Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2013 Earnings Presentation
17 slides from Texas Capital Bancshares's earnings presentation, Oct 25, 2013
Slide 1: TCBI Q3 2013 Earnings
Exhibit 99.2 TCBI Q3 2013 Earnings October 23, 2013
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
Opening Remarks • Strong continued core earnings growth, with provision reflecting another quarter of significant growth in LHI • Continued improvement in NPAs • Continued strong growth in deposits, specifically DDAs • LHS levels down slightly as expected, with 2013 average to be relatively flat as
Slide 4: Financial Review
Financial Review Net Income and EPS – Increase in net income of 47% compared to Q2-2013, 23% compared to Q2-2013 before non-recurring FDIC charge and Q2-2013 charge of $7.7 million – Increase in EPS compared to Q2-2013 – Decrease in EPS compared to Q3-2012 due to preferred dividend in Q3-2013 Operat
Slide 5: Financial Review
Financial Review Loan Growth – Broad-based growth in LHI • Growth of $579.6 million, or 8%, from Q2-2013 • Period end balance $319.4 million over average balance for the quarter • Averages increased 8% from Q2-2013 and 22% from Q3-2012 – Average LHS balances down 2% from Q2-2013 and 3% from Q3-2012
Slide 6: Income Statement - Quarterly
Income Statement - Quarterly Q3-13 Q2-13 Q1-13 Q4-12 Q3-12 Net interest income $ 108,776 $ 101,220 $ 98,042 $ 101,155 $ 96,855 Non-interest income 10,431 11,128 11,281 12,836 10,552 Net revenue 119,207 112,348 109,323 113,991 107,407 Provision for credit losses 5,000 7,000 2,000 4,500 3,000 OREO val
Slide 7: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q3 2013 Q2 2013 Q3 2012 Avg. Bal. Yield Rate Avg. Bal. Yield Rate Avg. Bal. Yield Rate Assets Securities $ 71,717 4.25% $ 78,906 4.42% $110,300 4.43% Fed funds sold & liquidity investments 167,613 .19% 145,625 .20% 74,219 .30% Loans held for sale
Slide 8: Financial Summary
Financial Summary (in thousands) QTD Averages Q3/Q2 % YOY % Q3 2013 Q2 2013 Q3 2012 Change Change Total assets $10,637,766 $10,110,992 $9,256,864 5% 15% Loans held for investment 7,731,901 7,152,323 6,313,263 8% 22% Loans held for sale 2,362,118 2,406,246 2,432,027 (2)% (3)% Total loans 10,094,019 9
Slide 9: Financial Summary
Financial Summary (in thousands) Period End Q3/Q2 % YOY % Q3 2013 Q2 2013 Q3 2012 Change Change Total assets $10,797,448 $10,977,990 $9,881,362 (2)% 9% Loans held for investment 8,051,328 7,510,662 6,549,089 7% 23% Loans held for sale 2,262,085 2,838,234 2,818,622 (20)% (20)% Total loans 10,313,413
Slide 10: Revenue and Income Growth
Revenue and Income Growth Operating Revenue CAGR: 22% ($ in thousands) Net Interest Income CAGR: 23% 500,000 Non-interest Income CAGR: 15% $454,504 450,000 Non-interest Expense CAGR: 19% $419,919 Net Income CAGR: 40% 400,000 $335,169 350,000 300,000 $273,937 247,948 250,000 $225,951 212,961 200,000
Slide 11: EPS Growth
EPS Growth 5 Year EPS CAGR: 27% $3.50 3.01 $3.00 $2.50 $2.05 $1.99 $2.00 $1.50 $0.89 $1.00 $1.00 $0.71 $0.50 $0.00 2008 2009^ 2010 2011 2012 Q3-2013 ^Excludes $.15 effect of preferred TARP dividend during 2009. Reported EPS was $0.56. 11
Slide 12: Deposit and Loan Growth
Deposit and Loan Growth ($ in millions) Demand Deposit CAGR: 43% 10,000 Total Deposit CAGR: 23% Loans Held for Investment CAGR: 16% $8,957 9,000 $8,051 8,000 $7,441 7,000 $6,786 6,000 $5,572 $5,556 $5,455 5,000 $4,711 $4,457 $4,028 $4,121 4,000 $3,333 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 201
Slide 13: Loan Portfolio Statistics
Loan Portfolio Statistics Loan Collateral by Type 9/30/13 Non-accrual loans Commercial $ 20,994 Construction – Real estate 14,616 Consumer 70 Equipment leases 57 Total non-accrual loans 35,737 Non-accrual loans as % of loans held for investment .44% Non-accrual loans as % of total loans .35% OREO 12
Slide 14: Credit Quality
Credit Quality Improved Credit Trends – Total credit cost of $5.0 million for Q3-2013, compared to $ 7.4 million in Q2-2013 and $3.1 million in Q3-2012 • Provision of $5.0 million for Q3-2013 compared to $7.0 million for Q2-2013 and $3.0 million in Q3-2012 • NCOs $46,000 (0 bps) in Q3-2013 compared
Slide 15: Credit Quality
Credit Quality Net Charge-offs / Average Loans 1.40% 1.20% 1.14% 1.00% 0.80% 0.58% 0.60% 0.46% 0.40% 0.20% 0.10% 0.07% 0.00% 2013 2012 2011 2010 2009 Combined reserve / 1.10% 1.15% 1.31% 1.56% 1.59% Loans* Non-accrual loans + OREO to loans* + .60% 1.06% 1.58% 3.25% 2.74% OREO Combined reserve to 2.4
Slide 16: Closing Comments
Closing Comments • Strong core earnings power, profitability and growth to continue in 2013 • Credit continues positive trend • Strong LHI pipeline and new commitments present opportunity for growth potential • LHS average balances to remain in line with expectations for flat year- over-year average
Slide 17: Q&A
17 Q&A © TEXAs CAPITAL BANCSHARES, INC:
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