Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q4 2009 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Jan 27, 2010

  1. Slide 1: TCBI Q4 2009 Earnings

    TCBI Q4 2009 Earnings January 27, 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 Business model intact, producing strong core earnings in 2009 Improved earnings power driven by margin expansion throughout the year Strong deposit growth, especially DDA, at significantly reduced cost Intense focus on credit quality continued in Q4 and into 2010 Growth and success i

  4. Slide 4: Financial Review: Net income

    Financial Review Net income Net income of $24.4 million for 2009, a decrease of 2% from 2008 Net income of $6.4 million increased 20% compared to Q3-2009 and 84% compared to Q4-2008 EPS of $0.18 increased 20% compared to $0.15 for Q3-2009 and 64% from $0.11 in Q4-2008 Preferred dividend and repurcha

  5. Slide 5: Financial Review: Asset quality

    Financial Review Asset quality Provision of $43.5 million for 2009 and $10.5 million for quarter OREO valuation and write down of $7.8 million for 2009 and $5.6 million for quarter Small increase of $3 million in non-performing assets Non-accrual loans at 2.15% Non-performing assets at 2.74% includi

  6. Slide 6: Income Statement (in thousands)

    Q4-09 Q3-09 Q2-09 Q1-09 Q4-08 Net interest income $ 55,106 $ 51,566 $ 48,802 $ 41,217 $ 38,712 Provision for loan losses 10,500 13,500 11,000 8,500 11,000 Net interest income after provision for loan losses 44,606 38,066 37,802 32,717 27,712 Non-interest income 7,811 7,133 7,416 6,900 5,950 Non-inte

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

    QTD Average Balances, Yields and Rates (in thousands) Q4 2009 Q4 2009 Q3 2009 Q3 2009 Q4 2008 Q4 2008 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 273,618 4.60% $ 292,578 4.68% $ 360,264 4.70% Fed funds sold & liquidity investments 18,466 .13% 19,431 .25% 28,811

  8. Slide 8: Financial Summary: QTD Averages

    QTD Averages QTD Averages QTD Averages Q4 2009 Q3 2009 Q4 2008 Q4/Q3 % Change YOY % Change Loans held for investment $4,384,692 $4,264,202 $3,875,586 3% 13% Loans held for sale 601,793 539,889 316,409 11% 90% Total loans 4,986,485 4,804,091 4,191,995 4% 19% Securities 273,618 292,578 360,264 (6)% (2

  9. Slide 9: Financial Summary: Period End

    Financial Summary (in thousands) Period End Period End Period End Q4 2009 Q3 2009 Q4 2008 Q4/Q3 % Change YOY % Change Loans held for investment $4,457,293 $4,290,453 $4,027,871 4% 11% Loans held for sale 693,504 549,787 496,351 26% 40% Total loans 5,150,797 4,840,240 4,524,222 6% 14% Securities 266,

  10. Slide 10: Revenue and Expense Growth

    2004 2005 2006 2007 2008 YTD Q4 2009 Non Interest Expense 50381 65344 86912 98606 109651 145542 2004 2005 2006 2007 2008 YTD Q4 2009 Net Interest Income 71467 93624 117170 139752 151737 196691 Non Interest Income 10593 12507 17684 20627 22470 29260 2004 2005 2006 2007 2008 ($ in thousands) 2009 82,0

  11. Slide 11: Deposit and Loan Growth

    Deposit and Loan Growth 2004 2005 2006 2007 2008 Q4-2009 Demand Deposits 398 512 514 529 587 899 Interest Bearing Deposits 1392 1983 2555 2537 2746 3222 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2004 2005 2006 2007 2008 Q4 2009 Loans Held for Investment 156

  12. Slide 12: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Commercial $ 34,021 Construction 44,598 Real estate 10,189 Consumer 273 Equipment leases 6,544 Total non-accrual loans $ 95,625 Non-accrual loans as % of loans held for investment 2.15% ORE 27,264 Total Non-accruals + ORE $ 122,889 Non-accrual loans + ORE

  13. Slide 13: Credit Quality

    Credit Quality Credit experience remains consistent with expectations Net charge-offs of $19.5 million for 2009 Net charge-offs represent 46 bps for 2009, $8 million or 72 bps in Q4-2009 NCOs related to problems previously identified and covered with allocated reserves Increase of $3 million in NPAs

  14. Slide 14: Credit Quality

    Credit Quality Combined reserves for credit losses / Loans* 1.59% 1.16% .95% .77% .91% Non-accrual loans + ORE to loans* + ORE 2.74% 1.81% ..69% ..37% ..27% Reserve to non-accruals .7x 1.0x 1.5x 2.3x 3.3x Net Charge-offs / Average Loans 2009 2008 2007 2006 2005 * Excludes loans held for sale.

  15. Slide 15: Closing Comments

    Closing Comments Improved core earnings power due to margin expansion and management of controllable expenses Excellent growth in loans and deposits Strong capital position going into 2010 Credit issues remain challenging; expect continued high, but manageable credits costs in 2010 Company well-posi

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

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