Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Investor Presentation (September 2015)
22 slides from Texas Capital Bancshares's investor presentation, Sep 10, 2015
Slide 1: Investor Presentation September 2015
Investor Presentation September 2015
Slide 2: Forward-looking statements
Certain matters discussed within or in connection with these materials may contain “forward-looking statements” as defined in federal securities laws, which are subject to risks and uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results, T
Slide 3: Opening Remarks
Opening Ren Strong Balanced Growth Core Earnings Peen Operating Results + Continued growth in —— LHI balances ee highly competitive CBI market (MELs’) wi high levels of refinancing paler demand and total deposits at increased pace + Growth in total loans continues to produce strong net revenue + Ope
Slide 4: Expansion of Mortgage Finance Services
Expansion of Mor nance Services + Launching Mortgage Correspondent Aggregation (“MCA”) business in our Mortgage Finance (“MF”) group - MCA will complement existing offerings in national mortgage markets ~ MCA will buy whole loan mortgages fi Jients and hold those loans for a short period before sell
Slide 5: Expected results from MCA
+ Expected results from MCA Meaningful improvement in overall MF contribution with exceptional risk-adjusted returns Improved risk weight of total MFL portfolio as program matures Highly profitable with capturing of income historically delivered to other aggregators + Increased yield included in net
Slide 6: Energy Update
Energy Update Outstanding energy loans represented 8% of total loans, or $1.2 billion at June 30, 2015 TCBI’s energy loans primarily consist of engineered reserve-based loans to upstream E&P operators, which represented 6% of total loans at June 30, 201: + E&P 6% (61% oil and 39% gas) + Service 1% (
Slide 7: Energy non-accruals
Energy non-accruals + 12/31/2014 - $1.0 million + 6/30/2015 - $36.3 million + $16 million moved back to accrual status in Q3-2015 Cumulative energy losses <$300,000 in over 15 years Risk grade migration will likely occur and will have an impact on provisions that reflects the duration and depth of t
Slide 8: Houston Market Risk Real Estate
Houston Market Risk Real Estate 8 • •
Slide 9: • • • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%
• • • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% P o rt fo li o B a la n c e s ($ B )
Slide 10: Loan Growth
Loan Growth Average Balance Trends ($B) Total Loan Composition (516.1 Billion a 6/30/15) S89) 4.51% 4.52% 4.40% 4.319643 << 7 R 2204320144201 QEIMIS Rams Com RIE LHI (excl MFL) Yield Mia, Ris me LHI (cil. MFLS) guy MPLS Growth Highlights Broad-based growth in average traditional LHI - Growth of $438
Slide 11: • • 0.00% 0.10% 0.20% 0.30% 0.40% 0.50%
• • 0.00% 0.10% 0.20% 0.30% 0.40% 0.50%
Slide 12: • • 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0%
• • 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0%
Slide 13: Performance Summary - Quarterly
Performance Summary - Quarterly Net interest income $ 142,285 $ 130,009 $ 127,582 $125,661 $ 115,407 Non-interest income 12,71 12,267 11,226 10,396 10,533 Net revenue 155,056 142,276 138,808 136,057 125,940 Provision for credit losses 14,500 11,000 6,500 6,500 4,000 Non-interest expense 81,276 76,51
Slide 14: 2015 Outlook v. 2014 Results
Business Driver 2015 Outlook v. 2014 Results Changes since April 22, 2015
Slide 15: Asset Quality
Asset Quality Non-accrual loans ‘Commercial Construction Real estate Consumer Equipment leases Total non-accrual loans Non-accrual loans as % of loans excluding M Non-accrual loans as % of total loans OREO ‘Total Non-accruals + OREO lon-accrual loans + OREO as % of Joans excluding MF + OREO Reserve
Slide 16: EPS Growth
EPS Growth EPS Growth (S-yr CAGR of 27%) $3.50 $3.00 $3.00 $0.78 $250 $2.00 $1.50 so71 $1.00 $0.50 | $0.70 s . ~ - ~ ; 2010 201 2012 2013, 2014 YTD Q2-2015 2,300,000 $150 milion 1,875,000 January Se common shares preferredshares 2,523,128 November ne ‘August ‘March ‘common shares @© Texas Capit:
Slide 17: Closing Comments
Closing Comments - Continued traditional LHI growth experienced in Q2-2015 affirms our confidence in the guidance for the remainder of 2015, despite limitations on CRE and Builder Finance growth rates and uncertainty related to Energy + Continue to have critical focus on maintaining strong credit qu
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: Average Balances, Yields & Rates - Quarterly
Average Balances, Yields & Rates - Quarterly ee | $36,508 3.61% $39,930 3.78% $50,487 4.00% 2,304,422 25% 2,210,864 25% 198,058 22% Loans held for investment, mortgage finance 4,573,478 2.96% 3,746,938 2.99% 2,822,560 3.30% Loans held for investment 10,941,029 432% 10,502,172 431% 8,984,521 451% ‘To
Slide 21: Average Balance Sheet - Quarterly
Average Balance Sheet - Quarterly Total assets $18,239,385 $16,857,892 $12,362,459 8% 48% Loans held for investment 10,941,029 10,502,172 8,984,521 4% 22% [ sanebeld foriewetment morgage 4573478 3,746,938 2,822,560 as om ‘Total loans 15,514,507, 14,249,110 11,807,081 9% 31% Liquidity assets 2,304,42
Slide 22: Period End Balance Sheet
Period End Balan “Total assets $17,817,338 $17,325,458 $13,534,352 386 32% Loans held for investment 11,123,325 10,760,978 9,153,005 3% 22% [peasteld rlisensmeat siompage 4,906,415 5,408,750 3,700,253 (99% 396 ‘Total loans 16,029,740 16,169,728 12,853,258 (1)% 25% Liquidity assets 1,337,364 734,495
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