Interviewer #1: Regional bank, Texas Capital, exceeding investor expectations for third quarter total deposits in its earnings report yesterday after the bell. Joining us now for an exclusive interview, Texas Capital CEO, Rob Holmes. So I thought we were all very worried about banks such as yours, but seemingly not. You've got total deposits beating loans held or investment and $18 billion and most notably provisions credit losses well at below expectations of the market.

Rob C. Holmes: We do, and this quarter we marked the achievement of all the strategic goals that we set out in the third quarter of 2021. So we're really, really excited about that. We've grown ROA from 0.57% to 1.3% and we'll grow capital by 247 basis points. Tangible common equity, tangible assets. So we really de-risked the bank over this four years and we've made it much more profitable as well.

Interviewer #2: I am curious, Rob, what you're seeing with regards to the general quality of what's been floating around out there. As you know, obviously there's been a lot of talks about some of the credit provisions that we've seen at a couple of regional banks. Are those sort of one-off idiosyncratic events or something broader we should be paying attention to?

Rob C. Holmes: Well, I think it's one-off idiosyncratic events. One thing that is frustrating to high-quality banks is that people talk about regional banks as if they're one. And we learned during SVB and the regional banking crisis that they aren't one, the banks are individual management team strategies, products, services and clients. And our criticized and classified loans went down 41% year over year.

Interviewer #1: How are you doing that? How are you being so one track-minded about the types of loans that you take on vis-a-vis perhaps some other competitors in the market?

Rob C. Holmes: Well I think it starts with client selection. I think it starts with segmentation. We have Business Banking, Middle Market banking, Corporate Banking. In the Corporate Bank, we have segmented verticals, Healthcare, TMT, FIG, Energy, Diversified, Mortgage and others. And so I think when you have expertise on the platform and you know the client you're banking and your client selection is paramount to your strategy, that is the best risk mitigant, whether it's credit, operating risk or market risk.

Interviewer #2: So I'm curious, when we talk about growth, Rob, where you see, or I'm, let me rephrase that, where you want to take Texas Capital, does it, do you see a broadening out of your base or are you sort of comfortable being I guess narrower for lack of a better word?

Rob C. Holmes: Yeah, well, I don't think we're narrow at all. I think, well we built the first full-service financial services firm ever headquartered in Texas. So we have Debt, Equity, M&A, Sales & Trading, our sales and trading floors approach in 300 billion of notional trades in a very short amount of time; it's been profitable since day one. We led the largest sole-managed debt deal of the country two years ago, we led the largest sole-managed debt deal of the country last year, and our equities desk started really this quarter in kind; we started making markets and equities so we could do anything a money center bank can do, but we're located in the best state in the country.

Interviewer #1: Rob, you are located in a state that is all in on providing energy to the next fear of a bubble, which is AI. I'm biased, I like talking about technology a lot and I see that you've done a lot of work at the bank to make it very much a bottom-up approach when it comes to your own technology stack. But are you ever worried about being overexposed to that particular part of the market, those types of companies and that so-called bubble?

Rob C. Holmes: Well I think you asked two questions. One is, this transformation was built on the back of a great tech stack that we've invested in since day one. We have a modern tech stack, 96% of our critical infrastructure is in the cloud. We're really, really excited about that. We worked four years on a data platform that is very, very valuable and is helping us with our own AI journey. And as it relates to energy, Texas is number one in oil and gas, but it's also number one in wind and number one in solar. And we have a great Energy practice with great expertise in there. So we're not over-indexed whatsoever. We have governance of how much concentration we can have in any one sector at the bank. And as you know, Texas, no segment in Texas is greater than 9% of the GDP. And so if you just follow the different industries where we are, and we do have a national business, but Texas is where the majority of it is for sure, it's a very broad, very diverse set of clients and opportunities, which keeps the risk mitigants well in hand.

Interviewer #2: All right, Rob, I have to leave it there. Appreciate you taking time for us on a day like today, Rob Holmes, the CEO over at Texas Capital.