Press Release

Texas Capital Bancshares Announces Operating Results for Q1 2013

Company Release - 4/24/2013 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 first quarter of 2013.

  • Net income increased 5% on a linked quarter basis and 22% from the first quarter of 2012
  • EPS increased 5% on a linked quarter basis and 14% from the first quarter of 2012
  • Demand deposits increased 4% and total deposits increased 4% on a linked quarter basis; grew 50% and 28%, respectively, from the first quarter of 2012
  • Loans held for investment increased 2% and total loans decreased 5% on a linked quarter basis; both grew 19% and 18%, respectively, from the first quarter of 2012

“I am pleased to report another strong quarter for Texas Capital, a quarter in which we maintained superior profitability, returns and credit trends in light of a very competitive environment and an expected seasonal decline in loans held for sale,” said George Jones, CEO. “We are in a strong capital position and have the resources and potential to continue our growth.”

FINANCIAL SUMMARY

(dollars and shares in thousands)

         
Q1 2013 Q1 2012 % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 33,144 $ 27,081 22 %
Net Income Available to Common Shareholders $ 33,063 $ 27,081 22 %
Diluted EPS $ .80 $ .70 14 %
ROA 1.38 % 1.33 %
ROE 15.82 % 17.36 %
Diluted Shares 41,429 38,914
 
BALANCE SHEET(1)
Total Assets $ 10,020,565 $ 8,559,917 17 %
Demand Deposits 2,628,446 1,751,443 50 %
Total Deposits 7,745,831 6,063,558 28 %
Loans Held for Investment 6,920,011 5,792,349 19 %
Loans Held for Sale 2,577,830 2,255,281 14 %
Total Loans 9,497,841 8,047,630 18 %
Stockholders’ Equity 1,013,195 647,341 57 %

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

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations and net income available to common shareholders of $33.1 million for the quarter ended March 31, 2013 compared to $27.1 million for the first quarter of 2012. On a fully diluted basis, earnings per common share from continuing operations were $.80 for the three months ended March 31, 2013, compared to $.70 for the same period last year. The discussion below relates only to continuing operations.

Return on average common equity was 15.82 percent and return on average assets was 1.38 percent for the first quarter of 2013, compared to 17.36 percent and 1.33 percent, respectively, for the first quarter of 2012.

Net interest income was $98.0 million for the first quarter of 2013, compared to $101.2 million in the fourth quarter of 2012 and $88.2 million for the first quarter of 2012. The net interest margin in the first quarter of 2013 was 4.27 percent, a 27 basis point decrease from the first quarter of 2012 and level with the fourth quarter of 2012. The year over year decrease in net interest margin is due to the growth in loans with lower yields with an offsetting benefit of the reduction in funding costs. The year over year growth in loans more than compensated for the reduction in yields and produced strong growth in net interest income.

Average loans held for investment for the first quarter of 2013 were $6.8 billion, an increase of $1.2 billion from the first quarter of 2012 and $179.9 million from the fourth quarter of 2012. Average loans held for sale for the first quarter of 2013 increased $326.0 million compared to the first quarter of 2012 and decreased $295.4 million from the fourth quarter of 2012 due to seasonal trends.

Average total deposits for the first quarter of 2013 increased by $1.7 billion from the first quarter of 2012 and increased by $499.8 million from the fourth quarter of 2012. For the same periods, the average balance of demand deposits increased by $829.5 million, or 49 percent, to $2.5 billion from $1.7 billion during the first quarter of 2012 and increased $173.2 million from the fourth quarter of 2012.

In the first quarter of 2013, we experienced decreases in levels of non-performing assets. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $2.1 million in the first quarter of 2013 compared to $5.7 million in the first quarter of 2012 and $5.5 million in the fourth quarter of 2012. We recorded a $2.0 million provision for credit losses in the first quarter of 2013 compared to $3.0 million in the first quarter of 2012 and $4.5 million in the fourth quarter of 2012. Due to growth and improving credit quality, at March 31, 2013, the combined reserve decreased to 1.14 percent of loans held for investment as compared to 1.29 percent at March 31, 2012 and 1.15 percent at December 31, 2012. In management’s opinion, the reserve is appropriate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio. In the first quarter of 2013, net charge-offs were $1.2 million, compared to net charge-offs of $828,000 in the first quarter of 2012 and net charge-offs of $3.5 million in the fourth quarter of 2012. Non-accrual loans were $43.4 million, or .63 percent of loans held for investment at the end of the first quarter of 2013, $50.2 million, or .87 percent, at the end of the first quarter of 2012 and $55.8 million, or .82 percent, at the end of the fourth quarter 2012. At March 31, 2013, total OREO was $14.4 million compared to $32.6 million at the end of the first quarter of 2012, and $16.0 million at the end of the fourth quarter of 2012. The OREO balance of $14.4 million at March 31, 2013 is stated net of a $4.5 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $71,000 in the first quarter of 2013 compared to $2.7 million in the first quarter of 2012 and $955,000 in the fourth quarter of 2012.

Non-interest income increased $2.1 million during the first quarter of 2013, or 23 percent, compared to the same period of 2012 primarily related to a $1.1 million increase in brokered loan fees earned in the mortgage warehouse lending division. Swap fee income increased $855,000 during the first quarter of 2013 due to an increase in swap transactions as compared to the same period in 2012.

Non-interest expense for the first quarter of 2013 increased $3.4 million, or 7 percent, to $55.7 million from $52.3 million in the first quarter of 2012. The increase is primarily related to a $4.5 million increase in salaries and employee benefits to $33.5 million from $29.0 million, which was primarily due to general business growth and costs of performance-based incentives resulting from the increase in stock price. Marketing expense increased $1.1 million from the first quarter of 2012 due to expansion of customer bases in both loans and deposits. Allowance and other carrying costs for OREO expense decreased $2.9 million to $430,000, which included a $71,000 valuation expense. The $71,000 valuation expense in the first quarter of 2013 relates to direct write-downs of the OREO balance, compared to $1.9 million related to direct write-downs and $856,000 related to increasing the valuation allowance for the first quarter of 2012.

Stockholders’ equity increased 57 percent from $647.3 million at March 31, 2012 to $1.0 billion at March 31, 2013, primarily related to the offering of 2.3 million common shares for net proceeds of $87 million in the third quarter of 2012, the offering of 6.0 million shares of preferred shares for proceeds of $145.1 million in the first quarter of 2013 and retained net income. The Bank is well capitalized under regulatory guidelines and at March 31, 2013, the Company’s ratio of tangible common equity to total tangible assets was 8.4 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)
    1st Quarter     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter
2013     2012     2012     2012     2012
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 104,179 $ 107,769 $ 102,011 $ 95,546 $ 93,131
Interest expense   6,137         6,614         5,156         4,906         4,902  
Net interest income 98,042 101,155 96,855 90,640 88,229
Provision for credit losses   2,000         4,500         3,000         1,000         3,000  
Net interest income after provision for credit losses 96,042 96,655 93,855 89,640 85,229
Non-interest income 11,281 12,836 10,552 10,462 9,190
Non-interest expense   55,700         60,074         53,521         53,973         52,276  
Income from continuing operations before income taxes

51,623

49,417

50,886

46,129

42,143

Income tax expense   18,479         17,982         18,316         16,506         15,062  
Income from continuing operations 33,144 31,435 32,570 29,623 27,081

Income (loss) from discontinued operations (after-tax)

 

(1

)

     

(6

)

     

(34

)

     

(1

)

     

4

 
Net income $ 33,143 $ 31,429 $ 32,536 $ 29,622 $ 27,085
Preferred stock dividends   81                                  
Net income available to common shareholders $ 33,062       $ 31,429       $ 32,536       $ 29,622       $ 27,085  
Diluted EPS from continuing operations $ .80 $ .76 $ .80 $ .76 $ .70
Diluted EPS $ .80 $ .76 $ .80 $ .76 $ .70
 
Diluted shares 41,429,244 41,505,026 40,755,733 39,141,544 38,914,241
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 10,020,565 $ 10,540,542 $ 9,881,362 $ 9,144,360 $ 8,559,917
Loans held for investment 6,920,011 6,785,535 6,549,089 6,234,692 5,792,349
Loans held for sale 2,577,830 3,175,272 2,818,622 2,408,032 2,255,281
Securities 87,527 100,195 107,288 114,964 123,828
Demand deposits 2,628,446 2,535,375 2,114,279 2,019,473 1,751,443
Total deposits 7,745,831 7,440,804 6,717,579 6,660,290 6,063,558
Other borrowings 938,134 1,947,161 2,046,169 1,609,039 1,657,728
Subordinated notes 111,000 111,000 111,000
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 1,013,195 836,242 802,406 680,705 647,341
 
End of period shares outstanding 40,771,414 40,727,579 40,580,283 38,114,012 37,912,054
Book value (excluding securities gains/losses) $ 21.10 $ 20.45 $ 19.68 $ 17.75 $ 16.96
Tangible book value (excluding securities gains/losses)

$

20.62

$

19.96

$

19.18

$

17.22

$

16.42

 
SELECTED FINANCIAL RATIOS
Net interest margin 4.27 % 4.27 % 4.36 % 4.49 % 4.54 %
Return on average assets 1.38 % 1.27 % 1.40 % 1.40 % 1.33 %
Return on average common equity 15.82 % 15.35 % 17.27 % 18.08 % 17.36 %
Non-interest income to earning assets .49 % .54 % .47 % .52 % .47 %
Efficiency ratio 50.9 % 52.7 % 49.8 % 53.4 % 53.7 %
Efficiency ratio (excluding OREO valuation/write-down)

50.9

%

51.9

%

49.8

%

50.3

%

50.8

%

Non-interest expense to earning assets 2.42 % 2.53 % 2.40 % 2.67 % 2.69 %
Non-interest expense to earning assets (excluding OREO valuation charge)

2.42

%

2.49

%

2.40

%

2.52

%

2.55

%

Tangible common equity to total tangible assets 8.4 % 7.7 % 7.9 % 7.2 % 7.3 %
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
    March 31,

2013

    March 31,

2012

    %

Change

Assets        
Cash and due from banks $ 80,440 $ 66,806 20 %
Interest-bearing deposits 86,003 61,324 40 %
Federal funds sold and securities purchased under resale agreements

25,000

20,680

21

%

Securities, available-for-sale 87,527 123,828 (29 )%
Loans held for sale 2,577,830 2,255,281 14 %
Loans held for sale from discontinued operations 301 390 (23 )%
Loans held for investment (net of unearned income) 6,920,011 5,792,349 19 %
Less: Allowance for loan losses   75,000         71,992       4 %
Loans held for investment, net 6,845,011 5,720,357 20 %
Premises and equipment, net 11,249 11,445 (2 )%
Accrued interest receivable and other assets 287,771 279,866 3 %
Goodwill and intangibles, net   19,734         20,330       (3 )%
Total assets $ 10,020,866       $ 8,560,307       17 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing $ 2,628,446 $ 1,751,443 50 %
Interest bearing 4,739,067 3,902,123 21 %
Interest bearing in foreign branches   378,318         409,992       (8 )%
Total deposits 7,745,831 6,063,558 28 %
 
Accrued interest payable 1,013 893 13 %
Other liabilities 98,287 77,381 27 %
Federal funds purchased 452,998 383,927 18 %
Repurchase agreements 35,095 23,740 48 %
Other borrowings 450,041 1,250,061 (64 )%
Subordinated notes 111,000 100 %
Trust preferred subordinated debentures   113,406         113,406       -  
Total liabilities 9,007,671 7,912,966 14 %
 
Stockholders’ equity:
Preferred stock 150,000 100 %
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 40,771,831 and 37,912,054 at March 31, 2013 and 2012, respectively

408

379

8

%

Additional paid-in capital 444,477 353,567 26 %
Retained earnings 415,517 288,868 44 %
Treasury stock (shares at cost: 417 at March 31, 2013 and 2012, respectively)

(8

)

(8

)

-

Accumulated other comprehensive income, net of taxes   2,801         4,535       (38 )%
Total stockholders’ equity   1,013,195         647,341       57 %
Total liabilities and stockholders’ equity $ 10,020,866       $ 8,560,307       17 %
 
       
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended

March 31

2013     2012
Interest income
Loans $ 103,182 $ 91,774
Securities 939 1,307
Federal funds sold 6 1
Deposits in other banks   52         49
Total interest income 104,179 93,131
Interest expense
Deposits 3,245 3,472
Federal funds purchased 212 281
Repurchase agreements 4 3
Other borrowings 213 435
Subordinated notes 1,829
Trust preferred subordinated debentures   634         711
Total interest expense   6,137         4,902
Net interest income 98,042 88,229
Provision for credit losses   2,000         3,000
Net interest income after provision for credit losses 96,042 85,229
Non-interest income
Service charges on deposit accounts 1,701 1,604
Trust fee income 1,241 1,114
Bank owned life insurance (BOLI) income 498 521
Brokered loan fees 4,744 3,651
Swap fees 1,652 797
Other   1,445         1,503
Total non-interest income 11,281 9,190
Non-interest expense
Salaries and employee benefits 33,541 29,019
Net occupancy expense 3,857 3,604
Marketing 3,972 2,823
Legal and professional 3,940 3,991
Communications and technology 3,122 2,483
Allowance and other carrying costs for OREO 430 3,342
Other   6,838         7,014
Total non-interest expense   55,700         52,276
Income from continuing operations before income taxes 51,623 42,143
Income tax expense   18,479         15,062
Income from continuing operations 33,144 27,081
Income (loss) from discontinued operations (after-tax)   (1 )       4
Net income 33,143 $ 27,085
Preferred stock dividends   81        
Net income available to common shareholders $ 33,062       $ 27,085
 
Basic earnings per common share:
Income from continuing operations $ .82 $ .72
Net income $ .82 $ .72
 
Diluted earnings per common share:
Income from continuing operations $ .80 $ .70
Net income $ .80 $ .70
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
    1st Quarter     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter
2013     2012     2012     2012     2012
Reserve for loan losses:
Beginning balance $ 74,337 $ 73,722 $ 72,404 $ 71,992 $ 70,295
Loans charged-off:
Commercial 1,648 4,044 1,154 1,048 462
Real estate – construction
Real estate – term 105 284 56 559
Consumer 19 49
Leases           34         49         26         95  
Total loans charged-off 1,772 4,078 1,536 1,130 1,116
Recoveries:
Commercial 397 350 132 191 159
Real estate – construction 10
Real estate – term 8 226 130 348 108
Consumer 30 7 18 3 5
Leases   121         21         16         55         16  
Total recoveries   556         604         306         597         288  
Net charge-offs 1,216 3,474 1,230 533 828
Provision for loan losses   1,879         4,089         2,548         945         2,525  
Ending balance $ 75,000       $ 74,337       $ 73,722       $ 72,404       $ 71,992  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 3,855 $ 3,444 $ 2,992 $ 2,937 $ 2,462
Provision (benefit) for off-balance sheet credit losses   121         411         452         55         475  
Ending balance $ 3,976       $ 3,855       $ 3,444       $ 2,992       $ 2,937  
 
Total reserves for credit losses $ 78,976 $ 78,192 $ 77,166 $ 75,396 $ 74,929
 
Total provision for credit losses $ 2,000 $ 4,500 $ 3,000 $ 1,000 $ 3,000
 
Reserve to loans held for investment(2) 1.08 % 1.10 % 1.13 % 1.16 % 1.24 %
Reserve to average loans held for investment(2) 1.10 % 1.12 % 1.16 % 1.22 % 1.27 %
Net charge-offs to average loans(1)(2) .07 % .21 % .08 % .04 % .06 %
Net charge-offs to average loans for last twelve months(1)(2) .10 % .10 % .10 % .20 % .40 %
Total provision for credit losses to average loans(1)(2) .12 % .27 % .19 % .07 % .21 %
Combined reserves for credit losses to loans held for investment(2)

1.14

%

1.15

%

1.18

%

1.21

%

1.29

%

 
Non-performing assets (NPAs):
Non-accrual loans $ 43,424 $ 55,833 $ 57,275 $ 56,433 $ 50,160

Other real estate owned (OREO)(4)

  14,426         15,991         19,079         27,882         32,601  
Total $ 57,850       $ 71,824       $ 76,354       $ 84,315       $ 82,761  
 
Non-accrual loans to loans(2) .63 % .82 % .87 % .91 % .87 %
Total NPAs to loans plus OREO(2) .83 % 1.06 % 1.16 % 1.35 % 1.42 %
Total NPAs to earning assets .60 % .71 % .81 % .97 % 1.01 %
Reserve for loan losses to non-accrual loans

1.7

x

1.3

x

1.3

x

1.3

x

1.4

x

 
Restructured loans $ 11,755 $ 10,407 $ 9,145 $ 13,943 $ 12,582
Loans past due 90 days and still accruing(3) $ 12,614 $ 3,674 $ 3,622 $ 4,421 $ 5,941
 
Loans past due 90 days to loans(2) .18 % .05 % .06 % .07 % .10 %
(1)   Interim period ratios are annualized.
(2) Excludes loans held for sale.
(3) At March 31, 2013, loans past due 90 days and still accruing includes premium finance loans of $4.4 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 March 31, 2013, OREO balance is net of $4.5 million valuation allowance.
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
    1st Quarter     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter
2013     2012     2012     2012     2012
Interest income
Interest and fees on loans $ 103,182 $ 106,653 $ 100,830 $ 94,291 $ 91,774
Securities 939 1,053 1,125 1,203 1,307
Federal funds sold 6 6 2 4 1
Deposits in other banks   52         57         54         48         49
Total interest income 104,179 107,769 102,011 95,546 93,131
Interest expense
Deposits 3,245 3,312 3,378 3,482 3,472
Federal funds purchased 212 190 268 240 281
Repurchase agreements 4 3 3 4 3
Other borrowings 213 615 607 492 435
Subordinated notes 1,829 1,829 208
Trust preferred subordinated debentures   634         665         692         688         711
Total interest expense   6,137         6,614         5,156         4,906         4,902
Net interest income 98,042 101,155 96,855 90,640 88,229
Provision for credit losses   2,000         4,500         3,000         1,000         3,000
Net interest income after provision for credit losses 96,042 96,655 93,855 89,640 85,229
Non-interest income
Service charges on deposit accounts 1,701 1,693 1,684 1,624 1,604
Trust fee income 1,241 1,260 1,216 1,232 1,114
Bank owned life insurance (BOLI) income 498 510 549 588 521
Brokered loan fees 4,744 4,978 4,839 4,128 3,651
Swap fees 1,652 2,093 1,397 622 797
Other   1,445         2,302         867         2,268         1,503
Total non-interest income 11,281 12,836 10,552 10,462 9,190
Non-interest expense
Salaries and employee benefits 33,541 31,198 31,009 30,230 29,019
Net occupancy expense 3,857 3,916 3,653 3,679 3,604
Marketing 3,972 3,980 3,472 3,174 2,823
Legal and professional 3,940 5,320 4,916 3,330 3,991
Communications and technology 3,122 3,070 2,885 2,720 2,483
Allowance and other carrying costs for OREO 430 1,369 552 3,812 3,342
Litigation settlement expense 4,000
Other   6,838         7,221         7,034         7,028         7,014
Total non-interest expense   55,700         60,074         53,521         53,973         52,276
Income from continuing operations before income taxes

51,623

49,417

50,886

46,129

42,143

Income tax expense   18,479         17,982         18,316         16,506         15,062
Income from continuing operations 33,144 31,435 32,570 29,623 27,081
Income (loss) from discontinued operations (after-tax)  

(1

)

     

(6

)

     

(34

)

     

(1

)

     

4

Net income 33,143 $ 31,429 $ 32,536 $ 29,622 $ 27,085
Preferred stock dividends   81                                
Net income available to common shareholders $ 33,062       $ 31,429       $ 32,536       $ 29,622       $ 27,085
 
 
TEXAS CAPITAL BANCSHARES, INC.
 
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)
 
    1st Quarter 2013     4th Quarter 2012     3rd Quarter 2012     2nd Quarter 2012     1st Quarter 2012
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 $ 71,220 $ 729 4.15 % $ 78,182 $ 811 4.13 % $ 84,583 $ 881 4.14 % $ 91,623 $ 948 4.16 % $ 109,003 $ 1,041 3.84 %
Securities – Non-taxable(2) 22,174 323 5.91 % 25,301 372 5.85 % 25,717 376 5.82 % 26,817 393 5.89 % 28,506 409 5.77 %
Federal funds sold and securities purchased under resale agreements 24,785

 

6

 

0.10

 

%

21,617

 

6

 

0.11

 

%

9,360

 

2

 

0.09

 

%

8,077

 

4

 

0.20

 

%

6,848

 

1

 

0.06

 

%

Deposits in other banks 78,718 52 0.27 % 69,886 57 0.32 % 64,859 54 0.33 % 60,416 48 0.32 % 49,470 49 0.41 %
Loans held for sale 2,362,646 22,641 3.89 % 2,658,092 26,440 3.96 % 2,432,027 24,433 4.00 % 2,062,449 21,087 4.11 % 2,036,622 21,315 4.21 %
Loans held for investment 6,842,766 80,541 4.77 % 6,662,817 80,213 4.79 % 6,313,263 76,397 4.81 % 5,950,913 73,204 4.95 % 5,660,993 70,459 5.01 %

Less reserve for loan losses

  74,442    

 

    73,912    

 

    72,373    

 

    71,779    

 

    70,261    

 

 
Loans, net of reserve   9,130,970     103,182   4.58 %   9,246,997     106,653   4.59 %   8,672,917     100,830   4.63 %   7,941,583     94,291   4.78 %   7,627,354     91,774   4.84 %
Total earning assets 9,327,867 104,292 4.53 % 9,441,983 107,899 4.55 % 8,857,436 102,143 4.59 % 8,128,516 95,684 4.73 % 7,821,181 93,274 4.80 %
Cash and other assets   401,692   427,299   399,428   394,086   388,009
Total assets $ 9,729,559 $ 9,869,282 $ 9,256,864 $ 8,522,602 $ 8,209,190
 
Liabilities and Stockholders’ Equity
Transaction deposits $ 1,003,735 $ 253 0.10 % $ 941,947 $ 244 0.10 % $ 803,776 $ 247 0.12 % $ 694,463 $ 198 0.11 % $ 565,319 $ 140 0.10 %
Savings deposits 3,246,675 2,297 0.29 % 2,933,904 2,299 0.31 % 2,922,852 2,185 0.30 % 2,664,598 2,107 0.32 % 2,535,412 2,083 0.33 %
Time deposits 403,113 414 0.42 % 423,685 448 0.42 % 491,783 576 0.47 % 584,581 831 0.57 % 624,823 920 0.59 %
Deposits in foreign branches   335,265     281   0.34 %   362,580     321   0.35 %   431,412     370   0.34 %   444,478     346   0.31 %   409,422     329   0.32 %
Total interest bearing deposits 4,988,788

3,245

0.26

%

4,662,116

3,312

0.28

%

4,649,823

3,378

0.29

%

4,388,120

3,482

0.32

%

4,134,976

3,472

0.34

%

Other borrowings 1,041,573 429 0.17 % 1,725,129 808 0.19 % 1,639,953 878 0.21 % 1,428,575 736 0.21 % 1,554,716 719 0.19 %
Subordinated notes 111,000 1,829 6.68 % 111,000 1,829 6.56 % 12,065 208 6.86 %
Trust preferred subordinated debentures   113,406    

634

 

2.27

%

  113,406    

665

 

2.33

%

  113,406    

692

 

2.43

%

  113,406    

688

 

2.44

%

  113,406    

711

 

2.52

%

Total interest bearing liabilities 6,254,767

6,137

0.40

%

6,611,651

6,614

0.40

%

6,415,247

5,156

0.32

%

5,930,101

4,906

0.33

%

5,803,098

4,902

0.34

%

Demand deposits 2,529,927 2,356,758 2,010,694 1,864,456 1,700,390
Other liabilities 90,538 86,308 80,810 69,076 78,108
Stockholders’ equity   854,327   814,565   750,113   658,969   627,594
Total liabilities and stockholders’ equity $ 9,729,559 $ 9,869,282 $ 9,256,864 $ 8,522,602 $ 8,209,190
 
Net interest income $ 98,155 $ 101,285 $ 96,987 $ 90,778 $ 88,372
Net interest margin 4.27 % 4.27 % 4.36 % 4.49 % 4.54 %
(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.
Media Contact:
Heather Worley, 214-932-6827
heather.worley@texascapitalbank.com
or
Investor Contact:
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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