Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q2 2011 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Jul 21, 2011

  1. Slide 1: TCBI Q2 2011 Earnings

    TCBI Q2 2011 Earnings July 20, 2011

  2. Slide 2: Forward-looking statements

    Certain matters discussed on this call may contain forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares' control, could cause actual results to differ materially from future results expressed or implied by su

  3. Slide 3: Opening Remarks

    3 Opening Remarks Another quarter of outstanding earnings Expansion of NIM driven by earning asset composition and improved funding costs Reduction in credit costs and nonperforming assets; expected to continue throughout 2011 Growth of 4% in LHI averages from Q1-2011; entering Q3 2011 in a much str

  4. Slide 4: Net Income and EPS

    Net Income and EPS Outstanding growth in net income and EPS compared to Q1-2011 and Q2-2010 Operating Leverage, Core Earnings Power & NIM Growth of Net Revenue 10% growth from Q1-2011 20% as compared to Q2-2010 Strong growth in LHI and LHS More favorable earning asset composition Reduction in excess

  5. Slide 5: Loan Growth, Funding and Credit Costs

    Loan Growth Growth in average LHI on a linked quarter basis across various lines of business Increase in linked quarter LHS due to market share and seasonal trends Organic growth model clearly improving TCB's market share Loan portfolio yields have remained good Funding Much improved funding positio

  6. Slide 6: Income Statement

    6 Q2-11 Q1-11 Q4-10 Q3-10 Q2-10 Net interest income $ 71,094 $ 64,498 $ 65,955 $ 62,606 $ 57,885 Non-interest income 7,951 7,684 9,178 8,101 8,036 Net revenue 79,045 72,182 75,133 70,707 65,921 Provision for credit losses 8,000 7,500 12,000 13,500 14,500 OREO valuation and write-down expense 725 3,3

  7. Slide 7: QTD Average Balances, Yields and Rates

    7 QTD Average Balances, Yields and Rates (in thousands) Q2 2011 Q2 2011 Q1 2011 Q1 2011 Q2 2010 Q2 2010 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 163,073 4.57% $ 177,161 4.65% $ 233,177 4.62% Fed funds sold & liquidity investments 92,231 .30% 321,550 .28% 104

  8. Slide 8: Financial Summary: QTD Averages

    8 QTD Averages QTD Averages QTD Averages Q2 2011 Q1 2011 Q2 2010 Q2/Q1 % Change YOY % Change Loans held for investment $4,890,696 $4,721,928 $4,459,790 4% 10% Loans held for sale 808,165 735,682 664,474 10% 22% Total loans 5,698,861 5,457,610 5,124,264 4% 11% Securities 163,073 177,161 233,177 (8)%

  9. Slide 9: Financial Summary: Period End

    9 Financial Summary (in thousands) Period End Period End Period End Q2 2011 Q1 2011 Q2 2010 Q2/Q1 % Change YOY % Change Loans held for investment $5,164,293 $4,711,424 $4,462,830 10% 16% Loans held for sale 1,122,330 811,400 997,150 38% 13% Total loans 6,286,623 5,522,824 5,459,980 14% 15% Securitie

  10. Slide 10: Revenue and Expense Growth

    10 2006 2007 2008 2009 2010 Q2 2011 Non Interest Expense 86912 98606 109651 137733 154984 175234 2006 2007 2008 2009 2010 Q2 2011 Net Interest Income 117170 139752 151737 196691 241674 271184 Non Interest Income 17684 20627 22470 29260 32263 31270 2006 2007 2008 2009* 2010* ($ in thousands) 2011*^ 1

  11. Slide 11: Deposit and Loan Growth

    11 Deposit and Loan Growth 2006 2007 2008 2009 2010 Q2-2011 Demand Deposits 514 529 587 899 1451 1483 Interest Bearing Deposits 2555 2537 2746 3222 4004 3939 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2006 2007 2008 2009 2010 Q2-2011 Loans Held for Investmen

  12. Slide 12: Loan Portfolio Statistics

    12 Loan Portfolio Statistics Non-accrual loans Commercial $ 13,721 Construction 22,254 Real estate 40,708 Consumer 323 Equipment leases 878 Total non-accrual loans $ 77,884 Non-accrual loans as % of loans held for investment 1.51% Non-accrual loans as % of total loans 1.24% OREO 27,285 Total Non-acc

  13. Slide 13: Credit Quality

    13 Credit Quality Improved Credit Trends Total credit cost of $8.7 million for Q2-2011 Decreased $2.1 million from Q1-2011, reflecting better trend NCOs of $10.5 million, representing 86 bps compared to 114 bps for 2010 Provision of $8.0 million for Q2-2011 compared to $7.5 million for Q1-2011 OREO

  14. Slide 14: Credit Quality

    14 Credit Quality Reserve / Loans* 1.34% 1.56% 1.59% 1.16% .95% Non-accrual loans + OREO to loans* + OREO 2.03% 3.25% 2.74% 1.81% ..69% Reserve to non-accruals .9x .6x .7x 1.0x 1.5x Net Charge-offs / Average Loans * Excludes loans held for sale.

  15. Slide 15: Closing Comments

    15 Closing Comments Strong core earnings power continues in 2011 Maintaining strong capital position Credit cost improvements expected to continue throughout 2011 Well positioned to take advantage of market opportunities as economic conditions improve

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

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