Texas Capital Bancshares, Inc. Announces Steps to Enhance the Company’s Balance Sheet

Closes Credit Risk Transfer Transaction with World-Class Institutional Investors

Previously Launched Series B Preferred Stock to Raise Additional Capital

Transactions Optimize Balance Sheet and Provide Greater Capacity to Support Best-In-Class Mortgage Finance Offerings Through Multiple Cycles

DALLAS, March 09, 2021 (GLOBE NEWSWIRE) -- Texas Capital Bank, N.A., and its parent company Texas Capital Bancshares, Inc. (NASDAQ: TCBI), collectively referred to herein as “Texas Capital Bank,” today announced the closing of a Credit Risk Transfer (CRT) transaction with institutional investors. The CRT is an important step forward in Texas Capital Bank’s proactive efforts to optimize its balance sheet and support its best-in-class Mortgage Finance offerings through multiple cycles. The transaction enables the Company to expand the Warehouse Lending program and better serve clients in all market environments. Due to current market conditions and an oversubscription in investor appetite, the initial transaction references $2.20 billion of loan exposure via a Credit Linked Note (CLN) issue of $275 million. The transaction closed on March 9, 2021.

In addition, as previously announced on February 24, 2021, the Company closed on its public offering of  $300 million of Series B preferred stock.

“This CRT is a notable transaction for Texas Capital Bank, and advances our proactive efforts to optimize our balance sheet,” said Rob C. Holmes, President and Chief Executive Officer of Texas Capital Bank. “As we are the first regional bank in the U.S. to enter into this type of sophisticated transaction, and in partnership with leading financial institutions, Texas Capital Bank is demonstrating its ability to lead the market in innovative approaches to capital and risk management to the benefit of our company, our clients and our shareholders. In combination with our recently closed preferred stock capital raise, this initiative provides enhanced credit protection and significantly improves our regulatory capital ratios. As a result, Texas Capital Bank is better positioned to serve our Warehouse Lending clients through all market environments.”