Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2009 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Apr 23, 2009
Slide 1: Earnings Release April 22, 2009
Earnings Release April 22, 2009
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
Opening Comments Strong capital position with tangible common equity to total tangible assets of 7.8% Business model intact and positioned for future opportunities Continued potential to extend our growth strategy in Texas market Continuing to maintain an intense focus on credit quality Provision fo
Slide 4: Financial Highlights
Financial Highlights Net income and EPS Net income available to common shareholders of $5.2 million for Q1-2009 increased 49% compared to Q4-2008; 35% decrease compared to Q1-2008 EPS of $.17 increased 55% compared to Q4-2008; 43% decrease compared to Q1-2008 Impact of preferred stock dividends in Q
Slide 5: Financial Review
Financial Review Improved operating leverage - the benefit of growth and improved operations Net revenue increase of 8% from Q4-2008; 14% increase from Q1-2008 Benefit reduced by reduction in NIM from 2008 levels Credit quality Provision of $8.5 million for quarter Continue to provide based on metho
Slide 6: Income Statement
Income Statement (in thousands) Q1-09 Q4-08 Q3-08 Q2-08 Q1-08 Net interest income $ 41,217 $ 38,712 $ 38,266 $ 38,160 $ 36,599 Provision for loan losses 8,500 11,000 4,000 8,000 3,750 Net interest income after provision for loan losses 32,717 27,712 34,266 30,160 32,849 Non-interest income 6,900 5,9
Slide 7: Financial Summary (QTD Averages)
Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q1 2009 Q4 2008 Q1 2008 Q1/Q4 % Change YOY % Change Loans held for investment $4,022,180 $3,875,586 $3,483,840 4% 15% Loans held for sale 587,401 316,409 171,672 86% 242% Total loans 4,609,581 4,191,995 3,655,512 10% 26% Securit
Slide 8: Financial Summary (Period End)
Financial Summary (in thousands) Period End Period End Period End Q1 2009 Q4 2008 Q1 2008 Q1/Q4 % Change YOY % Change Loans held for investment $4,019,247 $4,027,871 $3,493,631 0% 15% Loans held for sale 426,982 496,351 239,860 (14)% 78% Total loans 4,446,229 4,524,222 3,733,491 (2)% 19% Securities
Slide 9: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q1 2009 Q1 2009 Q4 2008 Q4 2008 Q1 2008 Q1 2008 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 367,857 4.49% $ 360,264 4.70% $ 428,401 4.78% Fed funds sold & liquidity investments 26,130 .67% 28,811 .39%
Slide 10: Revenue and Expense Growth
2004 2005 2006 2007 2008 Q1-2009 Non Interest Expense 50381 65344 86912 98606 109651 121224 2004 2005 2006 2007 2008 Q1-2009 Net Interest Income 71467 93624 117170 139752 151737 164868 Non Interest Income 10593 12507 17684 20627 22470 27600 Revenue and Expense Growth Net Interest Income Non-interest
Slide 11: Deposit and Loan Growth
2004 2005 2006 2007 2008 Q1-2009 Demand Deposits 398 512 514 529 587 609 Interest Bearing Deposits 1392 1983 2555 2537 2746 2402 Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2004 2005 2006 2007 2008 Q1-2009 Loans Held for Investment 156
Slide 12: Loan Portfolio Statistics
Loan Portfolio Statistics Non-accrual loans Commercial 13,459 Construction 29,493 Real estate 3,594 Consumer 86 Equipment leases 4,051 Total non-accrual loans $ 50,683 Non-accrual loans as % of total loans 1.14% ORE 27,501 Total Non-accruals + ORE $ 78,184 Non-accrual loans + ORE as % of loans held
Slide 13: Credit Quality
Credit Quality Credit experience remains relatively good Weakness continues to be manageable Net charge-offs of $2.6 million in Q1-2009 Net charge-offs represent 26 bps for the quarter NCO's related to identified problems substantially covered with allocated reserves in prior periods Increase in non
Slide 14: Credit Quality
Credit Quality Reserve / Loans* 1.31% 1.16% .95% .77% .91% Non-accrual loans + ORE to loans* + ORE 1.93% 1.81% ..69% ..37% ..27% Reserve to non-accruals 1.0x 1.0x 1.5x 2.3x 3.3x Reserve to NPL 1.0x .9x 1.3x 1.9x 2.2x Net Charge-offs / Average Loans YTD 2009 2008 2007 2006 2005 * Excludes loans held
Slide 15: Closing Comments
Closing Comments Continued intense focus on maintaining credit quality Positioned to take advantage of opportunity for people and customers
Slide 16: Q & A
Q & A
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