Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q2 2012 Earnings Presentation

18 slides from Texas Capital Bancshares's earnings presentation, Jul 25, 2012

  1. Slide 1: TCBI Q2 2012 Earnings

    Exhibit 99.2 TCBI Q2 2012 Earnings July 25, 2012

  2. Slide 2: Forward-looking statements

    Certain matters discussed on this call may contain forward-looking statements, which are subject to risks and uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results. Texas Capital is under no obligation, and expressly disclaims such obliga

  3. Slide 3: Opening Remarks

    Opening Remarks • Continued strong growth in loans, deposits, ROE and ROA • Reduction in credit costs and NPA ratios continued in Q2-2012 • Strong growth in LHI with good pipeline remaining • LHS levels remain high; taking advantage of market demand 3

  4. Slide 4: Financial Review

    Financial Review Net Income and EPS – Outstanding growth in net income and EPS compared to Q2-2011 and Q1-2012 Operating Leverage, Core Earnings Power & NIM – Growth of Net Revenue • 28% growth from Q2-2011 and 4% from Q1-2012 – Strong growth in LHI and LHS • More favorable earning asset composition

  5. Slide 5: Financial Review

    Financial Review Loan Growth – Broad-based growth in LHI • Averages increased 5% from Q1-2012 and 22% from Q2-2011 • Quarter-end balance $284 million or 5% above Q2-12 average – Average LHS balances consistent with Q1-2012 with surge at end of quarter and growth in participation program Funding – Fu

  6. Slide 6: Income Statement

    Income Statement (in thousands) Q2-12 Q1-12 Q4-11 Q3-11 Q2-11 Net interest income $ 90,640 $ 88,229 $ 88,147 $ 79,198 $ 71,094 Non-interest income 10,462 9,190 8,994 7,603 7,951 Net revenue 101,102 97,419 97,141 86,801 79,045 Provision for credit losses 1,000 3,000 6,000 7,000 8,000 OREO valuation a

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

    QTD Average Balances, Yields and Rates (in thousands) Q2 2012 Q1 2012 Q2 2011 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 118,440 4.55% $ 137,509 4.24% $ 163,073 4.57% Fed funds sold & liquidity investments 68,493 .31% 56,318 .36% 92,231 .30% Loans held for sal

  8. Slide 8: Financial Summary

    Financial Summary (in thousands) QTD Averages Q2/Q1 % YOY % Q2 2012 Q1 2012 Q2 2011 Change Change Total assets $8,522,602 $8,209,190 $6,192,506 4% 38% Loans held for investment 5,950,913 5,660,993 4,890,696 5% 22% Loans held for sale 2,062,449 2,036,622 808,165 1% 155% Total loans 8,013,362 7,697,61

  9. Slide 9: Financial Summary

    Financial Summary (in thousands) Period End Q2/Q1 % YOY % Q2 2012 Q1 2012 Q2 2011 Change Change Total assets $9,144,360 $8,559,917 $6,709,338 7% 36% Loans held for investment 6,234,692 5,792,349 5,164,293 8% 21% Loans held for sale 2,408,032 2,255,281 1,122,330 7% 115% Total loans 8,642,724 8,047,63

  10. Slide 10: Revenue and Expense Growth

    Revenue and Expense Growth Operating Revenue CAGR: 22% Net Interest Income CAGR:23% Non-interest Income CAGR: 15% ($ in thousands) Non-interest Expense CAGR: 19% 397,042 $400,000 Net Income CAGR: 33% 335,169 $360,000 $320,000 273,937 $280,000 225,951 $240,000 200,770 $200,000 160,379 174,207 181,403

  11. Slide 11: Diluted EPS Growth

    Diluted EPS Growth 5 Year EPS CAGR: 19%* $1.98 $2.00 $2.00 $1.80 $1.60 $1.45 $1.50 $1.45 $1.40 $1.20 $1.10 $1.00 $1.00 $0.87 $1.00 $0.74 $0.80 $0.70 $0.60 $0.60 $0.50 $0.40 $0.20 $0.00 $0.00 6 months ended 6/30 2007 2008 2009^ 2010 2011 1H 2012 2011 2012 *1H 2007 – 1H 2012 ^Excludes $.15 effect of p

  12. Slide 12: Deposit and Loan Growth

    Deposit and Loan Growth Demand Deposit CAGR: 35% Total Deposit CAGR: 19% ($ in millions) Loans Held for Investment CAGR: 14% 6,660 $7,000 6,235 $6,000 5,455 5,572 5,557 $5,000 4,711 4,457 4,121 4,028 $4,000 3,333 3,462 3,066 $3,000 $2,000 $1,000 $0 2007 2008 2009 2010 2011 Q2-2012 Loans HFI Interest

  13. Slide 13: Deposit and Loan Growth

    Deposit and Loan Growth Demand Deposit CAGR: 35% Total Deposit CAGR: 19% ($ in millions) Loans Held for Investment CAGR: 14% 6,660 $7,000 6,235 $6,000 5,455 5,572 5,557 $5,000 4,711 4,457 4,121 4,028 $4,000 3,333 3,462 3,066 $3,000 $2,000 $1,000 $0 2007 2008 2009 2010 2011 Q2-2012 Loans HFI Interest

  14. Slide 14: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Loan Collateral by Type 6/30/12 Commercial $ 19,248 Energy Construction 19,959 10% Highly Liquid Real estate 16,705 Business Assets 28% Assets 2% Consumer 269 Equipment leases 252 Total non-accrual loans $ 56,433 Non-accrual loans as % of loans held for in

  15. Slide 15: Credit Quality

    Credit Quality Improved Credit Trends – Total credit cost of $4.1 million for Q2-2012, compared to $ 5.7 million in Q1-2012 and $8.7 million in Q2-2011 • Provision of $1.0 million for Q2-2012 compared to $ 3.0 million for Q1-2012 and $8.0 million in Q2-2011, reflecting better trends • NCOs of $533,0

  16. Slide 16: Credit Quality

    Credit Quality Net Charge-offs / Average Loans 1.40% 1.20% 1.14% 1.00% 0.80% 0.58% 0.60% 0.46% 0.40% 0.35% 1.20% 0.05% 0.00% 2012 2011 2010 2009 2008 Combined reserve 1.21% 1.31% 1.56% 1.59% 1.16% / Loans * Non-accrual loans + OREO to 1.35% 1.58% 3.25% 2.74% 1.81% loans * + OREO Combined reserve 1.3

  17. Slide 17: Closing Comments

    Closing Comments • Strong core earnings and growth continuing in 2012 • Credit cost improvements have been exceptional • Strong LHI pipeline presents opportunity for growth potential • LHS balances could grow modestly with increased market share and benefits of participation program • Business model

  18. Slide 18: Q&A

    Q&A © TEXAs CAPITAL BANCSHARES, INC.

Texas Capital Bancshares — Q2 2012 Earnings Presentation on 6ix