Advertisement

businessBanking

Texas Capital agrees to $400 million health care deal, cuts jobs

The Dallas-based bank is trying to cut costs as part of a broader strategy to streamline operations while still expanding its services.

Texas Capital Bancshares agreed to buy a $400 million portfolio of exposure to health care companies as it presses ahead with a strategic plan to expand offerings and boost efficiencies — which also resulted in some layoffs in the third quarter.

The health care deal is part of efforts to build a corporate banking health care business and should close this month, the Dallas-based bank said Friday in a statement. The layoffs should help it curb costs by $30 million next year and will primarily affect middle- and back-office employees.

Advertisement

Texas Capital outlined a plan for growth in September 2021 aimed at boosting industry specialization and local market coverage which included what it called one of the most aggressive hiring plans in the company’s history.

Business Briefing

Become a business insider with the latest news.

Or with:

The latest cuts are part of a broader strategy to streamline operations while still expanding its services, CEO Rob Holmes said in an interview. He didn’t disclose how many employees were affected by the layoffs.

“Over the past three years, Texas Capital has undergone an enterprise-wide transformation to become the premier full-service financial services firm, headquartered in Texas, equipped to provide clients with a wide range of differentiated and relevant products and services,” the company said in the statement.

Advertisement

The firm also added a new energy equity research team. The research and equity specialty sales group will be led by Derrick Whitfield and Thomas McGarrity and underscores the bank’s commitment to a sector at the heart of the Texas economy. The bank will continue to add staff in key areas, it said.

Last month, Texas Capital launched a direct lending platform to provide non-bank term loans to middle market companies. In May, it formed a public finance team to provide municipal underwriting services in Texas and the U.S. more broadly.

- Julie Fine and Danielle Moran for Bloomberg

Advertisement
Related Stories
Read More
En el tercer paquete de estímulo se incluyó a los hijos ciudadanos de personas que declaran...
A million taxpayers will soon receive up to $1,400 from the IRS. Who are they and why now?
Most people shouldn’t get their hopes up about receiving the cash.
The Walmart truck fleet has We're Hiring Drivers signage on the back of the truck on I-88...
CFPB sues Walmart, fintech partner for illegally opening accounts
Drivers were required to use costly accounts, or be fired, the agency alleges.
Until a few years you got a free credit report once a year. Now it’s once a week
You can now access your credit report once a week for free, rather than just once a year
Why this matters: Regularly monitoring your credit accounts can help prevent identity theft.