Texas Capital Bank is a bank headquartered in

Dallas, Texas Dallas () is a city in the U.S. state of Texas and the most populous city in the Dallas–Fort Worth metroplex, the List of Texas metropolitan areas, most populous metropolitan area in Texas and the Metropolitan statistical area, fourth-most ...

. The bank has branches located in every major city in Texas. Its parent

bank holding company A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. The compound bancorp (''banc''/''bank'' + '' corp ration') or bancorporation is often used to refer to such companies as w ...

is Texas Capital Bancshares. It also operates an online-only banking division, Bask Bank.

History

The bank was established on December 18, 1998, by a group of entrepreneurial bankers who were able to raise $80 million in start-up capital, the most for a new financial institution at that time. In 2003, the company completed an

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

. The online-only subsidiary Bask Bank was launched in early 2020. In 2020, a potential merger with Independent Bank Group of

McKinney, Texas McKinney is a city in and the county seat of Collin County, Texas, United States. It is Collin County's third-largest city, after Plano, Texas, Plano and Frisco, Texas, Frisco. A suburb of the Dallas–Fort Worth metroplex, McKinney is about ...

collapsed, causing the CEO to step down. In late 2021, the new CEO adopted a strategy of moving away from loan-oriented growth in the

commercial bank A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit. It can also refer to a bank or a division of a larger bank that deals with whol ...

ing sector, towards becoming a full-service financial institution over the following five years, and launched a new

investment bank Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

division. On September 6, 2022, it was announced that Texas Capital Bancshares would sell BankDirect Capital Finance, a

premium financing Premium financing is the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by a third party finance entity known as a premium financing company; however insurance companies a ...

company founded in 2005, to

Truist Financial Truist Financial Corporation () is an American bank holding company headquartered in Charlotte, North Carolina. The company was formed in December 2019 as the result of the merger of BB&T (Branch Banking and Trust Company) and SunTrust Banks ...

for $3.4 billion. The sale was part of its strategic shift, allowing it to shed a non-core business while increasing its capital levels during the transition. In March 2022, Texas Capital Bank was named by Newsweek Magazine as the most trustworthy bank in America, based on a survey of 50,000 U.S. residents. In October 2022, it expanded its lease at 2000 McKinney Avenue in

Uptown Dallas Uptown is a PID (public improvement district) and a dense neighborhood in Dallas, Texas. Uptown is north of and adjacent to downtown Dallas, and is bordered by U.S. Highway 75 (Texas), US 75 (Central Expressway (Dallas), Central Expressway) on t ...

for its headquarters, and the building was renamed Texas Capital Center. Texas Capital Bancshares received investments from several hedge funds in late 2022.

Services

The bank primarily serves clients and operates full-service locations in

Austin Austin refers to: Common meanings * Austin, Texas, United States, a city * Austin (given name), a list of people and fictional characters * Austin (surname), a list of people and fictional characters * Austin Motor Company, a British car manufac ...

Dallas Dallas () is a city in the U.S. state of Texas and the most populous city in the Dallas–Fort Worth metroplex, the List of Texas metropolitan areas, most populous metropolitan area in Texas and the Metropolitan statistical area, fourth-most ...

Fort Worth Fort Worth is a city in the U.S. state of Texas and the county seat of Tarrant County, Texas, Tarrant County, covering nearly into Denton County, Texas, Denton, Johnson County, Texas, Johnson, Parker County, Texas, Parker, and Wise County, Te ...

Houston Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...

, and

San Antonio San Antonio ( ; Spanish for " Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the third-largest metropolitan area in Texas and the 24th-largest metropolitan area in the ...

metropolitan areas of Texas. It also has an executive office in New York. As of March 2023, the company held $28.4 billion in assets and had around 2,200 employees. The bank offers many business deposit products and services, as well as other treasury management services and consumer deposit products. The company also provides commercial loans and financing for corporate purposes, and personal wealth management and trust services. It also has an online-only banking division, Bask Bank, with perks focusing on frequent airline fliers. It operates a nonprofit arm called Texas Capital Bank Foundation.

Controversy

In Late 2020, Texas Capital Bank's stock price rose 93
on consolidation by Bill Hwang's Archegos fund
Archegos' full position amounted to a more than 20% stake in Texas Capital Bank, at its peak. During this time, Archegos was in communication with Texas Capital management about its rising stake, including with Jody Grant, who founded the Bank in 1998. Grant's discussions with Hwang's family office were friendly, and it appears Archegos were supportive of Texas Capital Bank's management. As the stock price rose towards a 2 year high around March 2021, Texas Capital decided to issu
12,000,000 new shares
for an aggregate sum of $300 million. Morgan Stanley participated in leading the book building process for the offering, even as Morgan Stanley was also involved in offering Archegos' prime brokerage service and holding Texas Capital's shares for Archego
in that capacity
In the weeks after Texas Capital's fundraising the company's market value briefly touched US$4.5 billion. Subsequently, Archegos imploded and executives of the fund were charged with fraud.

References

External links

Official website
{{NASDAQ Financial-100 Companies listed on the Nasdaq American companies established in 1998 Banks established in 1998 Banks based in Texas Banks based in the Dallas–Fort Worth metroplex Companies based in Texas Companies based in Dallas Financial services companies of the United States 2003 initial public offerings 1998 establishments in Texas Companies in the S&P 400