Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q3 2009 Earnings Presentation

16 slides from Texas Capital Bancshares's earnings presentation, Oct 22, 2009

  1. Slide 1: TCBI Q3 2009 Earnings

    TCBI Q3 2009 Earnings October 21, 2009

  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

    Opening Remarks Intense focus on credit quality maintained While challenging, asset quality measures remain manageable Business model intact and producing strong core earnings Results impacted by continued margin expansion Evidence of success and continued opportunity to extend our growth strategy i

  4. Slide 4: Financial Review: Net income

    Financial Review Net income Net income from continuing operations of $5.4 million for Q3-2009 Decreased 17% compared to Q2-2009; 29% decrease compared to Q3-2008 Improved operating leverage and core earnings power Net revenue increase of 4% compared to Q2-2009; 36% increase compared to Q3- 2008 Effi

  5. Slide 5: Financial Review: Asset quality

    Financial Review Asset quality Provision of $13.5 million for quarter OREO valuation allowance of $2.2 million for quarter Increase in non-performing assets Non-accrual loans at 1.99% Non-performing assets at 2.77% including ORE Net charge-offs of $2.0 million or 19 bps in Q3-2009 and 37 bps for YTD

  6. Slide 6: Income Statement (in thousands)

    Q3-09 Q2-09 Q1-09 Q4-08 Q3-08 Net interest income $ 51,566 $ 48,802 $ 41,217 $ 38,712 $ 38,266 Provision for loan losses 13,500 11,000 8,500 11,000 4,000 Net interest income after provision for loan losses 38,066 37,802 32,717 27,712 34,266 Non-interest income 7,133 7,416 6,900 5,950 4,885 Non-inter

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

    QTD Average Balances, Yields and Rates (in thousands) Q3 2009 Q3 2009 Q2 2009 Q2 2009 Q3 2008 Q3 2008 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 292,578 4.68% $ 326,273 4.63% $ 372,588 4.82% Fed funds sold & liquidity investments 19,431 .25% 17,917 .31% 10,555

  8. Slide 8: Financial Summary: QTD Averages

    QTD Averages QTD Averages QTD Averages Q3 2009 Q2 2009 Q3 2008 Q3/Q2 % Change YOY % Change Loans held for investment $4,264,202 $4,124,937 $3,781,289 3% 13% Loans held for sale 539,889 656,462 288,103 (18)% 87% Total loans 4,804,091 4,781,399 4,069,392 ^ 18% Securities 292,578 326,273 372,588 (10)%

  9. Slide 9: Financial Summary: Period End

    Financial Summary (in thousands) Period End Period End Period End Q3 2009 Q2 2009 Q3 2008 Q3/Q2 % Change YOY % Change Loans held for investment $4,290,453 $4,211,304 $3,840,172 2% 12% Loans held for sale 549,787 544,652 343,002 1% 60% Total loans 4,840,240 4,755,956 4,183,174 2% 16% Securities 285,8

  10. Slide 10: Revenue and Expense Growth

    2004 2005 2006 2007 2008 Q3 2009 Non Interest Expense 50381 65344 86912 98606 109651 136995 2004 2005 2006 2007 2008 Q3 2009 Net Interest Income 71467 93624 117170 139752 151737 188780 Non Interest Income 10593 12507 17684 20627 22470 28599 2004 2005 2006 2007 2008 ($ in thousands) Q3-2009^ 82,060 1

  11. Slide 11: Deposit and Loan Growth

    Deposit and Loan Growth 2004 2005 2006 2007 2008 Q1-2009 Demand Deposits 398 512 514 529 587 803 Interest Bearing Deposits 1392 1983 2555 2537 2746 3114 Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2004 2005 2006 2007 2008 Q3 2009 Loans Held for Investment 156

  12. Slide 12: Loan Portfolio Statistics

    Loan Portfolio Statistics Non-accrual loans Commercial 34,165 Construction 35,216 Real estate 10,817 Consumer 151 Equipment leases 4,921 Total non-accrual loans $ 85,270 Non-accrual loans as % of loans held for investment 1.99% ORE 34,671 Total Non-accruals + ORE $ 119,941 Non-accrual loans + ORE as

  13. Slide 13: Credit Quality

    Credit Quality Credit experience remains consistent with expectations Net charge-offs of $2.0 million in Q3-2009 and $11.5 million for 2009 YTD Net charge-offs represent 19 bps for Q3-2009, 37 bps YTD and 41 bps for last 4 quarters NCOs related to problems previously identified and covered with allo

  14. Slide 14: Credit Quality: Reserve and charge-off ratios

    Credit Quality Reserve / Loans* 1.59% 1.16% .95% .77% .91% Non-accrual loans + ORE to loans* + ORE 2.77% 1.81% ..69% ..37% ..27% Reserve to non-accruals .8x 1.0x 1.5x 2.3x 3.3x Net Charge-offs / Average Loans YTD 2009 2008 2007 2006 2005 * Excludes loans held for sale.

  15. Slide 15: Closing Comments

    Closing Comments Improved core earnings power due to margin expansion and management of controllable expenses Growth in loans and deposits consistent with or ahead of plan Exceptional capital position While challenging, credit quality weakness remains manageable Company well-positioned to take advan

  16. Slide 16: Q&A

    Q&A © TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares — Q3 2009 Earnings Presentation on 6ix