Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Q1 2023 Earnings Call Transcript

And just intra quarter, as far as outflows, were they a mix shift was it consistent through the quarter or did it accelerate towards the end of the quarter given all the turmoil?Matt Scurlock We saw no acceleration. The behavior was generally consistent with our expectation. So I think you’re aware that our liquidity framework is pretty similar to what you find at a money center bank, as you think about process, modeling or procedures. So we described deposit values based on stress 30 day or 12 month outflow rates similar to what you would find in LCR like framework and then we manage the balance sheet every day in compliance with those thresholds to the fact that we left the brokered CDs rolled off, we maintain normal levels of wholesale borrowing, which I want to come back to in a second.

And then perhaps most importantly, we’re actively calling on clients and prospects, I think, helps reinforce the view that things behaved as anticipated.FHOB is important constituent for us. We have a long history of having outstanding FHLB or short term borrowing levels equal to about a third of end of period warehouse balances. This quarter, we added $750 million in the last few days of the quarter. We had no idea about the health of other banks and wanted to ensure that we had adequate on hand liquidity to meet what could have been exceptionally high levels of mortgage finance period and mortgage finance inflows. We had a bit of a pickup. Certainly wasn’t as large as it could have been. And that $750 million was out the door by Monday. So you can see that in our average short-term borrowing levels in the earnings release.

There’s really no movement. It’s just that period in at about $750 million to absorb potential pickup in warehouse volumes.Brandon King Got it. Thanks for all the color. Thanks for taking my questions.Matt Scurlock Yes. You bet.Operator Thank you. That’s all the questions we have time for today. I’ll now hand back to Rob for any closing comments.Rob Holmes Thanks everybody for your interest in the firm and the thoughtful questions. We’re really, really excited about the platform that we’ve built, and the process going forward and look forward to continued conversations. Thank you for your time.Operator Thank you. This now concludes today’s call. Thank you so much for joining. You may now disconnect your lines.