Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q3 2021 Earnings Presentation

13 slides from Texas Capital Bancshares's earnings presentation, Oct 20, 2021

  1. Slide 1: Q3-2021 Earnings

    Q3-2021 Earnings October 20, 2021 © 2021 Texas Capital Bank Member FDIC

  2. 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, our financial condition, results of operations, business plans and future performance. These s

  3. Slide 3: Our Distinct Opportunity

    Our Distinct Opportunity Serving strong core Texas markets with expanded coverage and a complete set of capabilities Improving client relevance and diversifying our revenue base Attracting high-quality talent with significant experience Operating from a de-risked position of financial strength 3

  4. Slide 4: Financial Performance

    Financial Performance Financial Highlights ($M) Q3 2020 Q2 2021 Q3 2021  Net income to common of $43.4 million, or $0.76 per diluted share. An Net Interest Income $207.6 $197.0 $194.1 important shift to align technology to the lines of business and re- underwriting the expense base resulted in a $1

  5. Slide 5: Noteworthy Items // Loan Fees and PPP

    Noteworthy Items // Loan Fees and PPP Loan Fees (excl. PPP) PPP Loans PPP Fees LHI Yield NIM Loan Fee Dollars ($M) Yield on PPP Loans (excl. Fees) Contribution Contribution $5.1M $5.1M Q3 2020 0.25% 0.11% $10.5M $3.4M $3.4M Q4 2020 0.46% 0.19% $18.0M 0.99% 1.00% 0.98% 0.97% Q1 2021 0.34% 0.13% $12.8

  6. Slide 6: Noteworthy Items // Correspondent Lending

    Noteworthy Items // Correspondent Lending Historical Contribution Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD LHS (Average) LHS (Period-end) Risk Weighted (in $ millions) 2020 2020 2020 2020 2020 2021 2021 2021 2021 ~50% Net Interest Income 24.5 1.5 2.8 1.4 30.2 0.9 0.3 0.0 1.2 Non-interest Income Brokered Loan Fee

  7. Slide 7: Noteworthy Items // Capital Actions and Liquidity

    Noteworthy Items // Capital Actions and Liquidity Risk-based Capital Ratios // Consolidated Excess Liquidity Interest and Dividend Expense Investment Portfolio (Average) Liquidity Assets2 (Average) Q3 2021 Q2 2021 (Actual) Q3 2021 (Actual) Q4 2021 (Projected)1 EOP Preferred Stock $6.3M $4.3M $4.3M $

  8. Slide 8: Credit Risk Management

    Credit Risk Management Highlights Credit Quality  Credit Trends Q3 2020 Q2 2021 Q3 2021  Credit performance was stable reflecting economic improvements, client selection, underwriting and prior de-risking strategies 2.6x 2.5x  Positive economic activity resulted in improved credit quality particu

  9. Slide 9: Loan Portfolio

    Loan Portfolio Average Loans Commentary Q3 2021 EOP LHI (excl. MFLs1 and PPP Loans) PPP Loans Total MFLs1  Average total MFLs 1 increased from Q2- 2021 ($0.4 billion) in line with historical $10.2B $9.1B seasonal changes. Previously discussed $9.6B $10.0B $8.4B $8.0B $8.5B levers to bolster warehou

  10. Slide 10: Deposits and Fundings

    Deposits and Fundings Average Deposits Balances Q3 2021 EOP Commentary  Average Interest-bearing deposits continue $10.9B $12.2B $13.2B $14.4B to decline meaningfully as a result of $15.1B $10.0B $15.4B $15.0B targeted actions to reduce higher-cost indexed deposits. Average interest-bearing $2.9B $

  11. Slide 11: Q3-2021 Earnings Overview

    Q3-2021 Earnings Overview Net Interest Income & Margin Commentary Net Interest Margin Detail (bps) Building on favorable trends ending Q2-2021, we Net Interest Income  $207.6M $197.0M $194.1M continue to use previously discussed levers to capture warehouse market share and maintain volumes—warehous

  12. Slide 12: Q3-2021 Earnings Overview

    Q3-2021 Earnings Overview Non-interest Income Commentary Fee Income Details Non-interest income $60.3M  Mortgage Finance fee income, including brokered loan fees and Correspondent Lending-related $8.3M $8.6M items, declined $4.7 million Q-o-Q. Seasonal $0.5M $0.6M Warehouse loan declines may weigh

  13. Slide 13: Focused on the Future

    Focused on the Future Current 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 Financial business and investing aggressively banking capabilities fo

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