Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2014 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Apr 24, 2014
Slide 1: TCBI Q1 2014 Earnings
Exhibit 99.2 TCBI Q1 2014 Earnings April 23, 2014
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
Slide 3: Opening Remarks & Financial Highlights
Opening Remarks & Financial Highlights • Exceptional growth in traditional LHIbalances – record growth for seasonally weak Q1 Strong • Mortgage Finance (MF) increased market share with exceptional results • Continued growth in deposits, improving low-cost funding composition Balanced • Successful de
Slide 4: Revenue & Expense
Revenue & Expense Revenue & Expense Trends Revenue & Expense Highlights Operating Revenue CAGR: 19% • Strong capacity for net revenue Net Interest Income CAGR:20% 500,000 • Growth in total loans at spreads above 4.20% Non-interest Income CAGR: 9% • Decreased from Q4-2013 due to reduced days and Non-
Slide 5: Net Interest Income & Margin
Net Interest Income & Margin NIM Highlights Net Interest Income & Margin Trends Net Interest income ($MM) 6.00% • Net interest income, before Net Interest Margin (%) change in days and sub-debt 120.0 Earning Asset Yield (%) expense above Q4-2013 and Q1- Total Loan Spread (%) 5.50% 2013 100.0 • Yield
Slide 6: Analysis of Net Interest Income & Profitability
Analysis of Net Interest Income & Profitability NII ($MM) NIM (%) Pre-tax Efficiency $111.6 Q4-2013 4.21% Income EPS ROA ROE Ratio (1.6) Subordinated note interest (0.06) Q1-2014 Reported $44,350 $0.60 1.01% 10.2% 58.4% (1.1) Decline in loan fee (0.04) Effect of significant items 0.0 Increase in liq
Slide 7: Performance Summary
Performance Summary (in thousands) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Net interest income $ 108,315 $ 111,475 $ 108,776 $ 101,220 $ 98,042 Non-interest income 10,356 11,184 10,431 11,128 11,281 Net revenue 118,671 122,659 119,207 112,348 109,323 Provision for credit losses 5,000 5,000 5,000 7,0
Slide 8: Loan & Deposit Growth
Loan & Deposit Growth Balance Trends Total Loan Composition 12,000 ($11.6 Billion at 3/31/14) Demand Deposit CAGR: 37% Business Energy Assets Highly 10,000 Total Deposit CAGR: 22% 8% 31% Liquid Loans Held for Investment CAGR: 18% Assets 8,000 2% 6,000 4,000 Unsecured Mortgage 2% Finance 2,000 Owner
Slide 9: Asset Quality
Asset Quality NCO / Average Traditional LHI Non-accrual loans Q1-2014 1.40% Commercial $ 26,834 1.20% 1.14% Construction – 1.00% Real estate 16,329 0.80% 0.58% Consumer 8 0.60% Equipment leases 42 0.40% Total non-accrual loans 43,213 0.20% 0.10% 0.07% 0.10% 0.00% 2010 2011 2012 2013 2014 Non-accrual
Slide 10: EPS Growth
EPS Growth EPS Growth (5-yr CAGR of 27%) $3.50 $3.01 $3.00 $2.72 $2.50 $1.99 $2.00 $1.50 $1.00 $1.00 $0.71 $0.60 $0.50 $0.00 2009^ YTD 2010 2011 2012 2013 3/31/2014 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 10
Slide 11: Closing Comments
Closing Comments • Success of organic growth model demonstrated with strong growth in loans and deposits • Solid core earnings power and strong asset growth expected to continue in 2014 and beyond • New capital deployed and generating favorable returns with strong growth in loans and deposits • Tale
Slide 12: Q&A
12 Q&A © TEXAS CAPITAL BANCSHARES, INC:
Slide 13: Appendix
Appendix ©) TEXAS CAPITAL BANCSHARES, INC:
Slide 14: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly (in thousands) Q1 2014 Q4 2013 Q1 2013 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 57,581 4.18% $ 65,067 4.25% $ 93,394 4.57% Fed funds sold & liquidity investments 304,042 .27% 158,594 .21% 103,503 .23% Loans held f
Slide 15: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly (in thousands) QTD Average Q1/Q4 % YOY % Q1 2014 Q4 2013 Q1 2013 Change Change Total assets $11,401,368 $10,899,266 $9,729,559 5% 17% Loans held for investment 8,717,969 8,142,569 6,842,766 7% 27% Loans held for investment, mortgage finance 2,027,264 2,238,730 2,362
Slide 16: Ending Balance Sheet - Quarterly
Ending Balance Sheet - Quarterly (in thousands) Period End Q1/Q4 % YOY % Q1 2014 Q4 2013 Q1 2013 Change Change Total assets $12,143,296 $11,714,397 $10,020,565 4% 21% Loans held for investment 8,928,033 8,486,309 6,920,011 5% 29% Loans held for investment, mortgage finance 2,688,044 2,784,265 2,577,
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