Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q2 2014 Earnings Presentation
17 slides from Texas Capital Bancshares's earnings presentation, Jul 24, 2014
Slide 1: TCBI Q2 2014 Earnings
Exhibit 99.2 TCBI Q2 2014 Earnings July 23, 2014
Slide 2: Forward-looking statements
Certain matters discussed on this call may contain forward-looking statements, which are subject to risks and uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results. Texas Capital is under no obligation, and expressly disclaims such obliga
Slide 3: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights • Solid growth in traditional LHI balances despite highly competitive C&I market Strong • Exceptional growth in Mortgage finance loans (MFLs) Balanced • Continued strong growth in deposits, improving low-cost funding composition Growth • Asset sensitive positio
Slide 4: Revenue & Expense
Revenue & Expense Revenue & Expense Trends Revenue & Expense Highlights Operating Revenue CAGR: 19% • Strong capacity for net revenue Net Interest Income CAGR:20% 500,000 • Growth in total loans at spreads above 4.00% Non-interest Income CAGR: 8% • Increased 6% from Q1-2014 Non-interest Expense CAGR
Slide 5: Net Interest Income & Margin
Net Interest Income & Margin NIM Highlights Net Interest Income & Margin Trends Net Interest income ($MM) • Net interest income growth of 7% Net Interest Margin (%) 6.00% from Q1-2014 and 14% from Q2- 120.0 Earning Asset Yield (%) 2013 Total Loan Spread (%) 5.50% • Yields on traditional LHI down 100
Slide 6: Analysis of Net Interest Income & Expenses
Analysis of Net Interest Income & Expenses NII ($MM) NIM (%) Linked quarter $108.4 Q1 2014 3.99% increases/ Non interest expense ($MM) (decreases) (2.4) Decrease in LHI net loan yields (.08) Q1 2014 $69.3 (1.3) Mix shift from LHI to MF (.04) FICA (1.9) (.9) Full quarter of sub debt expense (.03) (.4
Slide 7: Performance Summary
Performance Summary (in thousands) Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Net interest income $ 115,407 $ 108,315 $ 111,475 $ 108,776 $ 101,220 Non-interest income 10,533 10,356 11,184 10,431 11,128 Net revenue 125,940 118,671 122,659 119,207 112,348 Provision for credit losses 4,000 5,000 5,000 5,
Slide 8: 2014 Outlook
2014 Outlook Business Driver 2014 Outlook v. 2013 Results Changes since June 10, 2014 Average LHI Low 20s percent growth, pace declining Increased from mid to high teens Average LHI- Mortgage Flat to slight increase, outperforming Finance industry Increased from flat to down Average Deposits Low 20'
Slide 9: Loan & Deposit Growth
Loan & Deposit Growth Balance Trends Total Loan Composition 12,000 ($12.9 Billion at 6/30/14) Demand Deposit CAGR: 41% Business Energy Total Deposit CAGR: 24% Assets 6% Highly Liquid 10,000 29% Assets Loans Held for Investment CAGR: 17% 1% 8,000 6,000 4,000 Unsecured Mortgage 2% Finance 2,000 22% Ow
Slide 10: Asset Quality
Asset Quality NCO / Average Traditional LHI Non-accrual loans Q2-2014 1.40% Commercial $ 25,545 1.20% 1.14% Construction – 1.00% Real estate 15,998 0.80% Consumer – 0.58% 0.60% Equipment leases 22 0.40% Total non-accrual loans 41,565 0.20% 0.10% 0.10% 0.07% 0.00% Non-accrual loans as % of loans .45%
Slide 11: EPS Growth
EPS Growth EPS Growth (5-yr CAGR of 41%) $3.50 $3.01 $3.00 $2.72 $2.50 $1.99 $2.00 $1.50 $1.30 $1.00 $1.00 $0.71 $0.50 $0.00 YTD 2009^ 2010 2011 2012 2013 6/30/2014 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 11
Slide 12: Closing Comments
Closing Comments • Proven organic growth business model continues to produce in challenging environment • Solid core earnings power and strong asset growth expected to continue in 2014 and beyond • Continue to be highly asset sensitive based on how we run our business; now better positioned to take
Slide 13: Q&A
13 Q&A © TEXAS CAPITAL BANCSHARES, INC:
Slide 14: Appendix
Appendix © TEXAS CAPITAL BANCSHARES, INC:
Slide 15: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly (in thousands) Q2 2014 Q1 2014 Q2 2013 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 50,487 4.00% $ 57,581 4.18% $ 78,906 4.42% Fed funds sold & liquidity investments 198,058 .22% 304,042 .27% 145,625 .20% Loans held f
Slide 16: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly (in thousands) QTD Average Q2/Q1 % YOY % Q2 2014 Q1 2014 Q2 2013 Change Change Total assets $12,362,168 $11,401,368 $10,110,992 8% 22% Loans held for investment 8,984,230 8,717,969 7,152,323 3% 26% Loans held for investment, mortgage finance 2,822,560 2,027,264 2,40
Slide 17: Ending Balance Sheet - Quarterly
Ending Balance Sheet - Quarterly (in thousands) Period End Q2/Q1 % YOY % Q2 2014 Q1 2014 Q2 2013 Change Change Total assets $13,532,536 $12,143,296 $10,977,990 11% 23% Loans held for investment 9,152,715 8,928,033 7,510,662 3% 22% Loans held for investment, mortgage finance 3,700,253 2,688,044 2,838
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