Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q4 2004 Earnings Presentation
19 slides from Texas Capital Bancshares's earnings presentation, Feb 9, 2005
Slide 1: Texas Capital Bancshares, Inc. Earnings Release January 19, 2005
Texas Capital Bancshares, Inc. Earnings Release January 19, 2005
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
Slide 3: Opening Comments: Financial highlights
OPENING COMMENTS Financial highlights Growth in 2004 net income to $19.6 million EPS for Q4-2004 of $0.23 EPS for 2004 of $0.75 Continued double-digit growth in loans and deposits Significant improvement in key performance measures A year of highly successful recruiting Substantial expansion in line
Slide 4: Key Performance Drivers: Net income growth to $6.0 million
Net income growth to $6.0 million Increase of 67% from Q4-2003 - 15% on linked-quarter basis EPS at $0.23 up 64% from Q4-03 - 15% on linked-quarter basis ROA increased to 0.94% ROE increased to 12.50% Growth in core and total loans (average balances) 29% growth over Q4-2003 Solid growth of 6% from Q
Slide 5: Key Performance Drivers: Improved efficiency and earning asset quality
Demonstrated improved efficiency of generating earning assets of exceptional quality Growth in net revenue greater than growth in NIE 11% growth to $21.5 million in net revenue from Q3-2004 9% growth in non-interest expense from Q3-2004 Improved efficiency throughout 2004 Earning Assets/Total Assets
Slide 6: Financial Review
© TEXAs CAPITAL BANCSHARES, INC. FINANCIAL REVIEW
Slide 7: Income Statement
INCOME STATEMENT In Thousands Q4-04 Q3-04 Q2-04 Q1-04 Q4-03 Net interest income $ 21,460 $ 19,386 $ 17,252 $ 16,644 $ 15,398 Provision for loan losses 200 375 363 750 700 Net interest income after provision for loan losses 21,260 19,011 16,889 15,894 14,698 Non-interest income 3,738 3,463 3,116 3,31
Slide 8: Performance Drivers & Model
PERFORMANCE DRIVERS & MODEL Actual Actual Actual Actual Actual Q4-2004 Q3-2004 Q2-2004 Q1-2004 Q4-2003 Net interest margin 3.58% 3.38% 3.25% 3.23% 3.07% Non-interest income 0.62% 0.60% 0.58% 0.64% 0.45% Net revenue 4.20% 3.98% 3.83% 3.87% 3.52% Loan Loss Provision (0.03)% (0.07)% (0.07)% (0.14)% (0.
Slide 9: Financial Summary: Period End
FINANCIAL SUMMARY In Thousands Period End Period End Period End Q4 2004 Q3 2004 Q4 2003 Q4/Q3 % Change YOY % Change Loans held for investment $1,564,578 $1,485,156 $1,229,773 5% 27% Loans held for sale 119,537 79,010 80,780 51% 48% Total loans 1,684,115 1,564,166 1,310,553 8% 29% Securities 804,544
Slide 10: Financial Summary: Averages
FINANCIAL SUMMARY In Thousands Averages Averages Averages Q4 2004 Q3 2004 Q4 2003 Q4/Q3 % Change YOY % Change Loans held for investment $1,516,672 $1,432,860 $1,171,395 6% 29% Loans held for sale 94,510 70,730 71,413 34% 32% Total loans 1,611,182 1,501,590 1,242,808 7% 30% Securities 810,850 801,227
Slide 11: Average Balances, Yields, and Rates
AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q4 2004 Q4 2004 Q3 2004 Q3 2004 Q4 2003 Q4 2003 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 810,850 4.31% $ 801,227 4.30% $ 758,629 3.83% Fed funds sold & deposits in other banks 3,932 2.12% 5,320 1.35% 7,8
Slide 12: Deposit and Loan Growth
DEPOSIT AND LOAN GROWTH Core Loans* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 70% Total Deposit CAGR: 44% Core Loan CAGR: 47% 1999 2000 2001 2002 2003 YTD Core Loans 228 625 855 1003 1230 1565 1999 2000 2001 2002 2003 YTD Demand Deposits 26 72 136
Slide 13: Revenue and Expense Growth
REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 59% Net Interest Income CAGR: 55% Non-interest Income CAGR: 107% Non-interest Expense CAGR: 30% Net Interest Income Non-interest Income Non-interest Expense 1999 2000 2001 2002 2003 YTD Non Interest Expense 15217 35158 29432 35370 48430 57340 1999 2
Slide 14: Interest Sensitivity Position
56% 7% 4% 36% 14% 8% 42% 33% INTEREST SENSITIVITY POSITION 56% 7% 4% 36% 14% 8% 42% 33% Assets Liabilities 0.57 0.35 0.32 0.13 0.06 0.08 0.05 0.44 Floating Rate Other Loans Securities Loans Fixed Rate Floating Rate Money Market & Fed Funds Fixed Rate Non-Interest Checking Capital Term Deposits & Rev
Slide 15: Credit Quality improved during 2004 and remains superior
Credit quality improved during 2004 and remains superior Net charge-offs of $233,000 in Q4-2004 - 6 bps NCO's at 5 bps for all of 2004, only $717,000 Non-accrual loans decreased to 0.37% of core loans NPL's decreased by 41% from YE 2003 and 14% from Q3-2004 to 0.39% of core loans Substantial reducti
Slide 16: Credit Quality
CREDIT QUALITY Allowance / Loans (1) 1.20% 1.44% 1.45% 1.47% NPL to Loans (1) .39% .83% .29% 1.34% Allowance to NPL 3.1x 1.7x 5.0x 1.1x (1) Excludes loans held for sale. (1) Excludes loans held for sale. Net Charge-offs / Average Loans 2004 2003 2002 2001
Slide 17: Closing Comments: Guidance for 2005
CLOSING COMMENTS Guidance for 2005 - another great year Traction in market clearly reflected in 2004 results Expect continuation of growth trends with core loan growth exceeding 20% Expansion of net interest margin Fed funds rate moving to 3.25% by YE 2005 Improved earning asset mix Limited growth i
Slide 18: Closing Comments: Credit quality and net income outlook
CLOSING COMMENTS Credit quality maintained at high standards Provision for losses consistent with strong reserve position NCO's < 20 bps Tax rate approaching 34.5% Net income of $26.5 to $28 million Improvement in ROA and ROE Diluted share count has risen due to increase in stock price 26.5 million
Slide 19: Q&A
© TEXAs CAPITAL BANCSHARES, INC. Q&A 10
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