Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q2 2015 Earnings Presentation
19 slides from Texas Capital Bancshares's earnings presentation, Jul 22, 2015
Slide 1: TCBI Q2 2015 Earnings
TCBI Q2 2015 Earnings @© Texas CAPITAL BANCSHARES, INC:
Slide 2: Forward-looking statements
Certain matters discussed on this call may contain “forward-looking statements” as defined in federal securities laws, which are subject to risks and uncertainties and are based on Texas Capital's current estimates or expectations of future events or future results. These by such words as “believe,”
Slide 3: Strong Balanced Growth, Core Earnings, Operating Results
Strong Balanced Growth Core Earnings P Operating Results high levels of refinancing pate id total deposi ii d + Growth in total loans continues to produce strong net revenue + Operating leverage improving with growth, even with continued build-out : th continues produce high returns on invested capi
Slide 4: Expansion of Mortgage Finance Services
Expansion of Mortgage Finance Services + Launching Mortgage Correspondent Aggregation (“MCA”) business in our Mortgage Finance (“MF”) group ~ MCA will complement existing offerings in national mortgage markets MCA will buy whole loan mort a short period before selling and securitizing and hold those
Slide 5: Expected results from MCA
+ Expected results from MCA Meaningful improvement in overall MF contribution with exceptional risk-adjusted returns Improved risk weight of total MFL portfolio as program matures Highly profitable with capturing of income historically delivered to other aggregators + Increased yield included in net
Slide 6: • • • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%
• • • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% P o rt fo li o B a la n c e s ($ B )
Slide 7: Loan Growth
Loan Growth Total Loan Composition a ($16.1 Billion at 6/30/1 Average Balance Trends ($B) 4.31% $89) 4.51% 4.52% 4.40% << 7 nil RUE Comm WE: Mia, Ris R as pans LHI (excl MFL) Yield 32014 Qy2014 2014 mms LHI (excl MEL) mn MFLs Growth Highlights Broad-based growth in average traditional LHI - Growth o
Slide 8: • • 0.00% 0.10% 0.20% 0.30% 0.40% 0.50%
• • 0.00% 0.10% 0.20% 0.30% 0.40% 0.50%
Slide 9: • • 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0%
• • 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0%
Slide 10: Performance Summary
Performance Summary - Net interest income $ 142,285 $ 130,009 $ 127,582 $125,661 $ 115,407 Non-interest income 12,71 12,267 11,226 10,396 10,533 Net revenue 155,056 142,276 138,808 136,057 125,940 Provision for credit losses 14,500 11,000 6,500 6,500 4,000 Non-interest expense 81,276 76,517 74417 71
Slide 11: 2015 Outlook v. 2014 Results
Business Driver 2015 Outlook v. 2014 Results Changes since April 22, 2015
Slide 12: Asset Quality
Asset Quality Non-accrual loans ‘Commercial Construction Real estate Consumer Equipment leases Total non-accrual loans Non-accrual loans as % of loans excluding M Non-acerual loans as % of total Joans OREO ‘Total Non-accruals + OREO Non-accrual loans + OREO as % of loans excluding MF + OREO Reserve
Slide 13: EPS Growth
EPS Growth EPS Growth (S-yr CAGR of 27%) $3.50 $3.00 $3.00 $0.78 $250 $2.00 e $0.78 “ a so71 $1.00 $0.50 | $0.70 s . ~ - ~ ; 2010 201 2012 2013, 2014 YTD Q2-2015 = 27300,000 $150 million 1,875,000 January ae common shares preferredshares 2,523,128 November ne ‘August ‘March ‘common shares % @© Texas
Slide 14: Closing Comments
Closing Comments - Continued traditional LHI growth experienced in Q2-2015 affirms our confidence in the guidance for the remainder of 2015, despite limitations on CRE and Builder Finance growth rates and uncertainty related to Energy + Continue to have critical focus on maintaining strong credit qu
Slide 15: © TEXAS
5 © TEXAS CAPITAL BANCSHARES, INC:
Slide 16: Appendix
Appendix © Texas CAPITAL BANCSHARES, INC:
Slide 17: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly Assets Securities $36,508 3.61% $39,930 3.78% $ 50,487 4.00% Liquidity assets 2,304,422 25% 2,210,864 25% 198,058 22%, Loans held for investment, mortgage finance 4,573,478 2.96% 3,746,938 2.99% 2,822,560 3.30% Loans held for investment 10,941,029 432% 10
Slide 18: Total assets
Total assets Loans held for investment Loans held for investment, mortgage finance ‘Total loans Liquidity assets Demand deposits Total deposits Stockholders’ equity $18,239,385, 10,941,029 4,573,478 15,514,507 2,304,422 6,804,994 14,582,409 1,530,082 $16,857,892 10,502,172 3,746,938 14,249,110 2,210
Slide 19: Period End Balance Sheet
Period End Balance Sheet Tas an Total assets $17,817,338 $17,325,458 $13,534,352 3% 32% Loans held for investment 11,123,325, 10,760,978 9,153,005, 3% 22% a for investment, mortgage 4,906,415 5,408,750 3,700,253 (9)% 33% ‘Total loans 16,029,740 16,169,728 12,853,258 (1)% 25% Liquidity assets 1,337,3
Texas Capital Bancshares — Q2 2015 Earnings Presentation on 6ix