Company: TCBI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001077428-25-000136
Chunk: 64

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 securities:(1)CRT securities$11,995 $— $(500)$— $833 $12,328 (1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income on the consolidated statements of income and other comprehensive income/(loss).CRT securitiesThe fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3 inputs, the most significant of which were a discount rate and weighted-average life. At June 30, 2025, the discount rates utilized ranged from 4.54% to 5.86% and the weighted-average life ranged from 3.97 years to 6.16 years. On a combined amortized cost weighted-average basis a discount rate of 5.08% and a weighted-average life of 4.87 years were utilized to determine the fair value of these securities at June 30, 2025. At December 31, 2024, the combined weighted-average discount rate and weighted-average life utilized were 5.63% and 5.35 years, respectively.Loans held for investmentCertain collateral-dependent loans held for investment are reported at fair value when, based upon an individual evaluation, the specific allocation of the allowance for credit losses that is deducted from the loan's amortized cost is based upon the fair value of the loan's underlying collateral. The $16.2 million fair value of loans held for investment at June 30, 2025 reported above includes impaired loans with a carrying value of $27.1 million that were reduced by specific allowance allocations totaling $10.9 million based on collateral valuations utilizing Level 3 inputs. The $35.3 million fair value of loans held for investment at December 31, 2024 reported above includes impaired loans with a carrying value of $63.6 million that were reduced by specific allowance allocations totaling $28.3 million based on collateral valuations utilizing Level 3 inputs. 

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Fair Value of Financial InstrumentsA summary of the carrying amounts and estimated fair values of financial instruments is as follows:CarryingAmountEstimated Fair Value(in thousands)TotalLevel 1Level 2Level 3June 30, 2025Financial assets:Cash and cash equivalents$2,690,142 $2,690,142 $2,690,142 $— $— Available-for-sale debt securities3,774