Press Release

Texas Capital Bancshares Announces Operating Results for 2010

Company Release - 1/26/2011 4:01 PM ET

DALLAS--(BUSINESS WIRE)-- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the fourth quarter and full year of 2010.

  • Net income increased 53% for the year, 27% in the fourth quarter compared to the third quarter of 2010 and 88% in the fourth quarter of 2010 compared to the same period in 2009
  • EPS increased 82% for the year, 28% compared to the third quarter of 2010 and 78% for the fourth quarter as compared to the same quarter of 2009
  • Demand deposits grew 61% and total deposits grew 32% from 2009; the increase from the third quarter for demand deposits was 21% and 1% for total deposits
  • Loans held for investment increased 6% from year-end 2009 and 5% from the third quarter of 2010; total loans grew 15% from year-end 2009 and consistent from the third quarter of 2010

"We are pleased to end the year with record earnings, assets and deposits," said George Jones, CEO. "As we begin 2011, we are well positioned to see a continuation of our strong core earnings power that we demonstrated in 2010."

     
FINANCIAL SUMMARY

(dollars and shares in thousands)

 
2010 2009 % Change
ANNUAL OPERATING RESULTS(1)
Net Income $ 37,323 $ 24,387 53 %
Net Income Available to Common Shareholders $ 37,323 $ 19,004 96 %
Diluted EPS $ 1.00 $ .55 82 %
ROA .63 % .46 %
ROE 7.23 % 5.15 %
Diluted Shares 37,346 34,410
 
Q4 2010 Q4 2009 % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 12,076 $ 6,427 88 %
Diluted EPS $ .32 $ .18 78 %
ROA .72 % .47 %
ROE 9.04 % 5.26 %
Diluted Shares 37,658 36,311
 
BALANCE SHEET(1)
Total Assets $ 6,448,179 $ 5,698,318 13 %
Demand Deposits 1,451,307 899,492 61 %
Total Deposits 5,455,401 4,120,725 32 %
Loans Held for Investment 4,711,330 4,457,293 6 %
Total Loans 5,905,539 5,150,797 15 %
Stockholders’ Equity 528,319 481,360 10 %

(1) Operating results, assets and loans are reporting from continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $37.3 million for 2010 compared to $24.4 million in 2009. For the fourth quarter of 2010, we earned $12.1 million compared to $6.4 million for the same period in 2009. On a fully diluted basis, earnings per common share from continuing operations were $1.00 for 2010, compared to $.55 for 2009. The dividend on preferred shares outstanding during the first half of 2009 represented $.16 per common share. For the fourth quarter of 2010, diluted earnings per share was $.32 compared to $.18 for the same period in 2009. The discussion below relates only to continuing operations.

Return on average equity was 7.23 percent and return on average assets was .63 percent for 2010, compared to 5.15 percent and .46 percent, respectively for 2009. Return on average equity was 9.04 percent and return on average assets was .72 percent for the fourth quarter of 2010, compared to 5.26 percent and .47 percent, respectively for the fourth quarter of 2009.

The net interest margin in the fourth quarter of 2010 was 4.12 percent, a 9 basis point decrease from the fourth quarter of 2009 and a 15 basis point decrease from the third quarter of 2010. Our growth in deposits has been invested primarily in loans held for sale and liquidity assets, and has produced net spreads for the fourth quarter of 2010, which were below the net interest margin for the third quarter, thereby reducing net interest margin. While the net interest margin declined, the growth in earning assets and reduction in funding costs produced an increase in net interest income of $3.3 million compared to the third quarter of 2010. Due to changes in rates on mortgage loans, the yield on loans held for sale fell by 12 bps, but the effect on net interest income from the reduction in rate was more than offset by the growth in balances. The growth in customer deposits has limited the ability to utilize lower-cost borrowed funds to support growth in loans held for investment. Net interest income was $66.0 million for the fourth quarter of 2010, compared to $55.1 million for the fourth quarter of 2009. The increase was due to an increase in average earning assets of $1.2 billion over levels reported in the fourth quarter of 2009. The increase in average earning assets included a $148.8 million increase in average loans held for investment and an increase of $722.5 million in average loans held for sale, offset by a decrease of $80.6 million in average securities.

Average total deposits increased by $1.5 billion from the fourth quarter of 2009 and increased by $552.0 million from the third quarter of 2010. For the same periods, the average balance of demand deposits increased by $422.9 million, or 46 percent, to $1.3 billion from $914.3 million during the fourth quarter of 2009 and increased $194.5 million, or 17 percent, from the third quarter of 2010.

As a result of the overall economic downturn, we have experienced increases in levels of non-performing assets and credit losses during 2010; since June 30, 2010, non-performing assets have begun to trend down. Credit costs, including the provision for loan losses, and valuation charges related to other real estate owned (“OREO”) totaled $14.3 million in fourth quarter of 2010 compared to $16.1 million in the fourth quarter of 2009 and $17.2 million in the third quarter of 2010. We recorded a $12.0 million provision for credit losses in the fourth quarter of 2010, compared to $10.5 million in the fourth quarter of 2009 and $13.5 million in the third quarter of 2010. At December 31, 2010 combined reserve decreased to 1.56 percent of loans held for investment as compared to 1.59 percent at December 31, 2009, and 1.75 percent at the end of the third quarter of 2010. In management’s opinion, the reserve is adequate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio. In the fourth quarter of 2010, net charge-offs were $17.0 million, compared to net charge-offs of $8.0 million in the fourth quarter of 2009 and net charge-offs of $12.1 million in the third quarter of 2010. Non-accrual loans were $112.1 million, or 2.38 percent, of total loans at the end of the fourth quarter of 2010, compared to $95.6 million, or 2.15 percent of loans at the end of the fourth quarter of 2009, and $127.1 million, or 2.83 percent of loans at the end of the third quarter of 2010. At December 31, 2010, total OREO was $42.3 million compared to $27.3 million at the end of the fourth quarter of 2009, and $38.6 million at the end of the third quarter of 2010. The OREO balance of $42.3 million at December 31, 2010 is stated net of a $12.9 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $2.3 million in the fourth quarter of 2010 and $8.5 million for the year; the charge for OREO valuation was $3.7 million in the third quarter of 2010 and $5.6 million in the fourth quarter of 2009.

Non-interest income for the fourth quarter of 2010 increased $1.4 million, or 18 percent, to $9.2 million from $7.8 million in the fourth quarter of 2009. The increase is primarily related to a $1.6 million increase in brokered loan fees and a $218,000 increase in service charge income, offset by a $555,000 decrease in equipment rental income.

Non-interest expense for the fourth quarter of 2010 increased $1.8 million, or 4 percent, to $44.6 million from $42.8 million in the fourth quarter of 2009. The increase is primarily related to a $2.4 million increase in salaries and employee benefits to $22.0 million from $19.6 million, which was primarily due to general business growth. Marketing expense increased $1.1 million to $2.2 million relating to general business growth. Additionally, legal and professional expense and FDIC assessment expense increased $854,000 and $639,000, respectively, from the fourth quarter 2009. Offsetting these increases was a $3.1 million decrease in allowance and other carrying costs for OREO expense as compared to the prior year. Of the $3.2 million expense for the fourth quarter of 2010, $544,000 was related to increasing the valuation allowance and $1.8 million related to direct write-downs of the OREO balance.

Stockholders’ equity increased by 10 percent from $481.4 million at December 31, 2009 to $528.3 million at December 31, 2010. Contributing to the increase was retained net income and proceeds of sales of common stock. The Bank is well capitalized under regulatory guidelines and at December 31, 2010, the Company’s ratio of tangible common equity to total tangible assets was 8.0 percent.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a member of the Russell 2000™ Index and the S&P SmallCap 600, is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains 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 such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission

 

TEXAS CAPITAL BANCSHARES, INC.

 

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(Dollars in thousands except per share data)

  4th Quarter   3rd Quarter   2nd Quarter   1st Quarter  

4th Quarter

2010 2010 2010 2010 2009
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 75,432 $ 72,600 $ 67,472 $ 64,306 $ 65,137
Interest expense   9,477     9,994     9,587     9,078     10,031  
Net interest income 65,955 62,606 57,885 55,228 55,106
Provision for credit losses   12,000     13,500     14,500     13,500     10,500  
Net interest income after provision for credit losses 53,955 49,106 43,385 41,728 44,606
Non-interest income 9,178 8,101 8,036 6,948 7,811
Non-interest expense   44,582     42,602     39,118     37,186     42,796  
Income from continuing operations before income taxes

18,551

14,605

12,303

11,490

9,621

Income tax expense   6,475     5,074     4,187     3,890     3,194  
Income from continuing operations 12,076 9,531 8,116 7,600 6,427
Loss from discontinued operations (after-tax)   (22 )   (5 )   (54 )   (55 )   (55 )
Net income 12,054 9,526 8,062 7,545 6,372
Preferred stock dividends                    
Net income available to common shareholders $ 12,054   $ 9,526   $ 8,062   $ 7,545   $ 6,372  
Diluted EPS from continuing operations $ .32 $ .25 $ .22 $ .21 $ .18
Diluted EPS $ .32 $ .25 $ .22 $ .21 $ .18
 
Diluted shares 37,658,396 37,444,516 37,486,785 36,783,719 36,311,306
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 6,448,179 $ 6,344,916 $ 5,961,472 $ 5,499,599 $ 5,698,318
Loans held for investment 4,711,330 4,483,204 4,462,830 4,443,456 4,457,293
Loans held for sale 1,194,209 1,399,208 997,150 592,436 693,504
Securities 185,424 202,177 227,029 246,209 266,128
Demand deposits 1,451,307 1,195,093 1,120,664 994,096 899,492
Total deposits 5,455,401 5,407,033 4,926,069 4,409,819 4,120,725
Other borrowings 300,387 270,628 376,646 452,061 957,029
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 528,319 515,618 514,078 499,996 481,360
 
End of period shares 36,956,688 36,792,030 36,776,836 36,524,313 35,919,941
Book value (excluding securities gains/losses) $ 14.15 $ 13.84 $ 13.79 $ 13.52 $ 13.23
Tangible book value (excluding securities gains/losses)

$

13.89

$

13.58

$

13.53

$

13.25

$

12.96

 
SELECTED FINANCIAL RATIOS
From continuing operations:
Net interest margin 4.12 % 4.27 % 4.32 % 4.43 % 4.21 %
Return on average assets .72 % .62 % .58 % .57 % .47 %
Return on average equity 9.04 % 7.23 % 6.33 % 6.21 % 5.26 %
Non-interest income to earning assets .57 % .55 % .60 % .55 % .59 %
Efficiency ratio 59.3 % 60.3 % 59.3 % 59.8 % 68.0 %
Efficiency ratio (excluding OREO valuation/write-down)

56.2

%

55.1

%

58.5

%

56.7

%

59.1

%

Non-interest expense to earning assets 2.78 % 2.90 % 2.91 % 2.97 % 3.26 %
From consolidated:
Net interest margin 4.12 % 4.27 % 4.32 % 4.43 % 4.21 %
Return on average assets .72 % .62 % .57 % .57 % .46 %
Return on average equity 9.02 % 7.23 % 6.29 % 6.17 % 5.21 %
 
Tangible common equity to total tangible assets 8.0 % 7.9 % 8.4 % 8.8 % 8.2 %
Tier 1 capital ratio 10.6 % 10.7 % 11.0 % 11.3 % 10.7 %
Total capital ratio 11.8 % 11.9 % 12.3 % 12.5 % 12.0 %
Tier 1 leverage ratio 9.4 % 10.0 % 10.7 % 11.0 % 10.5 %
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
  December 31,   December 31,   %
2010 2009 Change
Assets
Cash and due from banks $ 107,366 $ 80,459 33 %
Federal funds sold 75,000 44,980 67 %
Securities, available-for-sale 185,424 266,128 (30 )%
Loans held for sale 1,194,209 693,504 72 %
Loans held for sale from discontinued operations 490 586 (16 )%
Loans held for investment (net of unearned income) 4,711,330 4,457,293 6 %
Less: Allowance for loan losses   71,510     67,931   5 %
Loans held for investment, net 4,639,820 4,389,362 6 %
Premises and equipment, net 11,568 11,189 3 %
Accrued interest receivable and other assets 225,309 202,890 11 %
Goodwill and intangibles, net   9,483     9,806   (3 )%
Total assets $ 6,448,669   $ 5,698,904   13 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 1,451,307 $ 899,492 61 %
Interest bearing 3,545,146 2,837,163 25 %
Interest bearing in foreign branches   458,948     384,070   19 %
Total deposits 5,455,401 4,120,725 32 %
 
Accrued interest payable 2,579 2,468 4 %
Other liabilities 48,577 23,916 103 %
Federal funds purchased 283,781 580,519 (51 )%
Repurchase agreements 10,920 25,070 (56 )%
Other short-term borrowings 5,686 351,440 (98 )%
Trust preferred subordinated debentures   113,406     113,406   -  
Total liabilities 5,920,350 5,217,544 13 %
 
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 36,957,104 and 35,919,941 at December 31, 2010 and 2009, respectively

369

359

3

%

Additional paid-in capital 336,796 326,224 3 %
Retained earnings 185,807 148,620 25 %
Treasury stock (shares at cost: 417 at December 31, 2010 and 2009)

(8

)

(8

)

-

Deferred compensation -
Accumulated other comprehensive income, net of taxes   5,355     6,165   (13 )%
Total stockholders’ equity   528,319     481,360   10 %
Total liabilities and stockholders’ equity $ 6,448,669   $ 5,698,904   13 %
       
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
2010 2009 2010 2009
Interest income
Interest and fees on loans $ 73,206 $ 62,174 $ 270,003 $ 229,500
Securities 2,018 2,957 9,481 13,578
Federal funds sold 118 2 210 31
Deposits in other banks   90     4     116     44  
Total interest income 75,432 65,137 279,810 243,153
Interest expense
Deposits 8,371 8,560 33,309 37,824
Federal funds purchased 229 460 1,097 2,404
Repurchase agreements 1 11 10 53
Other borrowings 76 48 1,949
Trust preferred subordinated debentures   876     924     3,672     4,232  
Total interest expense   9,477     10,031     38,136     46,462  
Net interest income 65,955 55,106 241,674 196,691
Provision for credit losses   12,000     10,500     53,500     43,500  
Net interest income after provision for credit losses 53,955 44,606 188,174 153,191
Non-interest income
Service charges on deposit accounts 1,708 1,490 6,392 6,287
Trust fee income 899 979 3,846 3,815
Bank owned life insurance (BOLI) income 482 464 1,889 1,579
Brokered loan fees 3,793 2,221 11,190 9,043
Equipment rental income 802 1,357 4,134 5,557
Other   1,494     1,300     4,812     2,979  
Total non-interest income 9,178 7,811 32,263 29,260
Non-interest expense
Salaries and employee benefits 21,964 19,631 85,298 73,419
Net occupancy expense 3,140 2,986 12,314 12,291
Leased equipment depreciation 623 1,031 3,297 4,319
Marketing 2,198 1,119 5,419 3,034
Legal and professional 3,884 3,030 11,837 11,846
Communications and data processing 959 993 4,028 3,743
FDIC insurance assessment 2,611 1,972 9,202 8,464
Allowance and other carrying costs for OREO 3,233 6,377 10,404 10,345
Other   5,970     5,657     21,689     18,081  
Total non-interest expense   44,582     42,796     163,488     145,542  
Income from continuing operations before income taxes 18,551 9,621 56,949 36,909
Income tax expense   6,475     3,194     19,626     12,522  
Income from continuing operations 12,076 6,427 37,323 24,387
Loss from discontinued operations (after-tax)   (22 )   (55 )   (136 )   (235 )
Net income 12,054 6,372 37,187 24,152
Preferred stock dividends               5,383  
Net income available to common stockholders $ 12,054   $ 6,372   $ 37,187   $ 18,769  
 
Basic earnings per common share:
Income from continuing operations $ .33 $ .18 $ 1.02 $ .56
Net income $ .33 $ .18 $ 1.02 $ .55
 
Diluted earnings per common share:
Income from continuing operations $ .32 $ .18 $ 1.00 $ .55
Net income $ .32 $ .18 $ 1.00 $ .55
 
TEXAS CAPITAL BANCSHARES, INC.
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
  4th Quarter   3rd Quarter   2nd Quarter   1st Quarter   4th Quarter
2010 2010 2010 2010 2009
Reserve for loan losses:
Beginning balance $ 75,655 $ 74,881 $ 71,705 $ 67,931 $ 65,818
Loans charged-off:
Commercial 11,135 2,384 6,653 7,551 2,098
Real estate – construction 6,229 5,789 420 4,051
Real estate – term 5,751 3,000 766 1,971
Consumer 216 3
Leases   148     595     218     594      
Total 17,250 12,208 12,660 9,331 8,123
Recoveries:
Commercial 47 76 30 23 34
Real estate – construction 1 6
Real estate – term 101 7 22 8 53
Consumer 2 2 7
Leases   75     8     55     20     34  
Total recoveries   225     94     107     51     134  
Net charge-offs 17,025 12,114 12,553 9,280 7,989
Provision for loan losses   12,880     12,888     15,729     13,054     10,102  
Ending balance $ 71,510   $ 75,655   $ 74,881   $ 71,705   $ 67,931  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 2,777 $ 2,165 $ 3,394 $ 2,948 $ 2,550
Provision for off-balance sheet credit losses   (880 )   612     (1,229 )   446     398  
Ending balance $ 1,897   $ 2,777   $ 2,165   $ 3,394   $ 2,948  
 
Total reserve for credit losses $ 73,407 $ 78,432 $ 77,046 $ 75,099 $ 70,879
 
Total provision for credit losses 12,000 $ 13,500 $ 14,500 $ 13,500 $ 10,500
 
Reserve to loans held for investment(2) 1.52 % 1.69 % 1.68 % 1.61 % 1.52 %
Reserve to average loans held for investment(2) 1.58 % 1.68 % 1.68 % 1.63 % 1.55 %
Net charge-offs to average loans(1)(2) 1.49 % 1.07 % 1.13 % .85 % .72 %
Net charge-offs to average loans for last twelve months(1)(2) 1.14 % .95 % .73 % .61 % .46 %
Total provision for credit losses to average loans(1)(2) 1.05 % 1.19 % 1.30 % 1.24 % .95 %
Combined reserves for credit losses to loans held for investment(2)

1.56

%

1.75

%

1.73

%

1.69

%

1.59

%

 
Non-performing assets (NPAs):
Non-accrual loans $ 112,090 $ 127,054 $ 138,236 $ 115,926 $ 95,625
Other real estate owned (OREO)(4)   42,261     38,646     42,077     28,865     27,264  
Total $ 154,351   $ 165,700   $ 180,313   $ 144,791   $ 122,889  
 
Non-accrual loans to loans(2) 2.38 % 2.83 % 3.10 % 2.61 % 2.15 %
Total NPAs to loans plus OREO(2) 3.25 % 3.66 % 4.00 % 3.24 % 2.74 %
Reserve for loan losses to non-accrual loans .6x .6x .5x .6x .7x
 
Restructured loans $ 4,319 $ $ $ 10,700 $
Loans past due 90 days and still accruing(3) $ 6,706 $ 2,428 $ 13,962 $ 2,390 $ 6,081
 
Loans past due 90 days to loans(2) .14 % .05 % .31 % .05 % .14 %

(1)

 

Interim period ratios are annualized.

(2)

Excludes loans held for sale.

(3)

At December 31, 2010, loans past due 90 days and still accruing includes premium finance loans of $3.3 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.

(4)

At December 31, 2010, OREO balance is net of $12.9 million valuation allowance.

 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
         

4th Quarter

3rd Quarter 2nd Quarter 1st Quarter 4th Quarter
2010 2010 2010 2010 2009
Interest income
Interest and fees on loans $ 73,206 $ 70,293 $ 64,935 $ 61,569 $ 62,174
Securities 2,018 2,246 2,491 2,726 2,957
Federal funds sold 118 50 40 2 2
Deposits in other banks   90     11     6     9     4  
Total interest income 75,432 72,600 67,472 64,306 65,137
Interest expense
Deposits 8,371 8,760 8,420 7,758 8,560
Federal funds purchased 229 259 244 365 460
Repurchase agreements 1 3 2 4 11
Other borrowings 1 47 76
Trust preferred subordinated debentures   876     972     920     904     924  
Total interest expense   9,477     9,994     9,587     9,078     10,031  
Net interest income 65,955 62,606 57,885 55,228 55,106
Provision for credit losses   12,000     13,500     14,500     13,500     10,500  
Net interest income after provision for credit losses 53,955 49,106 43,385 41,728 44,606
Non-interest income
Service charges on deposit accounts 1,708 1,662 1,539 1,483 1,490
Trust fee income 899 1,013 980 954 979
Bank owned life insurance (BOLI) income 482 455 481 471 464
Brokered loan fees 3,793 3,272 2,221 1,904 2,221
Equipment rental income 802 792 1,196 1,344 1,357
Other   1,494     907     1,619     792     1,300  
Total non-interest income 9,178 8,101 8,036 6,948 7,811
Non-interest expense
Salaries and employee benefits 21,964 21,872 21,393 20,069 19,631
Net occupancy expense 3,140 3,128 3,032 3,014 2,986
Leased equipment depreciation 623 580 1,035 1,059 1,031
Marketing 2,198 1,333 1,101 787 1,119
Legal and professional 3,884 2,705 3,298 1,950 3,030
Communications and data processing 959 1,142 911 1,016 993
FDIC insurance assessment 2,611 2,482 2,241 1,868 1,972
Allowance and other carrying costs for OREO 3,233 4,071 808 2,292 6,377
Other   5,970     5,289     5,299     5,131     5,657  
Total non-interest expense   44,582     42,602     39,118     37,186     42,796  
Income from continuing operations before income taxes

18,551

14,605

12,303

11,490

9,621

Income tax expense   6,475     5,074     4,187     3,890     3,194  
Income from continuing operations 12,076 9,531 8,116 7,600 6,427
Loss from discontinued operations (after-tax)   (22 )   (5 )   (54 )   (55 )   (55 )
Net income 12,054 9,526 8,062 7,545 6,372
Preferred stock dividends                    
Net income available to common stockholders

$

12,054

 

$

9,526

 

$

8,062

 

$

7,545

 

$

6,372

 
 
TEXAS CAPITAL BANCSHARES, INC.
 
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
 
  4th Quarter 2010   3rd Quarter 2010   2nd Quarter 2010   1st Quarter 2010   4th Quarter 2009
Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/ Average   Revenue/   Yield/
Balance

Expense (1)

Rate   Balance

Expense (1)

Rate   Balance

Expense (1)

Rate Balance

Expense (1)

Rate Balance

Expense (1)

Rate
Assets
Securities – Taxable $ 155,180 $ 1,666 4.26 % $ 173,835 $ 1,890 4.31 % $ 193,542 $ 2,126 4.41 % $ 211,618 $ 2,341 4.49 % $ 230,686 $ 2,560 4.40 %
Securities – Non-taxable(2) 37,848 541 5.67 % 38,357 548 5.67 % 39,635 562 5.69 % 41,654 592 5.76 % 42,932 611 5.65 %
Federal funds sold 241,907 118 0.19 % 107,404 50 0.18 % 91,564 40 0.18 % 7,471 2 0.11 % 5,550 2 0.14 %
Deposits in other banks 144,650 90 0.25 % 18,766 11 0.23 % 12,449 6 0.19 % 12,457 9 0.29 % 12,916 4 0.12 %
Loans held for sale 1,324,264 15,314 4.59 % 1,074,309 12,760 4.71 % 664,474 8,244 4.98 % 457,459 5,490 4.87 % 601,793 7,286 4.80 %
Loans held for investment 4,533,501 57,892 5.07 % 4,493,998 57,533 5.08 % 4,459,790 56,691 5.10 % 4,413,960 56,079 5.15 % 4,384,692 54,888 4.97 %
Less reserve for loan losses   74,580  

    74,810  

    71,536  

    66,726  

    68,177  

 
Loans, net of reserve   5,783,185   73,206 5.02 %   5,493,497   70,293 5.08 %   5,052,728   64,935 5.15 %   4,804,693   61,569 5.20 %   4,918,308   62,174 5.02 %
Total earning assets 6,362,770 75,621 4.72 % 5,831,859 72,792 4.95 % 5,389,918 67,669 5.04 % 5,077,893 64,513 5.15 % 5,210,392 65,351 4.98 %
Cash and other assets   285,566   267,923   261,668   311,128   243,823
Total assets $ 6,648,336 $ 6,099,782 $ 5,651,586 $ 5,389,021 $ 5,454,215
 
Liabilities and Stockholders’ Equity
Transaction deposits $ 434,160 $ 132 0.12 % $ 465,370 $ 189 0.16 % $ 484,900 $ 389 0.32 % $ 365,205 $ 264 0.29 % $ 180,767 $ 85 0.19 %
Savings deposits 2,511,343 3,978 0.63 % 2,222,431 4,228 0.75 % 2,054,199 4,047 0.79 % 1,773,201 3,524 0.81 % 1,620,659 3,569 0.87 %
Time deposits 1,022,509 3,068 1.19 % 955,703 3,044 1.26 % 832,973 2,808 1.35 % 840,820 2,787 1.34 % 1,111,899 3,454 1.23 %
Deposits in foreign branches   451,088   1,193 1.05 %   418,112   1,299 1.23 %   380,361   1,176 1.24 %   353,803   1,183 1.36 %   401,661   1,452 1.43 %
Total interest bearing deposits 4,419,100

8,371

0.75

%

4,061,616

8,760

0.86

%

3,752,433

8,420

0.90

%

3,333,029

7,758

0.94

%

3,314,986

8,560

1.02

%

Other borrowings 212,939 230 0.43 % 230,043 262 0.45 % 222,427 247 0.45 % 461,477 416 0.37 % 607,731 547 0.36 %
Trust preferred subordinated debentures   113,406  

876

3.06

%

  113,406  

972

3.40

%

  113,406  

920

3.25

%

  113,406  

904

3.23

%

  113,406  

924

3.23

%

Total interest bearing liabilities 4,745,445

9,477

0.79

%

4,405,065

9,994

0.90

%

4,088,266

9,587

0.94

%

3,907,912

9,078

0.94

%

4,036,123

10,031

0.99

%

Demand deposits 1,337,213 1,142,735 1,024,292 956,359 914,266
Other liabilities 35,589 28,997 24,693 28,643 18,787
Stockholders’ equity   530,089   522,985   514,335   496,107   485,039
Total liabilities and stockholders’ equity $ 6,648,336 $ 6,099,782 $ 5,651,586 $ 5,389,021 $ 5,454,215
 
Net interest income $ 66,144 $ 62,798 $ 58,082 $ 55,435 $ 55,320
Net interest margin 4.12 % 4.27 % 4.32 % 4.43 % 4.21 %
(1)   The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.
(2) Taxable equivalent rates used where applicable.

Source: Texas Capital Bancshares, Inc.

Contact:

Texas Capital Bancshares, Inc.

Myrna Vance, 214-932-6646

myrna.vance@texascapitalbank.com

Contact Information

Texas Capital Bancshares, Inc.,
2000 McKinney Avenue
Suite 700
Dallas, TX 75201
(214) 932-6600

Investor Relations Contact
Heather Worley
(214) 932-6646
heather.worley@
texascapitalbank.com

Transfer Agent
Computershare Investor Services LLC
Two North Lasalle Street
Third Floor
Chicago, IL 60602
(800) 568-3476
(312) 588-4990

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