Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2012 Earnings Presentation
17 slides from Texas Capital Bancshares's earnings presentation, Oct 25, 2012
Slide 1: TCBI Q3 2012 Earnings
Exhibit 99.2 TCBI Q3 2012 Earnings
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
Slide 3: Opening Remarks
Opening Remarks • Continued strong growth in loans, deposits, ROE and ROA • Continued improvement in overall credit quality • Strong growth in LHI with good pipeline remaining • LHS levels remain high; taking advantage of market demand • New equity and debt capital position us for future growth 3
Slide 4: Financial Review
Financial Review Net Income and EPS – Outstanding growth in net income and EPS compared to Q3-2011 and Q2-2012 Operating Leverage, Core Earnings Power & NIM – Growth of Net Revenue • 24% growth from Q3-2011 and 6% from Q2-2012 – Strong growth in LHI and LHS – Growth in Net Interest Income • Small NI
Slide 5: Financial Review
Financial Review Loan Growth – Broad-based growth in LHI • Averages increased 6% from Q2-2012 and 21% from Q3-2011 • Quarter-end balance $235.8 million, or 4%, above Q3-12 average – Average LHS balances up 18% from Q2-2012 and 104% from Q3-2011 Funding – Funding profile still strong with continued D
Slide 6: Income Statement
Income Statement Q3-12 Q2-12 Q1-12 Q4-11 Q3-11 Net interest income $ 96,855 $ 90,640 $ 88,229 $ 88,147 $ 79,198 Non-interest income 10,552 10,462 9,190 8,994 7,603 Net revenue 107,407 101,102 97,419 97,141 86,801 Provision for credit losses 3,000 1,000 3,000 6,000 7,000 OREO valuation and write-down
Slide 7: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q3 2012 Q2 2012 Q3 2011 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 110,300 4.53% $ 118,440 4.55% $ 148,922 4.50% Fed funds sold & liquidity investments 74,219 .30% 68,493 .31% 57,359 .33% Loans held for sal
Slide 8: Financial Summary
Financial Summary (in thousands) QTD Averages Q3/Q2 % YOY % Q3 2012 Q2 2012 Q3 2011 Change Change Total assets $9,256,864 $8,522,602 $6,884,500 9% 34% Loans held for investment 6,313,263 5,950,913 5,219,496 6% 21% Loans held for sale 2,432,027 2,062,449 1,191,375 18% 104% Total loans 8,745,290 8,013
Slide 9: Financial Summary
Financial Summary (in thousands) Period End Q3/Q2 % YOY % Q3 2012 Q2 2012 Q3 2011 Change Change Total assets $9,881,362 $9,144,360 $7,705,372 8% 28% Loans held for investment 6,549,089 6,234,692 5,302,584 5% 24% Loans held for sale 2,818,622 2,408,032 1,909,567 17% 48% Total loans 9,367,711 8,642,72
Slide 10: Revenue and Income Growth
Revenue and Income Growth Operating Revenue CAGR: 22% ($ in thousands) Net Interest Income CAGR: 23% Non-interest Income CAGR: 15% 407,904 $440,000 Non-interest Expense CAGR: 17% $400,000 Net Income CAGR: 32% 335,169 $360,000 $320,000 273,937 $280,000 225,951 $240,000 205,123 174,207 181,403 $200,00
Slide 11: EPS Growth
EPS Growth 5 Year EPS CAGR: 19%* $2.50 $2.25 $1.99 $2.00 $1.50 $1.10 $1.00 $1.31 $1.00 $0.89 $0.93 $0.71 $0.50 $0.00 2007 2008 2009^ 2010 2011 YTD 9/30/12 *9 months 2007 – 9 months 2012 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.55. 11
Slide 12: Deposit and Loan Growth
Deposit and Loan Growth Demand Deposit CAGR: 34% ($ in millions) Total Deposit CAGR: 18% Loans Held for Investment CAGR: 14% 6,717 6,549 $7,000 5,455 5,557 5,572 $6,000 4,711 $5,000 4,457 4,121 4,028 $4,000 3,462 3,333 3,066 $3,000 $2,000 $1,000 $0 2007 2008 2009 2010 2011 Q3-2012 Loans HFI Interest
Slide 13: Loan Portfolio Statistics
Loan Portfolio Statistics Loan Collateral by Type 9/30/12 Non-accrual loans Commercial $ 17,653 Construction 19,249 Real estate 20,100 Consumer 60 Equipment leases 213 Total non-accrual loans $ 57,275 Non-accrual loans as % of loans held for investment .87% Non-accrual loans as % of total loans .61%
Slide 14: Credit Quality
Credit Quality Improved Credit Trends – Total credit cost of $3.1 million for Q3-2012, compared to $ 4.1 million in Q2-2012 and $8.7 million in Q3-2011 • Provision of $3.0 million for Q3-2012 compared to $1.0 million for Q2-2012 and $7.0 million in Q3-2011, reflecting better trends • NCOs for YTD of
Slide 15: 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% 0.20% 0.06% 0.00% 2012 2011 2010 2009 2008 Combined reserve / 1.18% 1.31% 1.56% 1.59% 1.16% Loans* Non-accrual loans + OREO to 1.16% 1.58% 3.25% 2.74% 1.81% loans* + OREO Combined reserve 1.3x
Slide 16: Closing Comments
Closing Comments • Strong core earnings and growth continuing in 2012 • Successful equity offering and debt issuance • Credit cost improvements have been exceptional • Strong LHI pipeline presents opportunity for growth potential • LHS balances could grow modestly with increased market share and par
Slide 17: Q&A
Q&A v © TEXAS CAPITAL BANCSHARES, INC:
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