Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q4 2019 Earnings Presentation
22 slides from Texas Capital Bancshares's earnings presentation, Jan 22, 2020
Slide 1: TCBI Q4 2019 Earnings
Exhibit 99.2 TCBI Q4 2019 Earnings January 22, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This communication may be deemed to include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of Texas Capital Bancshar
Slide 3: Additional Statements
Additional Statements Additional Information about the Merger and Where to Find It In connection with the proposed merger between IBTX and TCBI, IBTX filed a registration statement on Form S-4 with the SEC on January 21, 2020 to register the shares of IBTX’s capital stock to be issued in connection
Slide 4: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights Total Loans Total Deposits Net Income EPS ROE ROA Operating HFI Results $24.6 billion $26.5 billion $73.9 million $1.42 10.68% .85% • Net interest income decreased 2% from Q3-2019 and increased 3% from Q4-2018; increased 7% for YTD Net Interest 2019 Income and
Slide 5: Energy and Leveraged Lending Update
Energy and Leveraged Lending Update Energy Outstandings 12/31/19 Energy Energy Outstandings • Outstanding energy loans represented 5% of total loans, or $1.4 billion, at Q4-2019 compared to 6%, or $1.5 billion, at Q3- 2019 and 8%, or $1.8 billion, at Q4-2018 10% 1% 6% Total E&P • Non-accruals totale
Slide 6: Net Interest Income & Margin
Net Interest Income & Margin Average Earning Assets & Net Quarterly Change Interest Income NII ($MM) NIM (%) $252.2 Q3 2019 3.16% $5.7 $30.0 $4.5 17.1 Decrease in funding costs .21 $2.8 6.3 Increase in loan balances - $27.9 $27.4 1.8 Contribution from free funds .02 $25.0 $2.0 $26.1 $1.9 .6 Mix shif
Slide 7: Loan Growth
Loan Growth Average Loans & Yield Loan Composition ($27.2Billion outstanding balance 12/31/19) $28.0 $11.4 Business Assets $26.0 $10.7 27% $9.5 $24.0 Energy $22.0 $7.1 $7.1 5% $20.0 Portfolio Balances ($B) $18.0 Highly Liquid Unsecured Assets $16.0 3% 1% $16.6 $16.9 $16.8 $16.9 $16.7 $14.0 Owner Occ
Slide 8: Deposit Growth
Deposit Growth Average Deposits Funding Costs 2.00% $28.0 $10.9 $26.0 $10.0 $24.0 $22.0 1.50% 1.38% 1.40% $7.9 $20.0 $7.5 $7.0 1.23% 1.25% 1.33% Deposit Balances ($B) $18.0 1.29% 1.03% $16.0 $17.4 1.17% 1.21% $16.6 1.00% $14.0 $14.0 $14.6 0.99% $12.0 $13.5 $10.0 $8.0 0.50% $6.0 $4.0 $2.0 $- 0.00% Q4
Slide 9: Non-interest Expense
Non-interest Expense Quarterly Change Annual Change Increase/ Increase/ Non-interest expense ($MM) (Decrease) Non-interest expense ($MM) (Decrease) Q3 2019 $149.4 YTD 2018 $525.1 Salaries and employee benefits, includes: Salaries and employee benefits, includes: – FAS 123R (includes stock price chan
Slide 10: Asset Quality
Asset Quality Allowance for Credit Losses NCO/Average Total LHI $240.0 0.80% $220.0 $225.4 $218.4 $200.0 $203.7 0.70% $203.0 $199.5 $180.0 0.60% $160.0 0.93% 0.93% $140.0 0.90% 0.50% ALLL ($M) $120.0 0.81% 0.83% 0.40% 0.37% $100.0 0.29% 0.31% $80.0 0.30% $60.0 0.20% 0.16% $40.0 $20.0 0.10% 0.07% $-
Slide 11: Performance Summary - Quarterly
Performance Summary - Quarterly (in thousands except per share data) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Net interest income $ 248,385 $ 252,168 $ 243,553 $ 235,614 $ 240,673 Non-interest income 17,761 20,301 24,364 30,014 15,280 Net revenue 266,146 272,469 267,917 265,628 255,953 Provision for
Slide 12: Performance Summary - Annual
Performance Summary - Annual (in thousands except per share data) 2019 2018 2017 2016 2015 Net interest income $ 979,720 $ 914,860 $ 761,328 $ 639,814 $ 556,530 Non-interest income 92,440 78,024 74,256 60,780 47,738 Net revenue 1,072,160 992,884 835,584 700,594 604,268 Provision for credit losses 75
Slide 13: 2020 Outlook
2020 Outlook Business Driver 2020 Outlook Average LHI Mid single digit percent growth Average LHI – Mortgage High teens percent decrease Finance Loans held for sale (MCA) Low $3.0 billion average Average Deposits Flat, due to repositioning Net Revenue Low single digit percent decrease Net Interest M
Slide 14: Closing Comments
Closing Comments • Commitment to delivering premier client experience to our clients which we believe continues to improve post merger with opportunity to leverage branch network and increase small business market share • Continued runoff in leverage and energy portfolios in Q4-2019 reducing traditi
Slide 15: Q&A
O&A 15 © TEXAS CAPITAL BANCSHARES, INC:
Slide 16: Appendix
Appendix © TEXAS CAPITAL BANCSHARES, INC:
Slide 17: Merger of Equals Progress
Merger of Equals Progress Work Underway to Create the Premier Texas-Based Bank Progress Since Announcement • Integration planning well underway with leaders from both companies working to ensure seamless and timely transition once closing of the merger is achieved, subject to customary closing condi
Slide 18: Focused on Results
Focused on Results Delivering a High Performance Bank in the Country’s Best Markets • Focused on creating a high performance bank that can serve customers of any size in a combined footprint that spans five of the strongest markets in the country • Complementary nature of the two companies creates o
Slide 19: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly (in thousands) Q4 2019 Q3 2019 Q4 2018 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 238,495 5.21% $ 239,834 4.69% $ 117,371 5.22% Liquidity assets 5,489,320 1.66% 4,284,874 2.17% 1,759,417 2.25% Loans held for sale 3,
Slide 20: Average Balances, Yields & Rates - Annual
Average Balances, Yields & Rates - Annual (in thousands) 2019 2018 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 213,902 4.92% $ 70,695 4.75% Liquidity assets 3,557,200 2.04% 1,970,310 1.85% Loans held for sale 2,688,677 4.19% 1,561,530 4.56% LHI, mortgage finance 6,999,586 3.45% 4,8
Slide 21: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly (in thousands) QTD Average Q4/Q3 YOY % Q4 2019 Q3 2019 Q4 2018 % Change Change Total assets $34,619,311 $32,886,612 $26,261,624 5% 32% Loans held for sale 3,567,836 2,555,269 2,049,395 40% 74% Loans held for investment 16,667,259 16,901,391 16,643,559 (1)% 0% Loans
Slide 22: Period End Balance Sheet
Period End Balance Sheet (in thousands) Period End Q4/Q3 % YOY % Q4 2019 Q3 2019 Q4 2018 Change Change Total assets $32,548,069 $33,526,437 $28,257,767 (3)% 15% Loans held for sale 2,577,134 2,674,225 1,969,474 (4)% 31% Loans held for investment 16,476,413 16,772,824 16,690,550 (2)% (1)% Loans held
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