Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2015 Earnings Presentation
17 slides from Texas Capital Bancshares's earnings presentation, Apr 22, 2015
Slide 1: TCBI Q1 2015 Earnings
April 22, 2015 TCBI Q1 2015 Earnings
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: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights 3 Core Earnings Power Strong Balanced Growth Credit Quality • Exceptional growth in traditional LHI balances despite highly competitive C&I market • Growth in mortgage finance loans (MFLs) with impact from refinance activity • Continued significant growth in de
Slide 4: Net Interest Income & Margin
Net Interest Income & Margin 4 • Net interest income growth of 2% from Q4-2014 and 20% from Q1-2014 • MFL growth benefits NII with small negative to NIM • Traditional LHI spreads continue to show only modest erosion with competitive pressure • Impact of liquidity build significantly reduces NIM, but
Slide 5: Loan Growth
Loan Growth 5 • Broad-based growth in average traditional LHI – Growth of $580.8 million (6%) from Q4-2014 and $1.8 billion (21%) from Q1-2014 • Period-end balance $258.8 million higher than Q1-2015 average balance and 21% above Q1-2014 period-end balance • MF performance exceeded industry trends wi
Slide 6: Deposit Growth
Deposit Growth 6 Average Balance Trends ($B) Funding Costs • Core funding costs – deposits and borrowed funds – flat at 17 bps • Deposit growth consistent with strategic opportunity to build deposit base • Minor benefit to NII • Impact on NIM consistent with objectives, and will fluctuate from quart
Slide 7: Non-interest Expense
Non-interest Expense 7 • Efficiency Ratio at less than 55% in Q1-2015, even with seasonal impact from benefit costs ($.03 EPS impact), as well as two fewer days ($.04 EPS impact) • Continued focus on managing growth in NIE • Effective utilization of professional resources and reduction in legal expe
Slide 8: Performance Summary - Quarterly
Performance Summary - Quarterly 8 (in thousands) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Net interest income $ 130,009 $ 127,582 $ 125,661 $ 115,407 $ 108,315 Non-interest income 12,267 11,226 10,396 10,533 10,356 Net revenue 142,276 138,808 136,057 125,940 118,671 Provision for credit losses 11,000
Slide 9: 2015 Outlook
2015 Outlook 9 Business Driver 2015 Outlook v. 2014 Results Changes since January 21, 2015 Average LHI Low to mid teens percent growth Increased from low teens percent growth Average LHI – Mortgage Finance High single to low double-digit percent growth Increased from flat to single-digit percent gro
Slide 10: Asset Quality
Asset Quality 10 • Total credit cost of $11.0 million for Q1-2015, compared to $5.0 million in Q1-2014 and $6.5 million in Q4-2014 • NCOs $3.1 million, or 12 bps, in Q1-2015 compared to 10 bps in Q1-2014 and 5 bps in Q4-2014 • Increase in non-accruals primarily related to non-energy C&I; NPA ratio s
Slide 11: EPS Growth
EPS Growth 11 EPS Growth (5-yr CAGR of 27%) $1.00 $1.98 $3.00 $2.72 $0.60 $0.70 $0.71 $0.78 $0.78 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2010 2011 2012 2013 2014 YTD Q1-2015 YTD $2.88 Note: Q1-2015 includes the full quarter impact of the common stock offering completed in Q4-2014, resulting in
Slide 12: Closing Comments
Closing Comments • Strong traditional LHI growth experienced in Q1-2015 affirms our confidence in the guidance for the remainder of 2015, despite limitations on CRE and Builder Finance growth rates and uncertainty related to energy • Continue to have critical focus on maintaining strong credit quali
Slide 13: Q&A
Q&A © Texas CAPITAL BANCSHARES, INC:
Slide 14: Appendix
Appendix © Texas CAPITAL BANCSHARES, INC:
Slide 15: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly 15 (in thousands) Q1 2015 Q4 2014 Q1 2014 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 39,930 3.78% $ 42,515 3.80% $ 57,581 4.18% Liquidity assets 2,210,864 .25% 882,001 .25% 304,042 .27% Loans held for investment, mo
Slide 16: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly 16 (in thousands) QTD Average Q1/Q4 % Change YOY % Change Q1 2015 Q4 2014 Q1 2014 Total assets $16,857,892 $14,631,072 $11,401,368 15% 48% Loans held for investment 10,502,172 9,921,323 8,717,969 6% 20% Loans held for investment, mortgage finance 3,746,938 3,471,737
Slide 17: Period End Balance Sheet
Period End Balance Sheet 17 (in thousands) Period End Q1/Q4 % Change YOY % Change Q1 2015 Q4 2014 Q1 2014 Total assets $17,325,458 $15,899,946 $12,147,070 9% 43% Loans held for investment 10,760,978 10,154,887 8,928,325 6% 21% Loans held for investment, mortgage finance 5,408,750 4,102,125 2,688,044
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