Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2010 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Oct 21, 2010
Slide 1: TCBI Q3 2010 Earnings
TCBI Q3 2010 Earnings October 20, 2010
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
Slide 3: Opening Remarks
3 Opening Remarks Another quarter of solid earnings growth and exceptional deposit growth Focus on credit quality continued; provision and charge-offs for the quarter consistent with expectationsModest growth in loans held for investmentSignificant increase in loans held for sale as a result of refi
Slide 4: Financial Review: Net income
4 Financial Review Net incomeNet income from continuing operations of $9.5 million for Q3-2010Increased 17% compared to Q2-2010; 78% increase compared to Q3-2009Improved operating leverage and core earnings power$4.8 million increase in Q3-2010 Net Revenue compared to Q2-2010Increase in net interest
Slide 5: Financial Review: Asset quality
5 Financial Review Asset qualityTotal credit cost of $17.2 million compared to $15.1 million in Q2-2010Provision of $13.5 million for quarter, decreased from $14.5 million in Q2-2010 and consistent with Q3-2009OREO valuation expense of $3.7 million for quarter, increased from $557,000 in Q2-2010 and
Slide 6: Income Statement
6 6 Income Statement(in thousands) Excluding ORE valuation/write-down expense
Slide 7: QTD Average Balances, Yields and Rates
7 QTD Average Balances, Yields and Rates (in thousands) (in thousands) (in thousands)
Slide 8: Financial Summary
8 8 Financial Summary (in thousands)
Slide 9: Financial Summary
9 Financial Summary (in thousands) (in thousands) (in thousands)
Slide 10: Revenue and Expense Growth
10 2005 2006 2007 2008 2009 Q3 2010 Non Interest Expense 65344 86912 98606 109651 137733 150311 2005 2006 2007 2008 2009 Q3 2010 Net Interest Income 93624 117170 139752 151737 196691 234292 Non Interest Income 12507 17684 20627 22470 29260 30780 2005 2006 2007 2008 2009* ($ in thousands) Q3-2010^* 1
Slide 11: Deposit and Loan Growth
11 Deposit and Loan Growth 2005 2006 2007 2008 2009 Q3-2010 Demand Deposits 512 514 529 587 899 1195 Interest Bearing Deposits 1983 2555 2537 2746 3222 4212 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2005 2006 2007 2008 2009 Q3-2010 Loans Held for Investment
Slide 12: Loan Portfolio Statistics
12 Loan Portfolio Statistics Loan Portfolio Statistics Total Loans $5,882,412 All numbers in thousands.
Slide 13: Credit Quality
13 Credit Quality Credit experience remains consistent with expectationsTotal credit cost of $17.2 million, representing a $2.1 million increase from Q2-2010Provision of $13.5 million and OREO valuation charge of $3.7 millionReserve balance increased to 1.75%Provision driven by methodology with fact
Slide 14: Credit Quality
14 Credit Quality Reserve / Loans* 1.75% 1.59% 1.16% .95% .77% Non-accrual loans + OREO to loans* + OREO 3.66% 2.74% 1.81% .69% .37% Reserve to non-accruals .6x .7x 1.0x 1.5x 2.3x Net Charge-offs / Average Loans Trailing 12 months YTD 2010 2009 2008 2007 2006 * Excludes loans held for sale.
Slide 15: Closing Comments
15 Closing Comments Strong core earnings powerExceptional deposit growth exceeding growth in loans held for investment Maintaining strong capital positionCredit issues challenging but manageable; provision and chargeoffs are in line with expectationsWell positioned to take advantage of market opport
Slide 16: Q&A
Q&A © TEXAS CAPITAL BANCSHARES, INC.
Texas Capital Bancshares — Q3 2010 Earnings Presentation on 6ix