Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Bank of America Merrill Lynch Financial Services Conference 2014
18 slides from Texas Capital Bancshares's conference presentation, Nov 12, 2014
Slide 1: Bank of America Merrill Lynch Financial Services Conference
Exhibit 99.1 Bank of America Merrill Lynch Financial Services Conference November 12, 2014 Keith Cargill, President and CEO Peter Bartholow, Chief Operating Officer and CFO
Slide 2: Forward-looking statements
Certain matters discussed in this presentation 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 suc
Slide 3: Overview & Strategy
Overview & Strategy Texas Capital Bancshares, Inc. is a business bank operating principally in the five largest MSAs in Texas. • All five Texas markets highly ranked in US in terms of job and economic growth, now with major business relocations to Texas • Broad range of commercial businesses • Borro
Slide 4: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights • Exceptional growth in traditional LHI balances despite highly competitive C&I market Strong • Growth in mortgage finance loans (MFLs) as seasonality returns Balanced • Continued strong growth in deposits, improving low-cost funding composition Growth • Averag
Slide 5: Revenue & Expense
Revenue & Expense Revenue & Expense Trends Revenue & Expense Highlights Operating Revenue CAGR: 19% • High returns maintained with effective 500,000 Net Interest Income CAGR:20% deployment of additional capital Non-interest Income CAGR: 8% 400,000 Non-interest Expense CAGR: 15% • Significant improve
Slide 6: Net Interest Income & Margin
Net Interest Income & Margin NIM Highlights Net Interest Income & Margin Trends Net Interest income ($MM) • Net interest income growth of 9% from 6.00% Net Interest Margin (%) Q2-2014 and 16% from Q3-2013 120.0 Earning Asset Yield (%) • Yields on traditional LHI stable with 6% Total Loan Spread (%)
Slide 7: Analysis of Net Interest Income & Expenses
Analysis of Net Interest Income & Expenses NII ($MM) NIM (%) Linked quarter increases/ $115.4 Q2 2014 3.87% Non interest expense ($MM) (decreases) - Increase in liquidity (.05) Q2 2014 $69.8 (1.6) Mix shift with MFL growth (.05) Salaries and employee benefits – related to stock price changes 1.4 (1.
Slide 8: Performance Summary
Performance Summary (in thousands) Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Net interest income $ 125,661 $ 115,407 $ 108,315 $ 111,475 $ 108,776 Non-interest income 10,396 10,533 10,356 11,184 10,431 Net revenue 136,057 125,940 118,671 122,659 119,207 Provision for credit losses 6,500 4,000 5,000 5,
Slide 9: 2014 Outlook
2014 Outlook Business Driver 2014 Outlook v. 2013 Results Changes Since 10/22/2014 Low 20’s percent growth, pace Average LHI - declining Average LHI – Low 20s percent growth, Increased from low/mid teens Mortgage Finance with some decrease in Q4-2014 Average Deposits Upper 20’s percent growth Increa
Slide 10: Loan & Deposit Growth
Loan & Deposit Growth Balance Trends Total Loan Composition ($13.5 Billion at 9/30/14) 14,000 Demand Deposit CAGR: 42% Business Energy 12,000 Total Deposit CAGR: 25% Assets 6% Highly Liquid Loans Held for Investment CAGR: 18% 30% Assets 10,000 1% 8,000 6,000 4,000 Unsecured Mortgage 2,000 2% Finance
Slide 11: Asset Quality
Asset Quality NCO / Average Traditional LHI Non-accrual loans Q3-2014 1.40% Commercial $ 25,006 1.14% 1.20% Construction – 1.00% Real estate 12,717 0.80% Consumer – 0.58% 0.60% Equipment leases 10 0.40% Total non-accrual loans 37,733 0.20% 0.10% 0.07% 0.08% 0.00% Non-accrual loans as % of loans .39%
Slide 12: EPS Growth
EPS Growth EPS Growth (5-yr CAGR of 40%) $3.50 $3.01 $3.00 $2.72 $2.50 $2.09 $1.99 $2.00 $1.50 $1.00 $1.00 $0.71 $0.50 $0.00 2009^ YTD 2010 2011 2012 2013 9/30/2014 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 12
Slide 13: Closing Comments
Closing Comments • Proven organic growth business model continues to produce in key lines of business with improvements in operating leverage • Solid core earnings power and strong asset growth expected to continue in 2014 and beyond • Continue to have critical focus on maintaining excellent credit
Slide 14: Q&A
Q&A u © TEXAS CAPITAL BANCSHARES, INC:
Slide 15: Appendix
Appendix ©) TEXAS CAPITAL BANCSHARES, INC:
Slide 16: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly (in thousands) Q3 2014 Q2 2014 Q3 2013 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 46,413 3.86% $ 50,487 4.00% $ 71,717 4.25% Fed funds sold & liquidity investments 388,855 .25% 198,058 .22% 167,613 .19% Loans held f
Slide 17: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly (in thousands) QTD Average Q3/Q2 % YOY % Q3 2014 Q2 2014 Q3 2013 Change Change Total assets $13,629,609 $12,362,168 $10,637,766 10% 28% Loans held for investment 9,423,259 8,984,230 7,731,901 5% 22% Loans held for investment, mortgage finance 3,452,782 2,822,560 2,3
Slide 18: Ending Balance Sheet - Quarterly
Ending Balance Sheet - Quarterly (in thousands) Period End Q3/Q2 % YOY % Q3 2014 Q2 2014 Q3 2013 Change Change Total assets $14,266,214 $13,532,536 $10,797,448 5% 32% Loans held for investment 9,686,134 9,152,715 8,051,328 6% 20% Loans held for investment, mortgage finance 3,774,467 3,700,253 2,262,
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