tcbi-20221018

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2022

TEXAS CAPITAL BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


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

2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A.

(Address of principal executive offices)

75201

(Zip Code)

Registrant’s telephone number, including area code: (214) 932-6600

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

TCBI

Nasdaq Stock Market

5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per share

TCBIO

Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

(a)On October 19, 2022, Texas Capital Bancshares, Inc. (the “Company”) issued a press release and made available presentation slides regarding its operating and financial results for its fiscal quarter ended September 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.

The information in Item 2.02 of this report (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such a filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 18, 2022, the Board of Directors of the Company appointed John Cummings, age 62, to serve as Chief Administrative Officer of the Company with primary responsibility for the Company’s operations, among other matters.

Mr. Cummings joined Texas Capital Bank as Chief Administrative Officer in January 2022 with nearly 40 years of management and leadership experience in the financial services industry. Prior to joining Texas Capital Bank, he spent nine years at Citigroup Inc. serving most recently as head of its Wealth Advisory business. He previously served as Chief Operating Officer and Head of U.S. Investment Products for Citigroup Personal Wealth Management. Before Citigroup, Inc., Mr. Cummings was with Merrill Lynch & Co. for 27 years, where he began his career and advanced through assignments within Finance, Corporate Services, Sales and Head of Global Technology & Operations before serving as Chief Operating Officer of the Global Private Client business and Head of the Retirement, Trust Company, Clearing and Digital Investments businesses. Mr. Cummings has served on the Board of Directors of the Depository Trust Company, Level 8 and on the Advisory Board for Columbia University Master of Science in Technology Management program. He earned a Bachelor of Arts degree in economics from Fairfield University and is FINRA Series 7 and 24 certified.

Mr. Cummings will receive a base salary of $500,000 per year and will participate in the Company’s annual incentive compensation plan. He will be eligible for severance benefits under the Company’s Executive Change-in-Control Plan and will be provided customary health and insurance benefits under the Company’s health and welfare benefits programs.

There is no arrangement or understanding between Mr. Cummings and any other person pursuant to which Mr. Cummings was selected to serve as an executive officer of the Company. There are no family relationships between Mr. Cummings and any of our directors or executive officers. Other than his compensation while serving as the Chief Administrative Officer of Texas Capital Bank, which was the same as the compensation noted above for his service as Chief Administrative Officer of the Company, there have been no transactions since the beginning of the Company’s last fiscal year, and there are no currently proposed transactions, in which the Company was or is to be a participant and in which Mr. Cummings or any member of his immediate family had or will have any interest that are required to be reported under Item 404(a) of Regulation S-K.

Item 8.01. Other Events.

As previously announced, the Company will host a conference call and live webcast on Thursday, October 20, 2022 at 10:00 a.m. EDT to review the Company’s financial results for the period ended September 30, 2022.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release, dated October 19 , 2022 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended September 30, 2022

99.2 Presentati on dated October 19 , 2022 discu ssing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended September 30, 2022

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:

October 19, 2022

TEXAS CAPITAL BANCSHARES, INC.

By:

/s/ J. Matthew Scurlock

J. Matthew Scurlock
Chief Financial Officer

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 2022 RESULTS

Third quarter 2022 net income of $41.4 million and net income available to common

stockholders of $37.1 million, or $0.74 per diluted share

Achieved year-over-year operating leverage ahead of guidance

DALLAS - October 19, 2022 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the third quarter of 2022.

Net income available to common stockholders was $37.1 million, or $0.74 per diluted share, for the third quarter of 2022, compared to $29.8 million, or $0.59 per diluted share, for the second quarter of 2022 and $39.1 million, or $0.76 per diluted share, for the third quarter of 2021.

“The quarterly financial results demonstrate dedication towards our stated goals as we achieved year-over-year quarterly operating leverage,” said Rob C. Holmes, President and CEO. “Additionally, we calibrated our capital and expenses and built a financially resilient balance sheet with strong reserves and capital geared towards supporting our clients through market and rate driven cycles.”


FINANCIAL RESULTS
(dollars and shares in thousands)
	3rd Quarter			2nd Quarter			3rd Quarter
	2022			2022			2021
OPERATING RESULTS
Net income	$	41,418		$	34,159		$	43,390
Net income available to common stockholders	$	37,105		$	29,847		$	39,078
Diluted earnings per common share	$	0.74		$	0.59		$	0.76
Diluted common shares	50,418			50,802			51,140
Return on average assets	0.52		%	0.44		%	0.47		%
Return on average common equity	5.36		%	4.35		%	5.41		%

BALANCE SHEET
Loans held for investment	$	14,878,959		$	17,517,866		$	15,221,404
Loans held for investment, mortgage finance	4,908,822			6,549,507			8,528,313
Total loans held for investment	19,787,781			24,067,373			23,749,717
Loans held for sale	3,142,178			4,266			9,660
Total assets	30,408,513			32,338,963			36,404,320
Non-interest bearing deposits	11,494,685			12,555,367			14,970,462
Total deposits	24,498,563			25,440,021			29,813,668
Stockholders’ equity	2,885,775			3,006,832			3,147,752

THIRD QUARTER 2022 COMPARED TO SECOND QUARTER 2022

For the third quarter of 2022, net income available to common stockholders was $37.1 million, or $0.74 per diluted share, compared to $29.8 million, or $0.59 per diluted share, for the second quarter of 2022.

We recorded a $12.0 million provision for credit losses for the third quarter of 2022, compared to a $22.0 million provision for credit losses for the second quarter of 2022. The $12.0 million provision for credit losses recorded in the third quarter of 2022 resulted primarily from updated views on the downside risks to the economic forecast, partially offset by a decline in criticized loans.

Net interest income was $239.1 million for the third quarter of 2022, compared to $205.5 million for the second quarter of 2022. The increase in net interest income was primarily due to an increase in yields on earning assets, partially offset by an increase in funding costs. Net interest margin for the third quarter of 2022 was 3.05%, an increase of 37 basis points from the second quarter of 2022. Loans held for investment (“LHI”), excluding mortgage finance, yields increased 108 basis points from the second quarter of 2022 and LHI, mortgage finance yields increased 54 basis points from the second quarter of 2022. Total cost of deposits was 0.93% for the third quarter of 2022, a 60 basis point increase from the second quarter of 2022.

Non-interest income for the third quarter of 2022 decreased $909,000, or 3%, compared to the second quarter of 2022, primarily due to decreases in brokered loan fees and investment banking and trading income, partially offset by an increase in other non-interest income.

Non-interest expense for the third quarter of 2022 increased $32.7 million, or 20%, compared to the second quarter of 2022. The third quarter of 2022 included $13.7 million in salaries and benefits expense and $3.0 million in legal and professional expense related to the sale of our insurance premium finance subsidiary. The remaining increase in non-interest expense for the third quarter of 2022 was primarily due to an increase in salaries and benefits expense resulting from an increase in headcount.

THIRD QUARTER 2022 COMPARED TO THIRD QUARTER 2021

Net income available to common stockholders was $37.1 million, or $0.74 per diluted share, for the third quarter of 2022, compared to $39.1 million, or $0.76 per diluted share, for the third quarter of 2021.

The third quarter of 2022 included a $12.0 million provision for credit losses, resulting primarily from updated views on the downside risks to the economic forecast, partially offset by a decline in criticized loans, compared to a $5.0 million provision for credit losses for the third quarter of 2021.

Net interest income increased to $239.1 million for the third quarter of 2022, compared to $190.5 million for the third quarter of 2021, primarily due to an increase in yields on average earning assets, partially offset by an increase in funding costs. Net interest margin increased 94 basis points to 3.05% for the third quarter of 2022, as compared to the third quarter of 2021. LHI, excluding mortgage finance, yields increased 141 basis points compared to the third quarter of 2021 and LHI, mortgage finance yields increased 103 basis points from the third quarter of 2021. Total cost of deposits increased 74 basis points compared to the third quarter of 2021.

Non-interest income for the third quarter of 2022 increased $554,000, or 2%, compared to the third quarter of 2021. The increase was primarily due to increases in service charges on deposit accounts and investment banking and trading income, as well as the elimination of net losses recorded in the prior year on the sale of loans held for sale, partially offset by decreases in brokered loan fees and other non-interest income.

Non-interest expense for the third quarter of 2022 increased $44.1 million, or 29%, compared to the third quarter of 2021. The third quarter of 2022 included $13.7 million in salaries and benefits expense and $3.0 million in legal and professional expense related to the sale of our insurance premium finance subsidiary. Also contributing to the increase in non-interest expense were increases in salaries and benefits expense, resulting from an increase in headcount, and marketing expense, partially offset by a decrease in communications and technology expense related to the elimination of write-offs of certain software assets recorded in the prior year.

CREDIT QUALITY

We recorded $2.7 million in net charge-offs during the third quarter of 2022, compared to net charge-offs of $2.6 million and of $3.1 million during the second quarter of 2022 and the third quarter of 2021, respectively. Criticized loans totaled $484.0 million at September 30, 2022, compared to $603.5 million at June 30, 2022 and $728.9 million at September 30, 2021. Non-accrual LHI totaled $35.9 million at September 30, 2022, compared to $50.5 million at June 30, 2022 and $87.5 million at September 30, 2021. The ratio of non-accrual LHI to total LHI for the third quarter of 2022 was 0.18%, compared to 0.21% for the second quarter of 2022 and 0.37% for the third quarter of 2021.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of September 30, 2022. Our CET 1, tier 1 capital, total capital and leverage ratios were 11.1%, 12.6%, 15.2% and 10.7%, respectively, at September 30, 2022, compared to 10.5%, 11.9%, 14.4% and 10.7%, respectively, at June 30, 2022 and 10.7%, 12.2%, 14.9% and 9.0% at September 30, 2021. At September 30, 2022, our ratio of tangible common equity to total tangible assets was 8.5%, compared to 8.3% at June 30, 2022 and 7.8% at September 30, 2021.

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 parent 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 institution 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 “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,” “continue,” “become,” “intend” and similar expressions.

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. Several 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. These factors include, but are not limited to, credit quality and risk, the COVID-19 pandemic, industry and technological changes, uncertainties related to our sale of BankDirect Capital Finance, LLC, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real estate values, economic conditions, including inflation, recession, the threat of recession, and market conditions in Texas, the United States or globally, including governmental and consumer responses to those economic and market conditions, fund availability, accounting estimates and risk management processes, the transition away from the London Interbank Offered Rate (LIBOR), legislative and regulatory changes, ratings or interpretations, business strategy execution, key personnel, competition, mortgage markets, fraud, environmental liability and severe weather, natural disasters, acts of war, terrorism, global conflict or other external events.

These and other factors that could cause actual results for TCBI on a consolidated basis to differ materially from those described in the forward-looking statements, including a discussion of the risks and uncertainties that may affect TCBI’s business, can be found in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in 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
	2022			2022			2022			2021			2021
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	322,071		$	242,349		$	208,530		$	219,892		$	216,589
Interest expense	82,991			36,818			24,983			25,860			26,053
Net interest income	239,080			205,531			183,547			194,032			190,536
Provision for credit losses	12,000			22,000			(2,000)			(10,000)			5,000
Net interest income after provision for credit losses	227,080			183,531			185,547			204,032			185,536
Non-interest income	25,333			26,242			20,282			31,459			24,779
Non-interest expense	197,047			164,303			153,092			146,649			152,987
Income before income taxes	55,366			45,470			52,737			88,842			57,328
Income tax expense	13,948			11,311			13,087			23,712			13,938
Net income	41,418			34,159			39,650			65,130			43,390
Preferred stock dividends	4,313			4,312			4,313			4,313			4,312
Net income available to common stockholders	$	37,105		$	29,847		$	35,337		$	60,817		$	39,078
Diluted earnings per common share	$	0.74		$	0.59		$	0.69		$	1.19		$	0.76
Diluted common shares	50,417,884			50,801,628			51,324,027			51,208,161			51,139,555

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	30,408,513		$	32,338,963		$	31,085,377		$	34,731,738		$	36,404,320
Loans held for investment	14,878,959			17,517,866			15,849,434			15,331,457			15,221,404
Loans held for investment, mortgage finance	4,908,822			6,549,507			5,827,965			7,475,497			8,528,313
Loans held for sale	3,142,178			4,266			8,085			8,123			9,660
Interest bearing cash and cash equivalents	3,399,638			4,032,931			5,136,680			7,765,996			8,317,926
Investment securities	3,369,622			3,552.699			3,642,015			3,583,808			3,663,874
Non-interest bearing deposits	11,494,685			12,555,367			13,434,723			13,390,370			14,970,462
Total deposits	24,498,563			25,440,021			25,377,938			28,109,365			29,813,668
Short-term borrowings	1,701,480			2,651,536			1,427,033			2,202,832			2,203,470
Long-term debt	930,766			917,098			929,414			928,738			928,062
Stockholders’ equity	2,885,775			3,006,832			3,090,038			3,209,616			3,147,752

End of period shares outstanding	49,897,726			49,878,041			50,710,441			50,618,494			50,605,626
Book value	$	51.82		$	54.27		$	55.02		$	57.48		$	56.27
Tangible book value(1)	$	51.48		$	53.93		$	54.68		$	57.14		$	55.93

SELECTED FINANCIAL RATIOS
Net interest margin	3.05		%	2.68		%	2.23		%	2.12		%	2.11		%
Return on average assets	0.52		%	0.44		%	0.47		%	0.69		%	0.47		%
Return on average common equity	5.36		%	4.35		%	4.97		%	8.36		%	5.41		%
Non-interest income to average earning assets	0.33		%	0.34		%	0.25		%	0.34		%	0.27		%
Efficiency ratio(2)	74.5		%	70.9		%	75.1		%	65.0		%	71.1		%
Non-interest expense to average earning assets	2.53		%	2.16		%	1.86		%	1.60		%	1.69		%
Tangible common equity to total tangible assets(3)	8.5		%	8.3		%	8.9		%	8.3		%	7.8		%
Common Equity Tier 1	11.1		%	10.5		%	11.5		%	11.1		%	10.7		%
Tier 1 capital	12.6		%	11.9		%	13.0		%	12.6		%	12.2		%
Total capital	15.2		%	14.4		%	15.7		%	15.3		%	14.9		%
Leverage	10.7		%	10.7		%	9.9		%	9.0		%	9.0		%

(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, 2022		September 30, 2021		% Change
Assets
Cash and due from banks	$	240,609	$	217,125	11	%
Interest bearing cash and cash equivalents	3,399,638		8,317,926		(59)	%
Available-for-sale debt securities	2,380,774		3,623,266		(34)	%
Held-to-maturity debt securities	955,875		—		100	%
Equity securities	32,973		40,608		(19)	%
Investment securities	3,369,622		3,663,874		(8)	%
Loans held for sale	3,142,178		9,660		N/M
Loans held for investment, mortgage finance	4,908,822		8,528,313		(42)	%
Loans held for investment	14,878,959		15,221,404		(2)	%
Less: Allowance for credit losses on loans	234,613		221,957		6	%
Loans held for investment, net	19,553,168		23,527,760		(17)	%
Mortgage servicing rights, net	—		1,158		(100)	%
Premises and equipment, net	27,180		21,119		29	%
Accrued interest receivable and other assets	648,172		628,335		3	%
Other assets held for sale	26,450		—		100	%
Goodwill and intangibles, net	1,496		17,363		(91)	%
Total assets	$	30,408,513	$	36,404,320	(16)	%

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	11,494,685	$	14,970,462	(23)	%
Interest bearing deposits	13,003,878		14,843,206		(12)	%
Total deposits	24,498,563		29,813,668		(18)	%
Accrued interest payable	18,465		8,920		107	%
Other liabilities	297,900		302,448		(2)	%
Other liabilities held for sale	75,564		—		100	%
Short-term borrowings	1,701,480		2,203,470		(23)	%
Long-term debt	930,766		928,062		—	%
Total liabilities	27,522,738		33,256,568		(17)	%

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, 2022 and 2021	300,000		300,000		—	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 50,840,022 and 50,606,043 at September 30, 2022 and 2021, respectively	509		506		1	%
Additional paid-in capital	1,020,153		1,000,509		2	%
Retained earnings	2,050,563		1,887,457		9	%
Treasury stock - 942,296 and 417 shares at cost at September 30, 2022 and 2021, respectively	(50,031)		(8)		N/M
Accumulated other comprehensive loss, net of taxes	(435,419)		(40,712)		N/M
Total stockholders’ equity	2,885,775		3,147,752		(8)	%
Total liabilities and stockholders’ equity	$	30,408,513	$	36,404,320	(16)	%


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,
	2022		2021		2022		2021
Interest income
Interest and fees on loans	$	282,473	$	202,748	$	688,420	$	616,153
Investment securities	15,002		10,235		46,969		31,040
Interest bearing cash and cash equivalents	24,596		3,606		37,561		9,500
Total interest income	322,071		216,589		772,950		656,693
Interest expense
Deposits	60,317		14,719		94,513		50,994
Short-term borrowings	10,011		748		15,628		3,842
Long-term debt	12,663		10,586		34,651		27,052
Total interest expense	82,991		26,053		144,792		81,888
Net interest income	239,080		190,536		628,158		574,805
Provision for credit losses	12,000		5,000		32,000		(20,000)
Net interest income after provision for credit losses	227,080		185,536		596,158		594,805
Non-interest income
Service charges on deposit accounts	5,701		4,622		17,726		13,972
Wealth management and trust fee income	3,631		3,382		11,594		9,380
Brokered loan fees	3,401		6,032		11,504		22,276
Servicing income	212		292		677		15,236
Investment banking and trading income	7,812		4,127		23,117		17,985
Net gain/(loss) on sale of loans held for sale	—		(1,185)		—		1,317
Other	4,576		7,509		7,239		26,605
Total non-interest income	25,333		24,779		71,857		106,771
Non-interest expense
Salaries and benefits	129,336		87,503		333,319		261,855
Occupancy expense	9,433		8,324		27,192		24,463
Marketing	8,282		2,123		21,765		5,720
Legal and professional	16,775		11,055		38,365		28,479
Communications and technology	18,470		28,374		48,819		58,695
Federal Deposit Insurance Corporation insurance assessment	3,953		4,500		11,252		16,339
Servicing-related expenses	—		2,396		—		27,740

Other	10,798		8,712		33,730		29,072
Total non-interest expense	197,047		152,987		514,442		452,363
Income before income taxes	55,366		57,328		153,573		249,213
Income tax expense	13,948		13,938		38,346		60,404
Net income	41,418		43,390		115,227		188,809
Preferred stock dividends	4,313		4,312		12,938		14,408
Net income available to common stockholders	$	37,105	$	39,078	$	102,289	$	174,401

Basic earnings per common share	$	0.74	$	0.77	$	2.03	$	3.45
Diluted earnings per common share	$	0.74	$	0.76	$	2.00	$	3.41


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2022			2022			2022			2021			2021
Allowance for credit losses on loans:
Beginning balance	$	229,013		$	211,151		$	211,866		$	221,957		$	221,511
Loans charged-off:
Commercial	232			2,868			110			3,776			4,348
Energy	2,903			—			—			—			—
Real estate	—			—			350			—			—
Total charge-offs	3,135			2,868			460			3,776			4,348
Recoveries:
Commercial	113			219			217			1,933			1,104
Energy	289			—			755			601			42
Real estate	—			—			—			205			112
Total recoveries	402			219			972			2,739			1,258
Net charge-offs	2,733			2,649			(512)			1,037			3,090
Provision for credit losses on loans	8,333			20,511			(1,227)			(9,054)			3,536
Ending balance	$	234,613		$	229,013		$	211,151		$	211,866		$	221,957

Allowance for off-balance sheet credit losses:
Beginning balance	$	17,981		$	16,492		$	17,265		$	18,211		$	16,747
Provision for off-balance sheet credit losses	3,667			1,489			(773)			(946)			1,464
Ending balance	$	21,648		$	17,981		$	16,492		$	17,265		$	18,211

Total allowance for credit losses	$	256,261		$	246,994		$	227,643		$	229,131		$	240,168
Total provision for credit losses	$	12,000		$	22,000		$	(2,000)		$	(10,000)		$	5,000

Allowance for credit losses on loans to total loans held for investment	1.19		%	0.95		%	0.97		%	0.93		%	0.93		%
Allowance for credit losses on loans to average total loans held for investment	1.06		%	1.02		%	0.99		%	0.91		%	0.95		%
Net charge-offs to average total loans held for investment(1)	0.05		%	0.05		%	(0.01)		%	0.02		%	0.05		%
Net charge-offs to average total loans held for investment for last 12 months(1)	0.03		%	0.03		%	0.03		%	0.06		%	0.33		%
Total provision for credit losses to average total loans held for investment(1)	0.22		%	0.39		%	(0.04)		%	(0.17)		%	0.09		%
Total allowance for credit losses to total loans held for investment	1.30		%	1.03		%	1.05		%	1.00		%	1.01		%

(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
	2022			2022			2022			2021			2021
Non-accrual loans held for investment	$	35,864		$	50,526		$	59,327		$	72,502		$	87,532
Non-accrual loans held for sale(1)	1,340			—			—			—			—
Other real estate owned	—			—			—			—			—
Total non-performing assets	$	37,204		$	50,526		$	59,327		$	72,502		$	87,532

Non-accrual loans held for investment to total loans held for investment	0.18		%	0.21		%	0.27		%	0.32		%	0.37		%
Total non-performing assets to total assets	0.12		%	0.16		%	0.19		%	0.21		%	0.24		%
Allowance for credit losses on loans to non-accrual loans held for investment	6.5x			4.5x			3.6x			2.9x			2.5x


Loans held for investment past due 90 days and still accruing	$	30,664		$	3,206		$	6,031		$	3,467		$	3,405
Loans held for investment past due 90 days to total loans held for investment	0.15		%	0.01		%	0.03		%	0.02		%	0.01		%
Loans held for sale past due 90 days and still accruing(1)(2)	$	4,877		$	1,602		$	3,865		$	3,986		$	3,808

(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
	2022		2022		2022		2021		2021
Interest income
Interest and fees on loans	$	282,473	$	218,290	$	187,657	$	204,379	$	202,748
Investment securities	15,002		14,665		17,302		11,780		10,235
Interest bearing deposits in other banks	24,596		9,394		3,571		$	3,733	$	3,606
Total interest income	322,071		242,349		208,530		219,892		216,589
Interest expense
Deposits	60,317		20,566		13,630		14,513		14,719
Short-term borrowings	10,011		4,859		758		771		748
Long-term debt	12,663		11,393		10,595		10,576		10,586
Total interest expense	82,991		36,818		24,983		25,860		26,053
Net interest income	239,080		205,531		183,547		194,032		190,536
Provision for credit losses	12,000		22,000		(2,000)		(10,000)		5,000
Net interest income after provision for credit losses	227,080		183,531		185,547		204,032		185,536
Non-interest income
Service charges on deposit accounts	5,701		6,003		6,022		4,702		4,622
Wealth management and trust fee income	3,631		4,051		3,912		3,793		3,382
Brokered loan fees	3,401		4,133		3,970		5,678		6,032
Servicing income	212		228		237		277		292
Investment banking and trading income	7,812		11,126		4,179		6,456		4,127
Net gain/(loss) on sale of loans held for sale	—		—		—		—		(1,185)
Other	4,576		701		1,962		10,553		7,509
Total non-interest income	25,333		26,242		20,282		31,459		24,779
Non-interest expense
Salaries and benefits	129,336		103,885		100,098		89,075		87,503
Occupancy expense	9,433		8,874		8,885		8,769		8,324
Marketing	8,282		8,506		4,977		4,286		2,123
Legal and professional	16,775		11,288		10,302		12,673		11,055
Communications and technology	18,470		15,649		14,700		16,490		28,374
Federal Deposit Insurance Corporation insurance assessment	3,953		3,318		3,981		4,688		4,500
Servicing-related expenses	—		—		—		25		2,396
Other	10,798		12,783		10,149		10,643		8,712
Total non-interest expense	197,047		164,303		153,092		146,649		152,987
Income before income taxes	55,366		45,470		52,737		88,842		57,328
Income tax expense	13,948		11,311		13,087		23,712		13,938
Net income	41,418		34,159		39,650		65,130		43,390
Preferred stock dividends	4,313		4,312		4,313		4,313		4,312
Net income available to common shareholders	$	37,105	$	29,847	$	35,337	$	60,817	$	39,078


TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)(1)
(dollars in thousands)
	3rd Quarter 2022						2nd Quarter 2022						1st Quarter 2022						4th Quarter 2021						3rd Quarter 2021
	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)	$	3,509,044	$	15,002	1.58	%	$	3,543,576	$	15,065	1.60	%	$	3,669.257	$	17,743	1.91	%	$	3,608,503	$	12,225	1.34	%	$	3,775,812	$	10,684	1.12	%
Interest bearing cash and cash equivalents	4,453,806		24,596		2.19	%	4,747,377		9,394		0.79	%	8,552,300		3,571		0.17	%	9,760,735		3,733		0.15	%	9,046,095		3,606		0.16	%
Loans held for sale	1,029,983		11,316		4.36	%	8,123		62		3.07	%	7,633		113		6.01	%	8,348		51		2.41	%	18,791		54		1.14	%
Loans held for investment, mortgage finance	5,287,531		52,756		3.96	%	5,858,599		49,914		3.42	%	5,732,901		43,466		3.07	%	7,901,534		57,949		2.91	%	7,987,521		58,913		2.93	%
Loans held for investment(3)	16,843,922		218,512		5.15	%	16,616,234		168,407		4.07	%	15,686.319		144,134		3.73	%	15,348,322		146,436		3.79	%	15,266,167		143,864		3.74	%
Less: Allowance for credit losses on loans	229,005		—		—		211,385		—		—		212,612		—		—		223,034		—		—		220,984		—		—
Loans held for investment, net	21,902,448		271,268		4.91	%	22,263,448		218,321		3.93	%	21,206,608		187,600		3.59	%	23,026,822		204,385		3.52	%	23,032,704		202,777		3.49	%
Total earning assets	30,895,281		322,182		4.10	%	30,562,524		242,842		3.16	%	33,435,798		209,027		2.54	%	36,404,408		220,394		2.40	%	35,873,402		217,121		2.40	%
Cash and other assets	918,630						870,396						819,486						835,293						855,555
Total assets	$	31,813,911					$	31,432,920					$	34,255,284					$	37,239,701					$	36,728,957

Liabilities and Stockholders’ Equity
Transaction deposits	$	1,444,964	$	5,239	1.44	%	$	1,671,729	$	3,920	0.94	%	$	2,432,687	$	3,962	0.66	%	$	3,007,337	$	4,664	0.62	%	$	3,012,547	$	4,737	0.62	%
Savings deposits	10,249,387		46,555		1.80	%	8,696,819		15,462		0.71	%	10,420,545		8,583		0.33	%	10,529,645		8,419		0.32	%	10,044,995		8,262		0.33	%
Time deposits	1,701,238		8,523		1.99	%	877,399		1,184		0.54	%	1,038,722		1,085		0.42	%	1,276,800		1,430		0.44	%	1,640,562		1,720		0.42	%
Total interest bearing deposits	13,395,589		60,317		1.79	%	11,245,947		20,566		0.73	%	13,891,954		13,630		0.40	%	14,813,782		14,513		0.39	%	14,698,104		14,719		0.40	%
Short-term borrowings	1,931,537		10,011		2.06	%	2,232,119		4,859		0.87	%	1,770,781		758		0.17	%	2,267,013		771		0.13	%	2,299,692		748		0.13	%
Long-term debt	921,707		12,663		5.45	%	929,616		11,393		4.92	%	929,005		10,595		4.63	%	928,307		10,576		4.52	%	927,626		10,586		4.53	%
Total interest bearing liabilities	16,248,833		82,991		2.03	%	14,407,682		36,818		1.02	%	16,591,740		24,983		0.61	%	18,009,102		25,860		0.57	%	17,925,422		26,053		0.58	%
Non-interest bearing deposits	12,214,531						13,747,876						14,235,749						15,804,061						15,363,568
Other liabilities	305,554						227,701						243,141						238,833						275,317
Stockholders’ equity	3,044,993						3,049,661						3,184,654						3,187,705						3,164,650
Total liabilities and stockholders’ equity	$	31,813,911					$	31,432,920					$	34,255,284					$	37,239,701					$	36,728,957
Net interest income			$	239,191					$	206,024					$	184,044					$	194,534					$	191,068
Net interest margin					3.05	%					2.68	%					2.23	%					2.12	%					2.11	%

(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 “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,” “continue,” “become,” “intend” and similar expressions. 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. Several 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. These factors include, but are not limited to, credit quality and risk, the COVID-19 pandemic, industry and technological changes, uncertainties related to our sale of BankDirect Capital Finance, LLC, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real estate values, economic conditions, including inflation, recession, and market conditions in Texas, the United States or globally, including governmental and consumer responses to those economic and market conditions, fund availability, accounting estimates and risk management processes, the transition away from the London Interbank Offered Rate (LIBOR), legislative and regulatory changes, ratings or interpretations, business strategy execution, key personnel, competition, mortgage markets, fraud, environmental liability and severe weather, natural disasters, acts of war, terrorism, global conflict or other external events. These and other factors that could cause actual results for TCBI on a consolidated basis to differ materially from those described in the forward-looking statements, including a discussion of the risks and uncertainties that may affect TCBI’s business, can be found in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other documents and filings we make 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, TCBI disclaims 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 Serving strong core Texas markets with expanded coverage and a complete set of capabilities Improving client relevance and diversifying our revenue base Attracting high-quality talent with significant experience Our Distinct Opportunity Operating from a de-risked position of financial strength

4 Performance Metrics Return on Average Assets 0.18% 0.67% 0.47% >1.10% Return on Average Tangible Common Equity5 2.1% 8.4% 4.9% >12.5% CET1 9.4% 11.1% 11.1% 9%–10% Where We Started Where We Are Going Balance Sheet 2020 2021 YTD 2022 2025 FY Average Liquidity Assets4 (% of Total Average Assets) 28% 37% 27% >20% FY Average Indexed Deposits (% of Total Deposits) 36% 27% 20% <15% Where We Started Where We Are Going Income Statement 2020 2021 YTD 2022 2025 Investment Banking and Trading Income (% of Total Revenue)1 2.5% 2.8% 3.3% ~10% Treasury Product Fees2 (% of Total Revenue)1 1.6% 2.6% 3.2% ~5% Non-interest Income3 (% of Total Revenue)1 11.2% 13.4% 10.3% 15%–20% Strategic Performance Drivers Announced September 1st Talent Frontline Talent Growth 1.0x 1.4x 1.8x 2.3x

5 Our Path Forward Operating Model Aligned to our Vision, Grounded in our Values Clear Strategic Direction and Fortitude to Deliver Organized Around Client Delivery  Product & Industry Specialization  Frontline Growth  Technology New Products and Services  Treasury Solutions  Private Wealth  Investment Banking Expanding Coverage  Business Banking  Middle Market Banking  Corporate Banking Evaluating Opportunities for Growth  Disciplined Capital Management  Structured Criteria Guiding Programmatic Investment  Optimizing Capital Allocation Across the Portfolio Committed to Financial Resilience Resulting business model poised to generate structurally higher, more sustainable earnings through enhanced fee income and decreased thru-cycle asset sensitivity Our ability to serve our clients, access markets, and support our community through cycles is a strategic multiplier Risk Management  Granular Risk Rating System  Values Driven Culture  Improved Portfolio Positioning Capital and Liquidity  3Q22 CET1: 11.1%  3Q22 Avg. Liquidity Assets4: 22% of Avg. Assets  YoY TBV6 per Share Growth: -8.0%

6 Expanding Coverage and Enhanced Product and Services Financial Performance Q3’ 21 Q4’ 21 Q1’ 22 Q2’ 22 Q3’ 22 YoY Assets Under Management ($B) $2.5 $2.7 $2.7 $2.6 $2.6 3% Treasury Product Fees2 ($M) $5.8 $6.0 $7.4 $7.6 $7.4 27% Wealth Management & Trust Fee Income ($M) $3.4 $3.8 $3.9 $4.1 $3.6 7% Investment Banking and Trading Income ($M) $4.1 $6.5 $4.2 $11.1 $7.8 89% Income From Areas of Focus ($M) $13.4 $16.3 $15.5 $22.8 $18.9 41% Financial Performance (Period End) Q3’ 21 Q4’ 21 Q1’ 22 Q2’ 22 Q3’ 22 YoY Business, Middle Market, and Corporate Banking Talent 1.4x 1.7x 2.1x 2.3x 2.5x Business, Middle Market, and Corporate Banking Deposits ($B) $7.0 $7.7 $7.1 $7.3 $6.9 (1%) C&I Loans7 Excl Insurance Premium Finance Loans ($B) $7.2 $7.8 $8.1 $9.4 $10.0 38% Real Estate Loans ($B) $5.2 $4.8 $4.9 $5.1 $5.0 (4%) Treasury Solutions Private Wealth Investment Banking Business Banking Middle Market Banking Corporate Banking  Strong growth trends in core operating deposits; Treasury Product Fees up 27%, YoY  Gross PxV continues to trend favorably as rapidly expanding product suite gaining traction with clients  AUM increased 3% YoY; pressured market conditions offset by continued strong net organic flows  Focused investment across the platform in products, client experience, and talent  Platform build remains on schedule with client receptivity despite challenging market conditions  YTD income up 29% (89% YoY); Capital Solutions, Syndicated Finance, Sales & Trading all contributing  Poised for improved contribution with average frontline tenure of less than 6 months  Targeted investments in providing financial services to Texas communities and small businesses  Continued focus on best-in-class Texas-based clients; loans are up 17% YoY  Partnership with Texas Capital Securities resulting in additional mandates  Industry vertical segmentation maturing; client acquisition strategy continues to be substantiated  Non-credit fee income is ramping; gross PxV is up 40% YoY

7 Focused on the Future Current Financial Priorities 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

8 Financial Performance Financial Highlights ($M) Q3 2021 Q2 2022 Q3 2022 Net Interest Income $190.5 $205.5 $239.1 Non-Interest Revenue 24.8 26.2 25.3 Total Revenue 215.3 231.8 264.4 Non-Interest Expense 153.0 164.3 197.0 PPNR8 62.3 67.5 67.4 Provision for Credit Losses 5.0 22.0 12.0 Income Tax Expense 13.9 11.3 13.9 Net Income 43.4 34.2 41.4 Preferred Stock Dividends 4.3 4.3 4.3 Net Income to Common 39.1 29.8 37.1 Key Performance Metrics Return on Average Assets 0.47% 0.44% 0.52% PPNR8 / Average Assets 0.67% 0.86% 0.84% Efficiency Ratio9 71% 71% 75% Return On Average Common Equity 5.41% 4.35% 5.36% Earnings Per Share $0.76 $0.59 $0.74 Tangible Book Value6 per Share $55.93 $53.93 $51.48  Net income to common of $37.1 million, $0.74 per diluted share, or $0.98 per diluted share excluding divestiture transaction expenses  Deliberate balance sheet positioning coupled with sustained execution on defined growth initiatives drove a 16.3% increase in net interest income QoQ as interest rates continued to increase  Strategic focus on expanding products and services resulting in positive trends in targeted fee categories—treasury, wealth management fees and investment banking fees increased 41% YoY  Service charges on deposits down slightly QoQ due to increased client fee credits from higher deposit rates but up 23.4% YoY  Non-interest expense continues to grow as expected, with a larger- portion increasingly allocated to higher-value activities directly supporting our defined strategy  Total non-interest expense up $32.7 million, or 19.9% QoQ, including $16.7 million of transaction expenses related to the divestiture of insurance premium finance loan portfolio  Transaction expenses: $13.7 million in salaries and benefits and $3.0 million in legal and professional  Excluding the transaction expenses, total non-interest expense increased $16.1 million, or 9.8% QoQ, driven by an $11.8 million increase in salaries and benefits, and a $2.8 million increase in technology  Provision expense of $12 million was predominantly related to updated views on the downside risks to the economic forecast offset by QoQ improvement in criticized assets  Tangible book value per share decline QoQ was attributed to $163.2 million additional AOCI impairment during the quarter from valuations on both the securities portfolio and the cash flow hedges portfolio

9 $7.2B $7.8B $8.1B $9.4B $10.0B $2.7B $2.7B $2.9B $3.1B $3.1B Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2022 EOP $8.4B $7.6B $8.0B $7.9B $5.7B $5.9B $5.3B $4.9B Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 MFLs $5.2B $4.8B $4.9B $5.1B $5.0B Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 52% 47% 49% 51% 53% 55% 57% 59% 61% Loan Portfolio 11 Average Mortgage Finance Loans11 Period End Loan Trends (excl. PPP) Utilization Rates10  C&I Loans7 Excl Insurance Premium Finance Loans grew $569 million or 6% QoQ  Real Estate Loans declined 2% QoQ on par with expectations as payoffs remain elevated; thru-cycle strategy centered on client selection  In the industry-wide contracting market, average MFLs11 declined 10% QoQ comparing favorably to observed sector trends C&I Loans7 Excl Insurance Premium Finance Loans Real Estate Loans 51% LTM Average Insurance Premium Finance Loans

10 3.25% 0.39% 1.62% 0.39% 1.79% 0.19% 0.93% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Q4 2021 Q1 2022 Q2 2022 Q3 2022 0.19% 0.19% 0.20% 0.33% 0.93% 0.28% 0.28% 0.30% 0.47% 1.04% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Avg Cost of Total Deposits Total Cost of Funds Q3 2022 EOP $15.4B $13.7B $12.2B $11.5B $7.6B $6.6B $9.3B $9.2B $7.1B $4.7B $4.1B $3.8B Q3 2021 Q2 2022 Q3 2022 Q3 2022 EOP $17.5B $15.7B $13.6B $13.9B $13.2B $10.7B $12.0B $11.7B $1.6B $1.2B $1.1B $0.9B $0.7B $0.6B $1.4B $1.3B $14.4B $15.1B $15.4B $15.8B $14.2B $13.7B $12.2B $11.5B Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Interest-bearing Core Interest-bearing Brokered Non-interest Bearing Deposits and Fundings Funding CostsDeposit Composition (Average) Non-interest Bearing Indexed  Funding base continuing multi-year transition to target state composition  NIB balances of 47%  Mortgage Finance deposit volumes remain pressured in current market environment  Indexed deposits further reduced by $700 million; now at long-term target level 15% of total deposits  Average Cost of Total Deposits increased 60 bps QoQ; a cumulative beta of 25% since the beginning of the current tightening cycle  57% cumulative beta in the last tightening cycle (Sep-15 to Jun-19) Interest Bearing Average Deposit Trends 23% 25% 52% 15% 38% 47% $30.1B $25.0B $25.6B $24.5B $33.5B $32.0B $30.1B $30.6B $28.1B $25.0B $25.6B $24.5B Current Cycle Rates Paid Betas12 Int. Bearing Rate Int. Bearing excl. Indexed Rate Fed Funds Upper TargetTotal Deposit Rate 19% 26% 55% 16% 36% 48% Cumulative Betas 47% 41% 25%

11 -9.9% 5.9% 9.9% 7.3% 14.4% 17.7% 12.9% Q3 2021 Q2 2022 Q3 2022 -100bps Shock +100bps Shock +200bps Shock Net Interest Income Sensitivity Standard Model Assumptions 100bp & 200bp Parallel Shocks  Loan Balances: Static  Deposit Balances: Static  Indexed Deposits: Ratio held constant at 15%  Loan Spreads: Current Levels  Total Deposit Beta: ~50%  Investment Portfolio: Ratio held constant Loan Repricing Detail // Gross LHI excl. MFLs11 and BDCF TCBI NII Sensitivity  The asset sensitivity profile of the bank decreased QoQ primarily driven by $2.25 billion in swaps executed during the quarter which reduced asset sensitivity by approx 2%  Swaps executed during the quarter had an average receive fixed rate of 3.1% and duration of 37 months  Actions create a more stable medium-term NIM profile, while lowering rates-fall risk  LHI excl. MFLs11: 8% fixed / 92% variable  $4.9 billion (33%) of LHI excl. MFLs11 have contractual floors  All loans with floors are acting as variable rate loans  MFLs11 represent 22% of the total Loan portfolio with the majority tied to 1 month LIBOR which rose 136 bps in Q3 2022  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 (7.3%, $77M and 12.9%, $135M for Q3 2022) inclusive of Mortgage Finance NII impact $163M Base NII13 $727M $920M $1,045M Hedging Profile $91M $135M $77M ($104M) $43M $105M ($M) Notional Balance Fixed Rate Q2 2022 750 5.01% Q3 2022 3,000 3.61% Q4 2022 3,000 3.61% 2023 3,000 3.61% 2024 2,750 3.54% ($14.9B) Q3 2022 Fixed 8% Prime 20% 1 Month 66% 3 Month 4% 6 Month 2% Variable 92% Total 100%

12 $26.2 -$0.3 -$0.4 -$0.7 -$3.3 $3.8 $25.3 $4.1M $7.8M $3.4M $3.6M$4.6M $5.7M 2.22% 2.04% 2.02% 2.11% 2.12% 2.23% 2.68% 3.05% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Non-Interest Income Walk ($M)Fee Income DetailNon-Interest Income Q3-2022 Earnings Overview Deposit Service Charges Investment Banking and Trading Wealth Management Q3 2021 Q3 2022 Q 2 2 0 2 2 D e p os it S e rv ic e C h a rg e s W e a lth M a n ag e m e nt Q 3 2 0 2 2 B ro ke re d Lo a n F ee s In ve st m e n t B a n ki n g & T ra d in g O th er I n co m e +23% +7% +89% Net Interest Income Net Interest Margin $24.8M $26.2M $25.3M Q3 2021 Q2 2022 Q3 2022 % of Revenue 12% 11% 10% $205.5M $7.9M $58.3M -$1.9M $15.5M -$39.8M -$6.4M $239.1M Q2 2022 Loan Volume Loan Yield Loan Fees Investment Securities & Cash Deposits Borrowings Q3 2022

13 0.24% 0.21% 0.19% 0.16% 0.12% 3.07% 2.56% 2.20% 2.51% 2.45% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 NPAs / Total Assets Criticized / Loans HFI 37% 38% 65% 24% 1% 11% 4% 3% 52% 34% 31% Q3 2021 Q2 2022 Q3 2022 Commercial Mortgage Energy Real Estate $87.5M $103.9M $115.6M $65.5M $60.4M $64.7M $16.7M Q3 2021 Q2 2022 Q3 2022 Medium-term CET1 Target 10.70% 10.46% 11.08% 10.00% 1.52% 1.45% 1.51% 2.73% 2.51% 2.66% Q3 2021 Q2 2022 Q3 2022 Criticized Composition | YoYCredit Quality Q3-2022 Earnings Overview 34% $729M $484M  Expense base continues repositioning for enhanced client experience and future scale  Capital remains above historical averages with Total Capital Ratio and TCE6/Tangible Assets in the top 20 percentile of peers14  Reserve levels in top 30 percentile among peers14  Enterprise disciplines supporting a values-driven credit culture, driving criticized loans down 34% YoY  Q2 $144.6 million mortgage finance downgrade has been resolved; no losses recognized by CRT investors or TCBICET1 Tier 1 Capital Tier 2 Capital $153.0M $164.3M $197.0M Salaries & Benefits Other NIE Divestiture Transaction Costs Non-interest Expense $604M Regulatory Capital Levels 59% 57% 33% 43% 8% 63% 37% Q3 2021 Q2 2022 Q3 2022 14.95% 15.25% Asset Quality Ratios 14.42% 1.42% 1.20% 1.51% 2.5x 4.5x 6.5x ACL on Loans / Loans HFI excl MFLs ACL on Loans / Non- accrual Loans HFI

14 Full Year 2022 Guidance Full Year 2022 Guidance Average Mortgage Finance Loans11 Mid-30% Decline Total Revenue Mid-to-High Single Digit % Growth Non-Interest Expense Mid Teens % Growth Quarterly Operating Leverage (YoY Growth in Quarterly PPNR8) Maintain  Forward curve15 assumes 2022 terminal rate of 4.50% Fed Funds  Non-interest expense growth guidance excludes insurance premium finance loan portfolio divestiture transaction expenses Guidance Commentary

15 1. Total Revenue in 2020 and 2021 excludes Correspondent Lending; See slide: Appendix // Correspondent Lending Historical Contribution 2. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, wire fees, and FX transactions, all of which are included in other non-interest income and totaled $3.1M for FY 2020, $4.4M for 2021, $4.7M for Q3-YTD 2022 and $1.2M, $1.3M, $1.3M, $1.6M, and $1.7M for Q3 2021, Q4 2021, Q1 2022, Q2 2022, and Q3 2022 respectively 3. Non-interest Income for 2020 and 2021 excludes Correspondent Lending; See slide: Appendix // Correspondent Lending Historical Contribution 4. Includes interest-bearing cash and cash equivalents, available-for-sale debt securities, and equity securities 5. See slide: Appendix // Return on Average Tangible Common Equity (ROTCE) 6. Stockholders’ equity excluding preferred stock, less goodwill and intangibles (includes $15.5M of BankDirect Capital Finance (“BDCF”) goodwill and intangibles reclassed to other assets held for sale as of 9/30/2022) 7. C&I Loans includes Commercial and Energy loans and excludes PPP loans 8. Net interest income and non-interest income, less non-interest expense 9. Non-interest expense divided by the sum of net interest income and non-interest income 10. Outstanding loans divided by total commitments excluding Mortgage Finance Loans and leases 11. Total Mortgage Finance Loans (MFLs) include Mortgage Warehouse loans and Correspondent Lending Loans held for sale 12. Beta taken as the difference of Q3 2022 and Q4 2021 cost of total deposits, cost of interest-bearing deposits, and cost of indexed deposits divided by the change in fed funds upper target over the same period 13. Baseline scenarios hold constant balances, market rates, and assumptions as of period end reporting 14. Compared to major exchange traded peer banks with $20-100B in assets as of Q2 2022, excluding PR headquartered banks and merger targets Source: S&P Capital IQ Pro 15. Forward curve as of September 16, 2022 Appendix // Footnotes

16 Appendix // Correspondent Lending Historical Contribution Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 LHS (Average) LHS (Period-end) $70.6M $75.5M $95.3M $105.4M $121.1M $1.3M $1.2M $0.0M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 MSR (Period-end) Risk Weighted ~50% Risk Weighted 250% ($M) Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Net Interest Income 24.5 1.5 2.8 1.4 30.2 0.9 0.3 0.0 0.0 1.2 Non-interest Income Brokered Loan Fees 2.6 2.8 5.8 3.9 15.1 2.2 0.7 0.0 0.0 2.9 Servicing Income 4.6 5.9 7.1 8.6 26.2 8.8 5.7 0.0 0.0 14.5 Gain/(Loss) on Sale of LHS (13.0) 39.0 25.2 6.8 58.0 5.6 (3.1) (1.2) 0.0 1.3 Non-Interest Expense Salaries & Benefits 3.6 3.5 4.5 3.4 15.0 3.0 3.1 0.4 0.3 6.8 Marketing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Legal & Professional 0.8 0.6 0.8 0.9 3.1 1.0 0.8 0.3 0.2 2.3 Communications & Tech 0.7 1.4 1.0 1.0 4.1 0.4 0.3 1.3 0.5 2.5 Servicing-Related Expenses 16.4 20.1 12.3 15.9 64.7 13.0 12.4 2.4 0.0 27.8 Other Expense 0.5 0.5 0.4 0.7 2.1 0.7 0.6 0.6 0.2 2.1

17 Appendix // Return on Average Tangible Common Equity (ROTCE) ROTCE is a non-GAAP financial measure. ROTCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROTCE is used by management in assessing financial performance and use of equity. A reconcilement of ROTCE to the most directly comparable U.S. GAAP measure, ROCE, for all periods presented below. (1) Ratios are annualized (2) Includes BDCF goodwill and intangibles reclassed to other assets held for sale as of 9/30/2022 2020 ($000s) YTD 20221 ($000s) Net Income Available to Common Stockholders Average Common Equity Less: Average Goodwill and Intangibles Average Tangible Common Equity ROCE ROTCE $56,539 $2,686,747 17,857 $2,668,890 2.1% 2.1% $102,289 $2,792,591 17,0922 $2,775,499 4.9% 4.9% 2021 ($000s) $235,218 $2,815,656 17,447 $2,798,209 8.4% 8.4%