LegacyTexas Financial Group Inc
LegacyTexas Financial — Shareholder Meeting (May 2019)
14 slides from LegacyTexas Financial's shareholder meeting presentation, May 17, 2019
Slide 1: 2019 Annual Meeting of Shareholders
EXHIBIT 99.1 2019 Annual Meeting of Shareholders May 20, 2019
Slide 2: Safe harbor statement
Safe harbor statement When used in filings by LegacyTexas Financial Group, Inc. (the "Company”) with the Securities and Exchange Commission (the “SEC”), in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized execu
Slide 3: In 2018, balance sheet strengthened while minimizing risk
In 2018, balance sheet strengthened while minimizing risk • Lower CRE and C&D loan concentrations • Reduced level of non-performing assets • Increased non-interest-bearing deposits • Higher capital ratios ($ in millions except for per share data) Year ended December 31, December 31, 2017 2018 YOY ∆
Slide 4: Full year profitability highlights
Full year profitability highlights ($ in millions except for per share data) Year ended December 31, December 31, 2017 2018 YOY ∆ Selected profitability data Net income $ 89.5 $ 154.2 72.3% Core net income1 101.9 138.4 35.8 Basic EPS 1.91 3.27 71.2 Core EPS1 2.19 2.94 34.3 NIM 3.81% 3.91% 10bps Core
Slide 5: Commercially focused loan portfolio
Commercially focused loan portfolio Gross loans held for investment1 at December 31, 2018 grew $307.5 million, or 4.7%, from December 31, 2017, which included growth in commercial real estate, commercial and industrial and consumer real estate loans. Total Loans HFI1 $6,791 1 ($ in millions) $6,483
Slide 6: Core funded, low cost deposit base
Core funded, low cost deposit base Compared to December 31, 2017, total deposits increased by $74.0 million, or 1.1%, which included growth in time and non-interest- bearing demand deposits. Total Deposits ($ in millions) $6,768 $6,842 As of December 31, 2018 $6,365 $5,227 $1,628 25.9% 26.1% 25.9% N
Slide 7: Net interest income
Net interest income • Net interest income for 2018 increased $21.1 million, or 6.8%, from 2017. • The net interest margin for 2018 was 3.91%, a 10 basis point increase from 3.81% for 2017. R: 000 Net interest income and NIM G: 048 Net interest income ($mm) NIM B: 135 $333 $311 $282 $241 3.91% R: 111
Slide 8: Disciplined expense management
Disciplined expense management • 2018 core non-interest income increased by $5.7 million from 2017. • 2018 core non-interest expense increased by $9.9 million from 2017. Net interest income Core non-interest income Core non-interest expense Core efficiency ratio ($ in millions) $333 $311 $282 $170 $
Slide 9: Looking ahead
Looking ahead Expand our Texas footprint and solidify our deep-rooted culture Focus on growth – organically and through selective acquisitions Diversify income sources Prudent and focused expense management Maintain asset quality Strategic capital deployment 9
Slide 10: Appendix
Appendix
Slide 11: Supplemental Information – Non-GAAP Financial Measures
Supplemental Information – Non-GAAP Financial Measures (unaudited) Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (net of tax): At or For the Year Ended December 31, 2018 2017 2016 2015 2014 GAAP net income available to common shareholders 1 $ 153,692 $ 89,176 $ 97,324 $
Slide 12: Supplemental Information – Non-GAAP Financial Measures
Supplemental Information – Non-GAAP Financial Measures (unaudited) At or For the Year Ended December 31, 2018 2017 2016 Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Expense (gross of tax): GAAP non-interest income $ 49,241 $ 43,582 $ 51,931 (Gain) loss on sale of branch location
Slide 13: Supplemental Information – Non-GAAP Financial Measures
Supplemental Information – Non-GAAP Financial Measures (unaudited) Calculation of Tangible Book Value and Tangible Equity to Tangible Assets: At or For the Quarter Ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Calculation of Tangible Book Value per share: (Dollars in thousa
Slide 14: Supplemental Information – Non-GAAP Financial Measures
Supplemental Information – Non-GAAP Financial Measures (unaudited) Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core) At or For the Year Ended December 31, 2018 2017 (Dollars in thousands) Net income $ 154,189 $ 89,494 Core (non-GAAP) net income 138,359 101,9
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