Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q2 2007 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Jul 23, 2007
Slide 1: Earnings Release July 18, 2007
Earnings Release July 18, 2007
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 Comments
Opening Comments Another successful quarter Texas economy remains strong Solid market position even with increased competition Results demonstrate success of strategy and increased focus Achieving growth organically
Slide 4: Financial Highlights
Financial Highlights EPS growth Increased 7% from Q1-2007 Increase of 29% compared to Q2-2006 Growth in loans Held for investment - 7% increase on linked-quarter basis; 26% growth over Q2-2006 Total loans - 8% increase on linked-quarter basis; 28% growth over Q2-2006 Growth in deposits Demand deposi
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Performance Evaluation
Performance Evaluation Performance Drivers Net income of $8.4 million, an increase of 11% on linked-quarter basis and 33% from Q2-2006 Net revenue growth of 8% from Q1-2007 and 20% from Q2-2006 9% growth in net interest income on linked-quarter basis; 19% increase from Q2-2006 Non-interest income up
Slide 7: Income Statement
Income Statement (in thousands) Q2-07 Q1-07 Q4-06 Q3-06 Q2-06 Net interest income $ 34,471 $ 31,667 $ 31,832 $ 30,101 $ 29,013 Provision for loan losses 1,500 1,200 1,000 750 2,250 Net interest income after provision for loan losses 32,971 30,467 30,832 29,351 26,763 Non-interest income 5,288 5,136
Slide 8: Financial Summary (QTD Averages)
Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q2 2007 Q1 2007 Q2 2006 Q2/Q1 % Change YOY % Change Loans held for investment $2,964,863 $2,767,834 $2,360,189 7% 26% Loans held for sale 191,979 156,400 103,483 23% 86% Total loans 3,156,842 2,924,234 2,463,672 8% 28% Securitie
Slide 9: Financial Summary (Period End)
Financial Summary (in thousands) Period End Period End Period End Q2 2007 Q1 2007 Q2 2006 Q2/Q1 % Change YOY % Change Loans held for investment $3,083,911 $2,885,963 $2,417,814 7% 28% Loans held for sale 183,768 208,074 133,112 (12)% 38% Total loans 3,267,679 3,094,037 2,550,926 6% 28% Securities 49
Slide 10: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q2 2007 Q2 2007 Q1 2007 Q1 2007 Q2 2006 Q2 2006 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 500,409 4.89% $ 515,768 4.88% $ 586,548 4.76% Fed funds sold & liquidity investments 2,032 4.93% 1,515 5.35%
Slide 11: Deposit and Loan Growth
Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 18% Total Deposit CAGR: 24% Loans Held for Investment CAGR: 28% 2002 2003 2004 2005 2006 Q2-2007 Loans Held for Investment 1003 1230 1565 2076 2722 3084 2002 2003 2004 20
Slide 12: Revenue and Expense Growth
Revenue and Expense Growth Operating Revenue CAGR: 28% Net Interest Income CAGR: 29% Non-interest Income CAGR: 22% Non-interest Expense CAGR: 26% Net Interest Income Non-interest Income Non-interest Expense 2002 2003 2004 2005 2006 Q2-2007 Non Interest Expense 35370 48430 57340 65344 86913 99012 200
Slide 13: Credit Quality
Credit Quality Credit experience remains strong Net charge-offs of $27,000 in Q2-2007, 0 bps Net recoveries of $359,000 for YTD NCOs for last 12-month period of $34,000, 0 bps Total NCOs for last 2 years $1.4 million, 3 bps Provision of $1.5 million in Q2-2007 driven by growth in portfolio Improveme
Slide 14: Credit Quality
Credit Quality Reserve / Loans .78% .77% .91% 1.20% 1.44% Non-accrual loans + ORE to loans + ORE ..28% ..37% ..27% ..37% ..83% Reserve to non-accruals 2.8x 2.3x 3.3x 3.2x 1.7x Reserve to NPL 2.3x 1.9x 2.2x 3.1x 1.7x Net Charge-offs / Average Loans YTD 2007 2006 2005 2004 2003
Slide 15: Earnings Guidance
Earnings Guidance Earnings Guidance Q2-2007 results consistent with previous guidance with modest progression Previous guidance net income of $32 million to $33.5 million; revising guidance to net income of $33 million to $34 million Economic outlook remains positive Anticipate continued strong grow
Slide 16: Q & A
Q & A
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