Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Sterne Agee Financial Institutions Investor Conference 2015
23 slides from Texas Capital Bancshares's conference presentation, Feb 12, 2015
Slide 1: Sterne Agee Financial Institutions Investor Conference
Exhibit 99.1 SterneBartholow, Financial February Peter Agee 12, Institutions 2015Chief Keith Investor Operating Cargill, Conference President Officer and andCFO CEO
Slide 2: Forward-looking statements
Certain expectations statements. and uncertainties statements 2information, similar exposure matters speak These expressions. future of that tofuture discussed regulatory only may risks events events as affect and Aofon or number and uncertainties the Texas this otherwise. orlegislative date future
Slide 3: Texas Capital Bancshares Overview
Overview Texas All Substantial Focus Clients Organic Growth Exceptional Strong Critical 3Business five Capital on Credit with focus Strategy in Texas growth model middle and loans commercial growth borrowing on Culture ismarkets Strategy model predicted aand credit market commercially-focused opport
Slide 4: Opening Remarks: Q4-2014 Financial Highlights
Opening Strong Exceptional Continued Asset Core Growth Operating Business Credit NCOs High 4Provision Earnings allowance sensitivity Quality metrics at Balanced inRemarks 5model primarily leverage mortgage total strong bps growth remain Power in loans coverage focused position Growth Q4-2014 growth
Slide 5: Energy Lending Exposure and Credit Policy
Energy TCBI Executives, All Engineering Since Cumulative Outstanding Exposure 5Service lending our has Commentary exposure to inception deep authority lenders, energy oil team loans experience service generally reports inlosses there credit energy rests less have to <with policy in limited than $300
Slide 6: Energy Portfolio Review
Energy We Anticipate Nothing The Price Average Agreements Over Hedged 6In combination have ability 90% decks Portfolio prices currently credit completed of potential to are generally oil-weighted control are line dynamic, with Review expected much isreview for hedges, the approximately provide some
Slide 7: Revenue and Expense Trends
Revenue 0Operating 400,000 2009 2014 2013 2012 2011 Improvement Strong Total Net Reduction Continued Effective Linked 7Provision 100,000 Income& Non-interest High Interest Revenue 2010 returns loans &Expense Expense capacity quarter 500,000 utilization expense Revenue 200,000 in focus spread CAGR: I
Slide 8: Net Interest Margin and Yields Trends
NIM20.0 Yields MFL Yield Favorable High Core Deposit Minor Impact Significant Net 0.0 120.0 100.0 80.0 83.00% 6.00% 5.50% 5.00% interest Interest funding Highlights risk-adjusted growth reduction 140.0 benefit on 3.50% on growth 40.0 traditional deposit NIM increase income Income benefits 60.0 costs
Slide 9: Net Interest Income and Non-interest Expense Analysis
Analysis NII 125.7 (3.0) (.6) 1.5 3.8 .1 $127.6 Non-interest Q3 (decreases) Legal Salaries All 9Q4Increase Other 2014 Mix Impact other ($MM) Decrease Decrease Q3 &Q4 and shift –other $71.9 $74.1 of –2014 2014 of in includes NIM Net employee expense of in liquidity increase professional in 3.77% Inte
Slide 10: Performance Summary—Quarterly
Performance (in Provision OREO Total Non-interest Income Preferred Diluted Net ROA ROE Efficiency(1) 10 (1) thousands) revenue income interest 11.41% provision 1.03% Excludes valuation before tax EPS stock for expense income 37,834 available margin 138,808 1.07% $expense income Summary—Quarterly cre
Slide 11: Performance Summary—Annual
Performance (in Provision OREO Total Non-interest Income Preferred Diluted Net ROA ROE Efficiency(1) 11 (1) thousands) revenue income interest 11.31% provision 1.05% Excludes valuation before tax EPS stock for expense income 136,352 available margin 519,476 1.17% $expense income Summary—Annual credi
Slide 12: 2015 Outlook
2015Charge-Offs Business Average Low Net NIE Mid Diluted 12 Low –fifties, double-digit Outlook shares LHI Deposits Driver to mid-teens includes –Low 2015 Mortgage 2015 Less percent Mid teens will continued Outlook than percent topercent include high Finance growth, 0.25% teens growth v.development g
Slide 13: Loan and Deposit Growth and Composition
Loan Balance 02Loans 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2010 Demand 2014 2013 Business Energy Highly Unsecured Owner Residential Comml Other Mortgage Growth Broad-based Period-end MF Average Total 13 009performance 2011 Deposit Loan average & Assets Held Occupied Liquid 6% R/E Highlights D
Slide 14: Asset Quality Highlights
A NONSUMER C R QUALITY ON-ACCRUAL SSET OMMERCIAL ONSTRUCTION $LOANS 33,122 – 173 9,947 Q4-2014 C E N EAL OREO T ESTATE TQUIPMENT ON--ACCRUAL OTAL NON 568 N ACCRUAL --62 LEASES ACCRUAL LOANS LOANS +OREO AS OREO43,304 % LOANS OF LOANS $ 43,872 TOTAL LOANS .30% EXCLUDING MF .43%MF + OREO .43% N ROTAL O
Slide 15: EPS Growth
EPS Growth (5-yr $3.00 $3.01 $3.50 $1.00 $1.50 $2.00 $1.99 $2.50 $2.72 2009^ $0.00 $0.50 ^Excludes 2009. 15 CAGR $2.88 $0.71 Reported 2010$.15 2011 of 39%) effect EPS 2012 was of2013 preferred $0.56. 2014 TARP dividend during
Slide 16: Closing Comments
Closing Proven Solid Despite Continue Continued Remain Successful No Strong 16 real core build organic seasonality drop highly Comments toearnings success track have out inasset growth energy in record critical in 2014 experienced power sensitive building prices, business ofand focus talent andthe b
Slide 17: Q&A
Q&A © TEXAS CAPITAL BANCSHARES, INC:
Slide 18: Appendix
Appendix 1s © TEXAS CAPITAL BANCSHARES, INC:
Slide 19: Average Balances, Yields and Rates—Quarterly
Average (in Securities Assets Fed Loans Liabilities Other Subordinated Long-term Demand Net Total Loan 19 thousands) interest funds loans, earning assets interest liabilities deposits spread borrowings held Balances, deposits $sold and debt for $14,631,072 margin net 42,515 3.91% bearing assets note
Slide 20: Average Balances, Yields and Rates—Annual
Average (in Avg. Securities Assets Fed Loans Liabilities Other Subordinated Long-term Demand Stockholders’ Net Total Loan 20 thousands) interest funds Bal. loans, earning assets interest liabilities deposits spread borrowings held Balances, deposits Yield $sold and debt for $13,016,611 margin net 49
Slide 21: Average Balance Sheet—Quarterly
Average (in Loans Securities Demand Total Stockholders’ 21 thousands) assets loans deposits held Balance deposits 42,515 13,393,060 for $14,631,072 equity 12,453,312 QTD investment investment, Sheet—Quarterly 5,047,876 46,413 Average 1,380,646 12,876,041 $13,629,609 65,067 11,526,314 9,921,323 mortg
Slide 22: Average Balance Sheet—Annual
Average (in 2014 Loans Securities Demand Total Stockholders’ 22 thousands) 2013 assets loans deposits held Balance deposits 49,200 YOY 12,214,373 for $13,016,611 equity 10,865,544 YTD investment investment, % Sheet—Annual 4,188,173 77,178 Change Average 1,269,601 9,813,825 $10,348,404 (36)% 8,374,87
Slide 23: Period End Balance Sheet
Period (in Loans Securities Demand Total Stockholders’ 23 thousands) assets loans deposits held End deposits 41,719 14,257,012 for Balance $15,899,946 equity 12,673,300 Period investment investment, 5,011,619 43,938 Sheet 1,484,190 End 13,460,889 $14,266,503 63,214 11,715,808 Q4/Q3 10,154,887 mortga
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