Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2024 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Apr 18, 2024
Slide 1: Q1-2024 Earnings
Q1-2024 Earnings April 18, 2024 © 2024 Texas Capital Bank Member FDIC
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. Thes
Slide 3: Foundational Tenants of Value Creation in Place
Foundational Tenants of Value Creation in Place Financial Investment // Re-aligning the Revenue Growth // Growing top- Building Tangible Book Value // expense base to directly support the line revenue as a result of expanded Reinvesting organically generated Priorities business and investing aggress
Slide 4: 2021 Strategic Performance Drivers
2021 Strategic Performance Drivers Where We Where We Where We Where We Started Are Going Started Are Going FY FY FY FY YTD FY FY FY FY YTD Income Statement 2020 2021 2022 2023 2024 2025 Performance Metrics 2020 2021 2022 2023 2024 2025 Investment Banking and Trading Income 2.2% 2.7% 2.9% 8.0% 9.0% ~
Slide 5: Financial Performance // Income Statement
Financial Performance // Income Statement Adjusted Adjusted Adjusted Non-GAAP4 Adjustments ($mm) 2023 (Non-GAAP4) (Non-GAAP4) (Non-GAAP4) Financial Highlights ($mm) Non-Interest Expense 756.9 2023 2023 Q1 2023 Q4 2023 Q4 2023 Q1 2024 Q1 2024 FDIC Special Assessment 19.9 Net Interest Income $914.1 $9
Slide 6: Financial Performance // Quarterly Balance Sheet Highlights
Financial Performance // Quarterly Balance Sheet Highlights Balance Sheet Highlights ($mm) Ending Balances Q1 2023 Q4 2023 Q1 2024 QoQ Q1 2023 Q4 2023 Q1 2024 QoQ Assets Liabilities Cash and Equivalents 3,650 3,243 3,316 2% Non-Interest Bearing Deposits 9,501 7,328 8,478 16% Total Securities 4,346 4
Slide 7: Loan Portfolio Composition
Loan Portfolio Composition Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Commercial loans decreased $28mm $16.0 QoQ $16.0 $14.0 Average commercial loans increased $225mm or 2% QoQ $14.0 $12.0 Impact of multi-year capital recycling $12.0 on loan balances should begin to $10.0 $10.0
Slide 8: Deposit and Funding Composition
Deposit and Funding Composition Average Deposit Trends ($bn) 30,000,000,000 Total deposit balances increased $1.6bn Q1 2024 EOP or 7% QoQ $23.7 $24.2 $24.0 $23.8 $24.0 25,000,000,000 $23.2 Excluding Mortgage Finance and $1.4 $1.1 $0.8 $0.6 brokered deposits, QoQ growth of 20,000,000,000 $1.5 $1.
Slide 9: Net Interest Income Sensitivity
Net Interest Income Sensitivity Net Interest Income Sensitivity – Static Balance Sheet ($mm) Standard Model Assumptions9 $1.1bn of loans, or 7% of LHI excluding Mortgage Finance LHI are fixed 10.0% 100bp & 200bp Parallel Shocks 8.0% 6.0% 11% maturing in the next 12 months Loan Balances: Static
Slide 10: Q1-2024 Earnings Overview
Q1-2024 Earnings Overview Net Interest Income ($mm) $300.0 Net Interest Margin ($mm) $280.0 3.33% 3.29% 3.13% $300.0 3.50% $260.0 $280.0 2.93% 3.03% $240.0 $2.7 $1.6 $260.0 3.00% $220.0 $6.7 $5.4 $240.0 ($3.9) ($1.4) ($5.4) $220.0 2.50% $200.0 ($4.7) ($0.7) $200.0 $180.0 $180.0 2.00% $160.0 $214.7 $
Slide 11: Asset Quality Trends
Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios ACL on Loans increased $14mm QoQ to 10.0 x NPAs/Total Assets 4.13% $264 million 9.0 x 1.00% 4.50% NCOs/Avg. LHI 3.63% 8.0 x 1.79% 1.79% 3.29% 4.00% Total ACL, excl. MF8 increased to 1.72% 7.0 x Criticized/LHI $299
Slide 12: Capital Position and Trends
Capital Position and Trends Regulatory Capital Levels 20.00% 2024 Target Regulatory capital ratios remain 16.86% 16.43% 17.09% 17.07% 16.64% exceptionally strong 15.00% 2.83% 2.71% 2.81% 2.83% 2.70% Total capital ratio of 16.64%, in the 1.61% 1.54% 1.58% 1.59% 1.56% top decile of the peer group1
Slide 13: Full Year 2024 Guidance
Full Year 2024 Guidance FY 2023 Full Year 2024 Guidance Commentary Adjusted (Non-GAAP4) Guidance Forward curve14 assumes a 2024 average rate of 5.3% and an exit rate of Total Revenue $1,075.5 Mid single-digit % growth 5.0% Non-Interest Expense, Adjusted4 $737.1 Low single-digit % growth Quarterly
Slide 14: Appendix // Footnotes
Appendix // Footnotes 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8 million for FY 2020, $4.0 million for FY 2021, $6.1 milli
Slide 15: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE)
Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial per
Slide 16: Non-GAAP Reconciliation // Adjusted Earnings & Ratios
Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management ($mm, Except per Share) Q4 2023 Q1 2024 FY 2020 FY 2021 FY 2022 FY 2023 YTD 2024 believes aids in the discussion of results. A reconcilement of these adjusted Net Interest Income
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