Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q4 2012 Earnings Presentation

19 slides from Texas Capital Bancshares's earnings presentation, Jan 24, 2013

  1. Slide 1: TCBI Q4 2012 Earnings

    Exhibit 99.2 TCBI Q4 2012 Earnings

  2. Slide 2: Forward-looking statements

    Certain matters discussed on this call 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 such obliga

  3. Slide 3: Opening Remarks

    Opening Remarks • Achieved record earnings in 2012 • Reduction in credit costs and improvement in NPAs in 2012 • Strong growth in LHI and deposits in 2012 with exceptional growth in DDAs • LHS levels remained high in 2012; taking advantage of market demand 3

  4. Slide 4: Financial Review

    Financial Review Net Income and EPS – Outstanding growth in 2012 net income, increased 59% over 2011 net income Operating Leverage, Core Earnings Power & NIM – Growth of Net Revenue • 17% growth from Q4-2011 and 6% from Q3-2012 – Strong growth in LHI and LHS – Growth in net interest income • NIM red

  5. Slide 5: Financial Review

    Financial Review Loan Growth – Broad-based growth in LHI • Averages increased 6% from Q3-2012 and 23% from Q4-2011 • Quarter-end balance 10%, above 2012 average – Average LHS balances up 9% from Q3-2012 and 27% from Q4-2011 Funding – Funding profile still strong with continued DDA and total deposit

  6. Slide 6: Income Statement - Quarterly

    Income Statement - Quarterly Q4-12 Q3-12 Q2-12 Q1-12 Q4-11 Net interest income $ 101,155 $ 96,855 $ 90,640 $ 88,229 $ 88,147 Non-interest income 12,836 10,552 10,462 9,190 8,994 Net revenue 113,991 107,407 101,102 97,419 97,141 Provision for credit losses 4,500 3,000 1,000 3,000 6,000 OREO valuation

  7. Slide 7: Income Statement - Annual

    Income Statement - Annual 2012 2011 2010 2009 2008 Net interest income $ 376,879 $ 302,937 $ 241,674 $ 196,691 $ 151,737 Non-interest income 43,040 32,232 32,263 29,260 22,470 Net revenue 419,919 335,169 273,937 225,951 174,207 Provision for credit losses 11,500 28,500 53,500 43,500 26,750 OREO valu

  8. Slide 8: QTD Average Balances, Yields and Rates

    QTD Average Balances, Yields and Rates (in thousands) Q4 2012 Q3 2012 Q4 2011 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 103,483 4.55% $ 110,300 4.53% $ 139,826 4.43% Fed funds sold & liquidity investments 91,503 .27% 74,219 .30% 51,149 .36% Loans held for sal

  9. Slide 9: Financial Summary

    Financial Summary (in thousands) QTD Averages Q4/Q3 % YOY % Q4 2012 Q3 2012 Q4 2011 Change Change Total assets $9,869,282 $9,256,864 $7,995,474 7% 23% Loans held for investment 6,662,817 6,313,263 5,395,253 6% 23% Loans held for sale 2,658,092 2,432,027 2,093,883 9% 27% Total loans 9,320,909 8,745,2

  10. Slide 10: Financial Summary

    Financial Summary (in thousands) YTD Averages 2012 2011 YOY % Change Total assets $8,965,961 $6,819,088 31% Loans held for investment 6,148,860 5,059,134 22% Loans held for sale 2,298,651 1,210,954 90% Total loans 8,447,511 6,270,088 35% Securities 117,375 157,120 (25)% Demand deposits 1,984,171 1,5

  11. Slide 11: Financial Summary

    Financial Summary (in thousands) Period End Q4/Q3 % YOY % Q4 2012 Q3 2012 Q4 2011 Change Change Total assets $10,540,542 $9,881,362 $8,137,225 7% 30% Loans held for investment 6,785,535 6,549,089 5,572,371 4% 22% Loans held for sale 3,175,272 2,818,622 2,080,081 13% 53% Total loans 9,960,807 9,367,7

  12. Slide 12: Revenue and Income Growth

    Revenue and Income Growth ($ in thousands) Operating Revenue CAGR: 21% 450,000 Net Interest Income CAGR: 22% 419,919 Non-interest Income CAGR: 16% 400,000 Non-interest Expense CAGR: 17% 350,000 Net Income CAGR: 31% 335,169 300,000 273,937 250,000 225,951 212,961 200,000 181,403 174,207 160,379 154,9

  13. Slide 13: EPS Growth

    EPS Growth 5 Year EPS CAGR: 21% $3.50 $3.01 $3.00 $2.50 $1.99 $2.00 $1.50 $1.18 $1.00 $1.00 $0.89 $0.71 $0.50 $0.00 2007 2008 2009^ 2010 2011 2012 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 13

  14. Slide 14: Deposit and Loan Growth

    Deposit and Loan Growth ($ in millions) Demand Deposit CAGR: 37% 8000 Total Deposit CAGR: 19% 7441 Loans Held for Investment CAGR: 14% 7000 6786 6000 5572 5557 5455 5000 4711 4457 4028 4121 4000 3462 3333 3066 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 Loans HFI Interest Bearing Deposits Demand

  15. Slide 15: Loan Portfolio Statistics

    Loan Portfolio Statistics Loan Collateral by Type 12/31/12 Non-accrual loans Commercial $ 15,373 Construction 17,217 Real estate 23,066 Consumer 57 Equipment leases 120 Total non-accrual loans $ 55,833 Non-accrual loans as % of loans held for investment .82% Non-accrual loans as % of total loans .56

  16. Slide 16: Credit Quality

    Credit Quality Improved Credit Trends – Total credit cost of $5.5 million for Q4-2012, compared to $3.1 million in Q3-2012 and $7.1 million in Q4-2011 • Provision of $4.5 million for Q4-2012 compared to $3.0 million for Q3-2012 and $6.0 million in Q4-2011, reflecting better credit trends in 2012, bu

  17. Slide 17: Credit Quality

    Credit Quality Net Charge-offs / Average Loans 1.40% 1.20% 1.14% 1.00% 0.80% 0.60% 0.58% 0.46% 0.40% 0.35% 0.20% 0.10% 0.00% 2012 2011 2010 2009 2008 Combined reserve / 1.15% 1.31% 1.56% 1.59% 1.16% Loans* Non-accrual loans + OREO to loans* + 1.06% 1.58% 3.25% 2.74% 1.81% OREO Combined reserve to 1.

  18. Slide 18: Closing Comments

    Closing Comments • Strong core earnings and growth to continue in 2013 • Credit costs in 2013 expected to be slightly lower than 2012 • Strong LHI pipeline and new commitments present opportunity for growth potential • LHS balances to stay high and could grow modestly with increased market share and

  19. Slide 19: Q&A

    Q&A 19 © TEXAS CAPITAL BANCSHARES, INC:

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