Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q4 2020 Earnings Presentation
14 slides from Texas Capital Bancshares's earnings presentation, Jan 21, 2021
Slide 1: Q4-2020 Earnings
Q4-2020 Earnings January 21, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our financial condition, results of operations, business plans and future performance. These statements are not historical in natur
Slide 3: Improved Profitability
Improved Profitability Financial Highlights ($M) Q4 2019 Q3 2020 Q4 2020 Continued strong core financial performance; Net Income to Common Net Interest Income $248.4 $207.6 $223.0 of $57.7 million, or $1.14 per diluted share, in Q4-2020 Non-Interest Income 17.8 60.3 42.9 Full-year Total Revenue
Slide 4: Credit Risk Management
Credit Risk Management Highlights Credit Quality Credit Trends Q4 2019 Q3 2020 Q4 2020 Net charge-offs were primarily attributable to non- performing loans identified early and with proactive resolution 1.84% Strong risk management resulting in upgrades, 1.66% restructurings and payoffs at par
Slide 5: Loan Portfolio
Loan Portfolio Growth Outlook Y-o-Y Changes in Ending LHI (excluding MFLs) Ending LHI (excluding MFLs) decreased $439 million (3%) from Q3- 2020, and $1.1 billion (7%) Y-o-Y $16.5B Focused efforts to reposition the Leveraged Lending and Energy portfolios have significantly reduced risk Utiliza
Slide 6: Deposits and Fundings
Deposits and Fundings Highlights Funding Costs Ending deposits declined $1.0 billion Q-o-Q, primarily in interest- bearing portfolios, but remain elevated as clients continued to maintain on-balance sheet cash Brokered deposit balances declined, as excess liquidity 1.03% supported high-cost issu
Slide 7: Q4-2020 Earnings Overview: Net Interest Income and Credit Expense
Q4-2020 Earnings Overview Net Interest Income & Margin Commentary Net Interest Margin Detail (bps) A strong Q-o-Q improvement in Total Net Interest Income $248.4M LHI yields (14 bps) was driven by $223.0M fees, with net yields in the majority of $207.6M portfolios demonstrating resiliency -3.7 A
Slide 8: Q4-2020 Earnings Overview: Non-interest Income and Expense
Q4-2020 Earnings Overview Non-interest Income Commentary Fee Income Details A customer-focused approach has Non-interest income maintained Wealth Management $60.3M relationships through a challenging $6.7M $5.9M $6.2M environment; full year fees grew $42.9M $1.6M $0.5M $0.5M 13% from $8.8 million
Slide 9: LOB Detail
LOB Detail © Texas CAPITAL BANCSHARES, INC.
Slide 10: Loan Portfolio Detail – Mortgage Finance
Loan Portfolio Detail – Mortgage Finance Commentary MWH + MCA Annualized Revenue Q4-2020 average MFLs (excluding MCA LHS) increased 5% Q-o-Q and 21% Y-o-Y, and MCA LHS declined Q-o-Q and Y-o-Y, as the Bank $135M continued strategy to maximize revenue and risk-adjusted returns -64.5% $48M +37.7%
Slide 11: Loan Portfolio Detail – CRE
Loan Portfolio Detail – CRE CRE 1 Portfolio Overview $3.7B in balances Portfolio Composition History of proactive portfolio management evidenced by changes in Multi Family Office Senior Housing Hospitality growth rates thru-cycle and strong credit performance during Industrial Self Storage Retail
Slide 12: Loan Portfolio Detail – Leveraged & Energy
Loan Portfolio Detail – Leveraged & Energy Leveraged Lending $0.6B in balances Diversified portfolio with some exposure to industries believed to be Criticized Total ACL% 1 most impacted by COVID-19; others may be affected depending on their varying degrees of either reliance on consumer spending
Slide 13: Conclusion
Conclusion © Texas CAPITAL BANCSHARES, INC.
Slide 14: Summary & Outlook
Summary & Outlook Diverse, well-established lines of business balanced between differentiated national verticals and core market offerings reflective of the relationship banking approach synonymous with TCBI since inception Organic growth model developed by hand selecting top talent fosters uniq
Texas Capital Bancshares — Q4 2020 Earnings Presentation on 6ix