Texas Capital Bancshares Inc. agreed to buy a $400 million portfolio of health care companies as it pursues a strategic plan to expand services and boost efficiencies, a plan that also led to some job cuts in the third quarter.
The Dallas-based bank said in a statement Friday that the acquisition of the health-care business is part of an effort to build out its corporate banking health-care practice and is expected to close this month. The job cuts are expected to reduce costs by $30 million next year and will mostly affect middle management and back-office employees.
Related: Texas Capital cuts jobs during volatile time for banking
In September 2021, Texas Capital outlined growth plans aimed at increasing its industry expertise and regional market coverage, which included one of the most aggressive hiring plans in the firm’s history.
Chief Executive Rob Holmes said in an interview that the cuts were part of a broader strategy to streamline operations while expanding services, but he declined to say how many employees would be affected by the cuts.
“Over the past three years, Texas Capital has undergone an enterprise-wide transformation to become a leading, full-service financial services firm headquartered in Texas and well-positioned to offer clients a broad range of differentiated and relevant products and services,” the company said in a statement.
The bank also added a new energy equity research team. The research and specialty equity sales group, led by Derrick Whitfield and Thomas McGarrity, underscores the bank’s commitment to a sector that is central to the Texas economy. The bank said it plans to continue adding staff in key areas.
Texas Capital last month launched a direct lending platform to provide nonbank, long-term financing to mid-market companies, and in May it formed a public finance team to provide underwriting services to local governments in Texas and across the U.S.
-Bloomberg’s Julie Fine and Daniel Moran
