Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q1 2012 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Apr 26, 2012

  1. Slide 1: TCBI Q1 2012 Earnings

    Exhibit 99.2 TCBI Q1 2012 Earnings April 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. 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

  3. Slide 3: Opening Remarks

    Opening Remarks • Starting 2012 with another quarter of strong growth and profitability • Reduction in credit costs and NPAs continued in Q1-2012 • Strong growth in LHI • LHS levels remain high; growth still impacted by level of refis 3

  4. Slide 4: Financial Review

    Financial Review Net Income and EPS – Outstanding growth in net income and EPS compared to Q1-2011 and Q4-2011 Operating Leverage, Core Earnings Power & NIM – Growth of Net Revenue • 35% growth from Q1-2011 – Strong growth in LHI and LHS • More favorable earning asset composition – growth in loans,

  5. Slide 5: Financial Review

    Financial Review Loan Growth – Broad-based growth in LHI • Averages increased 5% from Q4-2011 and 20% from Q1-2011 • Quarter-end balance $131 million or 2% above Q1-12 average – Average LHS balances consistent with Q4-2011 with surge at end of quarter Funding – Funding profile improved with DDA and

  6. Slide 6: Income Statement

    Income Statement (in thousands) Q1-12 Q4-11 Q3-11 Q2-11 Q1-11 Net interest income $ 88,229 $ 88,147 $ 79,198 $ 71,094 $ 64,498 Non-interest income 9,190 8,994 7,603 7,951 7,684 Net revenue 97,419 97,141 86,801 79,045 72,182 Provision for credit losses 3,000 6,000 7,000 8,000 7,500 OREO valuation and

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

    QTD Average Balances, Yields and Rates (in thousands) Q1 2012 Q4 2011 Q1 2011 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 137,509 4.24% $ 139,826 4.43% $ 177,161 4.65% Fed funds sold & liquidity investments 56,318 .36% 51,149 .36% 81,476 .28% Loans held for sal

  8. Slide 8: Financial Summary

    Financial Summary (in thousands) QTD Averages Q1/Q4 % YOY % Q1 2012 Q4 2011 Q1 2011 Change Change Total assets 8,209,190 7,995,474 6,183,239 3% 33% Loans held for investment $5,660,993 $5,395,253 $4,721,928 5% 20% Loans held for sale 2,036,622 2,093,883 735,682 (3)% 177% Total loans 7,697,615 7,489,

  9. Slide 9: Financial Summary

    Financial Summary (in thousands) Period End Q1/Q4 % YOY % Q1 2012 Q4 2011 Q1 2011 Change Change Total assets 8,559,917 8,137,225 6,061,046 5% 41% Loans held for investment $5,792,349 $5,572,371 $4,711,424 4% 23% Loans held for sale 2,255,281 2,080,081 811,400 8% 178% Total loans 8,047,630 7,652,452

  10. Slide 10: Revenue and Expense Growth

    Revenue and Expense Growth Operating Revenue CAGR: 23% Net Interest Income CAGR:24% Non-interest Income CAGR: 15% ($ in thousands) Non-interest Expense CAGR: 19% 389,676 $400,000 $360,000 Net Income CAGR: 34% 335,169 $320,000 273,937 $280,000 225,951 $240,000 198,140 $200,000 160,379 174,207 181,403

  11. Slide 11: Deposit and Loan Growth

    Deposit and Loan Growth Demand Deposit CAGR: 33% Total Deposit CAGR: 17% ($ in millions) Loans Held for Investment CAGR: 13% $7,000 6,064 $6,000 5,455 5,572 5,557 5,792 $5,000 4,711 4,121 4,028 4,457 $4,000 3,462 3,333 3,066 $3,000 $2,000 $1,000 $0 367 732 1097 1462 1828 2193 2007 2008 2009 2010 201

  12. Slide 12: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Loan Collateral by Type 3/31/12 Commercial $ 9,486 Construction 20,699 Real estate 19,345 Consumer 293 Equipment leases 337 Total non-accrual loans $ 50,160 Non-accrual loans as % of loans held for investment .87% Non-accrual loans as % of total loans .62%

  13. Slide 13: Credit Quality

    Credit Quality Improved Credit Trends – Total credit cost of $5.7 million for Q1-2012, compared to $7.1 million in Q4-2011 and $10.8 million in Q1-2011 • Provision of $3.0 million for Q1-2012 compared to $6.0 million for Q4-2011 and $7.5 million in Q1-2011, reflecting better trends • NCOs of $828,00

  14. Slide 14: Credit Quality

    Credit Quality Net Charge-offs / Average Loans Combined reserve 1.29% 1.31% 1.56% 1.59% 1.16% / Loans * Non-accrual loans + OREO to 1.42% 1.58% 3.25% 2.74% 1.81% loans * + OREO Combined reserve 1.4x 1.3x .6x .7x 1.0x to non-accruals * Excludes loans held for sale. 14

  15. Slide 15: Closing Comments

    Closing Comments • Strong core earnings and growth continuing in 2012 • Maintaining capital position needed to grow the business with exceptional ROE • Credit cost improvements continue • Loan growth potential good for LHI with strong pipeline • LHS balances to remain high • Business model to contin

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

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