Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q4 2005 Earnings Presentation

17 slides from Texas Capital Bancshares's earnings presentation, Jan 19, 2006

  1. Slide 1: Texas Capital Bancshares, Inc. Earnings Release January 18, 2006

    Texas Capital Bancshares, Inc. Earnings Release January 18, 2006

  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 Comments

    OPENING COMMENTS Highlights of another great year Net income for Q4-2005 of $7.7 million and full year 2005 of $27.2 million EPS for Q4-2005 of $0.29 and full year 2005 of $1.02 Growth of 30% or more in loans and deposits over Q4-2004 Exceptional credit quality with net recoveries for 2005 Successfu

  4. Slide 4: Performance Summary

    Net income for year at $27.2 million Growth of 39% EPS growth of 36% to $1.02 Net income growth to $7.7 million in Q4 Increase of 29% from Q4-2004 EPS growth of 26% to $0.29 Growth in loans* Held for investment - 32% growth over Q4-2004; increase of 6% on linked-quarter basis Total loans - 31% growt

  5. Slide 5: Financial Review

    © TEXAS CAPITAL BANCSHARES, INC. FINANCIAL REVIEW

  6. Slide 6: Income Statement

    INCOME STATEMENT In Thousands Q4-05 Q3-05 Q2-05 Q1-05 Q4-04 Net interest income $ 28,461 $ 26,958 $ 24,484 $ 21,668 $ 21,460 Provision for loan losses - - - - 200 Net interest income after provision for loan losses 28,461 26,958 24,484 21,668 21,260 Non-interest income 5,986 5,790 4,694 4,179 3,738

  7. Slide 7: Financial Summary (Period End)

    FINANCIAL SUMMARY In Thousands Period End Period End Period End Q4 2005 Q3 2005 Q4 2004 Q4/Q3 % Change YOY % Change Loans held for investment $2,075,961 $1,935,818 $1,564,578 7% 33% Loans held for sale 111,178 118,929 119,537 (7)% (7)% Total loans 2,187,139 2,054,747 1,684,115 6% 30% Securities 630,

  8. Slide 8: Financial Summary (Averages)

    FINANCIAL SUMMARY In Thousands Averages Averages Averages Averages Q4 2005 Q3 2005 Q3 2005 Q4 2004 Q4/Q3 % Change YOY % Change Loans held for investment $2,006,132 $2,006,132 $1,884,161 $1,516,672 6% 32% Loans held for sale 99,882 99,882 121,181 94,510 (18)% 6% Total loans 2,106,014 2,106,014 2,005,

  9. Slide 9: YTD Average Balances, Yields, and Rates

    YTD AVERAGE BALANCES, YIELDS, AND RATES In Thousands 2005 2005 2004 2004 2003 2003 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 712,409 4.44% $ 784,382 4.16% $ 644,871 3.55% Fed funds sold & liquidity investments 22,991 3.30% 6,196 1.26% 15,309 1.18% Loans

  10. Slide 10: QTD Average Balances, Yields, and Rates

    QTD AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q4 2005 Q4 2005 Q3 2005 Q3 2005 Q4 2004 Q4 2004 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 646,935 4.49% $ 691,994 4.41% $ 810,850 4.31% Fed funds sold & liquidity investments 19,533 3.92% 38,427 3.52%

  11. Slide 11: Interest Sensitivity Position

    Assets Liabilities 0.65 0.381 0.22 0.151 0.06 0.071 0.07 0.401 Asset Sensitive Differential: Approx. $670 million INTEREST SENSITIVITY POSITION Floating Rate Other Loans Securities Loans Fixed Rate Floating Rate Money Market & Fed Funds Non- Interest Checking Fixed Rate Capital Term Deposits & Rev R

  12. Slide 12: Deposit and Loan Growth

    DEPOSIT AND LOAN GROWTH Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 48% Total Deposit CAGR: 26% Loans Held for Investment CAGR: 27% 2000 2001 2002 2003 2004 Q4-2005 Loans Held for Investment 625 855 1003 1230 1565 2076 2000 2001 2002 2003

  13. Slide 13: Revenue and Expense Growth

    REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 38% Net Interest Income CAGR: 35% Non-interest Income CAGR: 60% Non-interest Expense CAGR: 18% Net Interest Income Non-interest Income Non-interest Expense 2000 2001 2002 2003 2004 Q4-2005 Non Interest Expense 35158 29432 35370 48430 57340 81030 200

  14. Slide 14: Credit Quality

    CREDIT QUALITY Credit Quality Credit quality remained excellent throughout 2005 Realized net recoveries for entire year Net recoveries of $199,000 Only 1 quarter with a NCO of $11,000 Losses for last 2 years < 2 bps Losses since inception < 10 bps Reserve position remains high as multiple of histori

  15. Slide 15: Credit Quality

    CREDIT QUALITY Allowance / Loans (1) .91% 1.20% 1.44% 1.45% 1.47% NPL to Loans (1) .41% .39% .83% .29% .75% Allowance to NPL 2.2x 3.1x 1.7x 5.0x 1.1x Allowance to non-accruals 3.3x 3.2x 1.7x 5.2x 2.1x Non-accrual loans to loans(1) ..27% ..37% ..83% ..28% ..71% Net Charge-offs / Average Loans 2005 20

  16. Slide 16: Earnings Guidance for 2006

    EARNINGS GUIDANCE Earnings Guidance for 2006 Net income range of $32 million to $35 million Indicated range does not include cost of equity-linked compensation Assumptions Improvement in ROA and ROE Superior growth in loans and deposits with increases > 20% Margin expansion - modest compared to 2005

  17. Slide 17: Q&A

    © TEXAS CAPITAL BANCSHARES, INC. Q&A

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