Texas Capital Bancshares, Inc. · NASDAQ:TCBI

Texas Capital Bancshares — Q2 2021 Earnings Presentation

13 slides from Texas Capital Bancshares's earnings presentation, Jul 21, 2021

  1. Slide 1: Q2-2021 Earnings

    Q2-2021 Earnings July 21, 2021 © 2021 Texas Capital Bank, N.A. Member FDIC

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, our financial condition, results of operations, business plans and future performance. These s

  3. Slide 3: Improved Profitability

    Improved Profitability Financial Highlights ($M) Q2 2020 Q1 2021 Q2 2021  Net income to common of $73.5 million, or $1.31 per diluted share. Steadily Net Interest Income $209.9 $200.1 $197.0 improving economic outlook continues to benefit credit trends, driving a material Y-o-Y increase in net inco

  4. Slide 4: Building a Foundation for Success

    Building a Foundation for Success Our Ongoing Focus on Operational An Ongoing Focus on Operational Q1 2021 Leadership Announcements Q2 2021 Leadership Announcements Excellence & Talent Management Excellence & client Delivery  The now established Operating Committee is Tim Storms Julia Harman meetin

  5. Slide 5: Noteworthy Items | Loan Fees and PPP

    Noteworthy Items | Loan Fees and PPP Loan Fees (excl. PPP) PPP Loans LHI Yield NIM PPP Fees Loan Fee Dollars $5.1M Contribution Contribution $5.1M Yield on PPP Loans (excl. Fees) Q2 2020 0.29% 0.13% $12.2M $3.4M Q3 2020 0.25% 0.11% $10.5M $1.6M 1.00% 0.99% 1.00% 0.98% Q4 2020 0.46% 0.19% $18.0M Q3 2

  6. Slide 6: Noteworthy Items | Correspondent Lending

    Noteworthy Items | Correspondent Lending Historical Contribution (in $ millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 FY 2020 Risk LHS (Average) LHS (Period-end) Weighted Net Interest Income 24.5 1.5 2.8 1.4 0.9 0.3 30.2 ~50% Non-interest Income Brokered Loan Fees 2.6 2.8 5.8 3.9 2.2 0.7

  7. Slide 7: Noteworthy Items | Capital Actions and Liquidity

    Noteworthy Items | Capital Actions and Liquidity Risk-based Capital Ratios | Consolidated Excess Liquidity Interest and Dividend Expense Investment Portfolio (Average) Liquidity Assets2 (Average) Q2 2021 Q2 2021 Action Q2 2021 (Actual) Q3 2021 (Projected)1 EOP Preferred Stock $150M redemption $6.3M

  8. Slide 8: Credit Risk Management

    Credit Risk Management Highlights Credit Quality  Credit Trends Q2 2020 Q1 2021 Q2 2021  Improved economic activity and outlook coupled with prior de-risking efforts resulted in stabilized performance 2.5x 2.6x  Net charge-offs of $2.4 million in Q2-2021, materially lower than prior year and prio

  9. Slide 9: Loan Portfolio

    Loan Portfolio Average Loans and Total Loan Spread Commentary Q2 2021 EOP 1 LHI (excl. MFLs and PPP Loans) PPP Loans Total MFLs  Average total MFLs 1 decreased $0.8 billion on normalizing Warehouse refinance $11.4B volumes and reduced LHS. Actions to $10.2B $9.1B $9.6B $10.0B $8.4B $8.8B bolster wa

  10. Slide 10: Deposits and Fundings

    Deposits and Fundings Average Deposits Balances Q2 2021 EOP Commentary  Interest-bearing deposits declined $10.9B $12.2B $13.2B $14.4B meaningfully as a result of targeted actions $15.1B $10.9B $10.0B $14.2B to reduce higher-cost indexed deposits. Ending balances $2.2 billion lower than $2.4B $1.8B

  11. Slide 11: Balance Sheet Management

    Q2-2021 Earnings Overview Net Interest Income & Margin Commentary Net Interest Margin Detail (bps) Continued refinance normalization and Net Interest Income  $209.9M Correspondent Lending transition drove an overall $200.1M $197.0M decline in mortgage finance interest income. Warehouse origination

  12. Slide 12: Non-interest income Non-interest expense

    Q2-2021 Earnings Overview Non-interest Income Commentary Fee Income Details Non-interest income $70.5M  Brokered loan fees, servicing income, and GOS $8.1M $8.3M related to the Correspondent Lending transition $0.5M $0.5M weighed on total non-interest income ($13.2 $6.3M million lower Q-o-Q). Impac

  13. Slide 13: Looking to the Future

    Looking to the Future  Diverse, well-established lines of business balanced with differentiated national businesses and core market offerings reflective of the relationship banking approach synonymous with Texas Capital since inception. Our focus is on businesses providing stable, thru-cycle earnin

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