tcbi-20231019

Exhibit 99.1


						INVESTOR CONTACT
						Jocelyn Kukulka, 469.399.8544
						[email protected]

						MEDIA CONTACT
						Julia Monter, 469.399.8425
						[email protected]

TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2023 RESULTS

Third quarter 2023 net income of $61.7 million and net income available to common

stockholders of $57.4 million, or $1.18 per diluted share

Top tier capital ratios, including 12.7% CET1 and 17.1% Total Capital

DALLAS - October 19, 2023 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2023.

Net income available to common stockholders was $57.4 million, or $1.18 per diluted share, for the third quarter of 2023, compared to $64.3 million, or $1.33 per diluted share, for the second quarter of 2023 and $37.1 million, or $0.74 per diluted share, for the third quarter of 2022.

“Our quarterly results demonstrate the power of the platform we built over the last two years,” said Rob C. Holmes, President and CEO. “Our capability and expertise to provide solutions for our clients extends well beyond traditional lending products and is complimented by near record levels of capital and liquidity.”


FINANCIAL RESULTS
(dollars and shares in thousands)
	3rd Quarter			2nd Quarter			3rd Quarter
	2023			2023			2022
OPERATING RESULTS
Net income	$	61,679		$	68,651		$	41,418
Net income available to common stockholders	$	57,366		$	64,339		$	37,105
Diluted earnings per common share	$	1.18		$	1.33		$	0.74
Diluted common shares	48,529			48,421			50,418
Return on average assets	0.81		%	0.95		%	0.52		%
Return on average common equity	8.08		%	9.17		%	5.36		%

BALANCE SHEET
Loans held for investment	$	16,183,882		$	16,227,203		$	14,878,959
Loans held for investment, mortgage finance	4,429,489			5,098,812			4,908,822
Total loans held for investment	20,613,371			21,326,015			19,787,781
Loans held for sale	155,073			29,097			3,142,178
Total assets	29,628,249			28,976,544			30,408,513
Non-interest bearing deposits	9,352,883			9,429,352			11,494,685
Total deposits	23,878,978			23,318,240			24,498,563
Stockholders’ equity	3,077,700			3,081,927			2,885,775

THIRD QUARTER 2023 COMPARED TO SECOND QUARTER 2023

For the third quarter of 2023, net income available to common stockholders was $57.4 million, or $1.18 per diluted share, compared to $64.3 million, or $1.33 per diluted share, for the second quarter of 2023.

Provision for credit losses for the third quarter of 2023 was $18.0 million, compared to $7.0 million for the second quarter of 2023. The $18.0 million provision for credit losses recorded in the third quarter of 2023 resulted primarily from an increase in criticized loans, partially offset by decreases in total loans held for investment (“LHI”) and non-accrual loans.

Net interest income of $232.1 million for the third quarter of 2023 was relatively flat as compared to $232.0 million for the second quarter of 2023, as increases in average earning assets and yields on average earning assets were offset by increases in funding costs and average interest-bearing liabilities. Net interest margin for the third quarter of 2023 was 3.13%, a decrease of 16 basis points from the second quarter of 2023. LHI, excluding mortgage finance, yields increased 29 basis points from the second quarter of 2023 and LHI, mortgage finance yields decreased 68 basis points from the second quarter of 2023. Total cost of deposits was 2.62% for the third quarter of 2023, a 25 basis point increase from the second quarter of 2023.

Non-interest income for the third quarter of 2023 increased $861,000, or 2%, compared to the second quarter of 2023, primarily due to an increase in investment banking and trading income, partially offset by a decrease in other non-interest income.

Non-interest expense for the third quarter of 2023 decreased $1.8 million, or 1%, compared to the second quarter of 2023, primarily due to decreases in salaries and benefits and marketing expenses, partially offset by increases in legal and professional and Federal Deposit Insurance Corporation (“FDIC”) insurance assessment expenses.

THIRD QUARTER 2023 COMPARED TO THIRD QUARTER 2022

Net income available to common stockholders was $57.4 million, or $1.18 per diluted share, for the third quarter of 2023, compared to $37.1 million, or $0.74 per diluted share, for the third quarter of 2022.

The third quarter of 2023 included a $18.0 million provision for credit losses, reflecting an increase in criticized loans, partially offset by decreases in total LHI and non-accrual loans, compared to a $12.0 million provision for credit losses for the third quarter of 2022.

Net interest income decreased to $232.1 million for the third quarter of 2023, compared to $239.1 million for the third quarter of 2022, primarily due to an increase in funding costs and a decrease in average earning assets, partially offset by an increase in yields on average earning assets. Net interest margin increased 8 basis points to 3.13% for the third quarter of 2023, as compared to the third quarter of 2022. LHI, excluding mortgage finance, yields increased 247 basis points compared to the third quarter of 2022 and LHI, mortgage finance yields decreased 132 basis points from the third quarter of 2022. Total cost of deposits increased 169 basis points compared to the third quarter of 2022.

Non-interest income for the third quarter of 2023 increased $21.5 million, or 85%, compared to the third quarter of 2022. The increase was primarily due to an increase in investment banking and trading income.

Non-interest expense for the third quarter of 2023 decreased $17.2 million, or 9%, compared to the third quarter of 2022, primarily due to decreases in salaries and benefits and marketing expenses, partially offset by increases in communications and technology and FDIC insurance assessment expenses. The third quarter of 2022 included $13.7 million in salaries and benefits expense related to the sale of our premium finance subsidiary.

CREDIT QUALITY

Net charge-offs of $8.9 million were recorded during the third quarter of 2023, compared to net charge-offs of $8.2 million and $2.7 million during the second quarter of 2023 and the third quarter of 2022, respectively. Criticized loans totaled $677.4 million at September 30, 2023, compared to $619.4 million at June 30, 2023 and $484.0 million at September 30, 2022. Non-accrual LHI totaled $63.1 million at September 30, 2023, compared to $81.0 million at June 30, 2023 and $35.9 million at September 30, 2022. The ratio of non-accrual LHI to total LHI for the third quarter of 2023 was 0.31%, compared to 0.38% for the second quarter of 2023 and 0.18% for the third quarter of 2022. The ratio of total allowance for credit losses to total LHI was 1.41% at September 30, 2023, compared to 1.32% and 1.30% at June 30, 2023 and September 30, 2022, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2023. Our CET1, tier 1 capital, total capital and leverage ratios were 12.7%, 14.3%, 17.1% and 12.1%, respectively, at September 30, 2023, compared to 12.2%, 13.7%, 16.4% and 12.4%, respectively, at June 30, 2023 and 11.1%, 12.6%, 15.2% and 10.7%, respectively, at September 30, 2022. At September 30, 2023, our ratio of tangible common equity to total tangible assets was 9.4%, compared to 9.6% at June 30, 2023 and 8.5% at September 30, 2022.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000 Index and the S&P MidCap 400, is the holding company of Texas Capital Bank, a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the firm is headquartered in Dallas with offices in Austin, Houston, San Antonio, and

Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital Bank has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; TCBI’s ability to effectively manage its liquidity; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; negative press and social media attention with respect to the banking industry or TCBI, in particular; the transition away from the London Interbank Offered Rate (LIBOR); legislative and regulatory changes; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.


TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2023			2023			2023			2022			2022
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	425,769		$	401,916		$	385,166		$	371,292		$	322,072
Interest expense	193,698			169,926			149,821			123,687			82,991
Net interest income	232,071			231,990			235,345			247,605			239,081
Provision for credit losses	18,000			7,000			28,000			34,000			12,000
Net interest income after provision for credit losses	214,071			224,990			207,345			213,605			227,081
Non-interest income	46,872			46,011			37,403			277,667			25,332
Non-interest expense	179,891			181,644			194,027			213,090			197,047
Income before income taxes	81,052			89,357			50,721			278,182			55,366
Income tax expense	19,373			20,706			12,060			60,931			13,948
Net income	61,679			68,651			38,661			217,251			41,418
Preferred stock dividends	4,313			4,312			4,313			4,312			4,313
Net income available to common stockholders	$	57,366		$	64,339		$	34,348		$	212,939		$	37,105
Diluted earnings per common share	$	1.18		$	1.33		$	0.70		$	4.23		$	0.74
Diluted common shares	48,528,698			48,421,276			48,880,725			50,282,663			50,417,884

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	29,628,249		$	28,976,544		$	28,596,653		$	28,414,642		$	30,408,513
Loans held for investment	16,183,882			16,227,203			16,014,497			15,197,307			14,878,959
Loans held for investment, mortgage finance	4,429,489			5,098,812			4,060,570			4,090,033			4,908,822
Loans held for sale	155,073			29,097			27,608			36,357			3,142,178
Interest bearing cash and cash equivalents	3,975,860			2,587,131			3,385,494			4,778,623			3,399,638
Investment securities	4,069,717			4,226,653			4,345,969			3,585,114			3,369,622
Non-interest bearing deposits	9,352,883			9,429,352			9,500,583			9,618,081			11,494,685
Total deposits	23,878,978			23,318,240			22,179,697			22,856,880			24,498,563
Short-term borrowings	1,400,000			1,350,000			2,100,000			1,201,142			1,701,480
Long-term debt	858,471			857,795			932,119			931,442			930,766
Stockholders’ equity	3,077,700			3,081,927			3,079,974			3,055,351			2,885,775

End of period shares outstanding	48,015,003			47,992,521			47,851,862			48,783,763			49,897,726
Book value per share	$	57.85		$	57.97		$	58.10		$	56.48		$	51.82
Tangible book value per share(1)	$	57.82		$	57.93		$	58.06		$	56.45		$	51.48

SELECTED FINANCIAL RATIOS
Net interest margin	3.13		%	3.29		%	3.33		%	3.26		%	3.05		%
Return on average assets	0.81		%	0.95		%	0.53		%	2.80		%	0.52		%
Return on average common equity	8.08		%	9.17		%	5.06		%	30.66		%	5.36		%
Non-interest income to average earning assets	0.64		%	0.66		%	0.54		%	3.70		%	0.33		%
Efficiency ratio(2)	64.5		%	65.3		%	71.1		%	40.6		%	74.5		%
Non-interest expense to average earning assets	2.46		%	2.61		%	2.78		%	2.84		%	2.53		%
Common equity to total assets	9.4		%	9.6		%	9.7		%	9.7		%	8.5		%
Tangible common equity to total tangible assets(3)	9.4		%	9.6		%	9.7		%	9.7		%	8.5		%
Common Equity Tier 1	12.7		%	12.2		%	12.4		%	13.0		%	11.1		%
Tier 1 capital	14.3		%	13.7		%	14.0		%	14.7		%	12.6		%
Total capital	17.1		%	16.4		%	16.9		%	17.7		%	15.2		%
Leverage	12.1		%	12.4		%	12.0		%	11.5		%	10.7		%

(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.

(2) Non-interest expense divided by the sum of net interest income and non-interest income.

(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	September 30, 2023		September 30, 2022		% Change
Assets
Cash and due from banks	$	216,916	$	240,609	(10)	%
Interest bearing cash and cash equivalents	3,975,860		3,399,638		17	%
Available-for-sale debt securities	3,147,865		2,380,774		32	%
Held-to-maturity debt securities	881,352		955,875		(8)	%
Equity securities	40,500		32,973		23	%
Investment securities	4,069,717		3,369,622		21	%
Loans held for sale	155,073		3,142,178		(95)	%
Loans held for investment, mortgage finance	4,429,489		4,908,822		(10)	%
Loans held for investment	16,183,882		14,878,959		9	%
Less: Allowance for credit losses on loans	244,902		234,613		4	%
Loans held for investment, net	20,368,469		19,553,168		4	%

Premises and equipment, net	31,050		27,180		14	%
Accrued interest receivable and other assets	809,668		648,172		25	%
Other assets held for sale	—		26,450		(100)	%
Goodwill and intangibles, net	1,496		1,496		—	%
Total assets	$	29,628,249	$	30,408,513	(3)	%

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	9,352,883	$	11,494,685	(19)	%
Interest bearing deposits	14,526,095		13,003,878		12	%
Total deposits	23,878,978		24,498,563		(3)	%
Accrued interest payable	31,149		18,465		69	%
Other liabilities	381,951		297,900		28	%
Other liabilities held for sale	—		75,564		(100)	%
Short-term borrowings	1,400,000		1,701,480		(18)	%
Long-term debt	858,471		930,766		(8)	%
Total liabilities	26,550,549		27,522,738		(4)	%

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 shares issued at September 30, 2023 and 2022	300,000		300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,110,447 and 50,840,022 at September 30, 2023 and 2022, respectively	511		509		—	%
Additional paid-in capital	1,039,074		1,020,153		2	%
Retained earnings	2,419,555		2,050,563		18	%
Treasury stock - 3,095,444 and 942,296 shares at cost at September 30, 2023 and 2022, respectively	(175,528)		(50,031)		N/M
Accumulated other comprehensive loss, net of taxes	(505,912)		(435,419)		16	%
Total stockholders’ equity	3,077,700		2,885,775		7	%
Total liabilities and stockholders’ equity	$	29,628,249	$	30,408,513	(3)	%


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest income
Interest and fees on loans	$	345,138	$	282,474	$	975,443	$	688,422
Investment securities	27,070		15,002		79,840		46,969
Interest bearing cash and cash equivalents	53,561		24,596		157,568		37,561
Total interest income	425,769		322,072		1,212,851		772,952
Interest expense
Deposits	160,117		60,317		417,602		94,513
Short-term borrowings	19,576		10,011		52,573		15,628
Long-term debt	14,005		12,663		43,270		34,651
Total interest expense	193,698		82,991		513,445		144,792
Net interest income	232,071		239,081		699,406		628,160
Provision for credit losses	18,000		12,000		53,000		32,000
Net interest income after provision for credit losses	214,071		227,081		646,406		596,160
Non-interest income
Service charges on deposit accounts	5,297		5,797		15,477		18,014
Wealth management and trust fee income	3,509		3,631		10,653		11,594
Brokered loan fees	2,532		3,401		6,842		11,504

Investment banking and trading income	29,191		7,812		75,457		23,117


Other	6,343		4,691		21,857		7,626
Total non-interest income	46,872		25,332		130,286		71,855
Non-interest expense
Salaries and benefits	110,010		128,764		351,730		331,981
Occupancy expense	9,910		9,433		29,011		27,192
Marketing	4,757		8,282		20,168		21,765
Legal and professional	17,614		16,775		47,797		38,365
Communications and technology	19,607		18,470		57,655		48,819
Federal Deposit Insurance Corporation insurance assessment	5,769		3,953		11,632		11,252


Other	12,224		11,370		37,569		35,068
Total non-interest expense	179,891		197,047		555,562		514,442
Income before income taxes	81,052		55,366		221,130		153,573
Income tax expense	19,373		13,948		52,139		38,346
Net income	61,679		41,418		168,991		115,227
Preferred stock dividends	4,313		4,313		12,938		12,938
Net income available to common stockholders	$	57,366	$	37,105	$	156,053	$	102,289

Basic earnings per common share	$	1.19	$	0.74	$	3.24	$	2.03
Diluted earnings per common share	$	1.18	$	0.74	$	3.20	$	2.00


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2023			2023			2023			2022			2022
Allowance for credit losses on loans:
Beginning balance	$	237,343		$	260,928		$	253,469		$	234,613		$	229,013
Loans charged-off:
Commercial	13,246			8,852			20,732			17,106			3,135


Consumer	41			—			—			—			—
Total charge-offs	13,287			8,852			20,732			17,106			3,135
Recoveries:
Commercial	4,346			611			819			2,105			400


Consumer	—			2			3			2			2
Total recoveries	4,346			613			822			2,107			402
Net charge-offs	8,941			8,239			19,910			14,999			2,733
Provision for credit losses on loans	16,500			(15,346)			27,369			33,855			8,333
Ending balance	$	244,902		$	237,343		$	260,928		$	253,469		$	234,613

Allowance for off-balance sheet credit losses:
Beginning balance	$	44,770		$	22,424		$	21,793		$	21,648		$	17,981
Provision for off-balance sheet credit losses	1,500			22,346			631			145			3,667
Ending balance	$	46,270		$	44,770		$	22,424		$	21,793		$	21,648

Total allowance for credit losses	$	291,172		$	282,113		$	283,352		$	275,262		$	256,261
Total provision for credit losses	$	18,000		$	7,000		$	28,000		$	34,000		$	12,000

Allowance for credit losses on loans to total loans held for investment	1.19		%	1.11		%	1.30		%	1.31		%	1.19		%
Allowance for credit losses on loans to average total loans held for investment	1.17		%	1.15		%	1.38		%	1.31		%	1.06		%
Net charge-offs to average total loans held for investment(1)	0.17		%	0.16		%	0.43		%	0.31		%	0.05		%
Net charge-offs to average total loans held for investment for last 12 months(1)	0.26		%	0.23		%	0.19		%	0.09		%	0.03		%
Total provision for credit losses to average total loans held for investment(1)	0.34		%	0.14		%	0.60		%	0.70		%	0.22		%
Total allowance for credit losses to total loans held for investment	1.41		%	1.32		%	1.41		%	1.43		%	1.30		%

(1)Interim period ratios are annualized.


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2023			2023			2023			2022			2022
Non-accrual loans held for investment	$	63,129		$	81,039		$	93,951		$	48,338		$	35,864
Non-accrual loans held for sale(1)	—			—			—			—			1,340
Other real estate owned	—			—			—			—			—
Total non-performing assets	$	63,129		$	81,039		$	93,951		$	48,338		$	37,204

Non-accrual loans held for investment to total loans held for investment	0.31		%	0.38		%	0.47		%	0.25		%	0.18		%
Total non-performing assets to total assets	0.21		%	0.28		%	0.33		%	0.17		%	0.12		%
Allowance for credit losses on loans to non-accrual loans held for investment	3.9x			2.9x			2.8x			5.2x			6.5x
Total allowance for credit losses to non-accrual loans held for investment	4.6x			3.5x			3.0x			5.7x			6.9x


Loans held for investment past due 90 days and still accruing	$	4,602		$	64		$	3,098		$	131		$	30,664
Loans held for investment past due 90 days to total loans held for investment	0.02		%	—		%	0.02		%	—		%	0.15		%
Loans held for sale past due 90 days and still accruing(1)(2)	$	—		$	—		$	—		$	—		$	4,877

(1)Third quarter 2022 includes $1.3 million in non-accrual loans and $3.1 million in loans past due 90 days and still accruing associated to our insurance premium finance subsidiary that were transferred from loans held for investment to loans held for sale as of September 30, 2022.

(2)Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as loans held for sale and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)

	3rd Quarter		2nd Quarter		1st Quarter		4th Quarter		3rd Quarter
	2023		2023		2023		2022		2022
Interest income
Interest and fees on loans	$	345,138	$	332,867	$	297,438	$	295,372	$	282,474
Investment securities	27,070		27,478		25,292		16,210		15,002
Interest bearing deposits in other banks	53,561		41,571		62,436		59,710		24,596
Total interest income	425,769		401,916		385,166		371,292		322,072
Interest expense
Deposits	160,117		137,391		120,094		96,150		60,317
Short-term borrowings	19,576		18,253		14,744		13,449		10,011
Long-term debt	14,005		14,282		14,983		14,088		12,663
Total interest expense	193,698		169,926		149,821		123,687		82,991
Net interest income	232,071		231,990		235,345		247,605		239,081
Provision for credit losses	18,000		7,000		28,000		34,000		12,000
Net interest income after provision for credit losses	214,071		224,990		207,345		213,605		227,081
Non-interest income
Service charges on deposit accounts	5,297		5,158		5,022		5,252		5,797
Wealth management and trust fee income	3,509		3,715		3,429		3,442		3,631
Brokered loan fees	2,532		2,415		1,895		2,655		3,401

Investment banking and trading income	29,191		27,498		18,768		11,937		7,812

Gain on disposal of subsidiary	—		—		—		248,526		—
Other	6,343		7,225		8,289		5,855		4,691
Total non-interest income	46,872		46,011		37,403		277,667		25,332
Non-interest expense
Salaries and benefits	110,010		113,050		128,670		102,925		128,764
Occupancy expense	9,910		9,482		9,619		17,030		9,433
Marketing	4,757		6,367		9,044		10,623		8,282
Legal and professional	17,614		15,669		14,514		37,493		16,775
Communications and technology	19,607		20,525		17,523		20,434		18,470
Federal Deposit Insurance Corporation insurance assessment	5,769		3,693		2,170		3,092		3,953

Other	12,224		12,858		12,487		21,493		11,370
Total non-interest expense	179,891		181,644		194,027		213,090		197,047
Income before income taxes	81,052		89,357		50,721		278,182		55,366
Income tax expense	19,373		20,706		12,060		60,931		13,948
Net income	61,679		68,651		38,661		217,251		41,418
Preferred stock dividends	4,313		4,312		4,313		4,312		4,313
Net income available to common shareholders	$	57,366	$	64,339	$	34,348	$	212,939	$	37,105


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
	3rd Quarter 2023						2nd Quarter 2023						1st Quarter 2023						4th Quarter 2022						3rd Quarter 2022
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities(2)	$	4,204,749	$	27,070	2.33	%	$	4,306,881	$	27,478	2.36	%	$	4,060,456	$	25,292	2.31	%	$	3,385,372	$	16,210	1.70	%	$	3,509,044	$	15,002	1.58	%
Interest bearing cash and cash equivalents	3,965,045		53,561		5.36	%	3,286,091		41,571		5.07	%	5,541,341		62,436		4.57	%	6,158,769		59,710		3.85	%	4,453,806		24,596		2.19	%
Loans held for sale	31,878		647		8.06	%	28,414		599		8.46	%	43,472		938		8.75	%	1,053,157		12,064		4.54	%	1,029,983		11,316		4.36	%
Loans held for investment, mortgage finance	4,697,702		31,217		2.64	%	4,376,235		36,198		3.32	%	3,286,804		28,528		3.52	%	4,279,367		43,708		4.05	%	5,287,531		52,756		3.96	%
Loans held for investment(3)	16,317,324		313,346		7.62	%	16,217,314		296,183		7.33	%	15,598,854		268,131		6.97	%	15,105,083		239,746		6.30	%	16,843,922		218,513		5.15	%
Less: Allowance for credit losses on loans	238,883		—		—		261,027		—		—		252,727		—		—		233,246		—		—		229,005		—		—
Loans held for investment, net	20,776,143		344,563		6.58	%	20,332,522		332,381		6.56	%	18,632,931		296,659		6.46	%	19,151,204		283,454		5.87	%	21,902,448		271,269		4.91	%
Total earning assets	28,977,815		425,841		5.75	%	27,953,908		402,029		5.69	%	28,278,200		385,325		5.45	%	29,748,502		371,438		4.89	%	30,895,281		322,183		4.10	%
Cash and other assets	1,106,031						1,049,145						1,041,745						989,900						918,630
Total assets	$	30,083,846					$	29,003,053					$	29,319,945					$	30,738,402					$	31,813,911

Liabilities and Stockholders’ Equity
Transaction deposits	$	1,755,451	$	13,627	3.08	%	$	1,345,742	$	9,468	2.82	%	$	776,500	$	3,853	2.01	%	$	1,105,466	$	4,977	1.79	%	$	1,444,964	$	5,239	1.44	%
Savings deposits	10,858,306		127,323		4.65	%	10,590,558		114,275		4.33	%	11,195,402		105,707		3.83	%	10,563,049		80,801		3.03	%	10,249,387		46,555		1.80	%
Time deposits	1,610,235		19,167		4.72	%	1,531,922		13,648		3.57	%	1,430,657		10,534		2.99	%	1,625,857		10,372		2.53	%	1,701,238		8,523		1.99	%
Total interest bearing deposits	14,223,992		160,117		4.47	%	13,468,222		137,391		4.09	%	13,402,559		120,094		3.63	%	13,294,372		96,150		2.87	%	13,395,589		60,317		1.79	%
Short-term borrowings	1,393,478		19,576		5.57	%	1,397,253		18,253		5.24	%	1,242,881		14,744		4.81	%	1,387,660		13,449		3.84	%	1,931,537		10,011		2.06	%
Long-term debt	858,167		14,005		6.47	%	883,871		14,282		6.48	%	931,796		14,983		6.52	%	931,107		14,088		6.00	%	921,707		12,663		5.45	%
Total interest bearing liabilities	16,475,637		193,698		4.66	%	15,749,346		169,926		4.33	%	15,577,236		149,821		3.90	%	15,613,139		123,687		3.14	%	16,248,833		82,991		2.03	%
Non-interest bearing deposits	10,016,579						9,749,105						10,253,731						11,642,969						12,214,531
Other liabilities	474,869						389,155						436,621						426,543						305,554
Stockholders’ equity	3,116,761						3,115,447						3,052,357						3,055,751						3,044,993
Total liabilities and stockholders’ equity	$	30,083,846					$	29,003,053					$	29,319,945					$	30,738,402					$	31,813,911
Net interest income			$	232,143					$	232,103					$	235,504					$	247,751					$	239,192
Net interest margin					3.13	%					3.29	%					3.33	%					3.26	%					3.05	%

(1) Taxable equivalent rates used where applicable.

(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.

(3) Average balances include non-accrual loans.

2 Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans. Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward- looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors; recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; TCBI’s ability to effectively manage its liquidity; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; elevated or further changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; TCBI’s ability to successfully execute its business strategy, including developing and executing new lines of business and new products and services; the failure to identify, attract and retain key personnel and other employees; increased or expanded competition from banks and other financial service providers in TCBI’s markets; negative press and social media attention with respect to the banking industry or TCBI, in particular; the transition away from the London Interbank Offered Rate (LIBOR); legislative and regulatory changes; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

3 Foundational Tenants of Value Creation in Place Financial Priorities Described 9/1/2021 Building Tangible Book Value // Reinvesting organically generated capital to improve client relevance and create a more valuable franchise Investment // Re-aligning the expense base to directly support the business and investing aggressively to take advantage of market opportunities that we are uniquely positioned to serve Revenue Growth // Growing top- line revenue as a result of expanded banking capabilities for best-in-class clients in our Texas and national markets Flagship Results Proactive, disciplined engagement with the best clients in our markets to provide the talent, products, and offerings they need through their entire life-cycles Structurally higher, more sustainable earnings driving greater performance and lower annual variability Consistent communication, enhanced accountability, and a bias for action ensure execution and delivery Commitment to financial resilience allowing us to serve clients, access markets, and support communities through all cycles Higher quality earnings and a lower cost of capital drive a significant expansion in incremental shareholder returns

4 12.7% 12.5% 9.6% 11.0% 17.1% 16.2% 13.1% 13.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% TCBI Q3 2023 G-SIBs Cat II - IV Peers CET1 Ratio Total Capital Ratio 9.4% 6.4% 5.8% 7.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% TCBI Q3 2023 G-SIBs Cat II - IV Peers Financially Resilient Balance Sheet  On-hand cash liquidity is $4.2 billion, or 14% of total assets  Cash & Securities of $8.3 billion constitutes 28% of total assets  Substantially more liquidity than needed to cover all uninsured deposits  Uninsured deposits were $9.8 billion, or 40% of total deposits at period end  Cash was 43% of uninsured deposits, 1.6x the 27% median for large U.S. financial services firms5  Cash and contingent liquidity is 161% of uninsured deposits and 66% of all deposits  Peer leading capital levels:  CET1 of 12.7%, ranked 4th relative to all large U.S. financial services firms5  Tangible common equity as a percent of tangible assets6 of 9.37%, ranked 1st relative to all large U.S. financial services firms5  Total Capital ratio of 17.1%, ranked 3rd relative to all large U.S. financial services firms5  Adherence to a thru-cycle CRE strategy resulting in a manageable concentration of 140% of capital7 for Q3 2023 compared to 237% for peers3 Composition of Liquid Assets Cash & Contingent Liquidity % of Deposits CET1 Ratio & Total Capital Ratio Tangible Common Equity / Tangible Assets6 Peer Medians Peers3Cat II – IV2G-SIBs1TCBI Q3 2023 17%25%39%51%Cash & Equivalents 52%43%12%38%AFS Securities 20%20%26%11%HTM Securities 3%3%24%0%Trading Account & Other Securities 4%7%23%14%Cash & Equivalents / Total Assets 20%22%34%14%Securities / Total Assets 25%29%58%28%Cash & Securities / Total Assets 3Q232Q23($M) 6,9377,492 FHLB Borrowing Capacity 4,540 5,285 Other Short-Term Borrowing Capacities4 11,477 12,777 Total Contingent Funding 4,193 2,847 Cash & Equivalents $15,670 $15,624 Total Cash & Contingent Funding 66%67%Cash & Contingent Funding / Total Deposits 161%165%Cash & Contingent Funding / Uninsured Deposits 1 2 3 1 2 3

5 2021 Strategic Performance Drivers Where We Are Going Where We Started Where We Are Going Where We Started 2025 YTD 2023 FY 2022 FY 2021 FY 2020Performance Metrics2025 YTD 2023 FY 2022 FY 2021 FY 2020Income Statement >1.10%0.77%1.04%0.67%0.18%Return on Average Assets~10%9.1%2.9%2.7%2.2%Investment Banking and Trading Income (% of Total Revenue) >12.5%7.5%11.4%8.4%2.1%Return on Average Tangible Common Equity10~5%2.7%2.4%2.5%1.4%Treasury Product Fees8 (% of Total Revenue) >1.10%0.77%0.55%0.69%0.33%Adj. Return on Average Assets1115%–20% 15.7%28.5%15.2%19.3%Non-Interest Income (% of Total Revenue) >12.5%7.5%5.8%8.7%4.2%Adj. Return on Average Tangible Common Equity1015%–20%15.7%10.3%13.4%11.2%Adj. Non-Interest Income9 (% of Adj. Total Revenue9) >10%12.7%13.0%11.1%9.4%CET1Balance Sheet >20%29%30%38%29%Average Cash & Securities (% of Total Average Assets) <15%7%16%27%36%Average Indexed Deposits (% of Total Deposits) Treasury Solutions Private Wealth Investment Banking  Gross payment revenue is up 14% YoY, the highest yearly growth since Q1 2022  Product roadmap on track; launched new cash management solution, two new payments solutions during the quarter  Fourth consecutive record quarter of revenue, up 6% QoQ with broad contributions  Sole arranger on the largest privately arranged financing for a public company this year YoY GrowthQ3 ‘23Q2 ‘23Q1 ‘23Q4 ‘22Q3 ‘22Financial Performance 22%$3.1$3.5$3.3$3.0$2.6Assets Under Management ($B) 5%$7.8$7.4$7.3$7.0$7.4Treasury Product Fees8 ($M) (3%)$3.5$3.7$3.4$3.4$3.6Wealth Management & Trust Fee Income ($M) 274%$29.2$27.5$18.8$11.9$7.8Investment Banking & Trading Income ($M) 115%$40.5$38.6$29.5$22.4$18.9Income from Areas of Focus ($M)  Continued strong client adoption; YoY AUM grew 22% while client base increased 16%  Managed liquidity has nearly doubled YoY as clients utilizing full breadth of platform capabilities

6 Financial Performance // Income Statement Adjusted (Non-GAAP)11 Adjusted (Non-GAAP)11 Financial Highlights ($M) Q3 2023Q2 2023Q3 2022Q3 2022YTD-202320222022 $232.1$232.0$239.1$239.1$699.4$875.8$875.8Net Interest Income 46.946.025.325.3130.3101.0349.5Non-Interest Revenue 278.9278.0264.4264.4829.7976.81,225.3Total Revenue 179.9181.6180.4197.0555.6680.1727.5Non-Interest Expense 99.196.484.067.4274.1296.6497.8PPNR12 18.07.012.012.053.066.066.0Provision for Credit Losses 19.420.717.713.952.153.999.3Income Tax Expense 61.768.754.341.4169.0176.8332.5Net Income 4.34.34.34.312.917.317.3Preferred Stock Dividends 57.464.350.037.1156.1159.5315.2Net Income to Common Performance Metrics 0.81%0.95%0.68%0.52%0.77%0.55%1.04%Return on Average Assets 1.31%1.33%1.05%0.84%1.24%0.93%1.55%PPNR12 / Average Assets 64%65%68%75%67%70%59%Efficiency Ratio13 8.08%9.17%7.23%5.36%7.46%5.73%11.33%Return on Average Common Equity $1.18$1.33$0.99$0.74$3.20$3.13$6.18Earnings Per Share Q3 2022Non-GAAP Adjustments11 ($M) 197.0Non-Interest Expense 16.7Transaction Costs 180.4Non-Interest Expense, Adjusted 2022Non-GAAP Adjustments11 ($M) 349.5Non-Interest Revenue 248.5Gain on Sale of BDCF 101.0Non-Interest Revenue, Adjusted 727.5Non-Interest Expense 29.6Transaction Costs 9.8Restructuring Expenses 8.0Charitable Contribution 680.1Non-Interest Expense, Adjusted

7 Balance Sheet Highlights ($M) Ending Balances QoQQ3 2023Q2 2023Q3 2022 Assets 47%4,1932,8473,640Cash and Equivalents (4%)4,0704,2273,370Total Securities (1%)10,36610,4609,687Commercial Loans (13%)4,4295,0994,909Mortgage Finance Loans 1%5,3595,3094,701CRE Loans 1%537532547Consumer Loans (3%)20,69121,39919,844Gross LHI 3%(245)(237)(235)Allowance for Credit Losses on Loans 2%29,62828,97730,409Total Assets Financial Performance // Balance Sheet Highlights Performance Metrics 28%24%23%Cash & Securities % of Assets 50%49%49%Commercial Loans % of Gross LHI (291)(282)(256)Total Allowance for Credit Losses ($M) 1.41%1.32%1.30%Total ACL / Total LHI QoQQ3 2023Q2 2023Q3 2022 Liabilities (1%)9,3539,42911,495Non-Interest Bearing Deposits 5%14,52613,88913,004Interest Bearing Deposits 2%23,87923,31824,499Total Deposits 4%1,4001,3501,700FHLB Borrowings 3%26,55125,89527,523Total Liabilities Equity 2%3,2843,2223,021Common Equity, Excl AOCI 15%(506)(440)(435)AOCI (0%)3,0783,0822,886Total Shareholder’s Equity 0%48,015,003 47,992,521 49,897,726 Common Shares Outstanding 86%91%81%Total LHI % of Deposits 39%40%47%Non-Interest Bearing % of Deposits $57.85$57.97$51.82Book Value Per Share $57.82$57.93$51.48Tangible Book Value Per Share14

8 $4.7 $4.9 $5.0 $5.3 $5.4 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $5.7 $5.9 $5.3 $4.3 $3.3 $4.4 $4.7 $5.8 $6.5 $4.9 $4.1 $4.1 $5.1 $4.4 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 50% 40% 45% 50% 55% 60% 65% 70% $9.7 $9.8 $10.6 $10.5 $10.4 $3.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Loan Portfolio Composition Period End Loan Trends ($B) Utilization Rates15 Commercial Loans Insurance Premium Finance Loans CRE Loans  Commercial loans declined $94 million QoQ  CRE loans increased $50 million QoQ  Office is $459 million or 9% of CRE Loans  Strong characteristics: 57% avg. current LTV, 90% recourse and 73% Class A  Anticipated Q3 seasonality drove average mortgage finance loans up $321 million or 7% QoQ Mortgage Finance Loans ($B) 52% LTM Average Average Period End

9 Q3 2023 EOP $6.5 $6.3 $5.6 $4.4 $4.0 $3.7 $5.7 $5.3 $4.6 $5.3 $6.0 $5.7 $7.8 $8.6 $9.8 $10.5 $11.2 $11.5 $2.0 $1.8 $1.5 $1.5 $1.4 $1.4 $3.6 $2.9 $2.2 $1.5 $1.6 $1.6 $25.6 $24.9 $23.7 $23.2 $24.2 $23.9 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 5.50% 0.39% 4.47% 0.19% 2.62% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 0.93% 1.53% 2.06% 2.37% 2.62% 1.04% 1.62% 2.10% 2.38% 2.60%1.79% 2.87% 3.63% 4.09% 4.47% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Deposit and Funding Composition  Funding base continuing multi-year transition to target state composition  Total deposit balances increased $561 million or 2% QoQ  Brokered deposits decreased $86 million; $124 million of CDs maturing in Q4 not expected to be replaced  Indexed deposits increased $196 million QoQ and comprise 7% of the total deposit base, down from 32% at year end 2020  Average cost of total deposits increased 25bps QoQ; a cumulative beta of 46% since Q4 2021 Average Deposit Trends ($B) Period End Deposit Flows ($M) Funding CostsCurrent Cycle Rates Paid Betas17 Non-Interest Bearing, excl MF16 MF16 Non-Interest Bearing Interest Bearing Interest Bearing Brokered Indexed Change %$Q3 2023Q2 2023 14%$196$1,614$1,419Indexed (6%)($86)$1,394$1,479Brokered 25%$185$928$743Insured Sweep Deposits 3%$342$10,590$10,248Other Interest Bearing 5%$637$14,526$13,889Total Interest Bearing 7%$363$5,675$5,312MF16 Non-Interest Bearing (11%)($440)$3,678$4,118Non-Interest Bearing, excl MF16 (1%)($76)$9,353$9,429Non-interest Bearing 2%$561$23,879$23,318Total Deposits Int. Bearing Rate Total Deposit Rate Fed Funds Upper Target Total Cost of Funds Avg Cost of Int. Bearing Deposits Avg Cost of Total Deposits Cumulative Betas 78% 46%

10 (8.5%) (3.8%) (4.3%) 2.6% 3.0% 5.2% 6.0% (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% Q2 2023 Q3 2023 -200bps Shock -100bps Shock +100bps Shock +200bps Shock $3.1B $2.9B $0.6B 3.63% 3.57% 3.30% Q4 2023 Q4 2024 Q4 2025 Notional Receive Rate Net Interest Income Sensitivity Standard Model Assumptions18 100bp & 200bp Parallel Shocks  Loan Balances: Static  Deposit Balances: Static  Loan Spreads: Current Levels  Up Scenario Int. Bearing Deposit Beta: ~75%  Investment Portfolio: Ratio held constant Hedging Profile ($B) TCBI NII Sensitivity ($M) $972M$1,009MBase NII19 $53 $26 ($39) $58 $29 ($42) Earning Assets Profile (Average) Q3 2023Q3 2022 YieldBalance ($M)YieldBalance ($M) 5.36%$3,9652.19%$4,454Interest Bearing Cash and Equivalents 2.33%$4,2051.58%$3,509Securities 8.06%$324.36%$1,030Loans Held for Sale 7.62%$16,3175.15%$16,844LHI excl Mortgage Finance LHI 2.64%$4,6983.96%$5,288Mortgage Finance LHI --($239)--($229)ACL on Loans 5.75%$28,9784.10%$30,895Earning Assets ($83)  $3.6 billion, or 22%, of LHI excl. Mortgage Finance have contractual floors  All loans with floors are acting as variable rate loans  $1.1 billion of loans, or 7% of LHI excluding Mortgage Finance LHI are fixed  8% maturing in the next 12 months  Duration of the securities portfolio is 4.4 years with Q3 cash flows of $82 million  100bps decline in rates could improve AOCI by ~$150 million Impacts of Mortgage Finance  Mortgage Finance represents 21% of the total loan portfolio with the majority tied to 1-month SOFR which rose 18bps in Q3  Average Mortgage Finance non-interest bearing deposits to average Mortgage Finance LHI was 128% in Q3, up from 124% in Q2  Overall Mortgage Finance NII will not be as sensitive to changes in index rates as the rest of the portfolio due to the pricing dynamic of the associated deposits held in non-interest bearing accounts  Bank’s overall net interest income sensitivity (per the chart above) inclusive of Mortgage Finance NII impact

11 $232.0 $1.9 $14.2 $2.1 ($7.1) $1.2 $11.6 ($8.4) ($14.4) ($1.0) $232.1 Q2 2023 Loans Excl MF Volume Loans Excl MF Yield MF Loan Volume MF Loan Yield Loan Fees Investment Securities & Cash Interest Bearing Deposit Volume Interest Bearing Deposit Cost Borrowings Q3 2023 $115.1 $100.9 $128.7 $113.0 $110.0 $65.2 $81.4 $65.3 $68.6 $69.9 $16.7 $30.8 $197.0 $213.1 $194.0 $181.6 $179.9 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $25.3 $29.2 $37.4 $46.0 $46.9 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $239.1 $247.6 $235.3 $232.0 $232.1 3.05% 3.26% 3.33% 3.29% 3.13% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net Interest Income Net Interest Margin Q3-2023 Earnings Overview Net Interest Margin ($M)Net Interest Income ($M) Non-Interest Income ($M) Non-Interest Expense ($M) 17%17%14%11%10%% of Adj Revenue11 Non-Interest Income Gain on Sale of Insur. Prem. Finance11 $248.5 Salaries & Benefits Non-Recurring Items11Other NIE 58% 47% 66% 34% 39% 34% 8% 14% 62% 38% 61% 39%  Net interest income was flat QoQ with net interest margin declining by 0.16%  Year to date Q3 2023 non-interest income is up $58.4 million or 81.3% compared to the same period last year  Non-interest expense excluding non- recurring items11 was down YoY  Salaries and benefits excluding non- recurring items11 was down 4.4% YoY or an annualized $20.1 million

12 7.1x 3.5x 4.6x – 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x 6.0 x 7.0 x 8.0 x 9.0 x 10.0 x Q3 2022 Q2 2023 Q3 2023 1.30% 1.32% 1.41% 1.65% 1.69% 1.76% 0.00% 0.50% 1.00% 1.50% 2.00% Q3 2022 Q2 2023 Q3 2023 75% 78% 81% 83% 78% 2% 23% 22% 19% 17% 22% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Commercial Mortgage Finance Real Estate Consumer 62% 67% 73% 52% 60% 38% 33% 27% 48% 40% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Commercial Mortgage Finance Real Estate Consumer 0.12% 0.17% 0.33% 0.28% 0.21% 0.05% 0.31% 0.43% 0.16% 0.17% 2.45% 2.66% 2.79% 2.90% 3.29% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 NPAs / Total Assets NCOs / Avg. LHI Criticized / LHI Q3-2023 Earnings Overview Allowance for Credit Loss Reserve Ratios Asset Quality Ratios Special Mention Composition ($M) Substandard Composition ($M) $431.8 $263.3 $258.0 $289.6 $338.2 $245.6$220.7 $255.1 $271.5 $281.1 $13.3$8.8$20.7$17.1$3.1Charge-Offs ($M) $4.4$0.6$0.8$2.1$0.4Recoveries ($M) $8.9$8.2$19.9$15.0$2.7Net Charge-Offs ($M) NPAs/Total Assets Criticized/LHI NCOs/Avg. LHI Q3 2022 Q2 2023 Q3 2023 Total ACL / Non- accrual Loans HFI  ACL on Loans increased $10 million YoY to $245 million  Total ACL, excl. MF16 increased to $285 million in Q3 from $275 million in Q2  Total ACL, excl. MF16 to LHI, excl. MF16 in the top 5 percent among Peers3 Total ACL to LHI  $8.9 million of net charge-offs recorded for the quarter or 0.17% of average LHI, a 1 bps increase from the prior quarter  Net downward grade migrations to special mention in Q3 predominantly related to consumer dependent commercial loans and CRE  Substandard loans decreased by $35.5 million, or 13%, QoQ  Nonperforming assets decreased $17.9 million QoQ to $63.1 million  Nonperforming assets are 0.21% of total assets or 0.31% of LHI  Total criticized loans increased $58.1 million QoQ to $677.4 million and make up 3.3% of total LHI Total ACL / LHI Total ACL, ex MF16 / LHI ex MF16

13 2023 Target 11.08% 13.00% 12.42% 12.18% 12.70% 12.00% 1.51% 1.67% 1.61% 1.54% 1.58% 2.66% 3.03% 2.83% 2.71% 2.81% 15.25% 17.70% 16.86% 16.43% 17.09% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2023 Target $51.48 $56.45 $58.06 $57.93 $57.82 $51.82 $56.48 $58.10 $57.97 $57.85 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 8.45% 9.69% 9.72% 9.60% 9.37% 8.50% 9.70% 9.72% 9.60% 9.38% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3-2023 Earnings Overview  Regulatory capital ratios remain exceptionally strong  Total capital ratio of 17.09%, in the top decile of the peer group3, and CET1 ratio of 12.70% in Q3 2023  Tangible common equity / tangible assets6 finished the quarter at 9.37%, an important characteristic of our financially resilient business model and a key metric as we manage the balance sheet through- cycle  Tangible common equity / tangible assets6 in top quartile of peer group3  Tangible book value per share14 declined $0.12 as net income available to common stockholders of $57.4 million was offset by a decline in AOCI of $65.6 million  Tangible book value per share increased 12% year over year compared to a 6% median increase by the peer group3  AOCI per share of $10.54 Regulatory Capital Levels Tangible Common Equity / Tangible Assets6 Tangible Book Value per Share14 Period End AOCI ($M) ($505.9)($440.3)($374.8)($418.9)($435.4) AOCI per Share ($10.54)($9.17)($7.83)($8.59)($8.73) Tangible Common Equity / Tangible Assets6 Common Equity / Total Assets Peer3 Tangible Common Equity / Tangible Assets6 7.22%7.13%7.09%6.78% Tangible Book Value per Share14 Book Value per Share CET1 Tier 2 CapitalTier 1 Capital >

14 Full Year 2023 Guidance FY 2022 Adjusted (Non-GAAP11) Low double-digit % growth$976.8 Total Revenue, Adjusted11 Consensus$680.1Non-Interest Expense, Adjusted11 Maintain$296.6Full Year Operating Leverage (YoY Growth in Annual PPNR12) Not Maintaining in Q4--Quarterly Operating Leverage (YoY Growth in Quarterly PPNR12) >20%30%Cash & Total Securities (% of Total Assets) >12% >11%13.0%2023 CET1 Target Medium Term CET1 Target $18.5M Q4 2023FDIC Special Assessment21 Full Year 2023 Guidance  Forward curve20 assumes a 2023 exit rate of 5.50%  Assumes tax rate of 25% in 2023  Revenue and non-interest expense growth guidance excludes 2022 non- recurring items  Non-interest expense, adjusted11 guidance excludes estimated FDIC special assessment21 of $18.5 million pre-tax expected in Q4 2023 Guidance Commentary

15 1. U.S. globally systematically important banks; includes JPMorgan Chase & Co. (JPM), Bank of American Corporation (BAC), Citigroup Inc. (C) and Wells Fargo & Company (WFC); Data as of Q2 2023 2. As defined by the Federal Reserve; Category II – U.S. commercial banks with ≥ $700 billion in total assets or ≥ $75 billion in cross-jurisdictional activity; Category III – U.S. commercial banks with ≥ $250 billion in total assets or ≥ $75 billion in nonbank assets, weighted short-term wholesale funding, or off-balance sheet exposure; Category IV – U.S. commercial banks with $100 billion to $250 billion in total assets; Data as of Q2 2023 3. Major exchange traded US peer banks with $20-100 billion in total assets, excluding PR headquartered banks and merger targets; Source: S&P Capital IQ Pro; Data as of Q2 2023 4. Other short-term borrowings includes unused federal funds lines available from commercial banks of $1.5 billion and $1.4 billion, unused Federal Reserve borrowing capacity of $3.7 billion and $3.1 billion, and unused revolving line of credit of $100 million and $100 million as of Q2 2023 and Q3 2023, respectively. 5. Large U.S. Financial Services includes G-SIBs (see footnote 1) and Category II, III and IV banks (see footnote 2); Data as of Q2 2023 6. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles 7. CRE excluding owner-occupied as defined by regulatory rules (published in the Uniform Bank Performance Report) as a % of Tier1 Capital plus ACL on Loans 8. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8 million for FY 2020, $4.0 million for FY 2021, $6.1 million for FY 2022, $7.1 million for YTD-Q3 2023, and $1.6 million, $1.8 million, $2.3 million, $2.3 million, and $2.5 million for Q3 2022, Q4 2022, Q1 2023, Q2 2023, and Q3 2023 respectively 9. Non-GAAP Reconciliation // Adjusted Non-interest Income and Total Revenue 10. See slide: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) 11. See slide: Non-GAAP Reconciliation // Adjusted Earnings & Ratios 12. Net interest income and non-interest income, less non-interest expense 13. Non-interest expense divided by the sum of net interest income and non-interest income 14. Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end 15. Outstanding revolving loans divided by total revolving commitments excluding Mortgage Finance Loans and leases 16. “MF” used as abbreviation for Mortgage Finance 17. Beta taken as the difference of Q2 2023 and Q4 2021 cost of total deposits and cost of interest-bearing deposits, by the change in fed funds upper target over the same period 18. Model assumptions are only for Q3 2023; See prior TCBI Earnings Materials for prior model assumptions 19. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 20. Forward curve as of October 5, 2023 21. FDIC Special Assessment estimated based on rules as currently proposed Appendix // Footnotes 2022 ($M)2021 ($M)2020 ($M) Adjusted2As ReportedAdjusted1As ReportedAdjusted1As Reported 875.8875.8767.6768.8821.1851.3Net Interest Income 101.0349.5119.5138.2103.7203.0Non-Interest Income 976.81,225.3887.1907.0924.81,054.3Total Revenue 10.3%28.5%13.4%15.2%11.2%19.3%Non-Interest Income % of Total Revenue 1) Adjusted to remove revenue contribution of exited Corresponded Lending Line of Business 2) Adjusted to remove non-recurring gain on sale of Insurance Premium Finance Loan Portfolio

16 Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial performance and use of equity. A reconcilement of ROATCE to the most directly comparable U.S. GAAP measure, ROACE, for all periods is presented below. (1) See slide Non-GAAP Reconciliation // Adjusted Earnings & Ratios YTD 2023 ($M)2022 ($M)2021 ($M)2020 ($M) As ReportedAdjusted1As ReportedAdjusted1As ReportedAdjusted1As Reported $156.1$159.5$315.2$244.5$235.2$112.6$56.5Net Income to Common $2,795.1$2,783.3$2,783.3$2,815.7$2,815.7$2,686.7$2,686.7Average Common Equity 1.514.514.517.417.417.917.9Less: Average Goodwill and Intangibles $2,793.6$2,768.8$2,768.8$2,798.3$2,798.3$2,668.8$2,668.8Average Tangible Common Equity 7.5%5.7%11.3%8.7%8.4%4.2%2.1%ROACE 7.5%5.8%11.4%8.7%8.4%4.2%2.1%ROATCE

17 Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management believes aids in the discussion of results. A reconcilement of these adjusted items to the most directly comparable U.S. GAAP measures for all periods is presented below. Periods not presented below did not have adjustments. 202220212020Q4 2022Q3 2022($M, Except per Share) $875.8 $768.8 $851.3 $247.6 $239.1 Net Interest Income 349.5 138.2 203.0 277.7 25.3 Non-Interest Revenue Adjustments for Non-Recurring Items: (248.5)0.0 0.0 (248.5)0.0 Gain on Sale of Insur. Prem. Finance 101.0 138.2 203.0 29.2 25.3 Non-Interest Revenue, Adjusted 727.5 599.0 704.4 213.1 197.0 Non-Interest Expense Adjustments: 0.0 (12.0)(36.0)0.0 0.0 Software Write-offs (29.6)0.0 (17.8)(13.0)(16.7)Transaction Costs (9.8)0.0 (18.0)(9.8)0.0 Restructuring Expenses (8.0)0.0 0.0 (8.0)0.0 Charitable Contribution 680.1 587.0 632.6 182.3 180.4 Non-Interest Expense, Adjusted 497.8 308.1 349.9 312.2 67.4 PPNR12 296.6 320.0 421.7 94.4 84.0 PPNR12, Adjusted 66.0 (30.0)258.0 34.0 12.0 Provision for Credit Losses 99.3 84.1 25.7 60.9 13.9 Income Tax Expenses (45.4)2.7 15.6 (49.2)3.8 Tax Impact of Adjustments Above 53.9 86.8 41.3 11.8 17.7 Income Tax Expense, Adjusted 332.5 253.9 66.3 217.3 41.4 Net Income 176.8 263.2 122.4 48.6 54.3 Net Income, Adjusted 17.3 18.7 9.8 4.3 4.3 Preferred Stock Dividends 315.2 235.2 56.5 212.9 37.1 Net Income to Common 159.5 244.5 112.6 44.3 50.0 Net Income to Common, Adjusted $32,049.8 $38,140.3 $37,516.2 $30,738.4 $31,813.9 Average Assets 1.04%0.67%0.18%2.80%0.52%Return on Average Assets 0.55%0.69%0.33%0.63%0.68%Return on Average Assets, Adjusted 1.55%0.81%0.93%4.03%0.84%PPNR12 / Average Assets 0.93%0.84%1.12%1.22%1.05%PPNR12, Adjusted / Average Assets $2,783.3 $2,815.7 $2,686.7 $2,755.8 $2,745.0 Average Common Equity 11.33%8.35%2.10%30.66%5.36%Return on Average Common Equity 5.73%8.68%4.19%6.38%7.23%Return on Average Common Equity, Adjusted 51,046,742 51,140,974 50,582,979 50,282,663 50,417,884 Diluted Common Shares $6.18$4.60$1.12$4.23$0.74Earnings per Share $3.13$4.78$2.23$0.88$0.99Earnings per Share, Adjusted


Delaware	001-34657	75-2679109
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)


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