Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2011 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Apr 21, 2011
Slide 1: TCBI Q1 2011 Earnings
TCBI Q1 2011 Earnings April 20, 2011
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 Remarks
3 Opening Remarks Another quarter of solid earnings Expansion of NIM driven by improved funding costs Continued demand deposit growth Planned reduction in interest bearing deposits; part of strategy to reduce excess liquidity Credit costs consistent with expectations and showing improved trajectory;
Slide 4: Net Income and EPS
Net Income and EPS Strong growth comparisons in net income and EPS as compared to Q1-2010 Operating Leverage, Core Earnings Power & NIM Growth of Net Revenue - 16% as compared to Q1-2010 Linked quarter slightly down due to fewer days in Q1-2011 and expected decline in LHS LHS returning to more norma
Slide 5: Loan Growth, Deposit Growth and Credit Costs
Loan Growth Growth in average LHI on a linked quarter basis as a result of loan growth at the end of Q4-2010 Decline in linked quarter LHS as expected with slowdown of refinancing activity Organic growth model clearly improving TCB's market share Deposit Growth Strong growth in demand deposits Consi
Slide 6: Income Statement
6 6 Income Statement (in thousands) Excluding OREO valuation/write-down expense
Slide 7: QTD Average Balances, Yields and Rates
7 QTD Average Balances, Yields and Rates (in thousands) (in thousands) (in thousands)
Slide 8: Financial Summary
8 8 Financial Summary (in thousands)
Slide 9: Financial Summary
9 Financial Summary (in thousands) (in thousands) (in thousands)
Slide 10: Revenue and Expense Growth
10 2006 2007 2008 2009 2010 Q1 2011 Non Interest Expense 86912 98606 109651 137733 154984 172316 2006 2007 2008 2009 2010 Q1 2011 Net Interest Income 117170 139752 151737 196691 241674 257992 Non Interest Income 17684 20627 22470 29260 32263 30736 2006 2007 2008 2009* 2010* ($ in thousands) 2011*^ 1
Slide 11: Deposit and Loan Growth
11 Deposit and Loan Growth 2006 2007 2008 2009 2010 Q1-2011 Demand Deposits 514 529 587 899 1451 1481 Interest Bearing Deposits 2555 2537 2746 3222 4004 3741 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2006 2007 2008 2009 2010 Q1-2011 Loans Held for Investmen
Slide 12: Loan Portfolio Statistics
12 Loan Portfolio Statistics Loan Portfolio Statistics Total Loans $5,522,824 All numbers in thousands.
Slide 13: Credit Quality
13 Credit Quality Credit experience remains consistent with expectations Total credit cost of $10.8 million for Q1-2011 Decreased $3.5 million from Q4-2010, reflecting better trend; lowest level since Q1-2009 Substantial reduction in NCOs to $9.0 million, representing 77 bps compared to 114 bps for
Slide 14: Credit Quality
14 Credit Quality Reserve / Loans* 1.53% 1.56% 1.59% 1.16% .95% Non-accrual loans + OREO to loans* + OREO 3.01% 3.25% 2.74% 1.81% .69% Reserve to non-accruals .6x .6x .7x 1.0x 1.5x Net Charge-offs / Average Loans YTD 2011 2010 2009 2008 2007 * Excludes loans held for sale.
Slide 15: Closing Comments
15 Closing Comments Strong core earnings power continues in 2011 Exceptional DDA growth in Q1-2011 with significant improvement in margin Maintaining strong capital position Credit costs as expected with improvements from prior quarters; improvements expected to continue throughout 2011 Well positio
Slide 16: Q&A
Q&A @© Texas Capital BANCSHARES, INC,
Texas Capital Bancshares — Q1 2011 Earnings Presentation on 6ix