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Texas Capital Bancshares Updates Strategic Plan

September 07, 2021, 06:00 AM
Filed Under: Banking News

Texas Capital Bancshares, Inc., the parent company of Texas Capital Bank, announced key updates to the company’s go-forward strategy.

Rob C. Holmes, President and CEO, said, “When I joined as CEO in January, I committed to formulating a detailed go-forward strategy for Texas Capital Bank. The strategic plan we are announcing today represents the culmination of more than seven months of work, including detailed reviews of each business line, our operating model, investment spend and our overall strategy to ensure Texas Capital Bank is best positioned to serve clients, remain a meaningful partner in our communities and capitalize on the significant opportunities ahead. We are already making clear progress executing on our enterprise-wide transformation — from the bank we are today into a true financial services firm, fully equipped to partner with our clients to meaningfully contribute to their success.”

The new strategic plan includes the following key steps Texas Capital Bank is taking to build a technology-enabled operating model:

Organizing Around Client Delivery and Investing in Technology

  • Expanding industry specialization and local market coverage such that approximately 40 percent of potential commercial and industrial (C&I) clients in the company’s core markets will be served within an industry vertical.
  • Strategically allocating technology spend between owned and third-party platforms, focused on enabling its forward-looking goals, while simultaneously building scale and reinforcing the peer-leading client experience that distinguishes Texas Capital Bank from competitors.
  • Pursuing one of the most aggressive hiring plans in the company’s history to more than double the number of client-facing professionals across the state by 2025.
  • Remaining focused on speed and responsiveness, high-touch service, valued advice and local decision-making, and extending focus in core C&I markets to serve clients through the entirety of their lifecycle, with a delivery model and solution set tailored to support them at each step of their journey.

Expanding Products and Services, Including Launching Broker-Dealer

  • Investing significantly in Treasury Solutions to give clients best-in-class solutions tailored to their specific needs and requirements.
  • Building on considerable momentum in the Private Wealth business, which has already become one of the fastest organically growing bank-owned Registered Investment Advisers (RIAs) in the country.
  • Consolidating existing syndications, equipment finance, asset-based loan and related businesses into a new Investment Banking Division and expanding the scope of products and services by establishing a broker-dealer, increasing the bank’s ability to address the needs of clients and prospects while enhancing its ability to generate fee-based revenue and earnings.

Enhancing Accountability and Maintaining Financial Resilience

  • Continuing to prioritize consistent communication that supports the allocation of resources against defined strategic objectives, identifying and working to resolve issues impeding their realization, and instilling a sense of ownership and accountability throughout the entire organization.
  • Aligning on client selection and maintaining a balance sheet and operating model structured to serve clients, access markets, and support its communities through all cycles.

“Since we first announced our plans to engage in an enterprise-wide analysis of our business, we have taken decisive actions to enhance our strategic objectives, deepen our client relationships and increase our capital flexibility, all of which have empowered us to create core, high-growth opportunities and better achieve our goal of long-term value creation for our shareholders,” said Holmes. “I am incredibly proud of the work the team has accomplished to date and have the utmost confidence in our ability to build Texas Capital Bank into the flagship financial services firm in Texas serving the best clients in our markets.”

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