Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2008 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Apr 18, 2008
Slide 1: Earnings Release April 16, 2008
Earnings Release April 16, 2008
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
Slide 3: Opening Comments
Opening Comments Another good quarter Impact on margin from rapid decrease in Fed funds rate Provision in line with guidance Improvement in non-performing loans Growth in line with expectations Texas economy remains stable
Slide 4: Financial Highlights
Financial Highlights EPS growth Increased 3% compared to Q1-2007; 25% on linked-quarter basis Growth in loans Held for investment -26% growth over Q1-2007; 4% increase on linked-quarter basis Total loans -25% growth over Q1-2007; 6% increase on linked-quarter basis Growth in deposits Demand deposits
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Performance Evaluation
Performance Evaluation Performance Drivers Net income of $8.0 million, an increase of 6% from Q1-2007; 23% increase on linked- quarter basis Improved operating leverage Net interest income growth of 16% from Q1-2007; decrease of 2% from Q4-2007 Non-interest income increase of 8% from Q1-2007; 16% in
Slide 7: Income Statement
Income Statement (in thousands) Q1-08 Q4-07 Q3-07 Q2-07 Q1-07 Net interest income $ 36,599 $ 37,531 $ 36,531 $ 34,170 $ 31,520 Provision for loan losses 3,750 9,300 2,000 1,500 1,200 Net interest income after provision for loan losses 32,849 28,231 34,531 32,670 30,320 Non-interest income 5,683 4,88
Slide 8: Financial Summary (QTD Averages)
Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q1 2008 Q4 2007 Q1 2007 Q1/Q4 % Change YOY % Change Loans held for investment $3,483,840 $3,337,968 $2,767,834 4% 26% Loans held for sale 171,672 122,205 156,400 40% 10% Total loans 3,655,512 3,460,173 2,924,234 6% 25% Securitie
Slide 9: Financial Summary (Period End)
Financial Summary (in thousands) Period End Period End Period End Q1 2008 Q4 2007 Q1 2007 Q1/Q4 % Change YOY % Change Loans held for investment $3,493,631 $3,462,608 $2,885,963 1% 21% Loans held for sale 239,860 174,166 208,074 38% 15% Total loans 3,733,491 3,636,774 3,094,037 3% 21% Securities 425,
Slide 10: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q1 2008 Q1 2008 Q4 2007 Q4 2007 Q1 2007 Q1 2007 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 428,401 4.78% $ 450,398 4.78% $ 505,358 4.86% Fed funds sold & liquidity investments 5,965 3.51% 6,616 4.50%
Slide 11: Deposit and Loan Growth
2003 2004 2005 2006 2007 Q1-2008 Demand Deposits 302 398 512 514 529 504 Interest Bearing Deposits 1103 1392 1983 2555 2537 2651 Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 13% Total Deposit CAGR: 20% Loans Held fo
Slide 12: Revenue and Expense Growth
2003 2004 2005 2006 2007 Q1-2008 Non Interest Expense 48430 57340 65344 86913 98606 105108 2003 2004 2005 2006 2007 Q1-2008 Net Interest Income 53155 74742 94130 117813 140667 146396 Non Interest Income 10892 13632 12001 17042 19712 22732 Revenue and Expense Growth Operating Revenue CAGR: 26% Net In
Slide 13: Credit Quality
Credit Quality Credit experience remains good Net charge-offs of $2.6 million in Q1-2008 Net charge-offs represent 29 bps for the quarter Loss rate consistent with guidance Decrease in non-accrual and ORE to $16.7 million from $24.1 million at Q4-2007 Provision of $3.8 million for in Q1-2008 Reserve
Slide 14: Credit Quality
Credit Quality Reserve / Loans .97% .95% .77% .91% 1.20% Non-accrual loans + ORE to loans + ORE ..48% ..69% ..37% ..27% ..37% Reserve to non-accruals 2.5x 1.5x 2.3x 3.3x 3.2x Reserve to NPL 1.8x 1.3x 1.9x 2.2x 3.1x Net Charge-offs / Average Loans YTD 2008 2007 2006 2005 2004
Slide 15: Closing Comments
Closing Comments Another good quarter Continued cautious economic outlook Guidance remains at $33 million to $35 million Credit quality key as well as additional cuts in Fed funds rate
Slide 16: Q & A
Q & A
Texas Capital Bancshares — Q1 2008 Earnings Presentation on 6ix