LegacyTexas Financial Group Inc

LegacyTexas Financial — Q1 2019 Earnings Presentation

23 slides from LegacyTexas Financial's earnings presentation, Apr 23, 2019

  1. Slide 1: First Quarter 2019 Investor Presentation

    EXHIBIT 99.3 First Quarter 2019 Investor Presentation April 24, 2019

  2. Slide 2: Safe harbor statement

    FIRST QUARTER 2019 Safe harbor statement When used in filings by LegacyTexas Financial Group, Inc. (the "Company”) with the Securities and Exchange Commission (the “SEC”), in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of

  3. Slide 3: Today's presenters

    FIRST QUARTER 2019 Today’s presenters President and Chief Executive Officer • CEO and President of LegacyTexas Financial Group, Inc. • Former Chairman and Chief Executive Officer of Highlands Bancshares in 2010 • Former Chairman and Chief Executive Officer of Guaranty Bank in 2009 • 38+ years of Tex

  4. Slide 4: Key franchise highlights - Q1 2019

    FIRST QUARTER 2019 – FRANCHISE HIGHLIGHTS Key franchise highlights - Q1 2019 • #1 deposit market share among all banks in affluent Collin County • #2 deposit market share among Dallas-based banks1 in the attractive DFW market, which is North Texas home to 22 companies on the 2018 Fortune 500 list Fo

  5. Slide 5: First quarter highlights

    FIRST QUARTER 2019 – QUARTERLY HIGHLIGHTS First quarter highlights ($ in millions except for per share data) Quarter ended March 31, December 31, March 31, 2018 2018 2019 Linked Q ∆ YOY ∆ Selected balance sheet data Gross loans held for investment1 $ 6,569.1 $ 6,790.7 $ 6,944.7 2.3 % 5.7% Total depo

  6. Slide 6: Commercially focused loan portfolio

    FIRST QUARTER 2019 – BALANCE SHEET Commercially focused loan portfolio Gross loans held for investment1 at Q1 2019 grew $154.0 million from Q4 2018, which includes linked-quarter increases in all loan portfolios. Total Loans HFI1 ($ in millions) $6,791 $6,945 As of March 31, 20191 $6,483 $5,970 $5,0

  7. Slide 7: Energy lending: Geographic Concentration of Reserves

    FIRST QUARTER 2019 – ENERGY LENDING Energy lending Geographic Concentration of Reserves • Reserve-based energy portfolio at March 31, 2019 consisted of 59% crude 9% 18% oil reserves and 41% natural gas 6% 5% R: 000 reserves 3% 8% G: 048 • At March 31, 2019, 50 reserve-based 8% borrowers and 3 midstr

  8. Slide 8: Energy lending

    FIRST QUARTER 2019 – ENERGY LENDING Energy lending • Energy loans are all first liens • No unsecured commitments/exposure R: 000 SNC Breakout of Energy Loans Outstanding loan balances and related loan loss reserves G: 048 ($ in millions) 6% B: 135 3% $34.8 $23.2 $547.4 $38.1 $524.1 $22.1 $28.7 $520.

  9. Slide 9: Asset quality

    FIRST QUARTER 2019 – ASSET QUALITY Asset quality NPAs at Q1 2019 totaled $61.8 million, up $38.1 million from Q4 2018 and up $3.8 million from Q1 2018. Total Non-performing Assets (including foreclosed assets) ($ in millions) $75.3 $74.4 $67.6 R: 000 1.46% 1.43% $58.4 G: 048 1.25% $51.0 1.13% B: 135

  10. Slide 10: Core funded, low cost deposit base

    FIRST QUARTER 2019 – BALANCE SHEET Core funded, low cost deposit base Total deposits at Q1 2019 grew $235.7 million from Q4 2018, which includes linked-quarter increases in interest-bearing demand, time and savings and money market deposits. Total Deposits ($ in millions) $7,077 As of March 31, 2019

  11. Slide 11: Net interest income

    FIRST QUARTER 2019 – INCOME STATEMENT Net interest income • Net interest income for Q1 2019 was $81.2 million, a $3.1 million, or 3.7%, decrease from Q4 2018 and a $2.6 million, or 3.2%, increase from Q1 2018. • The net interest margin for Q1 2019 was 3.89%, down 9 basis points from Q4 2018 and up 4

  12. Slide 12: Disciplined expense management

    FIRST QUARTER 2019 – INCOME STATEMENT Disciplined expense management GAAP and core (Non-GAAP) efficiency ratio was 48.66% for Q1 2019, compared to GAAP efficiency ratio of 47.95% and core (non-GAAP) efficiency ratio of 48.40% for Q1 2018. Net interest income Core non-interest income Core non-interes

  13. Slide 13: Prudent capital management

    FIRST QUARTER 2019 – CAPITAL Prudent capital management TCE / TA1 Tier 1 common risk-based2 10.3% 10.3% 11.1% 10.9% 9.6% 9.4% 8.3% 8.6% 8.8% 9.1% 2015Y 2016Y 2017Y 2018Y 2019 Q1 2015Y 2016Y 2017Y 2018Y 2019 Q1 Tier 1 leverage2 10.8% 11.0% 9.5% 8.7% 9.2% 2015Y 2016Y 2017Y 2018Y 2019 Q1 Source: Compan

  14. Slide 14: Key investment highlights

    FIRST QUARTER 2019 – INVESTMENT HIGHLIGHTS Key investment highlights One of the largest independent Texas financial services companies built upon a strong customer focus and a long history of serving Texans Commercially focused loan growth and disciplined expense management Growth balanced with disc

  15. Slide 15: Looking ahead

    FIRST QUARTER 2019 – LOOKING AHEAD Looking ahead Expand our Texas footprint and solidify our deep-rooted culture Focus on growth – organically and through selective acquisitions Diversify income sources Prudent and focused expense management Maintain asset quality Strategic capital deployment 15

  16. Slide 16: Manifesto

    FIRST QUARTER 2019 – OUR VISION Manifesto We believe in our customers. Their goals. Their dreams. Their ambitions for tomorrow. And since 1952, we’ve been doing whatever it takes to support them as they advance in business and in life. We are responsive, accountable, trusted, experts at what we do.

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: Reconciliation of Core (non-GAAP) to GAAP Net Income and EPS

    Supplemental Information – Non-GAAP Financial Measures (unaudited) Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (net of tax): At or For the Quarter Ended March 31, December 31, September 30, June 30, March 31, 2019 2018 2018 2018 2018 (Dollars in thousands, except per

  19. Slide 19: Reconciliation of Core (non-GAAP) to GAAP Net Income and EPS (annual)

    Supplemental Information – Non-GAAP Financial Measures (unaudited) Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (net of tax): At or For the Year Ended December 31, 2018 2017 2016 2015 2014 GAAP net income available to common shareholders 1 $ 153,692 $ 89,176 $ 97,324 $

  20. Slide 20: Non-GAAP Reconciliation: Non-Interest Income and Expense

    Supplemental Information – Non-GAAP Financial Measures (unaudited) At or For the Quarter Ended March 31, December 31, September 30, June 30, March 31, 2019 2018 2018 2018 2018 (Dollars in thousands, except per share amounts) Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income (gross of tax

  21. Slide 21: Non-GAAP Reconciliation: Annual Non-Interest Income and Expense

    Supplemental Information – Non-GAAP Financial Measures (unaudited) At or For the Year Ended December 31, 2018 2017 2016 Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Expense (gross of tax): GAAP non-interest income $ 49,241 $ 43,582 $ 51,931 (Gain) loss on sale of branch location

  22. Slide 22: Calculation of Tangible Book Value and Tangible Equity

    Supplemental Information – Non-GAAP Financial Measures (unaudited) Calculation of Tangible Book Value and Tangible Equity to Tangible Assets: At or For the Quarter Ended March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 Calculation of Tangible Book Value per share: (Dollars in thousa

  23. Slide 23: Calculation of Return on Average Assets and Equity

    Supplemental Information – Non-GAAP Financial Measures (unaudited) Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core) At or For the Quarter Ended March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 (Dollars in thousands) Net incom

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