Press Release

Texas Capital Bancshares Announces Operating Results for Q3 2011

Company Release - 10/19/2011 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 third quarter of 2011.

  • Net income increased 30% on a linked quarter basis and increased 128% from Q3 2010
  • EPS increased 27% on a linked quarter basis and increased 124% for the third quarter of 2011 as compared to the same quarter of 2010
  • Demand deposits increased 12% and total deposits increased 1% on a linked quarter basis and grew 39% and 1%, respectively, from Q3 2010
  • Loans held for investment increased 3% and total loans increased 15% on a linked quarter basis and grew 18% and 23%, respectively, from Q3 2010

“Strong growth continues at Texas Capital, along with improved core earnings power and continued improvement in funding costs,” said George Jones, CEO. “As a result, ROA and ROE have reached record levels, and we remain confident in our ability to continue to produce quality results for our shareholders.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

  Q3 2011   Q3 2010   % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 21,710 $ 9,531 128 %
Diluted EPS $ .56 $ .25 124 %
ROA 1.25 % .62 %
ROE 14.93 % 7.23 %
Diluted Shares 38,435 37,445
 
BALANCE SHEET(1)
Total Assets $ 7,705,372 $ 6,344,916 21 %
Demand Deposits 1,661,125 1,195,093 39 %
Total Deposits 5,486,463 5,407,033 1 %
Loans Held for Investment 5,302,584 4,483,204 18 %
Total Loans 7,212,151 5,882,412 23 %
Stockholders’ Equity 587,944 515,618 14 %

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

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $21.7 million for the quarter ended September 30, 2011, compared to $9.5 million for the third quarter of 2010. On a fully diluted basis, earnings per common share from continuing operations were $.56 for the three months ended September 30, 2011 compared to $.25 for the same period last year. The discussion below relates only to continuing operations.

Return on average equity was 14.93 percent and return on average assets was 1.25 percent for the third quarter of 2011, compared to 7.23 percent and .62 percent, respectively, for the third quarter of 2010.

The net interest margin in the third quarter of 2011 was 4.81 percent, a 54 basis point increase from the third quarter of 2010 and a 5 basis point decrease from the second quarter of 2011. The year over year increase is 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 $79.2 million for the third quarter of 2011, compared to $62.6 million for the third quarter of 2010. The increase was due to an increase in average earning assets of $719.1 million over levels reported in the third quarter of 2010. The increase in average earning assets included a $725.5 million increase in average loans held for investment and a $117.1 million increase in average loans held for sale, offset by a decrease of $63.3 million in average securities.

Average total deposits for the third quarter of 2011 increased by $42.5 million from the third quarter of 2010 and decreased by $6.1 million from the second quarter of 2011. For the same periods, the average balance of demand deposits increased by $382.4 million, or 34 percent, to $1.5 billion from $1.1 billion during the third quarter of 2010 and increased $69.7 million, or 5 percent, from the second quarter of 2011.

In the third 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 third quarter of 2011 compared to $17.2 million in the third quarter of 2010 and $8.7 million in the second quarter of 2011. We recorded a $7.0 million provision for credit losses in the third quarter of 2011 compared to $13.5 million in the third quarter of 2010 and $8.0 million in the second quarter of 2011. At September 30, 2011, the combined reserve decreased to 1.32 percent of loans held for investment as compared to 1.75 percent at September 30, 2010 and 1.34 percent at June 30, 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 third quarter of 2011, net charge-offs were $6.3 million, compared to net charge-offs of $12.1 million in the third quarter of 2010 and net charge-offs of $10.5 million in the second quarter of 2011. Non-accrual loans were $66.7 million, or 1.26 percent of loans held for investment at the end of the third quarter of 2011, and $127.1 million, or 2.83 percent, at the end of the third quarter of 2010 and $77.9 million, or 1.51 percent, at the end of the second quarter 2011. At September 30, 2011, total OREO was $35.8 million compared to $38.6 million at the end of the third quarter of 2010, and $27.3 million at the end of the second quarter of 2011. The OREO balance of $35.8 million at September 30, 2011 is stated net of a $10.7 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $1.7 million in the third quarter of 2011 compared to $3.7 million in the third quarter of 2010 and $725,000 in the second quarter of 2011.

Non-interest income decreased $498,000 during the third quarter of 2011, or 6 percent, compared to the same period of 2010 primarily related to a decrease of $569,000 in equipment rental income due to the continued decrease in the leased equipment portfolio. Brokered loan fees decreased $423,000 due to fees that are realized at the time of sale. Offsetting these decreases is a $415,000 increase in other non-interest income and minor increases in various categories.

Non-interest expense for the third quarter of 2011 increased $3.6 million, or 8 percent, to $46.2 million from $42.6 million in the third quarter of 2010. The increase is primarily related to a $3.7 million increase in salaries and employee benefits to $25.6 million from $21.9 million, which was primarily due to general business growth. Marketing expense increased $1.1 million from the third quarter of 2010 due to general business growth. Additionally, legal and professional expense increased $942,000 from the third quarter of 2010. Allowance and other carrying costs for OREO expense decreased $1.9 million to $2.2 million, $1.7 million of which related to less deterioration of values of assets held in OREO. Of the $1.7 million valuation expense in the third quarter of 2011, $61,000 related to direct write-downs of the OREO balance and $1.6 million related to increasing the valuation allowance. Additionally, FDIC insurance expense decreased $1.0 million from the third quarter of 2010.

Stockholders’ equity increased by 14 percent from $515.6 million at September 30, 2010 to $587.9 million at September 30, 2011. Contributing to the increase is primarily retained net income. The Bank is well capitalized under regulatory guidelines and at September 30, 2011, the Company’s ratio of tangible common equity to total tangible assets was 7.3 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)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2011   2011   2011   2010   2010
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 83,263 $ 75,259 $ 70,111 $ 75,432 $ 72,600
Interest expense   4,065       4,165       5,613       9,477       9,994  
Net interest income 79,198 71,094 64,498 65,955 62,606
Provision for credit losses   7,000       8,000       7,500       12,000       13,500  
Net interest income after provision for credit losses 72,198 63,094 56,998 53,955 49,106
Non-interest income 7,603 7,951 7,684 9,178 8,101
Non-interest expense   46,186       45,263       46,399       44,582       42,602  
Income from continuing operations before income taxes

33,615

25,782

18,283

18,551

14,605

Income tax expense   11,905       9,074       6,344       6,475       5,074  
Income from continuing operations 21,710 16,708 11,939 12,076 9,531
Loss from discontinued operations (after-tax)   (7 )     (54 )     (60 )     (22 )     (5 )
Net income $ 21,703     $ 16,654     $ 11,879     $ 12,054     $ 9,526  
Diluted EPS from continuing operations $ .56 $ .44 $ .31 $ .32 $ .25
Diluted EPS $ .56 $ .43 $ .31 $ .32 $ .25
 
Diluted shares 38,435,386 38,332,888 38,341,679 37,658,396 37,444,516
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 7,705,372 $ 6,709,338 $ 6,061,046 $ 6,448,179 $ 6,344,916
Loans held for investment 5,302,584 5,164,293 4,711,424 4,711,330 4,483,204
Loans held for sale 1,909,567 1,122,330 811,400 1,194,209 1,399,208
Securities 142,895 157,821 171,990 185,424 202,177
Demand deposits 1,661,125 1,483,159 1,480,695 1,451,307 1,195,093
Total deposits 5,486,463 5,421,726 5,221,991 5,455,401 5,407,033
Other borrowings 1,451,894 561,902 133,995 300,387 270,628
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 587,944 563,924 544,925 528,319 515,618
 
End of period shares outstanding 37,457,762 37,329,726 37,216,929 36,956,688 36,792,030
Book value (excluding securities gains/losses) $ 15.56 $ 14.97 $ 14.50 $ 14.15 $ 13.84
Tangible book value (excluding securities gains/losses)

$

15.01

$

14.41

$

14.25

$

13.89

$

13.58

 
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin 4.81 % 4.86 % 4.46 % 4.12 % 4.27 %
Return on average assets 1.25 % 1.08 % .78 % .72 % .62 %
Return on average equity 14.93 % 12.13 % 8.91 % 9.04 % 7.23 %
Non-interest income to earning assets .46 % .54 % .53 % .57 % .55 %
Efficiency ratio 53.2 % 57.3 % 64.3 % 59.3 % 60.3 %
Efficiency ratio (excluding OREO valuation/write-down)

51.3

%

56.3

%

59.7

%

56.2

%

55.1

%

Non-interest expense to earning assets 2.80 % 3.08 % 3.20 % 2.78 % 2.90 %
 
Tangible common equity to total tangible assets 7.3 % 8.0 % 8.8 % 8.0 % 7.9 %
Tier 1 capital ratio 9.7 % 10.2 % 11.2 % 10.6 % 10.7 %
Total capital ratio 10.7 % 11.3 % 12.5 % 11.8 % 11.9 %
Tier 1 leverage ratio 9.8 % 10.5 % 10.3 % 9.4 % 10.0 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
     
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30,

2011

  September 30,

2010

  %

Change

Assets
Cash and due from banks $ 120,569 $ 90,354 33 %
Federal funds sold 13,710 (100 )%
Securities, available-for-sale 142,895 202,177 (29 )%
Loans held for sale 1,909,567 1,399,208 36 %
Loans held for sale from discontinued operations 395 580 (32 )%
Loans held for investment (net of unearned income) 5,302,584 4,483,204 18 %
Less: Allowance for loan losses   67,897       75,655     (10 )%
Loans held for investment, net 5,234,687 4,407,549 19 %
Premises and equipment, net 11,596 12,461 (7 )%
Accrued interest receivable and other assets 265,412 209,893 26 %
Goodwill and intangibles, net   20,646       9,564     116 %
Total assets $ 7,705,767     $ 6,345,496     21 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 1,661,125 $ 1,195,093 39 %
Interest bearing 3,204,985 3,761,450 (15 )%
Interest bearing in foreign branches   620,353       450,490     38 %
Total deposits 5,486,463 5,407,033 1 %
 
Accrued interest payable 671 2,830 (76 )%
Other liabilities 65,389 35,981 82 %
Federal funds purchased 321,930 249,463 29 %
Repurchase agreements 27,059 18,171 49 %
Other borrowings 1,102,905 2,994 N/M
Trust preferred subordinated debentures   113,406       113,406     -  
Total liabilities 7,117,823 5,829,878 22 %
 
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 – 37,458,179 and 36,792,447 at September 30, 2011 and 2010, respectively

374

368

2

%

Additional paid-in capital 346,405 335,057 3 %
Retained earnings 236,043 173,753 36 %
Treasury stock (shares at cost: 417 at September 30, 2011 and 2010, respectively)

(8

)

(8

)

-

Accumulated other comprehensive income, net of taxes   5,130       6,448     (20 )%
Total stockholders’ equity   587,944       515,618     14 %
Total liabilities and stockholders’ equity $ 7,705,767     $ 6,345,496     21 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
       
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended

September 30

Nine Months Ended

September 30

2011   2010   2011   2010
Interest income
Interest and fees on loans $ 81,692 $ 70,293 $ 223,241 $ 196,797
Securities 1,524 2,246 5,050 7,463
Federal funds sold 3 50 36 92
Deposits in other banks   44       11       306       26  
Total interest income 83,263 72,600 228,633 204,378
Interest expense
Deposits 3,191 8,760 11,479 24,938
Federal funds purchased 128 259 329 868
Repurchase agreements 2 3 6 9
Other borrowings 110 124 48
Trust preferred subordinated debentures   634       972       1,905       2,796  
Total interest expense   4,065       9,994       13,843       28,659  
Net interest income 79,198 62,606 214,790 175,719
Provision for credit losses   7,000       13,500       22,500       41,500  
Net interest income after provision for credit losses 72,198 49,106 192,290 134,219
Non-interest income
Service charges on deposit accounts 1,585 1,662 4,976 4,684
Trust fee income 1,091 1,013 3,111 2,947
Bank owned life insurance (BOLI) income 533 455 1,595 1,407
Brokered loan fees 2,849 3,272 7,927 7,397
Equipment rental income 223 792 1,682 3,332
Other   1,322       907       3,947       3,318  
Total non-interest income 7,603 8,101 23,238 23,085
Non-interest expense
Salaries and employee benefits 25,596 21,872 73,877 63,334
Net occupancy expense 3,367 3,128 10,120 9,174
Leased equipment depreciation 281 580 1,284 2,674
Marketing 2,455 1,333 7,311 3,221
Legal and professional 3,647 2,705 10,634 7,953
Communications and technology 2,210 2,256 7,141 6,368
FDIC insurance assessment 1,465 2,482 5,948 6,591
Allowance and other carrying costs for OREO 2,150 4,071 7,203 7,171
Other   5,015       4,175       14,330       12,420  
Total non-interest expense   46,186       42,602       137,848       118,906  
Income from continuing operations before income taxes 33,615 14,605 77,680 38,398
Income tax expense   11,905       5,074       27,323       13,151  
Income from continuing operations 21,710 9,531 50,357 25,247
Loss from discontinued operations (after-tax)   (7 )     (5 )     (121 )     (114 )
Net income $ 21,703     $ 9,526     $ 50,236     $ 25,133  
 
Basic earnings per common share:
Income from continuing operations $ .58 $ .26 $ 1.35 $ .69
Net income $ .58 $ .26 $ 1.35 $ .69
 
Diluted earnings per common share:
Income from continuing operations $ .56 $ .25 $ 1.31 $ .68
Net income $ .56 $ .25 $ 1.31 $ .67
 
 
TEXAS CAPITAL BANCSHARES, INC.
         
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2011   2011   2011   2010   2010
Reserve for loan losses:
Beginning balance $ 67,748 $ 70,248 $ 71,510 $ 75,655 $ 74,881
Loans charged-off:
Commercial 1,523 3,654 1,993 11,135 2,384
Real estate – construction 6,229
Real estate – term 5,049 6,424 7,364 5,751 3,000
Consumer 283 34 216
Leases   (16 )     464       532       148       595  
Total 6,556 10,825 9,923 17,250 12,208
Recoveries:
Commercial 109 143 546 47 76
Real estate – construction 5 243 1
Real estate – term 152 122 31 101 7
Consumer 1 3 1 2 2
Leases   36       26       150       75       8  
Total recoveries   303       294       971       225       94  
Net charge-offs 6,253 10,531 8,952 17,025 12,114
Provision for loan losses   6,402       8,031       7,690       12,880       12,888  
Ending balance $ 67,897     $ 67,748     $ 70,248     $ 71,510     $ 75,655  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 1,676 $ 1,707 $ 1,897 $ 2,777 $ 2,165
Provision (benefit) for off-balance sheet credit losses   598       (31 )     (190 )     (880 )     612  
Ending balance $ 2,274     $ 1,676     $ 1,707     $ 1,897     $ 2,777  
 
Total reserves for credit losses $ 70,171 $ 69,424 $ 71,955 $ 73,407 $ 78,432
 
Total provision for credit losses $ 7,000 $ 8,000 $ 7,500 $ 12,000 $ 13,500
 
Reserve to loans held for investment(2) 1.28 % 1.31 % 1.49 % 1.52 % 1.69 %
Reserve to average loans held for investment(2) 1.30 % 1.39 % 1.49 % 1.58 % 1.68 %
Net charge-offs to average loans(1)(2) .48 % .86 % .77 % 1.49 % 1.07 %
Net charge-offs to average loans for last twelve months(1)(2) .90 % 1.06 % 1.11 % 1.14 % .95 %
Total provision for credit losses to average loans(1)(2) .53 % .66 % .64 % 1.05 % 1.19 %
Combined reserves for credit losses to loans held for investment(2)

1.32

%

1.34

%

1.53

%

1.56

%

1.75

%

 
Non-performing assets (NPAs):
Non-accrual loans $ 66,714 $ 77,884 $ 116,479 $ 112,090 $ 127,054

Other real estate owned (OREO)(4)

  35,796       27,285       26,172       42,261       38,646  
Total $ 102,510     $ 105,169     $ 142,651     $ 154,351     $ 165,700  
 
Non-accrual loans to loans(2) 1.26 % 1.51 % 2.47 % 2.38 % 2.83 %
Total NPAs to loans plus OREO(2) 1.92 % 2.03 % 3.01 % 3.25 % 3.66 %
Reserve for loan losses to non-accrual loans

1.0x

.9x

.6x

.6x

.6x

 
Restructured loans $ 24,963 $ 23,540 $ 22,219 $ 4,319 $
Loans past due 90 days and still accruing(3) $ 3,003 $ 10,333 $ 2,529 $ 6,706 $ 2,428
 
Loans past due 90 days to loans(2) .06 % .20 % .05 % .14 % .05 %

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At September 30, 2011, loans past due 90 days and still accruing includes premium finance loans of $2.5 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 September 30, 2011, OREO balance is net of $10.7 million valuation allowance.

         
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
 
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2011   2011   2011   2010   2010
Interest income
Interest and fees on loans $ 81,692 $ 73,509 $ 68,040 $ 73,206 $ 70,293
Securities 1,524 1,680 1,846 2,018 2,246
Federal funds sold 3 5 28 118 50
Deposits in other banks   44       65       197       90       11  
Total interest income 83,263 75,259 70,111 75,432 72,600
Interest expense
Deposits 3,191 3,417 4,871 8,371 8,760
Federal funds purchased 128 94 107 229 259
Repurchase agreements 2 2 2 1 3
Other borrowings 110 14
Trust preferred subordinated debentures   634       638       633       876       972  
Total interest expense   4,065       4,165       5,613       9,477       9,994  
Net interest income 79,198 71,094 64,498 65,955 62,606
Provision for credit losses   7,000       8,000       7,500       12,000       13,500  
Net interest income after provision for credit losses 72,198 63,094 56,998 53,955 49,106
Non-interest income
Service charges on deposit accounts 1,585 1,608 1,783 1,708 1,662
Trust fee income 1,091 1,066 954 899 1,013
Bank owned life insurance (BOLI) income 533 539 523 482 455
Brokered loan fees 2,849 2,558 2,520 3,793 3,272
Equipment rental income 223 676 783 802 792
Other   1,322       1,504       1,121       1,494       907  
Total non-interest income 7,603 7,951 7,684 9,178 8,101
Non-interest expense
Salaries and employee benefits 25,596 24,109 24,172 21,964 21,872
Net occupancy expense 3,367 3,443 3,310 3,140 3,128
Leased equipment depreciation 281 447 556 623 580
Marketing 2,455 2,733 2,123 2,198 1,333
Legal and professional 3,647 4,264 2,723 3,884 2,705
Communications and technology 2,210 2,584 2,347 2,143 2,256
FDIC insurance assessment 1,465 1,972 2,511 2,611 2,482
Allowance and other carrying costs for OREO 2,150 1,023 4,030 3,233 4,071
Other   5,015       4,688       4,627       4,786       4,175  
Total non-interest expense   46,186       45,263       46,399       44,582       42,602  
Income from continuing operations before income taxes

33,615

25,782

18,283

18,551

14,605

Income tax expense   11,905       9,074       6,344       6,475       5,074  
Income from continuing operations 21,710 16,708 11,939 12,076 9,531
Loss from discontinued operations (after-tax)   (7 )     (54 )     (60 )     (22 )     (5 )
Net income $ 21,703     $ 16,654     $ 11,879     $ 12,054     $ 9,526  
 
 

TEXAS CAPITAL BANCSHARES, INC.

                             

QUARTERLY FINANCIAL SUMMARY – UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)
 
3rd Quarter 2011 2nd Quarter 2011 1st Quarter 2011 4th Quarter 2010 3rd 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 $ 115,871 $ 1,214 4.16 % $ 127,269 $ 1,346 4.24 % $ 140,007 $ 1,500 4.35 % $ 155,180 $ 1,666 4.26 % $ 173,835 $ 1,890 4.31 %
Securities – Non-taxable(2) 33,051 477 5.73 % 35,804 514 5.76 % 37,154 532 5.81 % 37,848 541 5.67 % 38,357 548 5.67 %
Federal funds sold 20,864 3 0.06 % 14,303 5 0.14 % 44,322 28 0.26 % 241,907 118 0.19 % 107,404 50 0.18 %
Deposits in other banks 36,495 44 0.48 % 77,928 65 0.33 % 277,228 197 0.29 % 144,650 90 0.25 % 18,766 11 0.23 %
Loans held for sale 1,191,375 13,340 4.44 % 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 %
Loans held for investment 5,219,496 68,352 5.20 % 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 %
Less reserve for loan

losses

  66,215    

 

    68,031    

 

    70,142    

 

    74,580    

 

    74,810    

 

 
Loans, net of reserve   6,344,656     81,692   5.11 %   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 %
Total earning assets 6,550,937 83,430 5.05 % 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 %
Cash and other assets   333,563   306,372   297,060   285,566   267,923
Total assets $ 6,884,500 $ 6,192,506 $ 6,183,239 $ 6,648,336 $ 6,099,782
 
Liabilities and Stockholders’ Equity
Transaction deposits $ 412,203 $ 52 0.05 % $ 375,084 $ 55 0.06 % $ 345,978 $ 55 0.06 % $ 434,160 $ 132 0.12 % $ 465,370 $ 189 0.16 %
Savings deposits 2,253,123 1,664 0.29 % 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 %
Time deposits 468,196 1,032 0.87 % 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 %
Deposits in foreign branches   588,221     443   0.30 %   415,998     311   0.30 %   376,570     524   0.56 %   451,088     1,193   1.05 %   418,112     1,299   1.23 %
Total interest bearing deposits 3,721,743

3,191

0.34

%

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

%

Other borrowings 894,073 240 0.11 % 233,388 110 0.19 % 159,450 109 0.28 % 212,939 230 0.43 % 230,043 262 0.45 %
Trust preferred subordinated debentures   113,406    

634

 

2.22

%

  113,406    

638

 

2.26

%

  113,406    

633

 

2.26

%

  113,406    

876

 

3.06

%

  113,406    

972

 

3.40

%

Total interest bearing liabilities 4,729,222

4,065

0.34

%

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

%

Demand deposits 1,525,087 1,455,366 1,417,734 1,337,213 1,142,735
Other liabilities 53,233 40,177 47,753 35,589 28,997
Stockholders’ equity   576,958   552,632   543,309   530,089   522,985
Total liabilities and stockholders’ equity $ 6,884,500 $ 6,192,506 $ 6,183,239 $ 6,648,336 $ 6,099,782
 
Net interest income $ 79,365 $ 71,274 $ 64,684 $ 66,144 $ 62,798
Net interest margin 4.81 % 4.86 % 4.46 % 4.12 % 4.27 %

(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.

Texas Capital Bancshares, Inc.
Myrna Vance, 214-932-6646
myrna.vance@texascapitalbank.com

Source: Texas Capital Bancshares, Inc.

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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