Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Raymond James 36th Institutional Investors Conference (March 2015)
23 slides from Texas Capital Bancshares's conference presentation, Mar 11, 2015
Slide 1: Raymond James 36th Institutional Investors Conference
Exhibit 99.1 Raymond James 36 th Institutional Investors Conference March 3, 2015 Keith Cargill, President and CEO Peter Bartholow, Chief Operating Officer and CFO
Slide 2: Forward-looking statements
Certain matters discussed on this call may contain “forward-looking statements” as defined in federal securities laws, which are subject to risks and uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results. These statements are not historic
Slide 3: Overview and Strategy
Overview and Strategy Texas Capital is a commercially-focused bank operating in the five largest MSAs in Texas and throughout the U.S. • All five Texas markets highly ranked in U.S. in terms of job and economic growth, now with major business relocations to Texas • Substantial commercial businesses
Slide 4: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights • Exceptional growth in traditional LHI balances despite highly competitive C&I market, with Strong increase in Q4-2014 average balances of $498 million compared to Q3-2014 Balanced • Growth in mortgage finance loans (MFLs) with little evidence of seasonality i
Slide 5: Energy Commentary
Energy Commentary • TCBI has deep experience in energy lending • Executives, lenders, credit policy and engineers have more than three decades of experience • All lending authority rests with Credit Policy, not the line of business and most exposures require approval of the Chief Credit and Chief Ri
Slide 6: Energy Portfolio Review
Energy Portfolio Review • We have completed review of our portfolio and see no significant exposure to loan losses, assuming prices comparable to the forward strip of oil and natural gas prices • Anticipate potential for some downgrades • Nothing currently expected that would drive significant alloc
Slide 7: Revenue & Expense
Revenue & Expense Revenue & Expense Trends Revenue & Expense Highlights Operating Revenue CAGR: 18% • High returns maintained with effective 600,000 Net Interest Income CAGR: 19% Non-interest Income CAGR: 8% deployment of additional capital 500,000 Non-interest Expense CAGR: 14% • Improvement in ope
Slide 8: Net Interest Income & Margin
Net Interest Income & Margin NIM Highlights Net Interest Income & Margin Trends Net Interest income ($MM) • Net interest income growth of 2% from 140.0 Net Interest Margin (%) 6.00% Q3-2014 and 14% from Q4-2013 Earning Asset Yield (%) • Yields on traditional LHI down Total Loan Spread (%) 120.0 5.50
Slide 9: Analysis of Net Interest Income & Expenses
Analysis of Net Interest Income & Expenses NII ($MM) NIM (%) Linked quarter increases/ Non-interest expense ($MM) (decreases) 125.7 Q3 2014 3.77% Q3 2014 $71.9 .1 Increase in liquidity (.12) Salaries and employee benefits – related to stock price changes (.8) (3.0) Decrease in LHI loan yields (.08)
Slide 10: Performance Summary - Quarterly
Performance Summary - Quarterly (in thousands) Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Net interest income $ 127,582 $ 125,661 $ 115,407 $ 108,315 $ 111,475 Non-interest income 11,226 10,396 10,533 10,356 11,184 Net revenue 138,808 136,057 125,940 118,671 122,659 Provision for credit losses 6,500 6,
Slide 11: Performance Summary - Annual
Performance Summary - Annual (in thousands) 2014 2013 2012 2011 2010 Net interest income $ 476,965 $ 419,513 $ 376,879 $ 302,937 $ 241,674 Non-interest income 42,511 44,024 43,040 32,232 32,263 Net revenue 519,476 463,537 419,919 335,169 273,937 Provision for credit losses 22,000 19,000 11,500 28,50
Slide 12: 2015 Outlook
2015 Outlook Business Driver 2015 Outlook v. 2014 Results Average LHI Low teens percent growth Average LHI – Mortgage Finance Flat to single digit percent growth Average Deposits Mid to high teens percent growth Low double-digit percent growth, with continued low interest rates and Net Interest Inco
Slide 13: Loan & Deposit Growth
Loan & Deposit Growth Balance Trends Total Loan Composition ($14.3 Billion at 12/31/14) 14,000 Demand Deposit CAGR: 42% Business Energy Highly 12,000 Total Deposit CAGR: 25% Assets 6% Liquid Loans Held for Investment CAGR: 18% 28% Assets 10,000 2% 8,000 6,000 4,000 Unsecured 2,000 2% 0 Owner Occupie
Slide 14: Asset Quality
Asset Quality NCO / Average Traditional LHI Non-accrual loans Q4-2014 1.40% Commercial $ 33,122 1.14% 1.20% Construction – 1.00% Real estate 9,947 0.80% Consumer 62 0.58% 0.60% Equipment leases 173 0.40% Total non-accrual loans 43,304 0.20% 0.10% 0.07% 0.07% 0.00% 2010 2011 2012 2013 2014 Non-accrua
Slide 15: EPS Growth
EPS Growth EPS Growth (5-yr CAGR of 39%) $3.50 $3.01 $3.00 $2.88 $2.72 $2.50 $1.99 $2.00 $1.50 $1.00 $1.00 $0.71 $0.50 $0.00 2009^ 2010 2011 2012 2013 2014 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 15
Slide 16: Closing Comments
Closing Comments • Proven organic growth business model continues to produce in key lines of business with improvements in operating leverage • Solid core earnings power and strong asset growth experienced in 2014; 2015 expected to be challenging year for asset growth • Despite drop in energy prices
Slide 17: Q&A
17 Q&A ©) TEXAS CAPITAL BANCSHARES, INC:
Slide 18: Appendix
Appendix ©) TEXAS CAPITAL BANCSHARES, INC:
Slide 19: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly (in thousands) Q4 2014 Q3 2014 Q4 2013 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 42,515 3.80% $ 46,413 3.86% $ 65,067 4.25% Fed funds sold & liquidity investments 882,001 .25% 388,855 .25% 158,594 .21% Loans held f
Slide 20: Average Balances, Yields & Rates - Annual
Average Balances, Yields & Rates - Annual (in thousands) 2014 2013 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 49,200 3.98% $ 77,178 4.39% Fed funds sold & liquidity investments 444,673 .25% 144,050 .21% Loans held for investment, mortgage finance 2,948,938 3.19% 2,342,149 3.75% Lo
Slide 21: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly (in thousands) QTD Average Q4/Q3 % YOY % Q4 2014 Q3 2014 Q4 2013 Change Change Total assets $14,631,072 $13,629,609 $10,899,266 7% 34% Loans held for investment 9,921,323 9,423,259 8,142,569 5% 22% Loans held for investment, mortgage finance 3,471,737 3,452,782 2,23
Slide 22: Average Balance Sheet - Annual
Average Balance Sheet - Annual (in thousands) YTD Average 2014 2013 YOY % Change Total assets $13,016,611 $10,348,404 26% Loans held for investment 9,265,435 7,471,676 24% Loans held for investment, mortgage finance 2,948,938 2,342,149 26% Total loans 12,214,373 9,813,825 24% Securities 49,200 77,17
Slide 23: Period End Balance Sheet
Period End Balance Sheet (in thousands) Period End Q4/Q3 % YOY % Q4 2014 Q3 2014 Q4 2013 Change Change Total assets $15,899,946 $14,266,503 $11,720,064 11% 36% Loans held for investment 10,154,887 9,686,422 8,486,603 5% 20% Loans held for investment, mortgage finance 4,102,125 3,774,467 2,784,265 9%
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