Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q4 2008 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Jan 29, 2009
Slide 1: Earnings Release January 28, 2009
Earnings Release January 28, 2009
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 Much stronger capital position Completed sale of $55 million in common equity in Q3-2008 Issued $75 million of preferred stock in Treasury program in Q1-2009 Proceeds to support growth Another good quarter of loan growth despite the economic downturn Business model intact and positi
Slide 4: Financial Highlights
Financial Highlights Net income and EPS Net income of $24.9 million for 2008, a decrease of 21% from 2007 Net income of $3.5 million for Q4-2008 decreased 54% compared to Q3-2008; 47% decrease compared to Q4-2007 EPS of $.11 decreased 59% compared to Q3-2008; 54% decrease compared to Q4-2007 Impact
Slide 5: Financial Review
Financial Review Improved operating leverage Benefit of growth and improved operations offset by decrease in NIM and increase in credit costs Net interest income growth for 2008 of 9% after 7% reduction in NIM Loan growth produced small increase from Q3-2008 after NIM decrease Increase of 3% from Q4
Slide 6: Income Statement
Income Statement (in thousands) Q4-08 Q3-08 Q2-08 Q1-08 Q4-07 Net interest income $ 38,712 $ 38,266 $ 38,160 $ 36,599 $ 37,531 Provision for loan losses 11,000 4,000 8,000 3,750 9,300 Net interest income after provision for loan losses 27,712 34,266 30,160 32,849 28,231 Non-interest income 5,950 4,8
Slide 7: Financial Summary (QTD Averages)
Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q4 2008 Q3 2008 Q4 2007 Q4/Q3 % Change YOY % Change Loans held for investment $3,875,586 $3,781,289 $3,337,968 2% 16% Loans held for sale 316,409 288,103 122,205 10% 159% Total loans 4,191,995 4,069,392 3,460,173 3% 21% Securiti
Slide 8: Financial Summary (Period End)
Financial Summary (in thousands) Period End Period End Period End Q4 2008 Q3 2008 Q4 2007 Q4/Q3 % Change YOY % Change Loans held for investment $4,027,871 $3,840,172 $3,462,608 5% 16% Loans held for sale 496,351 343,002 174,166 45% 185% Total loans 4,524,222 4,183,174 3,636,774 8% 24% Securities 378
Slide 9: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q4 2008 Q4 2008 Q3 2008 Q3 2008 Q4 2007 Q4 2007 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 360,264 4.70% $ 372,588 4.82% $ 450,398 4.78% Fed funds sold & liquidity investments 28,811 .39% 10,555 1.88%
Slide 10: Revenue and Expense Growth
2003 2004 2005 2006 2007 Q4-2008 Non Interest Expense 48430 57340 65344 86913 98606 109651 2003 2004 2005 2006 2007 Q4-2008 Net Interest Income 53155 74742 94130 117813 140667 151737 Non Interest Income 10892 13632 12001 17042 19712 22470 Revenue and Expense Growth Net Interest Income Non-interest I
Slide 11: Deposit and Loan Growth
2003 2004 2005 2006 2007 Q4-2008 Demand Deposits 302 398 512 514 529 587 Interest Bearing Deposits 1103 1392 1983 2555 2537 2746 Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2003 2004 2005 2006 2007 Q4-2008 Loans Held for Investment 123
Slide 12: Loan Portfolio Statistics
Loan Portfolio Statistics Non-accrual loans Commercial 15,676 Construction 22,362 Real estate 6,239 Consumer 296 Equipment leases 2,926 Total non-accrual loans $ 47,499 Non-accrual loans as % of total loans 1.05% ORE 25,904 Total Non-accruals + ORE $ 73,403 Non-accrual loans + ORE as % of loans + OR
Slide 13: Credit Quality
Credit Quality Credit experience remains good Net charge-offs of $5.2 million in Q4-2008; $12.7 million YTD Net charge-offs represent 53 bps for the quarter; 35 bps for YTD NCO's related to identified problems substantially covered with allocated reserves in prior periods Increase in non-performing
Slide 14: Credit Quality
Credit Quality Reserve / Loans* 1.16% .95% .77% .91% 1.20% Non-accrual loans + ORE to loans* + ORE 1.81% ..69% ..37% ..27% ..37% Reserve to non-accruals 1.0x 1.5x 2.3x 3.3x 3.2x Reserve to NPL .9x 1.3x 1.9x 2.2x 3.1x Net Charge-offs / Average Loans 2008 2007 2006 2005 2004 * Excludes loans held for
Slide 15: Closing Comments
Closing Comments Ended the year with good loan growth despite economic downturn Continued intense focus on maintaining credit quality Positioned to take advantage of opportunity for people and customers with $130 million in new capital
Slide 16: Q & A
Q & A
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