Texas Capital Bancshares, the lender formerly backed by Archegos Capital Management, laid off some of its workers amid a volatile time for the banking industry.
(Bloomberg) — Texas Capital Bancshares, the lender formerly backed by Archegos Capital Management, laid off some of its workers amid a volatile time for the banking industry.
The Dallas-based bank made staff cuts last week, according to a spokesperson who declined to specify the number of jobs eliminated. The Dallas Business Journal reported earlier that the bank cut as much as 10% of its workforce. The regional bank had 2,198 employees as of Dec. 31, its annual report shows.
“Texas Capital continues to execute the transformation strategy set in place during September 2021, and has created disciplines to consistently deliver operating efficiencies through the investment in better technology, products, processes, and client experience,” the spokesperson said in an email. “To that end, we eliminated or consolidated certain positions consistent with these plans.”
Texas Capital was thrust into the limelight in 2021 after Bloomberg reported that Archegos Capital Management had built an undisclosed 20% stake in the firm. The stake in Bill Hwang’s family office had propped up the bank’s share price, which dropped after Archegos went under.
Over the past couple years, Texas Capital has focused on expanding its wealth management and treasury services. It also launched an investment banking arm in a shift away from just strictly offering loans.
The firm is planning to offer an exchange-traded funded that would give investors exposure to companies based in Texas. It would be the first ETF from Texas Capital Bank, and it would track an index of about 200 firms in the Lone Star State, according to a filing.
The company hired ETF veteran Ed Rosenberg this year. And last week, the firm named former Goldman Sachs Group Inc Managing Director David Youngberg Jr. as its chief credit officer. Youngberg had worked in the risk division office of Goldman’s Dallas office.
Texas Capital reports first-quarter earnings Thursday.
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