Texas Capital Bancshares, Inc.

Hello everyone and welcome to the Texas Capital Bank Shares Inc. Q1 2025 Earnings Call. My name is Ezra and I will be your coordinator today. If you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I will now hand over to Jeffelyn Kukulka, Head of Investor Relations, to begin. Please go ahead.

Good morning and thank you for joining us for TCBI's first quarter 2025 earnings conference call. I'm Jocelyn Kukulka, Head of Investor Relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectation of future results or events. Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements. Our forward-looking statements are as of the date of this call, and we do not assume any obligation to update or revise them. Statements made on this call should be considered together with the cautionary statements and other information contained in today's earnings release, our most recent annual report on Form 10-K, and subsequent filings with the SEC. We will refer to slides during today's presentation, which can be found along with the press release in the investor relations section of our website at TexasCapital.com. Our speakers for the call today are Rob Holmes, Chairman, President, and CEO, and Matt Scurlock, CFO. At the conclusion of our prepared remarks, our operator will open the call for Q&A. Now I'll turn the call over to Rob for opening remarks.

Thank you for joining us today. This quarter's results continue to evidence our clearly differentiated strategy and operating model. Contributions from across the firm enabled another quarter of strong financial progress. With year-over-year revenue growth of 9%, adjusted pre-provision net revenue growth of 21%, and tangible book value per share growth of 11%, which ended the quarter at a record high for the firm. The company also maintained its peer-leading capital levels with tangible common equity to tangible assets of 10%, while continuing to effectively support clients' growth objectives during the first quarter of the year. Earning the right to be our client's primary operating bank remains the foundation of our transformation, with sustained success again displayed by another quarter of peer-leading growth in Treasury product fees, which increased 22% year-over-year to a record high for the firm. Non-interest-bearing deposits, excluding mortgage finance, grew 7%, marking the firm's largest quarterly increase since 2021. and are up 11% since the first quarter of last year. Consistently increasing client relevance through both breadth of services and quality of advice continues to deliver a longer duration, less rate-consistent deposit base. Further evidence this quarter by our ability to effectively reprice down our liabilities, supporting a 26 basis point increase in late quarter net interest margin, and 10% increase in year-over-year quarterly net interest income. Looking ahead, we remain confident in our ability to deliver risk-adjusted returns consistent with our published targets. Deliberate actions over the last four years purposefully positioned our firm to operate through any market or rate cycle with our financially resilient balance sheet, tailored coverage model, and breadth of products and services enabling us to uniquely serve clients as they navigate this period of elevated macroeconomic uncertainty. Recent tariff actions and resulting volatility in the financial markets could manifest in changes to client confidence affecting hiring, capital investment, and M&A. Today, institutional debt markets are still functioning, albeit at higher costs. Banks are still aggressively competing for high quality credits and flows in our institutional sales and trading desk continue to grow in a consistent manner. Our perspectives are influenced by unique positioning as the only full service firm headquartered in Texas with significant connectivity to small businesses through our top five FBA seven day lending program. Our loan syndications team, which has reached as high as the number eight leader ranger in league tables for middle market loan transactions in the country, our extensive reach into institutional credit markets to more than $25 billion of leveraged finance transactions we facilitated last year, and our institutional sales and trading business, which now transacts with over 1,000 active accounts. You have often heard me say that we regularly prepare for a range of economic or geopolitical outcomes beyond the base case or consensus view. Strategically, that means operating without balance sheet concentrations, deploying products and services that allow us to comprehensively serve clients, and carrying liquidity, capital, and reserve levels that enable confidence and flexibility across a range of economic scenarios. We often refer to that as operating with a balance sheet and business model that is resilient to market and rate cycles. It is because of our deliberate preparation that we are confident about the future and expect to continue to onboard and serve the best clients in our markets. Thank you for your continued interest in and support of our firm. I'll turn it over to Matt to discuss the financial results.