INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com 1 Texas Capital Bancshares, Inc. TCBI ANNOUNCES THE SALE OF ITS INSURANCE PREMIUM FINANCE BUSINESS Tuesday, September 6, 2022, 10:00 AM Eastern CORPORATE PARTICIPANTS Rob Holmes - President, Chief Executive Officer Matt Scurlock - Chief Financial Officer Our allowance for credit losses on loans, excluding mortgage finance, is 1.46%, consistent with last quarter. A focus on optimizing rates towards appropriate market levels continues but the largest move occurred in the second quarter. Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company's sales or revenues. Dividend Yield -. Read ourPrivacy Policyto learn more. They'll be in the 10-Q that gets filed in a couple of days. There was good talent here that we have kept and that we're excited about keeping. Our website is safe and secure. We're retiring them. What I would say is as it relates to the third quarter, just remember, we came out with our strategic plan in the September 1st, so mid-quarter, if you will. background-image: url(/sites/default/files/texas-capital-logo.svg); Texas Capital Bancshares, Inc. (TCBI) CEO Rob Holmes on Q4 2021 Results Well, I'll just refer you back to some of the levers we talked about before. We won't focus on trying to predict fluctuations in NIM but rather remind everyone of the different components. No, I appreciate the input, the insight. The new strategic plan includes the following key steps Texas Capital Bank is taking to build a technology-enabled operating model: Since we first announced our plans to engage in an enterprise-wide analysis of our business, we have taken decisive actions to enhance our strategic objectives, deepen our client relationships and increase our capital flexibility, all of which have empowered us to create core, high-growth opportunities and better achieve our goal of long-term value creation for our shareholders, continued Mr. Holmes. I know it's a byproduct, but if we look ex PPP, it was up about 5.5% annualized this quarter. But we have a very prudent box applied to a very discerning client selection process that goes through balance sheet committee. As you look at our -- what we said about low double digit growth in 2022, nothing has changed from what we said on September 1st, if that's helpful. Warehouse yields have continued to decline, as I mentioned, but seem to be stabilized now. Our forward-looking statements are as of the date of this call and we do not assume any obligation to update or revise them. We're still below like '19 levels but we're up from COVID levels. Our third quarter results further substantiate our strategy is the right one and will improve our quality of earnings in the future. Texas Capital Securities offers a full suite of investment banking products and services focused on delivering exceptional outcomes for our clients. Pinnacle Bank is regulated by the Tennessee Department of Financial Institutions (TDFI) and the Federal Deposit Insurance Corporation (FDIC). Top lines in both are encouraging as we continue to see success in our more disciplined calling efforts and continue to add talent in both areas. DALLAS - January 10, 2022 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank ("the Bank"), today announced the launch of Texas Capital Securities, its affiliated broker dealer. So maybe just talk about the reserve, the likelihood of that releasing lower over time? The next question comes from the line of Brett Rabatin with Hovde Group. There's no reason to think that we won't. I will say we're being discerning and we're making better progress in some areas than other. Participation from . Anything else more near term we should be thinking about as we build out our forecast over the next few quarters? NIM was up slightly resulting from the deliberate reductions taken in the first half of the year with some of the higher priced index deposits. Can you maybe just address that topic, big bank expense and your background versus what you're trying to do at Texas Capital? And then my follow-up, you mentioned in the slides that you've had success in onboarding client facing professionals. Can you just talk about the takeaway from that process? I would say it's broad based. This press release contains forward-looking statements within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, our strategy, our enterprise-wide transformation, our future performance, financial condition and business models, new products and business initiatives, our plans for investments and for growth and expansion, including establishing a broker-dealer, and our targets for various future time periods, including expense and revenue growth in 2022 and our plans to build tangible book value. These factors include, but are not limited to, (1) the credit quality of our loan portfolio, (2) general economic conditions and related material risks and uncertainties in the United States, globally and in our markets and the impact they may have on us and our customers, including the continued impact on our customers from volatility in oil and gas prices as well as the continued impact of the COVID-19 pandemic (and any other pandemic, epidemic or health-related crisis), (3) technological changes, including the increased focus on information technology and cybersecurity and our ability to manage such information systems and the effects of cyber-incidents (including failures, disruptions or security breaches) or those of third-party providers, (4) changes in interest rates and changes in the value of commercial and residential real estate securing our loans, (5) adverse economic or market conditions that could affect the credit quality of our loan portfolio or our operating performance, (6) expectations regarding rates of default and credit losses and the appropriateness of our allowance for credit losses and provision for credit losses, (7) unexpected market conditions, regulatory changes or changes in our credit ratings that could, among other things, cause access to capital market transactions and other sources of funding to become more difficult, (8) the inadequacy of our available funds to meet our obligations, (9) the failure to effectively balance our funding sources with cash demands by depositors and borrowers, (10) material failures of our accounting estimates and risk management processes based on management judgment, (11) failure of our risk management strategies and procedures, including failure or circumvention of our controls, (12) the failure to effectively manage risk, (13) uncertainty regarding the London Interbank Offered Rate and our ability to successfully implement any new interest rate benchmarks, (14) the impact of changing regulatory requirements and legislative changes on our business, (15) the failure to successfully execute our business strategy, including completing planned merger, acquisition or sale transactions, (16) the failure to identify, attract and retain key personnel or the loss of such personnel, (17) increased or more effective competition from banks or other financial service providers in our markets, (18) structural changes in the markets for origination, sale and servicing of residential mortgages, (19) certainty in the pricing of mortgage loans that we purchase, and later sell or securitize, (20) volatility in the market price of our common stock, (21) credit risk resulting from our exposure to counterparties, (22) an increase in the incidence or severity of fraud, illegal payments, security breaches and other illegal acts impacting us, (23) the failure to maintain adequate regulatory capital to support our business, (24) environmental liability or other environmental, social or governance factors that may materially negatively impact the company, (25) severe weather, natural disasters, acts of war or terrorism and other external events and (26) our success at managing the risk and uncertainties involved in the foregoing factors. The people that we're attracting are high energy, they're very commercial, they're team oriented, they want to do this with a group that they like. And then one additional question. News & Info - Financial News Releases - Commerce Bancshares Thank you for your participation in TCBI's Q3 2021 Earnings Conference Call. February 23, 2021 10:27 am EST Written by Zacks Equity Research for Zacks -> Texas Capital Bancshares, Inc.'s TCBI and its bank subsidiary, Texas Capital Bank, National Association's ratings. I'm Jamie Britton, Director of Investor Relations. We also had paydowns in CNC real estate portfolio, which are really, really good. On the call, we provided considerable detail on the strategy while being very transparent about the sustained investment of both time and resources we believe will be required to achieve our long term goals. Strategically allocating technology spend between owned and third-party platforms, focused on enabling its forward-looking goals, while simultaneously building scale and reinforcing the peer-leading client experience that distinguishes Texas Capital Bank from competitors. And the mix shift from us doing -- us only a decline experience on a go-forward basis, not the back half of the house but the front facing client-facing half or portion. The operating expense guidance you provided, you mentioned the correspondent, some of the remaining headwinds there that should be flushed out, you mentioned the seasonality of the warehouse that we should be thinking about. Consolidating existing syndications, equipment finance, asset-based loan and related businesses into a new Investment Banking Division and expanding the scope of products and services by establishing a broker-dealer, increasing the Banks ability to address the needs of clients and prospects while enhancing its ability to generate fee-based revenue and earnings. Texas Capital Bancshares, Inc. (TCBI) President and Chief Executive Going forward, we want to become more relevant to our clients. Some are essential to make our site work; others help us improve the user experience. http://www.computershare.com. So what we're saying is there's going to be a slight negative operating leverage possibly if we're successful at executing the plan by investing in the right technology product, services and talent. I think the takeaways were just that we did a deep dive. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Like it's going to take us a while to put on -- we are focused on the right clients real high-quality growth, very good earning assets with good companies that we want to bank for [Technical Difficulty], they start in business banking, they go to middle market, they improved the corporate banking and we maintained the relationship. We're banking larger clients by using syndication to put participations off balance sheet, so some are coming off, some are going on. I think there was some confusion and I'll take blame for it, I guess, for not being as clear as we should have been. You're now looking at 6% increase or so per 100 basis points. We were greatly encouraged, not only by the support to create shareholder value by building something differentiated in the space but also by the recognition that it will take time, talent, investment and fortitude to do so. }. But again, it's over a longer period of time. What else can you share that will provide us some more confidence that yields are starting to firm in that asset class? We have additional products and services that we suspended during COVID that we're offering again without increasing risk in the warehouse. The benefits of a better capitalized balance sheet are now in place. We make construction loans in the two and half year period, it's a project, it's real high end, it's in the right asset classes with the right client selection. And we experienced some growth in noninterest-bearing deposits and a full quarter benefit of the $4 billion reduction in index deposits. And we had a little bit pickup in utilization but not much, very modest. Quotemediais not affiliated with or approved by the U.S. Securities and Exchange Commission. My name is Sarah, and I will be coordinating the call today [Operator Instructions]. We said that, that's our goal. Can you talk about that, what your thoughts on loan growth and do it -- in the context of doing it very conservatively [Technical Difficulty]? And then moving on to the warehouse. So I think all those things will help. But, and I cannot stress this enough, we will no longer let loan growth alone drive our strategy. Of course, they do. 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. I'd be curious what deposit betas you're assuming in your most updated interest rate sensitivity analysis that you disclosed in the deck? I would like you to be less than it is today, obviously. So Michael, I think that we are positioned well if rates move up. So we do not have to add new clients to do that. Corporation SEC filings available on the United States Securities and Exchange Commission website. Dallas, TX 75201-6907 Tim certainly understands it. Texas Capital, Texas Capital Bank, Texas Capital Private Wealth Advisors, Texas Capital Securities, Bask Bank, and all Texas Capital logos including the Star Symbol are trademarks of Texas Capital Bank, a wholly owned subsidiary of Texas Capital Bancshares, Inc. So the expense growth is a net positive as long as we do it smart way, so I'm highly confident that we will and that we are. And while we're focused on self-funding a portion of it with a reduction in CL as well overall corporate initiatives focused on ensuring the right allocation of resources, we won't be shortsighted in our decisions about spending. It was a comprehensive review of all the tech assets that were capitalized on the balance sheet. Moving now to credit on Slide 8. And there is a period of time that we have to wait to do certain things. Our core loan yields dropped a bit during the quarter as pressure continues with our focus on client selection. If you are unable to log in on your desktop device, please use the corresponding Texas Capital Bank mobile app to access your specific online accounts. And I do think that they don't have, Yes, because theyll be netted with that in theory. In his most recent role, Mr. Scurlock was responsible for managing the Bank's Corporate Finance, Investor Relations, Corporate Treasury, and Corporate Strategy initiatives. Theyre needful, it would have been longer but the way we're now approaching it and the work that's being done just didn't substantiate that. So there's no real pickup. TCBI announces date for Q2 2023 operating results background-image: url(/sites/default/files/texas-capital-logo.svg); We do have a process for onboarding companies and they have to have a program and be following them, and we do explore that in diligence better. We remain comfortable with the current investment portfolio level and will continue to focus primarily on replacing runoff to maintain the current balance. By using the site, you consent to the placement of these cookies. Presentations | Pinnacle Financial Partners Is this happening to you frequently? At the conclusion of our prepared remarks, our operator will facilitate a Q&A session. And so they've certainly served their purpose and helped us but that will dampen the first 100 basis points a little bit. TCBI - Texas Capital Bancshares, Inc. - Yahoo Finance First, we discussed all facets of the plan in detail again at an extended company-wide town hole. This is Rob Holmes. YTD % Change -16.68. Yes, I think the pace of the decline is stabilizing. They're [siding] part of building a bank with a focused, stated strategy with an operating committee that has clarity and confidence. That happens over a period of time and then you only ramp like 80% of what you thought you were going to get. The next question comes from the line of Bill Dezellem with Tieton Capital. If you have an ad-blocker enabled you may be blocked from proceeding. After two consecutive quarters of negative provision, we recorded a nominal provision of $5 million in the third quarter, resulting from our view of the economic outlook remaining consistent with the second quarter, coupled with net growth in LHI net of mortgage finance. Texas Capital Bancshares, Inc. And then you make another one and the cycle repeats itself. Our speakers for the call today are Rob Holmes, President and CEO; and Julie Anderson, CFO. Texas Capital Bancshares, Inc. - Stock Info - Stock Information Are you sure now is the right time for an investment bank? 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 (individually and collectively with all affiliates and subsidiaries, Texas Capital), a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. 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 . I just want to thank everybody again. So I'm really excited about the warehouse itself and moving forward and our ability to execute. We want to be elegant. TCBI - Texas Capital Bancshares, Inc. - Yahoo Finance 10 Day Average Volume 0.52M. So that's the journey we're on and that's a big pivot from where we've been in the past and a lot of value that Don has brought with him. DALLAS, September 1, 2021 Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank ("the Bank"), today announced key updates to the Company's goforward strategy. This concludes our question-and-answer session. Brett, I'm going to keep going a little bit. Our clients need and use these products and services. Brady, I would just point you to the long-term goals of what -- our [balances] and what we said we keep CET1 at on the September 1st call of 10% or greater. Robert C. Holmes. Finally, the quarter underscores the importance of increasing the contribution from higher value, more stable revenue sources, increasing our focus on treasury, wealth management and investment banking will deliver significant value. Additionally, we saw mortgage finance volumes strengthened at the end of the second quarter and that continued into the third quarter. And then the last thing was mortgage warehouse [yields], I think you said those came down in the third quarter, but sounds like there were some signals that was firming up maybe at the end of the quarter or in recent weeks. You can access our filings with the SEC through the SEC website at www.sec.gov or through our website, and we strongly encourage you to do so. Pursuing one of the most aggressive hiring plans in the Companys history to more than double the number of client-facing professionals across the state by 2025. But launching our strategy in executing the specific strategy really is happening right now. Financial information should provide a clear and comprehensive view of the company, its financial position, development and strategy.