Company: TCBI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001077428-25-000136
Chunk: 66

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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20

(10) Derivative Financial Instruments

The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table.  June 30, 2025December 31, 2024Estimated Fair ValueEstimated Fair Value(in thousands)NotionalAmountAsset DerivativeLiability DerivativeNotionalAmountAsset DerivativeLiability DerivativeDerivatives designated as hedgesCash flow hedges:Interest rate contracts:Swaps hedging loans$2,500,000 $3,463 $7,437 $2,600,000 $254 $23,265 Non-hedging derivativesCustomer-initiated and other derivatives:Foreign currency forward contracts314,676 2,014 1,786 485,948 5,462 5,299 Interest rate contracts:Swaps6,548,231 40,597 40,597 6,273,301 45,771 45,771 Caps and floors written2,012,478 5,017 2,174 970,451 1,066 2,529 Caps and floors purchased2,012,478 2,174 5,017 970,451 2,529 1,066 Forward contracts27,269,117 75,354 74,395 20,237,917 41,896 41,035 Gross derivatives128,619 131,406 96,978 118,965 Netting adjustment - offsetting derivative assets/liabilities(66,427)(66,427)(44,097)(44,097)Netting adjustment - cash collateral received/posted(12,063)(24,762)(29,679)(16,962)Net derivatives included on the consolidated balance sheets$50,129 $40,217 $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 $50.1 million at June 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