Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q3 2007 Earnings Presentation
16 slides from Texas Capital Bancshares's earnings presentation, Oct 23, 2007
Slide 1: Earnings Release October 17, 2007
Earnings Release October 17, 2007
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 Another record quarter By all key measures, the Texas economy continues to be relatively strong even in light of some weakening in the housing market Results continue to demonstrate success of strategy and increased focus Achieving growth organically
Slide 4: Financial Highlights
Financial Highlights EPS growth Increased 6% from Q2-2007 Increase of 10% compared to Q3-2006 Growth in loans Held for investment - 8% increase on linked-quarter basis; 29% growth over Q3-2006 Total loans - 6% increase on linked-quarter basis; 27% growth over Q3-2006 Growth in deposits Demand deposi
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Performance Evaluation
Performance Evaluation Performance Drivers Net income of $8.8 million, an increase of 5% on linked-quarter basis and 10% from Q3-2006 Improved operating leverage Net interest income growth of 6.6% from Q2-2007 and 22.1% from Q3-2006, with results driven by strong loan growth Non-interest income decr
Slide 7: Income Statement
Income Statement (in thousands) Q3-07 Q2-07 Q1-07 Q4-06 Q3-06 Net interest income $ 36,759 $ 34,471 $ 31,667 $ 31,832 $ 30,101 Provision for loan losses 2,000 1,500 1,200 1,000 750 Net interest income after provision for loan losses 34,759 32,971 30,467 30,832 29,351 Non-interest income 4,647 5,288
Slide 8: Financial Summary - QTD Averages
Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q3 2007 Q2 2007 Q3 2006 Q3/Q2 % Change YOY % Change Loans held for investment $3,195,480 $2,964,863 $2,479,057 8% 29% Loans held for sale 150,031 191,979 150,225 (22)% 0% Total loans 3,345,511 3,156,842 2,629,282 6% 27% Securiti
Slide 9: Financial Summary - Period End
Financial Summary (in thousands) Period End Period End Period End Q3 2007 Q2 2007 Q3 2006 Q3/Q2 % Change YOY % Change Loans held for investment $3,296,039 $3,091,657 $2,543,059 7% 30% Loans held for sale 118,221 176,022 151,255 (33)% (21)% Total loans 3,414,260 3,267,679 2,694,314 4% 27% Securities
Slide 10: QTD Average Balances, Yields and Rates
QTD Average Balances, Yields and Rates (in thousands) Q3 2007 Q3 2007 Q2 2007 Q2 2007 Q3 2006 Q3 2006 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 480,768 4.83% $ 500,409 4.89% $ 555,751 4.80% Fed funds sold & liquidity investments 2,102 4.91% 2,032 4.93%
Slide 11: Deposit and Loan Growth
Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 15% Total Deposit CAGR: 24% Loans Held for Investment CAGR: 28% 2002 2003 2004 2005 2006 Q3-2007 Loans Held for Investment 1003 1230 1565 2076 2722 3296 2002 2003 2004 20
Slide 12: Revenue and Expense Growth
Revenue and Expense Growth Operating Revenue CAGR: 27% Net Interest Income CAGR: 28% Non-interest Income CAGR: 19% Non-interest Expense CAGR: 25% Net Interest Income Non-interest Income Non-interest Expense 2002 2003 2004 2005 2006 Q3-2007 Non Interest Expense 35370 48430 57340 65344 86913 100533 20
Slide 13: Credit Quality
Credit Quality Credit experience remains strong Net charge-offs of $59,000 in Q3-2007, 1 bp Net recoveries of $300,000 YTD NCOs for last 12 months $538,000, 2 bps Provision of $2.0 million in Q3-2007 driven by growth in portfolio Continued favorable key measures of credit quality during quarter Gene
Slide 14: Credit Quality
Credit Quality Reserve / Loans .79% .77% .91% 1.20% 1.44% Non-accrual loans + ORE to loans + ORE ..28% ..37% ..27% ..37% ..83% Reserve to non-accruals 3.0x 2.3x 3.3x 3.2x 1.7x Reserve to NPL 2.0x 1.9x 2.2x 3.1x 1.7x Net Charge-offs / Average Loans YTD 2007 2006 2005 2004 2003
Slide 15: Closing Comments
Closing Comments Continuing growth Moderating economy Confirming guidance
Slide 16: Q & A
Q & A
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