Texas Capital Bancshares is the holding company for Texas Capital Bank, which has about 10 branches in Austin, Dallas, Fort Worth, Houston, Plano, and San Antonio. The bank targets high-net-worth individuals and businesses with more than $5 million in annual revenue, with a focus on the real estate, financial services, transportation, communications, petrochemicals, and mining sectors. Striving for personalized services for its clients, the bank offers deposit accounts, Visa credit cards, commercial loans and mortgages, equipment leasing, wealth management, and trust services. Its BankDirect division provides online banking services.
Texas Capital Bancshares was formed in 1998 with a Texas-sized bankroll of $80 million, one of the largest ever for a community bank at that time. It believes that its Texas roots give it a competitive advantage over larger competitors that are headquartered out of state.
Doing business in Texas has also helped the bank's bottom line, as the state has proven to be relatively recession-proof. While its percentage of nonperforming loans has remained below the national average, Texas Capital Bancshares has grown its assets, deposits, and loan portfolio each of the past five years. The company has also reported three consecutive years of earnings growth following the global credit crisis of 2007-2008.
Lending accounts for around 90% of Texas Capital Bancshares' revenue. Commercial loans, usually used by borrowers for working capital, business growth, acquisitions, business insurance premium financing, and to purchase real estate, represent most of the company's lending activities. The bank has cut back on construction lending amid an industry-wide slowdown. It does not originate residential mortgages, and consumer loans typically account for less than 1% of its loan book.
Texas Capital Bancshares has said that it is looking to grow within its main metropolitan markets, but has also branched out beyond the borders of its home state. The bank has an Cayman Islands branch to offer offshore cash management and deposit products to it core clientele.
Insiders and institutional investors own approximately 40% of Texas Capital Bancshares' stock. – less