Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q1 2013 Earnings Presentation

17 slides from Texas Capital Bancshares's earnings presentation, Apr 25, 2013

  1. Slide 1: TCBI Q1 2013 Earnings

    TCBI Q1 2013 Earnings ©) TEXAS CAPITAL BANCSHARES, INC:

  2. Slide 2: Forward-looking statements

    Certain matters discussed on this call may contain forward-looking statements, which are subject to risks and uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results. Texas Capital is under no obligation, and expressly disclaims such obliga

  3. Slide 3: Opening Remarks

    Opening Remarks • Strong profitability in Q1-2013 with ROA of 1.38% and ROE 15.8% • Continued reduction in credit costs and improvement in NPAs • Strong growth in LHI and deposits in Q1-2013 despite seasonality; continued growth in DDAs • LHS levels seasonally lower, as expected, on a linked quarter

  4. Slide 4: Financial Review

    Financial Review Net Income and EPS – Growth in net income and EPS compared to Q4-2012 and Q1-2012 Operating Leverage, Core Earnings Power & NIM – Net Revenue • 12% growth from Q1-2012 • 4% decrease from Q4-2012 due to seasonal factors for LHS and reduction in days – Good growth in LHI average balan

  5. Slide 5: Financial Review

    Financial Review Loan Growth – Broad-based growth in LHI • Averages increased 3% from Q4-2012 and 21% from Q1-2012 – Average LHS balances down 11% from Q4-2012 and up 16% from Q1-2012 • Balances affected by seasonal factors but not indicative of full year • Results remained well above industry trend

  6. Slide 6: Income Statement - Quarterly

    Income Statement - Quarterly Q1-13 Q4-12 Q3-12 Q2-12 Q1-12 Net interest income $ 98,042 $ 101,155 $ 96,855 $ 90,640 $ 88,229 Non-interest income 11,281 12,836 10,552 10,462 9,190 Net revenue 109,323 113,991 107,407 101,102 97,419 Provision for credit losses 2,000 4,500 3,000 1,000 3,000 OREO valuati

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

    QTD Average Balances, Yields and Rates (in thousands) Q1 2013 Q4 2012 Q1 2012 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 93,394 4.57% $ 103,483 4.55% $137,509 4.24% Fed funds sold & liquidity investments 103,503 .23% 91,503 .27% 56,318 .36% Loans held for sale

  8. Slide 8: Financial Summary

    Financial Summary (in thousands) QTD Averages Q1/Q4 % YOY % Q1 2013 Q4 2012 Q1 2012 Change Change Total assets $9,729,559 $9,869,282 $8,209,190 (1)% 19% Loans held for investment 6,842,766 6,662,817 5,660,993 3% 21% Loans held for sale 2,362,646 2,658,092 2,036,622 (11)% 16% Total loans 9,205,412 9,

  9. Slide 9: Financial Summary

    Financial Summary (in thousands) Period End Q1/Q4 % YOY % Q1 2013 Q4 2012 Q1 2012 Change Change Total assets $10,020,565 $10,540,542 $8,559,917 (5)% 17% Loans held for investment 6,920,011 6,785,535 5,792,349 2% 19% Loans held for sale 2,577,830 3,175,272 2,255,281 (19)% 14% Total loans 9,497,841 9,

  10. Slide 10: Revenue and Income Growth

    Revenue and Income Growth Operating Revenue CAGR: 24% ($ in thousands) Net Interest Income CAGR: 25% 500,000 Non-interest Income CAGR: 18% 450,000 Non-interest Expense CAGR: 18% 437,292 419,919 Net Income CAGR: 48% 400,000 350,000 335,169 300,000 273,937 250,000 225,951 222,516 212,961 200,000 181,4

  11. Slide 11: EPS Growth

    EPS Growth 5 Year EPS CAGR: 35% $3.50 3.01 $3.00 $2.50 $1.99 $2.00 $1.50 $0.89 $1.00 $1.00 $0.80 $0.71 $0.50 $0.00 2008 2009^ 2010 2011 2012 Q1-2013 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 11

  12. Slide 12: Deposit and Loan Growth

    Deposit and Loan Growth ($ in millions) Demand Deposit CAGR: 42% 9000 Total Deposit CAGR: 22% Loans Held for Investment CAGR: 14% 8000 7746 7441 6786 6920 7000 6000 5572 5557 5455 5000 4711 4457 4028 4121 4000 3333 3000 2000 1000 0 2008 2009 2010 2011 2012 Q1-2013 Loans HFI Interest Bearing Deposits

  13. Slide 13: Loan Portfolio Statistics

    Loan Portfolio Statistics Loan Collateral by Type 3/31/13 Non-accrual loans Commercial $ 20,814 Construction – Real estate 22,504 Consumer 37 Equipment leases 69 Total non-accrual loans $ 43,424 Non-accrual loans as % of loans held for investment .63% Non-accrual loans as % of total loans .46% OREO

  14. Slide 14: Credit Quality

    Credit Quality Improved Credit Trends – Total credit cost of $2.1 million for Q1-2013, compared to $5.5 million in Q4-2012 and $5.7 million in Q1-2012 • Provision of $2.0 million for Q1-2013 compared to $4.5 million for Q4-2012 and $3.0 million in Q1-2012, reflecting better credit trends • NCOs $1.2

  15. Slide 15: Credit Quality

    Credit Quality Net Charge-offs / Average Loans 1.40% 1.20% 1.14% 1.00% 0.80% 0.60% 0.58% 0.46% 0.40% 0.20% 0.10% 0.07% 0.00% 2013 2012 2011 2010 2009 Combined reserve / 1.14% 1.15% 1.31% 1.56% 1.59% Loans* Non-accrual loans + OREO to loans* + .83% 1.06% 1.58% 3.25% 2.74% OREO Combined reserve to 1.7

  16. Slide 16: Closing Comments

    Closing Comments • Strong core earnings power, profitability and growth to continue in 2013 • Credit costs continue positive trend • Strong LHI pipeline and new commitments present opportunity for growth potential • LHS average balances to remain high with potential for modest growth with increased

  17. Slide 17: Q&A

    Q&A © TEXAs CAPITAL BANCSHARES, INC:

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