Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2021 Earnings Presentation
12 slides from Texas Capital Bancshares's earnings presentation, Apr 21, 2021
Slide 1: Q1-2021 Earnings
Q1-2021 Earnings April 21, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our financial condition, results of operations, business plans and future performance. These statements are not historical in natur
Slide 3: Improved Profitability
Improved Profitability Financial Highlights ($M) Q1 2020 Q4 2020 Q1 2021 Net income to common of $68.2 million, or $1.33 per diluted share, as an improving credit outlook offset seasonal mortgage finance declines. Core Net Interest Income $228.3 $223.0 $200.1 earnings generation (PPNR 1 / Avg Asse
Slide 4: Strategic Priorities
Strategic Priorities Established an Operating Committee immediately and began a disciplined review of each business. A new Business Management Framework will facilitate enhanced operating routines to cascade decisions, improve transparency, and foster a culture of accountability Business Reviews &
Slide 5: Noteworthy Items | Loan Fees and PPP
Noteworthy Items | Loan Fees and PPP Loan Fees (excl. PPP) PPP Loans LHI Yield NIM Loan Fee Dollars PPP Fees Yield on PPP Loans (excl. Fees) Contribution Contribution Q1 2020 0.30% 0.15% $12.2M $5.1M Q2 2020 0.29% 0.13% $12.2M $3.4M Q3 2020 0.25% 0.11% $10.5M $1.7M $1.6M Q4 2020 0.46% 0.19% $18.0M 0
Slide 6: Noteworthy Items | Correspondent Lending
Noteworthy Items | Correspondent Lending Historical Contribution (in $ millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 FY 2020 LHS (Avg) LHS (Period-end) Risk Net Interest Income 24.5 1.5 2.8 1.4 0.9 30.2 Weighted ~50% Non-interest Income Service Chgs on Dep Accts - - - - - - Brokered Loan Fees 2.
Slide 7: Credit Risk Management
Credit Risk Management Highlights Credit Quality Credit Trends Q1 2020 Q4 2020 Q1 2021 Net charge-offs improved materially Q-o-Q (down $58.9 million) Strong risk management, prior de-risking efforts and an 2.5x improved outlook resulted in stabilized performance in the 2.1x majority of segment
Slide 8: Loan Portfolio
Loan Portfolio Growth Outlook Y-o-Y Changes in Ending LHI (excluding MFLs) Ending LHI (excluding MFLs) modestly increased $48 million from Q4-2020, but significantly down $1.5 billion (9%) Y-o-Y $16.9B PPP helped drive linked-quarter growth, but activity slowing Thoughtful resolution of proble
Slide 9: Deposits and Fundings
Deposits and Fundings Highlights Funding Costs DDA balances increased materially in the quarter (up $2.5 billion), while interest-bearing portfolios remained relatively stable 0.92% Continuing to see elevated client cash, and some increases coinciding with PPP deployment 0.90% Brokered deposit
Slide 10: Q1-2021 Earnings Overview
Q1-2021 Earnings Overview Net Interest Income & Margin Commentary Net Interest Margin Detail (bps) Expected seasonal declines in $228.3M $223.0M Net Interest Income mortgage finance combined with $200.1M normalizing loan fees and fewer days drove Q-o-Q reduction in net interest income Targeted a
Slide 11: Q1-2021 Earnings Overview
Q1-2021 Earnings Overview Non-interest Income Commentary Fee Income Details Seasonally softer mortgage finance Non-interest income volumes drove Q-o-Q declines in $8.5M $42.9M $8.1M brokered loan fees and GOS of $39.1M $0.5M LHS, but levels remain strong $2.8M $6.2M compared to year-ago levels $2.
Slide 12: Summary & Outlook
Summary & Outlook Diverse, well-established lines of business balanced between differentiated national businesses and core market offerings reflective of the relationship banking approach synonymous with Texas Capital since inception Organic growth model developed by hand selecting top talent fo
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