Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Morgan Stanley Financials Conference 2014
18 slides from Texas Capital Bancshares's conference presentation, Jun 9, 2014
Slide 1: Morgan Stanley Financials Conference, June 10, 2014
Exhibit 99.1 Morgan Financials June Peter Texas 10, Bartholow, Capital Stanley 2014 Conference Bancshares, Keith Chief Cargill, Operating Inc. President Officer andand CEOCFO
Slide 2: Forward-looking statements
Certaincause future events These could Exchange 2Texas Capital events risks ormatters otherwise. Commission. and results or Bancshares, discussed uncertainties future toAdiffer number results. inInc. materially connection include Texas of factors, Capital the from with risk many those isthis ofunder
Slide 3: Overview – Strong Growth Strategy
Overview –Growth Strong Fort 3Texas All Borrowers Organic Grow Growth Worth 5Capital Credit markets loan/deposit strategy opportunities and growth Dallas with Culture Bancshares, Strategy ranked borrowing (never Sanbase –Antonio in reside low made the by Inc. net needs hiring top inais Austin charge
Slide 4: Opening Remarks: Q1-2014 Financial Highlights
Opening Strong Core Exceptional Mortgage Continued Successful Business Growth Credit NCOs NPAs High Provision 4TexasEarnings level allowance well Capital Quality metrics at Balanced inRemarks driven 10 model primarily Finance deposits total growth of below deployment bps growth asset Bancshares, rem
Slide 5: Operating Revenue and Non-interest Expense Trends
0Operating 100,000 200,000 300,000 400,000 500,000 2009 Non-interest Revenue Strong Growth Decreased Increased High Difference Q1-2014 Increase Continued Adjusting Provision 5Texas2010 returns Capital capacity in of & expenses 9% represents for Revenue total from build-out 2011 in $900,000 Expense I
Slide 6: Net Interest Margin and Yields Trends
NIMInterest Yields Lower Core Cost Fee Net Q2-2012 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 6Texas collection of funding Highlights Capital on MF subordinated additional Q3-2012 traditional yields Income, Income income costs Bancshares, on NPLs due liquidity Q4-2
Slide 7: Analysis of NII and Pre-tax Income
Analysis NII Pre-tax $(1.6) 0.0 (1.1) 0.6 (2.5) 3.7 (0.6) 7108.4 Texas Increase Mix Growth ($MM) Decline Decrease Reduced Other Q1-2014 111.6 Efficiency Capital shift of (0.03) (at NIM Net in Subordinated from inday in liquidity Q4 3.99% Bancshares, Interest loan (%) MF LHI (1) margin) count MF fee
Slide 8: Performance Summary
Performance (in Provision OREO Total Non-Interest Income Preferred Diluted Net ROA ROE 8Efficiency(1) Texas (1) thousands) Revenue Income Interest Excludes 10.20% provision 1.01% Capital valuation before tax EPS stock for expense Income 28,261 available Margin 1.10% $expense Income Summary 118,671 c
Slide 9: Loan and Deposit Growth
Loan Balance 0Loans 2,000 4,000 6,000 8,000 10,000 12,000 Demand ($11.6 Business Energy Highly Unsecured Owner Mortgage Residential Other Comml. Growth Broad balance MF Average 9Total Texas 2009 performance Deposit Loan deposit & Assets Held based Billion Occupied 2010 Liquid 8% Capital and Highligh
Slide 10: Asset Quality Highlights
Commercial Construction Real Consumer Equipment OREO Non-accrual Reserve NCO 1.00% 1.20% 1.40% 0.40% 0.60% 0.80% 0.00% 0.20% 2010 Asset Total Provision NCOs No 10 Texas OREO Estate 2011 non-accrual Non-accruals credit /Quality $2.1 1.14% 0.58% 0.10% Average 2,420 toCapital of 8valuation 2012 non-acc
Slide 11: EPS Growth
EPS (5-yr $3.00 $3.50 $2.00 $2.50 $2.72 $1.00 $1.50 $0.00 $0.50 $0.60 2009^ ^Excludes 3/31/2014 11 Texas Growth CAGR YTD $3.01 $1.99 $0.71 2010 Capital $.15 2011 $1.00 of 27%) effect Bancshares, 2012of2013 preferred Inc. TARP dividend during 2009. Reported EPS was $0.56.
Slide 12: 2014 Outlook
2014 Business Average Liquidity Net NIE Efficiency As 12 Texas of Interest Charge-Offs High Outlook June LHI LHI- Deposits Capital Driver Assets single Ratio 10, Income Margin Mid Mortgage 2014 2014 Growth digit Less Bancshares, High to3.80% Low high -than Outlook to teens Finance with double teens
Slide 13: Proven Strengths and 2014 Challenges
2014 interest Proven Strengths Continue Well Successful Excellent Mortgage Low Challenges Regulatory Competition Texas 13 capitalized Performance Capital organic to credit Finance track environment be and rates Bancshares, highly growth quality for record pressure continues Drivers expected asset bu
Slide 14: Q&A
Texas Capital Bancshares, Inc. Q&A 14
Slide 15: Appendix
Texas Capital Bancshares, Inc. Appendix 15
Slide 16: Average Balance Sheet and Yields
Average (in Avg. Securities Assets Fed Loans Liabilities Other Subordinated Long-term Demand Stockholders’ Net Total Loan Texas 16 thousands) Interest Funds Bal. Assets Loans, Earning Interest Liabilities Deposits Spread Borrowings Capital Held Balances, Deposits Yield $and Sold Debt for Margin 57,5
Slide 17: Average Balance Sheet Q1/Q4 Change
Average (in Q1/Q4 Q1 Loans Finance Securities Demand Total Stockholders’ Texas 17 thousands) 2014 Assets Loans Deposits Capital Held %2,027,264 Balance Deposits Q4 YOY 57,581 for 10,745,233 $11,401,368 2013 Bancshares, equity QTD 9,486,715 Investment Investment, %Sheet 65,067 3,381,501 Q1 2,238,730
Slide 18: Ending Balance Sheet Q1/Q4 Change
Ending (in Q1/Q4 Q1 29% Loans Finance Securities (39)% Demand Total Stockholders’ Texas 18 thousands) 2014 Assets Loans Deposits Capital Held % Balance 2,688,044 Deposits Q4 YOY 52,960 for 11,616,077 $12,143,296 2013 Bancshares, equity Period 9,729,128 Investment Investment, %Sheet 63,214 3,451,294
Texas Capital Bancshares — Morgan Stanley Financials Conference 2014 on 6ix