Press Release

Texas Capital Bancshares Announces Operating Results for Q2 2011

Company Release - 7/20/2011 4:02 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 second quarter of 2011.

  • Net income increased 40% on a linked quarter basis and increased 106% from Q2 2010
  • EPS increased 42% on a linked quarter basis and increased 100% for the second quarter of 2011 as compared to the same quarter of 2010
  • Demand deposits remained consistent and total deposits increased 4% on a linked quarter basis and grew 32% and 10%, respectively, from Q2 2010
  • Loans held for investment increased 10% and total loans increased 14% on a linked quarter basis; grew 16% and 15%, respectively, from Q2 2010

“We are pleased to report another quarter of record earnings, one in which core earnings power improved dramatically. With a substantial increase in the net interest margin and continued improvement in credit cost trends, we realized much higher levels of ROA and ROE,” said George Jones, CEO. “In addition we saw strong growth in new lending relationships this quarter and have experienced a 33% reduction in non-performing loans. Because of our history of growth and profitability, we remain confident in our ability to demonstrate that Texas Capital is the Best Business Bank in Texas™.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

    Q2 2011   Q2 2010   % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 16,708 $ 8,116 106 %
Diluted EPS $ .44 $ .22 100 %
ROA 1.08 % .58 %
ROE 12.13 % 6.33 %
Diluted Shares 38,333 37,487
 
BALANCE SHEET(1)
Total Assets $ 6,709,338 $ 5,961,472 13 %
Demand Deposits 1,483,159 1,120,664 32 %
Total Deposits 5,421,726 4,926,069 10 %
Loans Held for Investment 5,164,293 4,462,830 16 %
Total Loans 6,286,623 5,459,980 15 %
Stockholders’ Equity 563,924 514,078 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 $16.7 million for the quarter ended June 30, 2011, compared to $8.1 million for the second quarter of 2010. On a fully diluted basis, earnings per common share from continuing operations were $.44 for the three months ended June 30, 2011 compared to $.22 for the same period last year. The discussion below relates only to continuing operations.

Return on average equity was 12.13 percent and return on average assets was 1.08 percent for the second quarter of 2011, compared to 6.33 percent and .58 percent, respectively, for the second quarter of 2010.

The net interest margin in the second quarter of 2011 was 4.86 percent, a 54 basis point increase from the second quarter of 2010 and a 40 basis point increase from the first quarter of 2011. The year over year and linked quarter increases are due to growth in loans, a reduction in funding costs and our ability to maintain and improve spreads on our loans. Net interest income was $71.1 million for the second quarter of 2011, compared to $57.9 million for the second quarter of 2010. The increase was due to an increase in average earning assets of $496.2 million over levels reported in the second quarter of 2010. The increase in average earning assets included a $430.9 million increase in average loans held for investment and a $143.7 million increase in average loans held for sale, offset by a decrease of $70.1 million in average securities.

Average total deposits for the second quarter of 2011 increased by $476.2 million from the second quarter of 2010 and decreased by $66.4 million from the first quarter of 2011. For the same periods, the average balance of demand deposits increased by $431.1 million, or 42 percent, to $1.5 billion from $1.0 billion during the second quarter of 2010 and increased $37.6 million, or 3 percent, from the first quarter of 2011.

In the second quarter of 2011, we experienced decreases in levels of non-performing assets and credit losses. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $8.7 million in the second quarter of 2011 compared to $15.1 million in the second quarter of 2010 and $10.8 million in the first quarter of 2011. We recorded an $8.0 million provision for credit losses in the second quarter of 2011 compared to $14.5 million in the second quarter of 2010 and $7.5 million in the first quarter of 2011. At June 30, 2011, due primarily to the substantial growth in the loan portfolio, the combined reserve decreased to 1.34 percent of loans held for investment as compared to 1.73 percent at June 30, 2010 and 1.53 percent at March 31, 2011. 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 second quarter of 2011, net charge-offs were $10.5 million, compared to net charge-offs of $12.6 million in the second quarter of 2010 and net charge-offs of $9.0 million in the first quarter of 2011. Non-accrual loans were $77.9 million, or 1.51 percent of loans held for investment at the end of the second quarter of 2011, and $138.2 million, or 3.10 percent, at the end of the second quarter of 2010 and $116.5 million, or 2.47 percent, at the end of the first quarter 2011. At June 30, 2011, total OREO was $27.3 million compared to $42.1 million at the end of the second quarter of 2010, and $26.2 million at the end of the first quarter 2011. The OREO balance of $27.3 million at June 30, 2011 is stated net of a $9.2 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $725,000 in the second quarter of 2011 compared to $557,000 in the second quarter of 2010 and $3.3 million in the first quarter of 2011.

Non-interest income decreased $85,000 during the second quarter of 2011, or 1%, compared to the same period of 2010 primarily related to a decrease of $520,000 in equipment rental income due to the continued decrease in the leased equipment portfolio. Offsetting this decrease is a $337,000 increase in brokered loan fees and minor increases in various categories.

Non-interest expense for the first quarter of 2011 increased $6.2 million, or 16 percent, to $45.3 million from $39.1 million in the first quarter of 2010. The increase is primarily related to a $2.7 million increase in salaries and employee benefits to $24.1 million from $21.4 million, which was primarily due to general business growth. Marketing expense increased $1.6 million relating to general business growth. Allowance and other carrying costs for OREO expense increased $215,000 to $1.0 million, $725,000 of which related to deteriorating values of assets held in OREO. Of the $1.0 million valuation expense in the second quarter of 2011, $725,000 related to direct write-downs of the OREO balance. Additionally, legal and professional expense and communications and technology expense increased $966,000 and $398,000, respectively, from the second quarter of 2010.

Stockholders’ equity increased by 10 percent from $514.1 million at June 30, 2010 to $563.9 million at June 30, 2011. 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 June 30, 2011, 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) 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)
    2nd Quarter   1st Quarter  

4th Quarter

  3rd Quarter   2nd Quarter
  2011     2011     2010     2010     2010  
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 75,259 $ 70,111 $ 75,432 $ 72,600 $ 67,472
Interest expense   4,165     5,613     9,477     9,994     9,587  
Net interest income 71,094 64,498 65,955 62,606 57,885
Provision for credit losses   8,000     7,500     12,000     13,500     14,500  
Net interest income after provision for credit losses 63,094 56,998 53,955 49,106 43,385
Non-interest income 7,951 7,684 9,178 8,101 8,036
Non-interest expense   45,263     46,399     44,582     42,602     39,118  
Income from continuing operations before income taxes

25,782

18,283

18,551

14,605

12,303

Income tax expense   9,074     6,344     6,475     5,074     4,187  
Income from continuing operations 16,708 11,939 12,076 9,531 8,116
Loss from discontinued operations (after-tax)   (54 )   (60 )   (22 )   (5 )   (54 )
Net income $ 16,654   $ 11,879   $ 12,054   $ 9,526   $ 8,062  
Diluted EPS from continuing operations $ .44 $ .31 $ .32 $ .25 $ .22
Diluted EPS $ .43 $ .31 $ .32 $ .25 $ .22
 
Diluted shares 38,332,888 38,341,679 37,658,396 37,444,516 37,486,785
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 6,709,338 $ 6,061,046 $ 6,448,179 $ 6,344,916 $ 5,961,472
Loans held for investment 5,164,293 4,711,424 4,711,330 4,483,204 4,462,830
Loans held for sale 1,122,330 811,400 1,194,209 1,399,208 997,150
Securities 157,821 171,990 185,424 202,177 227,029
Demand deposits 1,483,159 1,480,695 1,451,307 1,195,093 1,120,664
Total deposits 5,421,726 5,221,991 5,455,401 5,407,033 4,926,069
Other borrowings 561,902 133,995 300,387 270,628 376,646
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 563,924 544,925 528,319 515,618 514,078
 
End of period shares outstanding 37,329,726 37,216,929 36,956,688 36,792,030 36,776,836
Book value (excluding securities gains/losses) $ 14.97 $ 14.50 $ 14.15 $ 13.84 $ 13.79
Tangible book value (excluding securities gains/losses)

$

14.41

$

14.25

$

13.89

$

13.58

$

13.53

 
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin 4.86 % 4.46 % 4.12 % 4.27 % 4.32 %
Return on average assets 1.08 % .78 % .72 % .62 % .58 %
Return on average equity 12.13 % 8.91 % 9.04 % 7.23 % 6.33 %
Non-interest income to earning assets .54 % .53 % .57 % .55 % .60 %
Efficiency ratio 57.3 % 64.3 % 59.3 % 60.3 % 59.3 %
Efficiency ratio (excluding OREO valuation/write-down)

56.3

%

59.7

%

56.2

%

55.1

%

58.5

%

Non-interest expense to earning assets 3.08 % 3.20 % 2.78 % 2.90 % 2.91 %
 
Tangible common equity to total tangible assets 8.0 % 8.8 % 8.0 % 7.9 % 8.4 %
Tier 1 capital ratio 10.2 % 11.2 % 10.6 % 10.7 % 11.0 %
Total capital ratio 11.3 % 12.5 % 11.8 % 11.9 % 12.3 %
Tier 1 leverage ratio 10.5 % 10.3 % 9.4 % 10.0 % 10.7 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
    June 30,   June 30,   %
  2011     2010   Change
Assets
Cash and due from banks $ 89,326 $ 93,159 (4 )%
Federal funds sold 27,990 (100 )%
Securities, available-for-sale 157,821 227,029 (30 )%
Loans held for sale 1,122,330 997,150 13 %
Loans held for sale from discontinued operations 396 582 (32 )%
Loans held for investment (net of unearned income) 5,164,293 4,462,830 16 %
Less: Allowance for loan losses   67,748     74,881   (10 )%
Loans held for investment, net 5,096,545 4,387,949 16 %
Premises and equipment, net 12,118 11,065 10 %
Accrued interest receivable and other assets 210,406 207,486 1 %
Goodwill and intangibles, net   20,792     9,644   116 %
Total assets $ 6,709,734   $ 5,962,054   13 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 1,483,159 $ 1,120,664 32 %
Interest bearing 3,196,108 3,394,648 (6 )%
Interest bearing in foreign branches   742,459     410,757   81 %
Total deposits 5,421,726 4,926,069 10 %
 
Accrued interest payable 1,032 2,503 (59 )%
Other liabilities 47,744 29,352 63 %
Federal funds purchased 203,969 309,722 (34 )%
Repurchase agreements 14,634 13,812 6 %
Other borrowings 343,299 53,112 546 %
Trust preferred subordinated debentures   113,406     113,406   -  
Total liabilities 6,145,810 5,447,976 13 %
 
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares – 10,000,000
Issued shares
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 37,330,143 and 36,777,253 at June 30, 2011 and 2010, respectively

373

368

1

%

Additional paid-in capital 343,997 342,724 0 %
Retained earnings 214,340 164,227 31 %
Treasury stock (shares at cost: 417 at June 30, 2011 and 2010, respectively)

(8

)

(8

)

-

Accumulated other comprehensive income, net of taxes   5,222     6,767   (23 )%
Total stockholders’ equity   563,924     514,078   10 %
Total liabilities and stockholders’ equity $ 6,709,734   $ 5,962,054   13 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
    Three Months Ended     Six Months Ended
June 30 June 30
  2011       2010     2011       2010  
Interest income
Interest and fees on loans $ 73,509 $ 64,935 $ 141,549 $ 126,504
Securities 1,680 2,491 3,526 5,217
Federal funds sold 5 40 33 42
Deposits in other banks   65     6     262     15  
Total interest income 75,259 67,472 145,370 131,778
Interest expense
Deposits 3,417 8,420 8,288 16,178
Federal funds purchased 94 244 201 609
Repurchase agreements 2 2 4 6
Other borrowings 14 1 14 48
Trust preferred subordinated debentures   638     920     1,271     1,824  
Total interest expense   4,165     9,587     9,778     18,665  
Net interest income 71,094 57,885 135,592 113,113
Provision for credit losses   8,000     14,500     15,500     28,000  
Net interest income after provision for credit losses 63,094 43,385 120,092 85,113
Non-interest income
Service charges on deposit accounts 1,608 1,539 3,391 3,022
Trust fee income 1,066 980 2,020 1,934
Bank owned life insurance (BOLI) income 539 481 1,062 952
Brokered loan fees 2,558 2,221 5,078 4,125
Equipment rental income 676 1,196 1,459 2,540
Other   1,504     1,619     2,625     2,411  
Total non-interest income 7,951 8,036 15,635 14,984
Non-interest expense
Salaries and employee benefits 24,109 21,393 48,281 41,462
Net occupancy expense 3,443 3,032 6,753 6,046
Leased equipment depreciation 447 1,035 1,003 2,094
Marketing 2,733 1,101 4,856 1,888
Legal and professional 4,264 3,298 6,987 5,248
Communications and technology 2,584 2,186 4,931 4,112
FDIC insurance assessment 1,972 2,241 4,483 4,109
Allowance and other carrying costs for OREO 1,023 808 5,053 3,100
Other   4,688     4,024     9,315     8,245  
Total non-interest expense   45,263     39,118     91,662     76,304  
Income from continuing operations before income taxes 25,782 12,303 44,065 23,793
Income tax expense   9,074     4,187     15,418     8,077  
Income from continuing operations 16,708 8,116 28,647 15,716
Loss from discontinued operations (after-tax)   (54 )   (54 )   (114 )   (109 )
Net income $ 16,654   $ 8,062   $ 28,533   $ 15,607  
 
Basic earnings per common share:
Income from continuing operations $ .45 $ .22 $ .77 $ .43
Net income $ .45 $ .22 $ .77 $ .43
 
Diluted earnings per common share:
Income from continuing operations $ .44 $ .22 $ .75 $ .42
Net income $ .43 $ .22 $ .74 $ .42
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
  2nd Quarter   1st Quarter   4th Quarter   3rd Quarter   2nd Quarter
  2011     2011     2010     2010     2010  
Reserve for loan losses:
Beginning balance $ 70,248 $ 71,510 $ 75,655 $ 74,881 $ 71,705
Loans charged-off:
Commercial 3,654 1,993 11,135 2,384 6,653
Real estate – construction 6,229 5,789
Real estate – term 6,424 7,364 5,751 3,000
Consumer 283 34 216
Leases   464     532     148     595     218  
Total 10,825 9,923 17,250 12,208 12,660
Recoveries:
Commercial 143 546 47 76 30
Real estate – construction 243 1
Real estate – term 122 31 101 7 22
Consumer 3 1 2 2
Leases   26     150     75     8     55  
Total recoveries   294     971     225     94     107  
Net charge-offs 10,531 8,952 17,025 12,114 12,553
Provision for loan losses   8,031     7,690     12,880     12,888     15,729  
Ending balance $ 67,748   $ 70,248   $ 71,510   $ 75,655   $ 74,881  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 1,707 $ 1,897 $ 2,777 $ 2,165 $ 3,394
Provision (benefit) for off-balance sheet credit losses   (31 )   (190 )   (880 )   612     (1,229 )
Ending balance $ 1,676   $ 1,707   $ 1,897   $ 2,777   $ 2,165  
 
Total reserves for credit losses $ 69,424 $ 71,955 $ 73,407 $ 78,432 $ 77,046
 
Total provision for credit losses $ 8,000 $ 7,500 12,000 $ 13,500 $ 14,500
 
Reserve to loans held for investment(2) 1.31 % 1.49 % 1.52 % 1.69 % 1.68 %
Reserve to average loans held for investment(2) 1.39 % 1.49 % 1.58 % 1.68 % 1.68 %
Net charge-offs to average loans(1)(2) .86 % .77 % 1.49 % 1.07 % 1.13 %
Net charge-offs to average loans for last twelve months(1)(2) 1.06 % 1.11 % 1.14 % .95 % .73 %
Total provision for credit losses to average loans(1)(2) .66 % .64 % 1.05 % 1.19 % 1.30 %
Combined reserves for credit losses to loans held for investment(2)

1.34

%

1.53

%

1.56

%

1.75

%

1.73

%

 
Non-performing assets (NPAs):
Non-accrual loans $ 77,884 $ 116,479 $ 112,090 $ 127,054 $ 138,236
Other real estate owned (OREO) (4)   27,285     26,172     42,261     38,646     42,077  
Total $ 105,169   $ 142,651   $ 154,351   $ 165,700   $ 180,313  
 
Non-accrual loans to loans(2) 1.51 % 2.47 % 2.38 % 2.83 % 3.10 %
Total NPAs to loans plus OREO(2) 2.03 % 3.01 % 3.25 % 3.66 % 4.00 %
Reserve for loan losses to non-accrual loans

.9x

.6x

.6x

.6x

.5x

 
Restructured loans $ 23,540 $ 22,219 $ 4,319 $ $
Loans past due 90 days and still accruing(3) $ 10,333 $ 2,529 $ 6,706 $ 2,428 $ 13,962
 
Loans past due 90 days to loans(2) .20 % .05 % .14 % .05 % .31 %

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At June 30, 2011, loans past due 90 days and still accruing includes premium finance loans of $2.7 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 June 30, 2011, OREO balance is net of $9.2 million valuation allowance.

 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
           
2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter
  2011     2011     2010     2010     2010  
Interest income
Interest and fees on loans $ 73,509 $ 68,040 $ 73,206 $ 70,293 $ 64,935
Securities 1,680 1,846 2,018 2,246 2,491
Federal funds sold 5 28 118 50 40
Deposits in other banks   65     197     90     11     6  
Total interest income 75,259 70,111 75,432 72,600 67,472
Interest expense
Deposits 3,417 4,871 8,371 8,760 8,420
Federal funds purchased 94 107 229 259 244
Repurchase agreements 2 2 1 3 2
Other borrowings 14 1
Trust preferred subordinated debentures   638     633     876     972     920  
Total interest expense   4,165     5,613     9,477     9,994     9,587  
Net interest income 71,094 64,498 65,955 62,606 57,885
Provision for credit losses   8,000     7,500     12,000     13,500     14,500  
Net interest income after provision for credit losses 63,094 56,998 53,955 49,106 43,385
Non-interest income
Service charges on deposit accounts 1,608 1,783 1,708 1,662 1,539
Trust fee income 1,066 954 899 1,013 980
Bank owned life insurance (BOLI) income 539 523 482 455 481
Brokered loan fees 2,558 2,520 3,793 3,272 2,221
Equipment rental income 676 783 802 792 1,196
Other   1,504     1,121     1,494     907     1,619  
Total non-interest income 7,951 7,684 9,178 8,101 8,036
Non-interest expense
Salaries and employee benefits 24,109 24,172 21,964 21,872 21,393
Net occupancy expense 3,443 3,310 3,140 3,128 3,032
Leased equipment depreciation 447 556 623 580 1,035
Marketing 2,733 2,123 2,198 1,333 1,101
Legal and professional 4,264 2,723 3,884 2,705 3,298
Communications and technology 2,584 2,347 2,143 2,256 2,186
FDIC insurance assessment 1,972 2,511 2,611 2,482 2,241
Allowance and other carrying costs for OREO 1,023 4,030 3,233 4,071 808
Other   4,688     4,627     4,786     4,175     4,024  
Total non-interest expense   45,263     46,399     44,582     42,602     39,118  
Income from continuing operations before income taxes

25,782

18,283

18,551

14,605

12,303

Income tax expense   9,074     6,344     6,475     5,074     4,187  
Income from continuing operations 16,708 11,939 12,076 9,531 8,116
Loss from discontinued operations (after-tax)   (54 )   (60 )   (22 )   (5 )   (54 )
Net income $ 16,654   $ 11,879   $ 12,054   $ 9,526   $ 8,062  
 
 

TEXAS CAPITAL BANCSHARES, INC.

 

QUARTERLY FINANCIAL SUMMARY – UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)
 
  2nd Quarter 2011     1st Quarter 2011     4th Quarter 2010     3rd Quarter 2010     2nd Quarter 2010
Average

Balance

  Revenue/

Expense (1)

  Yield/

Rate

Average

Balance

  Revenue/

Expense (1)

  Yield/

Rate

Average

Balance

  Revenue/

Expense (1)

  Yield/

Rate

Average

Balance

  Revenue/

Expense (1)

  Yield/

Rate

Average

Balance

  Revenue/

Expense (1)

  Yield/

Rate

Assets
Securities – Taxable $ 127,269 $ 1,346 4.24 % $ 140,007 $ 1,500 4.35 % $ 155,180 $ 1,666 4.26 % $ 173,835 $ 1,890 4.31 % $ 193,542 $ 2,126 4.41 %
Securities – Non-taxable(2) 35,804 514 5.76 % 37,154 532 5.81 % 37,848 541 5.67 % 38,357 548 5.67 % 39,635 562 5.69 %
Federal funds sold 14,303 5 0.14 % 44,322 28 0.26 % 241,907 118 0.19 % 107,404 50 0.18 % 91,564 40 0.18 %
Deposits in other banks 77,928 65 0.33 % 277,228 197 0.29 % 144,650 90 0.25 % 18,766 11 0.23 % 12,449 6 0.19 %
Loans held for sale 808,165 9,591 4.76 % 735,682 8,677 4.78 % 1,324,264 15,314 4.59 % 1,074,309 12,760 4.71 % 664,474 8,244 4.98 %
Loans held for investment 4,890,696 63,918 5.24 % 4,721,928 59,363 5.10 % 4,533,501 57,892 5.07 % 4,493,998 57,533 5.08 % 4,459,790 56,691 5.10 %

Less reserve for loan losses

  68,031  

    70,142  

    74,580  

    74,810  

    71,536  

 
Loans, net of reserve   5,630,830   73,509 5.24 %   5,387,468   68,040 5.12 %   5,783,185   73,206 5.02 %   5,493,497   70,293 5.08 %   5,052,728   64,935 5.15 %
Total earning assets 5,886,134 75,439 5.14 % 5,886,179 70,297 4.84 % 6,362,770 75,621 4.72 % 5,831,859 72,792 4.95 % 5,389,918 67,669 5.04 %
Cash and other assets   306,372   297,060   285,566   267,923   261,668
Total assets $ 6,192,506 $ 6,183,239 $ 6,648,336 $ 6,099,782 $ 5,651,586
 
Liabilities and Stockholders’ Equity
Transaction deposits $ 375,084 $ 55 0.06 % $ 345,978 $ 55 0.06 % $ 434,160 $ 132 0.12 % $ 465,370 $ 189 0.16 % $ 484,900 $ 389 0.32 %
Savings deposits 2,465,118 1,700 0.28 % 2,469,435 2,371 0.39 % 2,511,343 3,978 0.63 % 2,222,431 4,228 0.75 % 2,054,199 4,047 0.79 %
Time deposits 541,337 1,351 1.00 % 709,604 1,921 1.10 % 1,022,509 3,068 1.19 % 955,703 3,044 1.26 % 832,973 2,808 1.35 %
Deposits in foreign branches   415,998   311 0.30 %   376,570   524 0.56 %   451,088   1,193 1.05 %   418,112   1,299 1.23 %   380,361   1,176 1.24 %
Total interest bearing deposits 3,797,537

3,417

0.36

%

3,901,587

4,871

0.51

%

4,419,100

8,371

0.75

%

4,061,616

8,760

0.86

%

3,752,433

8,420

0.90

%

Other borrowings 233,388 110 0.19 % 159,450 109 0.28 % 212,939 230 0.43 % 230,043 262 0.45 % 222,427 247 0.45 %
Trust preferred subordinated debentures   113,406  

638

2.26

%

  113,406  

633

2.26

%

  113,406  

876

3.06

%

  113,406  

972

3.40

%

  113,406  

920

3.25

%

Total interest bearing liabilities 4,144,331

4,165

0.40

%

4,174,443

5,613

0.55

%

4,745,445

9,477

0.79

%

4,405,065

9,994

0.90

%

4,088,266

9,587

0.94

%

Demand deposits 1,455,366 1,417,734 1,337,213 1,142,735 1,024,292
Other liabilities 40,177 47,753 35,589 28,997 24,693
Stockholders’ equity   552,632   543,309   530,089   522,985   514,335
Total liabilities and stockholders’ equity $ 6,192,506 $ 6,183,239 $ 6,648,336 $ 6,099,782 $ 5,651,586
 
Net interest income $ 71,274 $ 64,684 $ 66,144 $ 62,798 $ 58,082
Net interest margin 4.86 % 4.46 % 4.12 % 4.27 % 4.32 %

(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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