Operator
Welcome to the Texas Capital Bancshares Q1 2021 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. [Operator Instructions]
I would now like to turn the call over to Jamie Britton, Director of Investor Relations and Corporate Finance. Please go ahead.
Jamie Britton
Director of Investor Relations and Corporate Finance
Thank you. Good afternoon and thank you for joining us for TCBI s first quarter 2021 earnings conference call. I m Jamie Britton, Director of Investor Relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events.
Texas Capital Bank sells servicing rights to about $14 billion in mortgages Paul O Donnell, The Dallas Morning News
Texas Capital Bancshares Inc. is selling servicing rights to $14 billion in mortgages at “a modest premium” as it works to strengthen its balance sheet and refocus on its core businesses.
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The sale is expected to be completed in the second quarter.
“While the business was profitable and well run, it is not core to our strategy at this time,” CEO Rob Holmes told investors during a conference call to discuss the company’s quarterly results.
Holmes joined Texas Capital in January after a 31-year career at JPMorgan Chase. His arrival came after a $5.5 billion merger with McKinney-based Independent Bank fell apart last year, leading to the departure of longtime CEO Keith Cargill.
Texas Capital Bank sells servicing rights to about $14 billion in mortgages dallasnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dallasnews.com Daily Mail and Mail on Sunday newspapers.
Company s 52-week low was at $20.75
Price action over last quarter: Up 1.85%
Company Profile
Texas Capital Bancshares Inc is a more than $10 billion asset bank that caters to middle-market companies and wealthy people in the Lone Star State. Business loans are the biggest portfolio in the loan book, with almost 60% share, followed by commercial real estate at 30%. Construction, consumer, and leasing credits make up the balance. The bank operates in Texas main metropolitan areas, like Austin, Dallas, Fort Worth, Houston, and San Antonio.
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
Texas Capital Bank Announces Agreement to Sell Its Mortgage Servicing Rights Asset to PHH Mortgage
Texas Capital Bancshares, Inc.April 21, 2021 GMT
Reinforces Commitment to Mortgage Finance, Mortgage Warehouse and Specialty Lending
Next Step in Optimizing Balance Sheet and Enhancing Focus on Core Growth Drivers
DALLAS, April 21, 2021 (GLOBE NEWSWIRE) Texas Capital Bank, N.A., referred to herein as “Texas Capital Bank” or the “Company,” today announced that it has entered into an agreement with PHH Mortgage (“PHH”), a subsidiary of Ocwen Financial Corporation (NYSE: OCN), under which PHH will purchase, in a bulk sale, the Company’s portfolio of Mortgage Servicing Rights (“MSRs”) attributable to a mortgage loan portfolio approximating $14 billion. In a related Letter of Intent, PHH has also confirmed it will extend employment opportunities to many of the Company’s