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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the quarterly period ended June 30, 2024
☐Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the transition period from              to             
Commission file number 001-34657
TEXAS CAPITAL BANCSHARES, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 75-2679109
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
2000 McKinney Avenue
Suite 700
                DallasTXUSA75201
(Address of principal executive offices)(Zip Code)
214/932-6600
(Registrant’s telephone number, including area code)

Securities registered under Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareTCBINasdaq Stock Market
5.75% Non-Cumulative Perpetual Preferred Stock Series B, par value $0.01 per shareTCBIONasdaq Stock Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒        No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒        ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filerx Accelerated Filer ☐
Non-Accelerated Filer☐Smaller Reporting Company☐
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes  ☐        No ý
On July 17, 2024, the number of shares set forth below was outstanding with respect to each of the issuer’s classes of common stock:
Common Stock, par value $0.01 per share 46,196,722

Texas Capital Bancshares, Inc.
Form 10-Q
Quarter Ended June 30, 2024

Index
 


PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(in thousands except share data)June 30, 2024December 31, 2023
Assets
Cash and due from banks$221,727 $200,493 
Interest bearing cash and cash equivalents2,691,352 3,042,357 
Available-for-sale debt securities3,483,231 3,225,892 
Held-to-maturity debt securities831,513 865,477 
Equity securities74,232 51,825 
Investment securities4,388,976 4,143,194 
Loans held for sale36,785 44,105 
Loans held for investment, mortgage finance5,078,161 3,978,328 
Loans held for investment16,700,569 16,362,230 
Less: Allowance for credit losses on loans267,297 249,973 
Loans held for investment, net21,511,433 20,090,585 
Premises and equipment, net69,464 32,366 
Accrued interest receivable and other assets933,761 801,670 
Goodwill and intangibles, net1,496 1,496 
Total assets$29,854,994 $28,356,266 
Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits$7,987,715 $7,328,276 
Interest bearing deposits15,830,612 15,043,563 
Total deposits23,818,327 22,371,839 
Accrued interest payable23,841 33,234 
Other liabilities502,228 392,904 
Short-term borrowings1,675,000 1,500,000 
Long-term debt659,997 859,147 
Total liabilities26,679,393 25,157,124 
Stockholders’ equity:
Preferred stock, $0.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 300,000 at June 30, 2024 and December 31, 2023
300,000 300,000 
Common stock, $0.01 par value:
Authorized shares - 100,000,000
Issued shares - 51,474,581 and 51,142,979 at June 30, 2024 and December 31, 2023, respectively
515 511 
Additional paid-in capital1,050,114 1,045,576 
Retained earnings2,494,572 2,435,393 
Treasury stock - 5,286,503 and 3,905,067 shares at cost at June 30, 2024 and December 31, 2023, respectively
(301,868)(220,334)
Accumulated other comprehensive loss, net of taxes(367,732)(362,004)
Total stockholders’ equity3,175,601 3,199,142 
Total liabilities and stockholders’ equity$29,854,994 $28,356,266 
See accompanying notes to consolidated financial statements.
3
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME AND OTHER
COMPREHENSIVE INCOME - UNAUDITED
Three Months Ended June 30,Six Months Ended June 30,
(in thousands except per share data)2024202320242023
Interest income
Interest and fees on loans$345,251 $332,867 $676,130 $630,305 
Investment securities33,584 27,478 65,728 52,770 
Interest bearing cash and cash equivalents43,233 41,571 97,588 104,007 
Total interest income422,068 401,916 839,446 787,082 
Interest expense
Deposits181,280 137,391 356,880 257,485 
Short-term borrowings12,749 18,253 25,532 32,997 
Long-term debt11,457 14,282 25,443 29,265 
Total interest expense205,486 169,926 407,855 319,747 
Net interest income216,582 231,990 431,591 467,335 
Provision for credit losses20,000 7,000 39,000 35,000 
Net interest income after provision for credit losses196,582 224,990 392,591 432,335 
Non-interest income
Service charges on deposit accounts5,911 5,158 12,250 10,180 
Wealth management and trust fee income3,699 3,715 7,266 7,144 
Brokered loan fees2,131 2,415 4,042 4,310 
Investment banking and advisory fees25,048 19,101 43,472 33,665 
Trading income5,650 8,397 10,362 12,601 
Other7,985 7,225 14,351 15,514 
Total non-interest income50,424 46,011 91,743 83,414 
Non-interest expense
Salaries and benefits118,840 113,050 247,567 241,720 
Occupancy expense10,666 9,482 20,403 19,101 
Marketing5,996 6,367 12,032 15,411 
Legal and professional11,273 15,669 27,468 30,183 
Communications and technology22,013 20,525 43,127 38,048 
Federal Deposit Insurance Corporation insurance assessment5,570 3,693 13,991 5,863 
Other14,051 12,858 26,214 25,345 
Total non-interest expense188,409 181,644 390,802 375,671 
Income before income taxes58,597 89,357 93,532 140,078 
Income tax expense16,935 20,706 25,728 32,766 
Net income41,662 68,651 67,804 107,312 
Preferred stock dividends4,312 4,312 8,625 8,625 
Net income available to common stockholders$37,350 $64,339 $59,179 $98,687 
Other comprehensive income/(loss)
Change in unrealized gain/(loss)$(13,939)$(99,731)$(56,282)$(56,778)
Amounts reclassified into net income19,825 16,762 39,533 29,735 
Other comprehensive income/(loss)5,886 (82,969)(16,749)(27,043)
Income tax expense/(benefit)(6,268)(17,423)(11,021)(5,678)
Other comprehensive income/(loss), net of tax12,154 (65,546)(5,728)(21,365)
Comprehensive income
$53,816 $3,105 $62,076 $85,947 
Basic earnings per common share$0.80 $1.34 $1.26 $2.05 
Diluted earnings per common share$0.80 $1.33 $1.25 $2.02 
See accompanying notes to consolidated financial statements.
4
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED

Preferred StockCommon StockAdditional Treasury StockAccumulated Other 
 Paid-inRetainedComprehensive 
(in thousands except share data)SharesAmountSharesAmountCapitalEarningsSharesAmountIncome/(Loss)Total
Balance at March 31, 2023300,000 $300,000 50,947,306 $509 $1,031,905 $2,297,850 (3,095,444)$(175,528)$(374,762)$3,079,974 
Comprehensive income/(loss):
Net income— — — — — 68,651 — — — 68,651 
Change in other comprehensive income/(loss), net of taxes— — — — — — — — (65,546)(65,546)
Total comprehensive income3,105 
Stock-based compensation expense recognized in earnings— — — — 5,069 — — — — 5,069 
Preferred stock dividend— — — — — (4,312)— — — (4,312)
Issuance of stock related to stock-based awards— — 140,659 2 (1,911)— — — — (1,909)
Balance at June 30, 2023300,000 $300,000 51,087,965 $511 $1,035,063 $2,362,189 (3,095,444)$(175,528)$(440,308)$3,081,927 
Balance at March 31, 2024300,000 $300,000 51,420,680 $514 $1,044,669 $2,457,222 (4,434,405)$(251,857)$(379,886)$3,170,662 
Comprehensive income/(loss):
Net income— — — — — 41,662 — — — 41,662 
Change in other comprehensive income/(loss), net of taxes— — — — — — — — 12,154 12,154 
Total comprehensive income53,816 
Stock-based compensation expense recognized in earnings— — — — 5,246 — — — — 5,246 
Preferred stock dividend— — — — — (4,312)— — — (4,312)
Issuance of stock related to stock-based awards— — 53,901 1 199 — — — — 200 
Repurchase of common stock— — — — — — (852,098)(50,011)— (50,011)
Balance at June 30, 2024300,000 $300,000 51,474,581 $515 $1,050,114 $2,494,572 (5,286,503)$(301,868)$(367,732)$3,175,601 
See accompanying notes to consolidated financial statements.
5
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - UNAUDITED

Preferred StockCommon StockAdditional Treasury StockAccumulated Other 
 Paid-inRetainedComprehensive 
(in thousands except share data)SharesAmountSharesAmountCapitalEarningsSharesAmountIncome/(Loss)Total
Balance at December 31, 2022 (audited)
300,000 $300,000 50,867,298 $509 $1,025,593 $2,263,502 (2,083,535)$(115,310)$(418,943)$3,055,351 
Comprehensive income/(loss):
Net income— — — — — 107,312 — — — 107,312 
Change in other comprehensive income/(loss), net of taxes
— — — — — — — — (21,365)(21,365)
Total comprehensive income
85,947 
Stock-based compensation expense recognized in earnings
— — — — 13,507 — — — — 13,507 
Preferred stock dividend — — — — — (8,625)— — — (8,625)
Issuance of stock related to stock-based awards
— — 220,667 2 (4,037)— — — — (4,035)
Repurchase of common stock— — — — — — (1,011,909)(60,218)— (60,218)
Balance at June 30, 2023300,000 $300,000 51,087,965 $511 $1,035,063 $2,362,189 (3,095,444)$(175,528)$(440,308)$3,081,927 
Balance at December 31, 2023 (audited)
300,000 $300,000 51,142,979 $511 $1,045,576 $2,435,393 (3,905,067)$(220,334)$(362,004)$3,199,142 
Comprehensive income/(loss):
Net income— — — — — 67,804 — — — 67,804 
Change in other comprehensive income/(loss), net of taxes— — — — — — — — (5,728)(5,728)
Total comprehensive income62,076 
Stock-based compensation expense recognized in earnings
— — — — 13,272 — — — — 13,272 
Preferred stock dividend— — — — — (8,625)— — — (8,625)
Issuance of stock related to stock-based awards
— — 331,602 4 (8,734)— — — — (8,730)
Repurchase of common stock— — — — — — (1,381,436)(81,534)— (81,534)
Balance at June 30, 2024300,000 $300,000 51,474,581 $515 $1,050,114 $2,494,572 (5,286,503)$(301,868)$(367,732)$3,175,601 
See accompanying notes to consolidated financial statements.
6
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
(in thousands)20242023
Operating activities
Net income$67,804 $107,312 
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Provision for credit losses39,000 35,000 
Depreciation and amortization24,835 19,717 
Net gain recognized on investment securities(3,604)(2,685)
Stock-based compensation expense14,755 13,507 
Proceeds from sales and repayments of loans held for sale25,731 7,260 
Changes in operating assets and liabilities:
Accrued interest receivable and other assets(24,042)(42,383)
Accrued interest payable and other liabilities(15,017)(47,067)
Net cash provided by operating activities129,462 90,661 
Investing activities
Purchases of available-for-sale debt securities(693,894)(849,391)
Proceeds from sales of available-for-sale debt securities— 56,923 
Proceeds from maturities, redemptions and pay-downs of available-for-sale debt securities416,701 106,988 
Proceeds from maturities, redemptions and pay-downs of held-to-maturity debt securities35,712 37,075 
Sales/(purchases) of equity securities, net(18,803)2,292 
Originations of loans held for investment, mortgage finance(37,081,520)(35,597,043)
Proceeds from pay-offs of loans held for investment, mortgage finance35,981,687 34,588,264 
Net increase in loans held for investment, excluding mortgage finance loans(379,469)(1,058,046)
Purchase of premises and equipment, net(42,246)(4,878)
Net cash used in investing activities
(1,781,832)(2,717,816)
Financing activities
Net increase/(decrease) in deposits1,446,488 461,360 
Issuance of stock related to stock-based awards(8,730)(4,035)
Preferred dividends paid(8,625)(8,625)
Repurchase of common stock(81,534)(60,218)
Net increase/(decrease) in short-term borrowings175,000 148,858 
Redemption of long-term debt(200,000)(75,000)
Net cash provided by financing activities
1,322,599 462,340 
Net increase/(decrease) in cash and cash equivalents
(329,771)(2,164,815)
Cash and cash equivalents at beginning of period3,242,850 5,012,260 
Cash and cash equivalents at end of period$2,913,079 $2,847,445 
Supplemental disclosures of cash flow information
Cash paid during the period for interest$464,930 $314,089 
Cash paid during the period for income taxes47,988 43,286 
Transfers of loans from held for investment to held for sale18,411 — 
See accompanying notes to consolidated financial statements.
7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
(1) Operations and Summary of Significant Accounting Policies
Organization and Nature of Business
Texas Capital Bancshares, Inc. (“TCBI” or the “Company”), a Delaware corporation, was incorporated in 1996 and commenced banking operations in 1998. The consolidated financial statements include the accounts of TCBI and its wholly owned subsidiary, Texas Capital Bank (the “Bank”). TCBI is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. The Company is headquartered in Dallas, with primary banking offices in Austin, Dallas, Fort Worth, Houston and San Antonio, and has built a network of clients across the country.
Basis of Presentation
The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation.
The consolidated interim financial statements are unaudited, and certain information and disclosures in the notes to consolidated unaudited financial statements that are presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made present a fair presentation of the Company’s financial position and results of operations. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the financial statements and the notes to the consolidated unaudited financial statements required by GAAP for complete annual financial statements do not include all of the information and should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change.
(2) Earnings Per Share
The following table presents the computation of basic and diluted earnings per share:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands except share and per share data)2024202320242023
Numerator:
Net income$41,662 $68,651 $67,804 $107,312 
Preferred stock dividends4,312 4,312 8,625 8,625 
Net income available to common stockholders$37,350 $64,339 $59,179 $98,687 
Denominator:
Basic earnings per common share—weighted average common shares46,546,243 47,906,624 46,925,761 48,166,977 
Effect of dilutive outstanding stock-settled awards326,255 514,652 371,569 569,405 
Dilutive earnings per common share—weighted average diluted common shares46,872,498 48,421,276 47,297,330 48,736,382 
Basic earnings per common share$0.80 $1.34 $1.26 $2.05 
Diluted earnings per common share$0.80 $1.33 $1.25 $2.02 
Anti-dilutive outstanding stock-settled awards38,461 533,363 105,680341,728

8
(3) Investment Securities
The following is a summary of the Company’s investment securities: 
(in thousands)Amortized
Cost(1)		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2024
Available-for-sale debt securities:
U.S. Treasury securities$403,641 $— $(15,483)$388,158 
U.S. government agency securities125,000 — (18,791)106,209 
Residential mortgage-backed securities3,307,715 6,277 (337,456)2,976,536 
CRT securities13,136 — (808)12,328 
Total available-for-sale debt securities3,849,492 6,277 (372,538)3,483,231 
Held-to-maturity debt securities:
Residential mortgage-backed securities831,513 — (112,603)718,910 
Total held-to-maturity debt securities831,513 — (112,603)718,910 
Equity securities74,232 
Total investment securities(2)$4,388,976 
December 31, 2023
Available-for-sale debt securities:
U.S. Treasury securities$651,112 $— $(14,639)$636,473 
U.S. government agency securities125,000 — (18,408)106,592 
Residential mortgage-backed securities2,782,734 540 (312,442)2,470,832 
CRT securities13,636 — (1,641)11,995 
Total available-for-sale debt securities3,572,482 540 (347,130)3,225,892 
Held-to-maturity securities:
Residential mortgage-backed securities865,477 — (101,633)763,844 
Total held-to-maturity securities865,477 — (101,633)763,844 
Equity securities51,825 
Total investment securities(2)$4,143,194 
(1)    Excludes accrued interest receivable of $12.0 million and $9.5 million at June 30, 2024 and December 31, 2023, respectively, related to available-for-sale debt securities and $1.3 million and $1.4 million at June 30, 2024 and December 31, 2023, respectively, related to held-to-maturity debt securities that is recorded in accrued interest receivable and other assets on the consolidated balance sheets.
(2)    Includes available-for-sale debt securities and equity securities at estimated fair value and held-to-maturity debt securities at amortized cost.
Debt Securities
The Company did not sell any available-for-sale debt securities during the first six months of 2024. In the first quarter of 2023, the Company sold U.S. Treasury securities with an amortized cost of $56.4 million and realized a gain of $489,000.
The amortized cost and estimated fair value as of June 30, 2024, excluding accrued interest receivable, of available-for-sale and held-to-maturity debt securities are presented below by contractual maturity. Actual maturities may differ from contractual maturities of mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.
Available-for-saleHeld-to-maturity
(in thousands)Amortized CostFair ValueAmortized CostFair Value
Due within one year$— $— $— $— 
Due after one year through five years453,642 432,220 — — 
Due after five years through ten years105,433 89,394 — — 
Due after ten years3,290,417 2,961,617 831,513 718,910 
Total$3,849,492 $3,483,231 $831,513 $718,910 
9
The table below presents the weighted average yields for the Company’s available-for-sale debt securities for the six months ended June 30, 2024. Weighted average yields are calculated based on amortized cost on a tax-exempt basis assuming a 21% federal tax rate, where applicable.
U.S. Treasury securitiesU.S. government agency securitiesResidential mortgage-backed securitiesCRT securities
Due within one year— %— %— %— %
Due after one year through five years2.71 1.00 — — 
Due after five years through ten years— 1.21 1.25 5.46 
Due after ten years— — 3.36 — 
Total2.71 %1.13 %3.35 %5.46 %
The following table discloses the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:
Less Than 12 Months12 Months or LongerTotal
(in thousands)Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
June 30, 2024
U.S. Treasury securities$— $— $388,158 $(15,483)$388,158 $(15,483)
U.S. government agency securities— — 106,209 (18,791)106,209 (18,791)
Residential mortgage-backed securities335,741 (4,305)2,272,460 (333,151)2,608,201 (337,456)
CRT securities— — 12,328 (808)12,328 (808)
Total$335,741 $(4,305)$2,779,155 $(368,233)$3,114,896 $(372,538)
December 31, 2023
U.S. Treasury securities$— $— $636,473 $(14,639)$636,473 $(14,639)
U.S. government agency securities— — 106,592 (18,408)106,592 (18,408)
Residential mortgage-backed securities910,999 (19,751)1,501,340 (292,691)2,412,339 (312,442)
CRT securities— — 11,995 (1,641)11,995 (1,641)
Total$910,999 $(19,751)$2,256,400 $(327,379)$3,167,399 $(347,130)
At June 30, 2024, the Company had 108 available-for-sale debt securities in an unrealized loss position, comprised of 10 U.S. Treasury securities, five U.S. government agency securities, 91 residential mortgage-backed securities and two CRT securities. The unrealized losses on the available-for-sale debt securities were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not currently intend to sell and based on current conditions it does not believe it is likely that the Company will be required to sell these available-for-sale debt securities before recovery of the amortized cost of such securities in an unrealized loss position and has therefore recorded the unrealized losses related to this portfolio in accumulated other comprehensive income/(loss), net (“AOCI”). Held-to-maturity securities consist of government guaranteed securities for which no loss is expected. At June 30, 2024 and December 31, 2023, no allowance for credit losses was established for available-for-sale or held-to-maturity debt securities.
At June 30, 2024 and December 31, 2023, debt securities with carrying values of approximately $1.5 million and $1.6 million, respectively, were pledged to secure certain customer deposits.
Equity Securities
Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds. The following is a summary of unrealized and realized gains/(losses) recognized on equity securities included in other non-interest income on the consolidated statements of income and other comprehensive income:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Net gains/(losses) recognized during the period$(59)$951 $3,975 $2,196 
Less: Realized net gains/(losses) recognized on securities sold59 (10)371 (606)
Unrealized net gains/(losses) recognized on securities still held$(118)$961 $3,604 $2,802 
10
(4) Loans and Allowance for Credit Losses on Loans
Loans are summarized by portfolio segment as follows:
(in thousands)June 30, 2024December 31, 2023
Loans held for investment(1):
Commercial$10,533,930 $10,410,766 
Mortgage finance5,078,161 3,978,328 
Commercial real estate5,689,094 5,500,774 
Consumer557,951 530,948 
Gross loans held for investment21,859,136 20,420,816 
Unearned income (net of direct origination costs)(80,406)(80,258)
Total loans held for investment21,778,730 20,340,558 
Allowance for credit losses on loans(267,297)(249,973)
Total loans held for investment, net$21,511,433 $20,090,585 
Loans held for sale:
Mortgage loans, at fair value$424 $706 
Non-mortgage loans, at lower of cost or fair value36,361 43,399 
Total loans held for sale$36,785 $44,105 
(1)    Excludes accrued interest receivable of $121.9 million and $118.1 million at June 30, 2024 and December 31, 2023, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets.


11
The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades:
(in thousands)202420232022202120202019
and prior		Revolving lines of creditRevolving lines of credit converted to term loansTotal
June 30, 2024
Commercial
(1-7) Pass$517,216 $1,357,069 $1,369,181 $338,328 $100,090 $211,499 $6,149,823 $14,768 $10,057,974 
(8) Special mention— 66,078 111,902 22,457 3,872 8,374 50,228 250 263,161 
(9) Substandard - accruing— 23,648 29,184 8,404 124 27,386 40,277 — 129,023 
(9+) Non-accrual— 6,460 2,957 153 2,039 25,449 43,970 2,744 83,772 
Total commercial$517,216 $1,453,255 $1,513,224 $369,342 $106,125 $272,708 $6,284,298 $17,762 $10,533,930 
Mortgage finance
(1-7) Pass$— $— $— $— $— $— $5,078,161 $— $5,078,161 
(8) Special mention— — — — — — — — — 
(9) Substandard - accruing— — — — — — — — — 
(9+) Non-accrual— — — — — — — — — 
Total mortgage finance$— $— $— $— $— $— $5,078,161 $— $5,078,161 
Commercial real estate
(1-7) Pass$113,652 $876,609 $1,734,435 $1,009,872 $408,437 $858,189 $280,761 $25,408 $5,307,363 
(8) Special mention174 1,019 205,632 17,442 24,393 81,484