Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q1 2010 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Apr 22, 2010

  1. Slide 1: TCBI Q1 2010 Earnings

    TCBI Q1 2010 Earnings April 21, 2010

  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

    Opening Remarks Improved core earnings power driven by continued margin expansion in Q1-2010 Strong deposit growth, especially DDA, at significantly reduced cost Intense focus on credit quality continued in Q1-2010 Continue to attract experienced RMs and upgrade talent

  4. Slide 4: Financial Review: Net income

    Financial Review Net income Net income from continuing operations of $7.6 million for Q1-2010 Increased 18% compared to Q4-2009; 24% increase compared to Q1-2009 Improved operating leverage and core earnings power Small decrease in Q1-2010 Net Revenue compared to Q4-2009 NIM increase of 22 bps Reduc

  5. Slide 5: Financial Review: Asset quality

    Financial Review Asset quality Total credit cost of $15.4 million compared to $16.1 million in Q4-2009 Provision of $13.5 million for quarter, increased from $10.5 million in Q4-2009 and $8.5 million for Q1-2009 OREO cost of $1.9 million for quarter, reduced from $5.6 million in Q4-2009 Increase in

  6. Slide 6: Quarterly income statement and key ratios

    Q1-10 Q4-09 Q3-09 Q2-09 Q1-09 Net interest income $ 55,228 $ 55,106 $ 51,566 $ 48,802 $ 41,217 Provision for credit losses 13,500 10,500 13,500 11,000 8,500 ORE valuation and write-down expense 1,948 5,628 2,181 ^ ^ Total provision and ORE valuation 15,448 16,128 15,681 11,000 8,500 Net interest inc

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

    QTD Average Balances, Yields and Rates (in thousands) Q1 2010 Q1 2010 Q4 2009 Q4 2009 Q1 2009 Q1 2009 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 253,272 4.70% $ 273,618 4.60% $ 367,857 4.49% Fed funds sold & liquidity investments 19,928 .22% 18,466 .13% 26,130

  8. Slide 8: QTD Averages

    QTD Averages QTD Averages QTD Averages Q1 2010 Q4 2009 Q1 2009 Q1/Q4 % Change YOY % Change Loans held for investment $4,413,960 $4,384,692 $4,022,180 1% 10% Loans held for sale 457,459 601,793 587,401 (24)% (22)% Total loans 4,871,419 4,986,485 4,609,581 (2)% 6% Securities 253,272 273,618 367,857 (7

  9. Slide 9: Financial Summary: Period End

    Financial Summary (in thousands) Period End Period End Period End Q1 2010 Q4 2009 Q1 2009 Q1/Q4 % Change YOY % Change Loans held for investment $4,443,456 $4,457,293 $4,019,247 N/M% 11% Loans held for sale 592,436 693,504 426,982 (15)% 39% Total loans 5,035,892 5,150,797 4,446,229 (2)% (13)% Securit

  10. Slide 10: Revenue and Expense Growth

    2005 2006 2007 2008 2009 Q1 2010 Non Interest Expense 65344 86912 98606 109651 145542 148744 2005 2006 2007 2008 2009 Q1 2010 Net Interest Income 93624 117170 139752 151737 196691 220912 Non Interest Income 12507 17684 20627 22470 29260 27792 2005 2006 2007 2008 2009 ($ in thousands) Q1-2010^ 106,13

  11. Slide 11: Deposit and Loan Growth

    Deposit and Loan Growth 2005 2006 2007 2008 2009 Q1-2010 Demand Deposits 512 514 529 587 899 994 Interest Bearing Deposits 1983 2555 2537 2746 3222 3416 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2005 2006 2007 2008 2009 Q1-2010 Loans Held for Investment 207

  12. Slide 12: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Commercial $ 44,292 Construction 49,535 Real estate 10,919 Consumer 535 Equipment leases 10,645 Total non-accrual loans $ 115,926 Non-accrual loans as % of loans held for investment 2.61% ORE 28,865 Total Non-accruals + ORE $ 144,791 Non-accrual loans + OR

  13. Slide 13: Credit Quality

    Credit Quality Credit experience remains consistent with expectations Total credit cost of $15.4 million, representing a small reduction from Q4-2009 Provision of $13.5 million and ORE valuation charge of $1.9 million Reserve balance increased to 1.69% Provision driven by methodology with factors re

  14. Slide 14: Credit Quality

    Credit Quality Reserve / Loans* 1.69% 1.59% 1.16% .95% .77% Non-accrual loans + ORE to loans* + ORE 3.24% 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.

  15. Slide 15: Closing Comments

    Closing Comments Improved core earnings power Strong deposit growth exceeding loan growth Maintaining strong capital position Credit issues remain challenging but manageable Demonstrating ability to take advantage of market opportunities for people and customers

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

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