Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q2 2009 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Jul 23, 2009
Slide 1: Earnings Release July 22, 2009
Earnings Release July 22, 2009
Slide 2: Forward-looking statements
2 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
Slide 3: Opening Comments
3 Opening Comments Business model produced strong core earnings Results driven by significant margin expansion Strong capital position improved with completed offering of $59.4 million common stock and repurchase of TARP preferred stock Intense focus on credit quality maintained; asset quality measu
Slide 4: Financial Review: Net income
4 Financial Review Net income Net income from continuing operations of $6.5 million for Q2-2009 Increased 6% compared to Q1-2009; 12% increase compared to Q2-2008 Earnings available to common stockholders in Q2-2009 includes FDIC assessment $2.4 million - $0.05 per share after tax Preferred dividend
Slide 5: Financial Review: Credit quality
Financial Review Credit quality Provision of $11.0 million for quarter Modest increase in non-performing assets, with shift from non-accrual to ORE Non-accrual loans at 1.18% Non-performing assets at 1.91% including ORE Net charge-offs of $6.8 million or 66 bps in Q2-2009 and 47 bps for YTD-2009 Gro
Slide 6: Income Statement
6 Income Statement (in thousands) Q2-09 Q1-09 Q4-08 Q3-08 Q2-08 Net interest income $ 48,802 $ 41,217 $ 38,712 $ 38,266 $ 38,160 Provision for loan losses 11,000 8,500 11,000 4,000 8,000 Net interest income after provision for loan losses 37,802 32,717 27,712 34,266 30,160 Non-interest income 7,416
Slide 7: QTD Average Balances, Yields and Rates
7 QTD Average Balances, Yields and Rates (in thousands) Q2 2009 Q2 2009 Q1 2009 Q1 2009 Q2 2008 Q2 2008 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 326,273 4.63% $ 367,857 4.49% $ 404,574 4.76% Fed funds sold & liquidity investments 17,917 .31% 26,130 .67
Slide 8: Financial Summary: QTD Averages
8 Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q2 2009 Q1 2009 Q2 2008 Q2/Q1 % Change YOY % Change Loans held for investment $4,124,937 $4,022,180 $3,597,342 3% 15% Loans held for sale 656,462 587,401 246,026 12% 167% Total loans 4,781,399 4,609,581 3,843,368 4% 24% Securi
Slide 9: Financial Summary: Period End
9 Financial Summary (in thousands) Period End Period End Period End Q2 2009 Q1 2009 Q2 2008 Q2/Q1 % Change YOY % Change Loans held for investment $4,211,304 $4,019,247 $3,704,262 5% 14% Loans held for sale 544,652 426,982 328,838 28% 66% Total loans 4,755,956 4,446,229 4,033,100 7% 18% Securities 30
Slide 10: Revenue and Expense Growth
10 2004 2005 2006 2007 2008 Q2-2009 Non Interest Expense 50381 65344 86912 98606 109651 131358 2004 2005 2006 2007 2008 Q2-2009 Net Interest Income 71467 93624 117170 139752 151737 180038 Non Interest Income 10593 12507 17684 20627 22470 28632 Revenue and Expense Growth Net Interest Income Non-inter
Slide 11: Deposit and Loan Growth
11 2004 2005 2006 2007 2008 Q2-2009 Demand Deposits 398 512 514 529 587 730 Interest Bearing Deposits 1392 1983 2555 2537 2746 2914 Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2004 2005 2006 2007 2008 Q2-2009 Loans Held for Investment
Slide 12: Loan Portfolio Statistics
12 Loan Portfolio Statistics Non-accrual loans Commercial 22,548 Construction 23,123 Real estate 3,617 Consumer 96 Equipment leases 208 Total non-accrual loans $ 49,592 Non-accrual loans as % of total loans 1.04% ORE 31,404 Total Non-accruals + ORE $ 80,996 Non-accrual loans + ORE as % of loans held
Slide 13: Credit Quality
13 Credit Quality Credit experience remains consistent with expectations Net charge-offs of $6.8 million in Q2-2009 and $9.4 million for 2009 YTD Net charge-offs represent 47 bps YTD NCO's related to problems previously identified and covered with allocated reserves Increase in non-performing asset
Slide 14: Credit Quality
14 Credit Quality 0.47% 0.35% 0.07% 0.08% 0.50%0.40% 0.30% 0.20% 0.10% 0.00% - -0.10% Reserve / Loans* 1.35% 1.16% .95% .77% .91% Non-accrual loans + ORE to loans* + ORE 1.91% 1.81% ..69% ..37% ..27% Reserve to non-accruals 1.1x 1.0x 1.5x 2.3x 3.3x Net Charge-offs / Average Loans YTD 2009 2008 2007
Slide 15: Closing Comments
15 Closing Comments Improved core earnings power Growth in loans and deposits consistent with plan Exceptional capital position Credit quality weakness in line with expectations and remains manageable Company well-positioned to take advantage of market opportunities for people and customers
Slide 16: Q & A
16 Q & A
Texas Capital Bancshares — Q2 2009 Earnings Presentation on 6ix