Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2024 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Oct 17, 2024
Slide 1: Q3-2024 Earnings
Q3-2024 Earnings October 17, 2024 © 2024 Texas Capital Bank Member FDIC
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. Thes
Slide 3: Foundational Tenants of Value Creation in Place
Foundational Tenants of Value Creation in Place Financial Investment // Re-aligning the Revenue Growth // Growing top- Building Tangible Book Value // expense base to directly support the line revenue as a result of expanded Reinvesting organically generated Priorities business and investing aggress
Slide 4: 2021 Strategic Performance Drivers
2021 Strategic Performance Drivers Where We Where We Where We Where We Started Are Going Started Are Going FY FY FY FY YTD FY FY FY FY YTD Income Statement 2020 2021 2022 2023 2024 2025 Performance Metrics 2020 2021 2022 2023 2024 2025 Investment Banking and Trading Income 2.2% 2.7% 2.9% 8.0% 14.5%
Slide 5: Financial Performance // Income Statement
Financial Performance // Income Statement Adjusted Adjusted Adjusted Adjusted Non-GAAP4 Adjustments 2023 YTD 2024 (Non-GAAP4) (Non-GAAP4) (Non-GAAP4) (Non-GAAP4) ($mm) Financial Highlights ($mm) 2023 2023 YTD 2024 YTD 2024 Q3 2023 Q2 2024 Q2 2024 Q3 2024 Q3 2024 Non-Interest Income 161.4 (23.0) Loss
Slide 6: Financial Performance // Quarterly Balance Sheet Highlights
Financial Performance // Quarterly Balance Sheet Highlights Balance Sheet Highlights ($mm) Ending Balances Q3 2023 Q2 2024 Q3 2024 QoQ Q3 2023 Q2 2024 Q3 2024 QoQ Assets Liabilities Cash and Equivalents 4,193 2,913 4,192 44% Non-Interest Bearing Deposits 9,353 7,988 9,071 14% Total Securities 4,070
Slide 7: Loan Portfolio Composition
Loan Portfolio Composition Commercial Loans ($bn) Commercial Real Estate Loans ($bn) Commercial loans increased $434mm or 4% QoQ Predominantly related to approx. $330 million of funded balances in the healthcare loan portfolio acquired at quarter end Commercial real estate loans decreased $374
Slide 8: Deposit and Funding Composition
Deposit and Funding Composition Average Deposit Trends ($bn) Total deposit balances increased $2bn or Q3 2024 EOP 9% QoQ $25.7 $25.9 Excluding MF9 non-interest bearing $24.2 $24.0 $23.8 $24.3 and brokered deposits, QoQ growth of $0.5 $0.5 $1.1bn or 6% resulting from sustained $1.4 $1.1 $0.8 $0.6
Slide 9: Net Interest Income Sensitivity
Net Interest Income Sensitivity Net Interest Income Sensitivity – Static Balance Sheet ($mm) Standard Model Assumptions10 93% of LHI excluding Mortgage Finance 100bp & 200bp Parallel Shocks LHI are variable rate 10.0% 8.0% $56 6.0% $1.1bn of loans, or 7%, are fixed with Loan Balances: Static $40
Slide 10: Q3-2024 Earnings Overview
Q3-2024 Earnings Overview Net Interest Income ($mm) Net Interest Margin ($mm) 3.13% 3.16% $14.3 $2.0 2.93% 3.03% 3.01% $8.3 $3.4 $2.2 $0.6 $1.7 ($6.9) ($2.1) $240.1 $216.6 $232.1 $240.1 $214.7 $215.0 $216.6 Q2 2024 Loans Excl Loans Excl MF Loan MF Yield 9 Loan Fees Investment Interest Interest Borro
Slide 11: Asset Quality Trends
Asset Quality Trends Allowance for Credit Loss Reserve Ratios Asset Quality Ratios ACL on Loans increased $5.8mm QoQ to NPAs/Total Assets 4.13% 3.95% 4.03% $273mm, a continued build in the reserve 3.63% NCOs/Avg. LHI 3.29% to an all time high 1.84% 1.87% 1.76% Criticized/LHI Total ACL, excl. MF9
Slide 12: Capital Position and Trends
Capital Position and Trends Regulatory Capital Levels 2024 YE Target Regulatory capital ratios remain 17.09% 17.07% 16.64% exceptionally strong 15.65% 15.17% 2.81% 2.83% 2.70% Total capital ratio of 15.17%, in the 2.56% 2.54% top quartile of the peer group12, 1.58% 1.59% 1.56% 1.47% 1.44% and CE
Slide 13: Full Year 2024 Guidance
Full Year 2024 Guidance FY 2023 Full Year 2024 Guidance Commentary Adjusted (Non-GAAP4) Guidance Forward curve14 assumes a 2024 exit rate of 4.25% Total Revenue $1,075.5mm Low single-digit % growth Total Revenue, Adjusted2 guidance decreased from low to mid single-digit percent annual growth Low
Slide 14: Appendix // Footnotes
Appendix // Footnotes 1. Includes service charges on deposit accounts, as well as fees related to our commercial card program, merchant transactions, and FX transactions, all of which are included in other non-interest income and totaled $2.8 million for FY 2020, $4.0 million for FY 2021, $6.1 milli
Slide 15: Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE)
Non-GAAP Reconciliation // Return on Average Tangible Common Equity (ROATCE) ROATCE is a non-GAAP financial measure. ROATCE represents the measure of net income available to common shareholders as a percentage of average tangible common equity. ROATCE is used by management in assessing financial per
Slide 16: Non-GAAP Reconciliation // Adjusted Earnings & Ratios
Non-GAAP Reconciliation // Adjusted Earnings & Ratios Adjusted line items are non-GAAP financial measures that management ($mm, Except per Share) Q2 2024 Q3 2024 FY 2020 FY 2021 FY 2022 FY 2023 YTD 2024 believes aids in the discussion of results. A reconcilement of these adjusted Net Interest Income
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