Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q2 2005 Earnings Presentation
19 slides from Texas Capital Bancshares's earnings presentation, Jul 21, 2005
Slide 1: Texas Capital Bancshares, Inc. Earnings Release July 20, 2005
Texas Capital Bancshares, Inc. Earnings Release July 20, 2005
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 Financial highlights Net income for Q2-2005 of $6.6 million EPS for Q2-2005 of $0.25 Continued growth of more than 20% in loans and deposits over Q2-2004 Business remains exceptionally well-positioned for 2005 On plan and on target to meet full year net income of $26.5 million to $2
Slide 4: Performance Summary
Net income growth to $6.6 million Increase of 51% from Q2-2004 - increase of 25% on linked-quarter basis EPS at $0.25 up 47% from Q2-2004 - increase of 25% on linked-quarter basis Growth in core loans (average balances) 32% growth over Q2-2004 - increase of 10% on linked-quarter basis Growth in depo
Slide 5: BankDirect Capital Finance
BANKDIRECT CAPITAL FINANCE New line of business focused on premium finance and other services for insurance agencies and their customers Well matched with TCB's long-term strategy related to middle market Complementary to TCB's customer base and expertise Structured for favorable impact on long-term
Slide 6: BankDirect Capital Finance: Initial investment
BANKDIRECT CAPITAL FINANCE Initial investment in BDCF - $6.6 million $5 million for purchase of sales and marketing company Additional payments of up to $4 million, over 3 years Payments contingent upon loan originations of $350 million per annum $1.6 million paid for customer base related to purcha
Slide 7: Financial Review
© TEXAs CAPITAL BANCSHARES, INC. FINANCIAL REVIEW
Slide 8: Income Statement
INCOME STATEMENT In Thousands Q2-05 Q1-05 Q4-04 Q3-04 Q2-04 Net interest income $ 24,484 $ 21,668 $ 21,460 $ 19,386 $ 17,252 Provision for loan losses - - 200 375 363 Net interest income after provision for loan losses 24,484 21,668 21,260 19,011 16,889 Non-interest income 4,694 4,179 3,738 3,463 3,
Slide 9: Performance Drivers & Model
PERFORMANCE DRIVERS & MODEL Q2-2005 Q1-2005 Q4-2004 Q3-2004 Q2-2004 Net interest margin 3.88% 3.61% 3.58% 3.38% 3.24% Non-interest income 0.74% 0.69% 0.62% 0.60% 0.58% Net revenue 4.62% 4.30% 4.20% 3.98% 3.82% Loan Loss Provision - - (0.03)% (0.07)% (0.07)% Non-interest expense (3.01)% (2.94)% (2.63
Slide 10: Financial Summary (Period End)
FINANCIAL SUMMARY In Thousands Period End Period End Period End Q2 2005 Q1 2005 Q2 2004 Q2/Q1 % Change YOY % Change Loans held for investment $1,805,630 $1,676,799 $1,364,106 8% 32% Loans held for sale 120,708 70,672 58,058 71% 108% Total loans 1,926,338 1,747,471 1,422,164 10% 35% Securities 725,55
Slide 11: Financial Summary (Averages)
FINANCIAL SUMMARY In Thousands Averages Averages Averages Q2 2005 Q1 2005 Q2 2004 Q2/Q1 % Change YOY % Change Loans held for investment $1,755,311 $1,590,207 $1,326,066 10% 32% Loans held for sale 84,497 81,956 68,922 3% 23% Total loans 1,839,808 1,672,163 1,394,988 10% 32% Securities 733,752 778,62
Slide 12: Average Balances, Yields, and Rates
AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q2 2005 Q2 2005 Q1 2005 Q1 2005 Q2 2004 Q2 2004 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 733,752 4.44% $ 778,622 4.44% $ 766,007 4.00% Fed funds sold & liquidity investments 3,716 2.70% 30,235 2.67% 8,68
Slide 13: Deposit and Loan Growth
DEPOSIT AND LOAN GROWTH Core Loans* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 52% Total Deposit CAGR: 22% Core Loan CAGR: 27% 2000 2001 2002 2003 2004 Q2-2005 Core Loans 625 855 1003 1230 1565 1806 2000 2001 2002 2003 2004 Q1-2005 Demand Deposits
Slide 14: Revenue and Expense Growth
REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 35% Net Interest Income CAGR: 32% Non-interest Income CAGR: 55% Non-interest Expense CAGR: 16% Net Interest Income Non-interest Income Non-interest Expense 2000 2001 2002 2003 2004 Q2-2005 Non Interest Expense 35158 29432 35370 48430 57340 74088 200
Slide 15: Interest Sensitivity Position
Asset Sensitive Differential: Approx. $598 million Assets Liabilities 0.62 0.42 0.27 0.15 0.06 0.07 0.05 0.36 INTEREST SENSITIVITY POSITION Floating Rate Money Market & Fed Funds Non-Interest Checking Fixed Rate Capital Term Deposits & Rev Repos Asset Sensitive GAP Assets Liabilities Data : 2nd Qtr
Slide 16: Credit Quality
Credit quality has improved during 2005 and remains superior Net recoveries of $59,000 in Q2-2005; $76,000 YTD LTM net charge-offs of 1bp NPLs decreased to 0.32% of core loans $3.8 million reduction in NPLs subsequent to quarter-end, bringing total non- performing loans to $1.9 million, or 0.10% of
Slide 17: Credit Quality
CREDIT QUALITY Allowance / Loans (1) 1.04% 1.20% 1.44% 1.45% 1.47% NPL to Loans (1) (2) .32% .39% .83% .29% .75% Allowance to NPL 3.3x 3.1x 1.7x 5.0x 1.1x Net Charge-offs / Average Loans YTD 2005 2004 2003 2002 2001 (1) Excludes loans held for sale. (2) Subsequent to quarter-end, $3.8 million of the
Slide 18: Closing Comments
CLOSING COMMENTS Confirming guidance for 2005 Traction in market clearly reflected in results Expect continuation of growth trends with core loan growth exceeding 20% Expansion of net interest margin Growth in non-interest income Continued investment in business strategy Credit quality maintained at
Slide 19: Q&A
© TEXAs CAPITAL BANCSHARES, INC. QéaA
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