Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q3 2011 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Oct 20, 2011

  1. Slide 1: TCBI Q3 2011 Earnings

    TCBI Q3 2011 Earnings October 19, 2011

  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

    3 Opening Remarks Another quarter of outstanding earnings Reduction in credit costs and nonperforming assets; expected to continue in Q4 and throughout 2012 Strong growth in LHFI Significant growth in LHFS expected to continue through Q4 and into 2012 as mortgage rates remain low

  4. Slide 4: Net Income and EPS

    Net Income and EPS Outstanding growth in net income and EPS compared to Q2-2011 and Q3-2010 Net income increase to $21.7 million; EPS to $0.56 - 27% above Q2-2011 and 124% increase from Q3- 2010 Operating Leverage, Core Earnings Power & NIM Growth of Net Revenue 10% growth from Q2-2011 23% as compar

  5. Slide 5: Loan Growth, Funding and Credit Costs

    Loan Growth Growth in average LHI on a linked quarter basis across various lines of business Substantial increase in linked quarter LHS growth due to refinancing activity and growth in customer base Organic growth model clearly improving TCB's market share LHI portfolio yields remain high LHS yield

  6. Slide 6: Income Statement

    6 Q3-11 Q2-11 Q1-11 Q4-10 Q3-10 Net interest income $ 79,198 $ 71,094 $ 64,498 $ 65,955 $ 62,606 Non-interest income 7,603 7,951 7,684 9,178 8,101 Net revenue 86,801 79,045 72,182 75,133 70,707 Provision for credit losses 7,000 8,000 7,500 12,000 13,500 OREO valuation and write-down expense 1,662 72

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

    7 QTD Average Balances, Yields and Rates (in thousands) Q3 2011 Q3 2011 Q2 2011 Q2 2011 Q3 2010 Q3 2010 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 148,922 4.50% $ 163,073 4.57% $ 212,192 4.56% Fed funds sold & liquidity investments 57,359 .33% 92,231 .30% 126,

  8. Slide 8: Financial Summary: QTD Averages

    8 QTD Averages QTD Averages QTD Averages Q3 2011 Q2 2011 Q3 2010 Q3/Q2 % Change YOY % Change Loans held for investment $5,219,496 $4,890,696 $4,493,998 7% 16% Loans held for sale 1,191,375 808,165 1,074,309 47% 11% Total loans 6,410,871 5,698,861 5,568,307 12% 15% Securities 148,922 163,073 212,192

  9. Slide 9: Financial Summary: Period End

    9 Financial Summary (in thousands) Period End Period End Period End Q3 2011 Q2 2011 Q3 2010 Q3/Q2 % Change YOY % Change Loans held for investment $5,302,584 $5,164,293 $4,483,204 3% 18% Loans held for sale 1,909,567 1,122,330 1,399,208 70% 36% Total loans 7,212,151 6,286,623 5,882,412 15% 23% Securi

  10. Slide 10: Revenue and Expense Growth

    10 2006 2007 2008 2009 2010 Q3 2011 Non Interest Expense 86912 98606 109651 137733 154984 176188 2006 2007 2008 2009 2010 Q3 2011 Net Interest Income 117170 139752 151737 196691 241674 286387 Non Interest Income 17684 20627 22470 29260 32263 30984 2006 2007 2008 2009* 2010* ($ in thousands) 2011*^ 1

  11. Slide 11: Deposit and Loan Growth

    11 Deposit and Loan Growth 2006 2007 2008 2009 2010 Q3-2011 Demand Deposits 514 529 587 899 1451 1661 Interest Bearing Deposits 2555 2537 2746 3222 4004 3825 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2006 2007 2008 2009 2010 Q3-2011 Loans Held for Investmen

  12. Slide 12: Loan Portfolio Statistics

    12 Loan Portfolio Statistics Non-accrual loans Commercial $ 12,674 Construction 21,288 Real estate 29,167 Consumer 309 Equipment leases 3,276 Total non-accrual loans $ 66,714 Non-accrual loans as % of loans held for investment 1.26% Non-accrual loans as % of total loans ..92% OREO 35,796 Total Non-a

  13. Slide 13: Credit Quality Improved

    13 Credit Quality Improved Credit Trends Total credit cost of $8.7 million for Q3-2011 Provision of $7.0 million for Q3-2011 compared to $8.0 million for Q2-2011, reflecting better trends NCOs of $6.3 million, representing 48 bps compared to 86 bps for Q2-2011 and 70 bps YTD OREO valuation charge of

  14. Slide 14: Credit Quality

    14 Credit Quality Combined reserve / Loans* 1.32% 1.56% 1.59% 1.16% .95% Non-accrual loans + OREO to loans* + OREO 1.92% 3.25% 2.74% 1.81% ..69% Combined reserve to non-accruals 1.1x .6x .7x 1.0x 1.5x Net Charge-offs / Average Loans * Excludes loans held for sale.

  15. Slide 15: Closing Comments

    15 Closing Comments Strong core earnings power to continue in remainder of 2011 and into 2012 Maintaining strong capital position Credit cost improvements expected to continue through Q4-2011 and throughout 2012 Loan growth potential good

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

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