Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q2 2010 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Jul 22, 2010

  1. Slide 1: TCBI Q2 2010 Earnings

    TCBI Q2 2010 Earnings July 21, 2010

  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 Another quarter of solid core earnings and exceptional deposit growth Intense focus on credit quality continued in Q2-2010 Aggressively addressing credit issues Increase in NPAs and charge-offs Reduction in potential problem loans Well positioned with strong capital position and depo

  4. Slide 4: Financial Review: Net income

    Financial Review Net income Net income from continuing operations of $8.1 million for Q2-2010 Increased 7% compared to Q1-2010; 25% increase compared to Q2-2009 Improved operating leverage and core earnings power $3.7 million increase in Q2-2010 Net Revenue compared to Q1-2010 Increase in net intere

  5. Slide 5: Financial Review: Asset quality

    Financial Review Asset quality Total credit cost of $15.1 million compared to $15.4 million in Q1-2010 Provision of $14.5 million for quarter, increased from $13.5 million in Q1-2010 and $11.0 million for Q2-2009 OREO valuation expense of $557,000 for quarter, reduced from $1.9 million in Q1- 2010 I

  6. Slide 6: Quarterly income statement summary

    Q2-10 Q1-10 Q4-09 Q3-09 Q2-09 Net interest income $ 57,885 $ 55,228 $ 55,106 $ 51,566 $ 48,802 Provision for credit losses 14,500 13,500 10,500 13,500 11,000 ORE valuation and write-down expense 557 1,948 5,628 2,181 ^ Total provision and ORE valuation 15,057 15,448 16,128 15,681 11,000 Net interest

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

    QTD Average Balances, Yields and Rates (in thousands) Q2 2010 Q2 2010 Q1 2010 Q1 2010 Q2 2009 Q2 2009 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 233,177 4.62% $ 253,272 4.70% $ 326,273 4.63% Fed funds sold & liquidity investments 104,013 .18% 19,928 .22% 17,91

  8. Slide 8: Financial Summary: QTD Averages

    QTD Averages QTD Averages QTD Averages Q2 2010 Q1 2010 Q2 2009 Q2/Q1 % Change YOY % Change Loans held for investment $4,459,790 $4,413,960 $4,124,937 1% 8% Loans held for sale 664,474 457,459 656,462 45% 1% Total loans 5,124,264 4,871,419 4,781,399 5% 7% Securities 233,177 253,272 326,273 (8)% (29)%

  9. Slide 9: Financial Summary: Period End

    Financial Summary (in thousands) Period End Period End Period End Q2 2010 Q1 2010 Q2 2009 Q2/Q1 % Change YOY % Change Loans held for investment $4,462,830 $4,443,456 $4,211,304 N/M% 6% Loans held for sale 997,150 592,436 544,652 68% 83% Total loans 5,459,980 5,035,892 4,755,956 8% 15% Securities 227

  10. Slide 10: Revenue and Expense Growth

    2005 2006 2007 2008 2009 Q2 2010 Non Interest Expense 65344 86912 98606 109651 137733 147598 2005 2006 2007 2008 2009 Q2 2010 Net Interest Income 93624 117170 139752 151737 196691 226226 Non Interest Income 12507 17684 20627 22470 29260 29968 2005 2006 2007 2008 2009* ($ in thousands) Q2-2010^* 106,

  11. Slide 11: Deposit and Loan Growth

    Deposit and Loan Growth 2005 2006 2007 2008 2009 Q2-2010 Demand Deposits 512 514 529 587 899 1121 Interest Bearing Deposits 1983 2555 2537 2746 3222 3805 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2005 2006 2007 2008 2009 Q2-2010 Loans Held for Investment 20

  12. Slide 12: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Commercial $ 54,862 Construction 47,952 Real estate 28,227 Consumer 351 Equipment leases 6,844 Total non-accrual loans $ 138,236 Non-accrual loans as % of loans held for investment 3.10% OREO 42,077 Total Non-accruals + OREO $ 180,313 Non-accrual loans + O

  13. Slide 13: Credit Quality

    Credit Quality Credit experience remains consistent with expectations Total credit cost of $15.1 million, representing a small reduction from Q1-2010 Provision of $14.5 million and OREO valuation charge of $557,000 Reserve balance increased to 1.73% Provision driven by methodology with factors relat

  14. Slide 14: Credit Quality

    Credit Quality Reserve / Loans* 1.73% 1.59% 1.16% .95% .77% Non-accrual loans + OREO to loans* + OREO 4.00% 2.74% 1.81% ..69% ..37% Reserve to non-accruals .5x .7x 1.0x 1.5x 2.3x Net Charge-offs / Average Loans Trailing 12 months YTD 2010 2009 2008 2007 2006 * Excludes loans held for sale.

  15. Slide 15: Closing Comments

    Closing Comments Strong core earnings power Exceptional deposit growth exceeding loan growth Maintaining strong capital position Credit issues challenging but manageable Well positioned to take advantage of market opportunities as economic conditions improve

  16. Slide 16: Q&A

    Q&A @© Texas CAPITAL BANCSHARES, INC.

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