the capital measures.Additionally, the Basel III Capital Rules require that the Company maintain a 2.5% capital conservation buffer comprised of CET1, with respect to each of CET1, Tier 1 and total capital to risk-weighted asset ratios. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. No dividends were declared or paid on the Company’s common stock during the three months ended March 31, 2025 or during 202