Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q4 2024 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Jan 23, 2025
Slide 1: Q4-2024 Earnings
Q4-2024 Earnings January 23, 2025 © 2025 Texas Capital Bank Member FDIC
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, TCBI’s financial condition, results of operations, business plans and future performance. Thes
Slide 3: Foundational Tenants of Value Creation in Place
Foundational Tenants of Value Creation in Place Financial 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 Priorities business and investing aggress
Slide 4: 2021 Strategic Performance Drivers
2021 Strategic Performance Drivers Where We Where We Started Targets Started Targets FY FY FY FY FY Estab. FY FY FY FY FY Estab. Income Statement 2020 2021 2022 2023 2024 in ’21 Performance Metrics 2020 2021 2022 2023 2024 in ’21 Investment Banking and Trading Income 2.2% 2.7% 2.9% 8.0% 13.6% ~10% R
Slide 5: Financial Performance // Income Statement
Financial Performance // Income Statement Adjusted Adjusted Adjusted Adjusted Non-GAAP4 Adjustments 2023 2024 (Non-GAAP4) (Non-GAAP4) (Non-GAAP4) (Non-GAAP4) ($mm) Financial Highlights ($mm) 2023 2023 2024 2024 Q4 2023 Q4 2023 Q3 2024 Q3 2024 Q4 2024 Non-Interest Income 161.4 31.0 Loss on AFS Securi
Slide 6: Financial Performance // Quarterly Balance Sheet Highlights
Financial Performance // Quarterly Balance Sheet Highlights Balance Sheet Highlights ($mm) Ending Balances Q4 2023 Q3 2024 Q4 2024 QoQ YoY Q4 2023 Q3 2024 Q4 2024 QoQ YoY Assets Liabilities Cash and Equivalents 3,243 4,192 3,189 (24%) (2%) Non-Interest Bearing Deposits 7,328 9,071 7,485 (17%) 2% Tot
Slide 7: Loan Portfolio Composition
Loan Portfolio Composition Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Total LHI increased $2.1bn or 10% YoY Commercial loans increased $735mm or 7% YoY Broad based growth across the platform supported by the acquisition of an approximately $330mm healthcare portfolio in Q3 Com
Slide 8: Deposit and Funding Composition
Deposit and Funding Composition Average Deposit Trends ($bn) Total deposit balances increased $2.9bn Q4 2024 EOP or 13% YoY primarily from interest bearing $26.7 deposit growth $25.7 $25.2 $24.0 $23.8 $24.3 Total deposit balances decreased $0.6bn $0.5 $0.5 $0.6 $0.5 or 2% QoQ driven by anticipat
Slide 9: Net Interest Income Sensitivity
Net Interest Income Sensitivity Net Interest Income Sensitivity – Static Balance Sheet ($mm) Standard Model Assumptions10 94% of LHI excluding mortgage finance 100bp & 200bp Parallel Shocks LHI are variable rate 10.0% 8.0% $56 $63 6.0% $1bn of loans, or 6%, are fixed with Loan Balances: Static $
Slide 10: Q4-2024 Earnings Overview
Q4-2024 Earnings Overview Net Interest Income ($mm) Net Interest Margin ($mm) 3.16% $1.7 2.93% 3.03% 3.01% 2.93% $2.4 $6.1 $13.2 $3.3 ($18.6) ($6.1) ($0.4) ($12.0) $240.1 $229.6 $240.1 $229.6 $214.7 $215.0 $216.6 Q3 2024 Loans Excl Loans Excl MF Loan MF Yield 9 Loan Fees Investment Interest Interest
Slide 11: Asset Quality Trends
Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios ACL on Loans decreased $1.4mm QoQ to NPAs/Total Assets 4.13% 3.95% 4.03% $271mm 3.63% NCOs/Avg. LHI 3.18% Total ACL, excl. MF9 increased $8.6mm to 1.79% 1.87% 1.87% Criticized/LHI $322mm, an all time high for the
Slide 12: Capital Position and Trends
Capital Position and Trends Regulatory Capital Levels 2025 YE Target Regulatory capital ratios remain strong 17.07% 16.64% 15.65% 15.37% Total capital ratio of 15.37%, in the 15.17% 2.83% 2.70% top quartile of the peer group12, 2.56% 2.54% 2.55% and CET1 ratio of 11.38% 1.59% 1.56% 1.47% 1.44% 1
Slide 13: Full Year 2025 Guidance
Full Year 2025 Guidance FY 2024 Full Year 2025 Guidance Commentary Adjusted (Non-GAAP4) Guidance Forward curve14 assumes 25bps cuts in both March and December with an exit Total Revenue, Adjusted4 $1,111.9mm High single to low double-digit % growth rate of 4.0% at year end 2025 Tax rate expected
Slide 14: Appendix // Footnotes
Appendix // Footnotes 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8mm for FY 2020, $4.0mm for FY 2021, $6.1mm for FY 2022, $9
Slide 15: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE)
Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial per
Slide 16: Non-GAAP Reconciliation // Adjusted Earnings & Ratios
Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management ($mm, Except per Share) Q4 2023 Q3 2024 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 believes aids in the discussion of results. A reconcilement of these adjusted Net Interest Income
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