Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2020 Earnings Presentation
14 slides from Texas Capital Bancshares's earnings presentation, Oct 21, 2020
Slide 1: Q3-2020 Earnings
Q3-2020 Earnings October 21, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This communication may be deemed to include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our financial condition, results of operations, business plans and future performance. These statements are not his
Slide 3: Improved Profitability
Improved Profitability Financial Highlights ($M) 3Q 2019 2Q 2020 3Q 2020 Strong core financial performance with $54.7 million of net income to Net Interest Income $252.2 $209.9 $207.6 common, or $1.08 per diluted share Non-Interest Income 20.3 70.5 60.3 Stable Y-o-Y Total Revenue driven by conti
Slide 4: Credit Risk Management; Continued Proactive Approach
Credit Risk Management; Continued Proactive Approach Highlights Credit Quality Credit Trends Q3 2019 Q2 2020 Q3 2020 Modest net charge-offs, which are down substantiality given proactive actions taken in previous quarters Velocity of negative risk migration has materially declined; 1.84% conve
Slide 5: Loan Portfolio
Loan Portfolio Growth Outlook Y-o-Y Changes in Ending LHI (excluding MFLs) Ending LHI (excluding MFLs) decreased $762 million (5%) from Q2- $16.8B 2020, and $982 million Y-o-Y, due to the following factors: Deliberate multi-quarter reductions in Energy and Leveraged Lending; ending balances down
Slide 6: Deposits and Fundings
Deposits and Fundings Highlights Funding Costs Ending deposits increased $1.8 billion, primarily in non-interest bearing portfolios, as clients continued to build and maintain on- balance sheet cash Continued focus on cost-effective deposit growth within 1.25% verticals and core client relations
Slide 7: Q3-2020 Earnings Overview: Net Interest Income & Margin
Q3-2020 Earnings Overview Net Interest Income & Margin Commentary Net Interest Margin Detail (bps) Total LHI yields continued to decline Net Interest Income (17 bps) as balances mixed towards $252.2M relatively lower yielding MFLs $209.9M $207.6M Total time deposit costs declined significantly (
Slide 8: Q3-2020 Earnings Overview: Non-interest Income and Expense
Q3-2020 Earnings Overview Non-interest Income Commentary Fee Income Details Deposit Service Charges up 16% Non-interest income $70.5M Q-o-Q reflective of continued $6.2M $6.3M market focus $5.9M $60.3M $1.2M Wealth Management Fees $1.5M $0.5M modestly improving Q-o-Q (up 7%) as the downturn stab
Slide 9: LOB Detail
LOB Detail © Texas CAPITAL BANCSHARES, INC.
Slide 10: Loan Portfolio Detail – Mortgage Finance
Loan Portfolio Detail – Mortgage Finance Commentary MWH + MCA Annualized Revenue Q3-2020 average MFLs (excluding MCA LHS) increased 12% Y-o-Y as the Bank continued to optimize its business mix by taking advantage of industry volumes and GOS opportunities in MCA $174M -22.5% $135M When combined w
Slide 11: Loan Portfolio Detail – CRE
Loan Portfolio Detail – CRE CRE 1 Portfolio Overview $3.9B in balances Portfolio Composition History of proactive portfolio management evidenced by changes in Multi Family Office Industrial Senior Housing growth rates thru-cycle and strong credit performance during Hospitality Self Storage Other R
Slide 12: Loan Portfolio Detail – Leveraged & Energy
Loan Portfolio Detail – Leveraged & Energy Leveraged Lending $0.7B in balances Diversified portfolio with some exposure to industries believed to be Criticized Total ACL% 2 most impacted by COVID-19; others may be affected depending on $254M their varying degrees of either reliance on consumer spe
Slide 13: Conclusion
Conclusion © Texas CAPITAL BANCSHARES, INC.
Slide 14: Summary & Outlook
Summary & Outlook Diverse, well-established lines of business balanced between differentiated national verticals and core market offerings reflective of the relationship banking approach synonymous with TCBI since inception Organic growth model developed by hand selecting top talent fosters uniq
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