Market Overview

Texas Capital Bancshares Announces Operating Results for Q3 2012

Share:
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 2012.

  • Net income increased 10% on a linked quarter basis and increased 50% from Q3 2011
  • EPS increased 5% on a linked quarter basis and increased 43% for the third quarter of 2012 as compared to the same quarter of 2011
  • Demand deposits increased 5% and total deposits increased 1% on a linked quarter basis and grew 27% and 22%, respectively, from Q3 2011
  • Loans held for investment increased 5% and total loans increased 8% on a linked quarter basis and grew 24% and 30%, respectively, from Q3 2011

“Texas Capital experienced outstanding results for the third quarter of 2012,” said George Jones, CEO. “During the quarter we successfully completed offerings of equity and debt capital. By leveraging the new capital effectively with strong growth in loans, we have produced record earnings and excellent returns. We believe we are demonstrating the value of our business model and why Texas Capital has become the Best Business Bank in Texas.®

FINANCIAL SUMMARY      

(dollars and shares in thousands)

 
Q3 2012 Q3 2011 % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $ 32,570 $ 21,710 50 %
Diluted EPS $ .80 $ .56 43 %
ROA 1.40 % 1.25 %
ROE 17.27 % 14.93 %
Diluted Shares 40,756 38,435
 
BALANCE SHEET(1)
Total Assets $ 9,881,362 $ 7,705,372 28 %
Demand Deposits 2,114,279 1,661,125 27 %
Total Deposits 6,717,579 5,486,463 22 %
Loans Held for Investment 6,549,089 5,302,584 24 %
Loans Held for Sale 2,818,622 1,909,567 48 %
Total Loans 9,367,711 7,212,151 30 %
Stockholders' Equity 802,406 587,944 36 %

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

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $32.6 million for the third quarter of 2012 compared to $21.7 million for the third quarter of 2011. On a fully diluted basis, earnings per common share from continuing operations were $.80 for the three months ended September 30, 2012, compared to $.56 for the same period last year. During the third quarter of 2012, we completed an equity offering of 2.3 million shares. The diluted share effect for the quarter was to increase diluted shares by 1.5 million shares, or 4 percent. The discussion below relates only to continuing operations.

Return on average equity was 17.27 percent and return on average assets was 1.40 percent for the third quarter of 2012, compared to 14.93 percent and 1.25 percent, respectively, for the third quarter of 2011.

Net interest income was $96.9 million for the third quarter of 2012, compared to $90.6 million in the second quarter of 2012 and $79.2 million for the third quarter of 2011. The net interest margin in the third quarter of 2012 was 4.36 percent, a 45 basis point decrease from the third quarter of 2011 and a 13 basis point decrease from the second 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 growth in loans more than compensated for the reduction in yields and produced the strong growth in net interest income.

Average loans held for investment for the third quarter of 2012 were $6.3 billion, an increase of $1.1 billion, or 21 percent, from the third quarter of 2011 and an increase of $362.4 million, or 6 percent, from the second quarter of 2012. Average loans held for sale for the third quarter of 2012 increased $1.2 billion to $2.4 billion compared to the third quarter of 2011 and increased $369.6 million from the second quarter of 2012.

Average total deposits for the third quarter of 2012 increased $1.4 billion from the third quarter of 2011 and increased $407.9 million from the second quarter of 2012. For the same periods, the average balance of demand deposits increased $485.6 million, or 32 percent, to $2.0 billion from $1.5 billion during the third quarter of 2011 and increased $146.2 million, or 8 percent, from the second quarter of 2012.

In the third quarter of 2012, we experienced decreases in the ratios of non-performing assets and credit losses to loans held for investment. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $3.1 million in the third quarter of 2012 compared to $8.7 million in the third quarter of 2011 and $4.1 million in the second quarter of 2012. We recorded a $3.0 million provision for credit losses in the third quarter of 2012 compared to $7.0 million in the third quarter of 2011 and $1.0 million in the second quarter of 2012. At September 30, 2012, the combined reserve decreased to 1.18 percent of loans held for investment as compared to 1.32 percent at September 30, 2011 and 1.21 percent at June 30, 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 third quarter of 2012, net charge-offs were $1.2 million compared to net charge-offs of $6.3 million in the third quarter of 2011 and net charge-offs of $533,000 in the second quarter of 2012. Non-accrual loans were $57.3 million, or .87 percent of loans held for investment at the end of the third quarter of 2012, $66.7 million, or 1.26 percent, at the end of the third quarter of 2011 and $56.4 million, or .91 percent, at the end of the second quarter 2012. At September 30, 2012, total OREO was $19.1 million compared to $35.8 million at the end of the third quarter of 2011, and $27.9 million at the end of the second quarter of 2012. The OREO balance of $19.1 million at September 30, 2012 is stated net of a $4.7 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $64,000 in the third quarter of 2012 compared to $1.7 million in the third quarter of 2011 and $3.1 million in the second quarter of 2012.

Non-interest income increased $2.9 million during the third quarter of 2012, or 39 percent, compared to the same period of 2011 primarily related to a $2.0 million increase in brokered loan fees earned in the mortgage warehouse lending division.

Non-interest expense for the third quarter of 2012 increased $7.3 million, or 16 percent, to $53.5 million from $46.2 million in the third quarter of 2011. The increase is primarily related to a $5.4 million increase in salaries and employee benefits to $31.0 million from $25.6 million, which was primarily due to general business growth and costs of performance-based incentives resulting from the increase in stock price. Marketing expense and legal and professional expense increased $1.0 million and $1.3 million, respectively, from the third quarter of 2011 primarily due to general business growth. Allowance and other carrying costs for OREO expense decreased $1.6 million to $552,000, which included a $64,000 valuation expense during the third quarter of 2012. The $64,000 valuation expense in the third quarter of 2012 related to direct write-downs, compared to $1.7 million in valuation expense in the third quarter 2011, $61,000 of which related to direct write-downs and $1.6 million related to increasing the valuation allowance.

Stockholders' equity increased by 36 percent from $587.9 million at September 30, 2011 to $802.4 million at September 30, 2012, primarily related to the offering of 2.3 million common shares for net proceeds of $87 million and retention of net income. In addition to the equity offering, we also completed a subordinated debt offering of $111 million, increasing our total regulatory capital by approximately $198 million. The Bank is well capitalized under regulatory guidelines and at September 30, 2012, the Company's ratio of tangible common equity to total tangible assets was 7.9 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 news release may be deemed to include forward-looking statements which are based on Texas Capital's current estimates or expectations of future events or future results. Texas Capital is under no obligation, and expressly disclaims such obligation, to update, alter or revise its forward-looking statements, whether as a result of new information, future events, or otherwise. A number of factors, many of which are beyond Texas Capital's control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, 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 prospectus supplements, the Annual Report on Form 10-K and other filings made by Texas Capital with the Securities and Exchange Commission (SEC).

         
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
  2012       2012       2012       2011       2011  
CONSOLIDATED STATEMENT OF INCOME
Interest income $ 102,011 $ 95,546 $ 93,131 $ 92,967 $ 83,263
Interest expense   5,156       4,906       4,902       4,820       4,065  
Net interest income 96,855 90,640 88,229 88,147 79,198
Provision for credit losses   3,000       1,000       3,000       6,000       7,000  
Net interest income after provision for credit losses 93,855 89,640 85,229 82,147 72,198
Non-interest income 10,552 10,462 9,190 8,994 7,603
Non-interest expense   53,521       53,973       52,276       50,353       46,186  
Income from continuing operations before income taxes

50,886

46,129

42,143

40,788

33,615

Income tax expense   18,316       16,506       15,062       15,043       11,905  
Income from continuing operations 32,570 29,623 27,081 25,745 21,710

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

 

(34

)

   

(1

)

   

4

     

(5

)

   

(7

)

Net income $ 32,536     $ 29,622     $ 27,085     $ 25,740     $ 21,703  
Diluted EPS from continuing operations $ .80 $ .76 $ .70 $ .67 $ .56
Diluted EPS $ .80 $ .76 $ .70 $ .67 $ .56
 
Diluted shares 40,755,733 39,141,544 38,914,241 38,609,094 38,435,386
 
CONSOLIDATED BALANCE SHEET DATA
Total assets $ 9,881,362 $ 9,144,360 $ 8,559,917 $ 8,137,225 $ 7,705,372
Loans held for investment 6,549,089 6,234,692 5,792,349 5,572,371 5,302,584
Loans held for sale 2,818,622 2,408,032 2,255,281 2,080,081 1,909,567
Securities 107,288 114,964 123,828 143,710 142,895
Demand deposits 2,114,279 2,019,473 1,751,443 1,751,944 1,661,125
Total deposits 6,717,579 6,660,290 6,063,558 5,556,257 5,486,463
Other borrowings 2,046,169 1,609,039 1,657,728 1,768,116 1,451,894
Subordinated notes 111,000
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders' equity 802,406 680,705 647,341 616,331 587,944
 
End of period shares outstanding 40,580,283 38,114,012 37,912,054 37,666,291 37,457,762
Book value (excluding securities gains/losses) $ 19.68 $ 17.75 $ 16.96 $ 16.24 $ 15.56
Tangible book value (excluding securities gains/losses)

$

19.18

$

17.22

$

16.42

$

15.69

$

15.01

 
SELECTED FINANCIAL RATIOS
Net interest margin 4.36 % 4.49 % 4.54 % 4.60 % 4.81 %
Return on average assets 1.40 % 1.40 % 1.33 % 1.28 % 1.25 %
Return on average equity 17.27 % 18.08 % 17.36 % 17.05 % 14.93 %
Non-interest income to earning assets .47 % .52 % .47 % .47 % .46 %
Efficiency ratio 49.8 % 53.4 % 53.7 % 51.8 % 53.2 %
Efficiency ratio (excluding OREO valuation/write-down)

49.8

%

50.3

%

50.8

%

50.7

%

51.3

%

Non-interest expense to earning assets 2.40 % 2.67 % 2.69 % 2.62 % 2.80 %
Non-interest expense to earning assets (excluding OREO valuation charge)

2.40

%

2.52

%

2.55

%

2.57

%

2.70

%

Tangible common equity to total tangible assets 7.9 % 7.2 % 7.3 % 7.3 % 7.3 %
Tier 1 capital ratio 10.4 % 9.5 % 9.5 % 9.6 % 9.7 %
Total capital ratio 12.6 % 10.5 % 10.4 % 10.6 % 10.7 %
Tier 1 leverage ratio (1) 9.6 % 9.0 % 8.9 % 8.8 % 9.8 %

(1) Non-GAAP measure equal to end of period shareholders' equity less goodwill and intangible assets divided by end of period total assets less goodwill and intangible assets.

     
 
TEXAS CAPITAL BANCSHARES, INC.
 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30, September 30, %
  2012       2011     Change
Assets
Cash and due from banks $ 88,220 $ 83,489 6 %
Interest-bearing deposits 60,971 37,080 64 %
Securities, available-for-sale 107,288 142,895 (25 )%
Loans held for sale 2,818,622 1,909,567 48 %
Loans held for sale from discontinued operations 304 395 (23 )%
Loans held for investment (net of unearned income) 6,549,089 5,302,584 24 %
Less: Allowance for loan losses   73,722       67,897     9 %
Loans held for investment, net 6,475,367 5,234,687 24 %
Premises and equipment, net 11,280 11,596 (3 )%
Accrued interest receivable and other assets 299,582 265,412 13 %
Goodwill and intangibles, net   20,032       20,646     (3 )%
Total assets $ 9,881,666     $ 7,705,767     28 %
 
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing $ 2,114,279 $ 1,661,125 27 %
Interest bearing 4,171,405 3,204,985 30 %
Interest bearing in foreign branches   431,895       620,353     (30 )%
Total deposits 6,717,579 5,486,463 22 %
 
Accrued interest payable 1,039 671 55 %
Other liabilities 90,067 65,389 38 %
Federal funds purchased 473,330 321,930 47 %
Repurchase agreements 22,788 27,059 (16 )%
Other borrowings 1,550,051 1,102,905 41 %
Subordinated notes 111,000 100 %
Trust preferred subordinated debentures   113,406       113,406     -  
Total liabilities 9,079,260 7,117,823 28 %
 
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 – 40,580,700 and 37,458,179 at September 30, 2012 and 2011, respectively

406

374

9

%

Additional paid-in capital 447,104 346,405 29 %
Retained earnings 351,026 236,043 49 %
Treasury stock (shares at cost: 417 at September 30, 2012 and 2011)

(8

)

(8

)

-

Accumulated other comprehensive income, net of taxes   3,878       5,130     (24 )%
Total stockholders' equity   802,406       587,944     36 %
Total liabilities and stockholders' equity $ 9,881,666     $ 7,705,767     28 %
 
 
TEXAS CAPITAL BANCSHARES, INC.        
 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
  2012       2011       2012       2011  
Interest income
Interest and fees on loans $ 100,830 $ 81,692 $ 286,895 $ 223,241
Securities 1,125 1,524 3,635 5,050
Federal funds sold 2 3 7 36
Deposits in other banks   54       44       151       306  
Total interest income 102,011 83,263 290,688 228,633
Interest expense
Deposits 3,378 3,191 10,332 11,479
Federal funds purchased 268 128 789 329
Repurchase agreements 3 2 10 6
Other borrowings 607 110 1,534 124
Subordinated notes 208 208
Trust preferred subordinated debentures   692       634       2,091       1,905  
Total interest expense   5,156       4,065       14,964       13,843  
Net interest income 96,855 79,198 275,724 214,790
Provision for credit losses   3,000       7,000       7,000       22,500  
Net interest income after provision for credit losses 93,855 72,198 268,724 192,290
Non-interest income
Service charges on deposit accounts 1,684 1,585 4,912 4,976
Trust fee income 1,216 1,091 3,562 3,111
Bank owned life insurance (BOLI) income 549 533 1,658 1,595
Brokered loan fees 4,839 2,849 12,618 7,927
Other   2,264       1,545       7,454       5,629  
Total non-interest income 10,552 7,603 30,204 23,238
Non-interest expense
Salaries and employee benefits 31,009 25,596 90,258 73,877
Net occupancy expense 3,653 3,367 10,936 10,120
Marketing 3,472 2,455 9,469 7,311
Legal and professional 4,916 3,647 12,237 10,634
Communications and technology 2,885 2,210 8,088 7,141
FDIC insurance assessment 1,332 1,465 4,497 5,948
Allowance and other carrying costs for OREO 552 2,150 7,706 7,203
Other   5,702       5,296       16,579       15,614  
Total non-interest expense   53,521       46,186       159,770       137,848  
Income from continuing operations before income taxes 50,886 33,615 139,158 77,680
Income tax expense   18,316       11,905       49,884       27,323  
Income from continuing operations 32,570 21,710 89,274 50,357
Income (loss) from discontinued operations (after-tax)   (34 )     (7 )     (31 )     (121 )
Net income $ 32,536     $ 21,703     $ 89,243     $ 50,236  
 
Basic earnings per common share:
Income from continuing operations $ .82 $ .58 $ 2.32 $ 1.35
Net income $ .82 $ .58 $ 2.32 $ 1.35
 
Diluted earnings per common share:
Income from continuing operations $ .80 $ .56 $ 2.25 $ 1.31
Net income $ .80 $ .56 $ 2.25 $ 1.31
 
 
TEXAS CAPITAL BANCSHARES, INC.          
 
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
  2012       2012       2012       2011       2011  
Reserve for loan losses:
Beginning balance $ 72,404 $ 71,992 $ 70,295 $ 67,897 $ 67,748
Loans charged-off:
Commercial 1,154 1,048 462 1,348 1,523
Real estate – construction
Real estate – term 284 56 559 2,438 5,049
Consumer 49
Leases   49       26       95       238       (16 )
Total 1,536 1,130 1,116 4,024 6,556
Recoveries:
Commercial 132 191 159 390 109
Real estate – construction 10 5
Real estate – term 130 348 108 45 152
Consumer 18 3 5 4 1
Leases   16       55       16       171       36  
Total recoveries   306       597       288       610       303  
Net charge-offs 1,230 533 828 3,414 6,253
Provision for loan losses   2,548       945       2,525       5,812       6,402  
Ending balance $ 73,722     $ 72,404     $ 71,992     $ 70,295     $ 67,897  
 
Reserve for off-balance sheet credit losses:
Beginning balance $ 2,992 $ 2,937 $ 2,462 $ 2,274 $ 1,676
Provision for off-balance sheet credit losses   452       55       475       188       598  
Ending balance $ 3,444     $ 2,992     $ 2,937     $ 2,462     $ 2,274  
 
Total reserves for credit losses $ 77,166 $ 75,396 $ 74,929 $ 72,757 $ 70,171
 
Total provision for credit losses $ 3,000 $ 1,000 $ 3,000 $ 6,000 $ 7,000
 
Reserve to loans held for investment(2) 1.13 % 1.16 % 1.24 % 1.26 % 1.28 %
Reserve to average loans held for investment(2) 1.16 % 1.22 % 1.27 % 1.30 % 1.30 %
Net charge-offs to average loans(1)(2) .08 % .04 % .06 % .25 % .48 %
Net charge-offs to average loans for last twelve months(1)(2) .10 % .20 % .40 % .58 % .90 %
Total provision for credit losses to average loans(1)(2) .19 % .07 % .21 % .44 % .53 %
Combined reserves for credit losses to loans held for investment(2)

1.18

%

1.21

%

1.29

%

1.31

%

1.32

%

 
Non-performing assets (NPAs):
Non-accrual loans $ 57,275 $ 56,433 $ 50,160 $ 54,580 $ 66,714

Other real estate owned (OREO)(4)

  19,079       27,882       32,601       34,077       35,796  
Total $ 76,354     $ 84,315     $ 82,761     $ 88,657     $ 102,510  
 
Non-accrual loans to loans(2) .87 % .91 % .87 % .98 % 1.26 %
Total NPAs to loans plus OREO(2) 1.16 % 1.35 % 1.42 % 1.58 % 1.92 %
Total NPAs to earning assets .81 % .97 % 1.01 % 1.14 % 1.40 %
Reserve for loan losses to non-accrual loans 1.3x 1.3x 1.4x 1.3x 1.0x
 
Restructured loans $ 9,145 $ 13,943 $ 12,582 $ 25,104 $ 24,963
Loans past due 90 days and still accruing(3) $ 3,622 $ 4,421 $ 5,941 $ 5,467 $ 3,003
 
Loans past due 90 days to loans(2) .06 % .07 % .10 % .10 % .06 %

(1) Interim period ratios are annualized.
(2) Excludes loans held for sale.
(3) At September 30, 2012, 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 September 30, 2012, OREO balance is net of $4.7 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
  2012       2012       2012     2011       2011  
Interest income
Interest and fees on loans $ 100,830 $ 94,291 $ 91,774 $ 91,512 $ 81,692
Securities 1,125 1,203 1,307 1,408 1,524
Federal funds sold 2 4 1 1 3
Deposits in other banks   54       48       49     46       44  
Total interest income 102,011 95,546 93,131 92,967 83,263
Interest expense
Deposits 3,378 3,482 3,472 3,471 3,191
Federal funds purchased 268 240 281 273 128
Repurchase agreements 3 4 3 4 2
Other borrowings 607 492 435 404 110
Subordinated notes 208
Trust preferred subordinated debentures   692       688       711     668       634  
Total interest expense   5,156       4,906       4,902     4,820       4,065  
Net interest income 96,855 90,640 88,229 88,147 79,198
Provision for credit losses   3,000       1,000       3,000     6,000       7,000  
Net interest income after provision for credit losses 93,855 89,640 85,229 82,147 72,198
Non-interest income
Service charges on deposit accounts 1,684 1,624 1,604 1,504 1,585
Trust fee income 1,216 1,232 1,114 1,108 1,091
Bank owned life insurance (BOLI) income 549 588 521 500 533
Brokered loan fees 4,839 4,128 3,651 3,408 2,849
Other   2,264       2,890       2,300     2,474       1,545  
Total non-interest income 10,552 10,462 9,190 8,994 7,603
Non-interest expense
Salaries and employee benefits 31,009 30,230 29,019 26,658 25,596
Net occupancy expense 3,653 3,679 3,604 3,537 3,367
Marketing 3,472 3,174 2,823 3,798 2,455
Legal and professional 4,916 3,330 3,991 4,362 3,647
Communications and technology 2,885 2,720 2,483 2,468 2,210
FDIC insurance assessment 1,332 1,596 1,569 1,595 1,465
Allowance and other carrying costs for OREO 552 3,812 3,342 2,383 2,150
Other   5,702       5,432       5,306     5,552       5,296  
Total non-interest expense   53,521       53,973       52,276     50,353       46,186  
Income from continuing operations before income taxes

50,886

46,129

42,143

40,788

33,615

Income tax expense   18,316       16,506       15,062     15,043       11,905  
Income from continuing operations 32,570 29,623 27,081 25,745 21,710
Income (loss) from discontinued operations (after-tax)  

(34

)

   

(1

)

   

4

   

(5

)

   

(7

)

Net income $ 32,536     $ 29,622     $ 27,085   $ 25,740     $ 21,703  
 
 

TEXAS CAPITAL BANCSHARES, INC.

                             

QUARTERLY FINANCIAL SUMMARY – UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
 
3rd Quarter 2012 2nd Quarter 2012 1st Quarter 2012 4th Quarter 2011 3rd Quarter 2011
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 $ 84,583 $ 881 4.14 % $ 91,623 $ 948 4.16 % $ 109,003 $ 1,041 3.84 % $ 109,761 $ 1,126 4.07 % $ 115,871 $ 1,214 4.16 %
Securities – Non-taxable(2) 25,717 376 5.82 % 26,817 393 5.89 % 28,506 409 5.77 % 30,065 434 5.73 % 33,051 477 5.73 %
Federal funds sold 9,360

2

0.09 % 8,077 4 0.20 % 6,848 1 0.06 % 8,505 1 0.05 % 20,864 3 0.06 %
Deposits in other banks 64,859 54 0.33 % 60,416 48 0.32 % 49,470 49 0.41 % 42,644 46 0.43 % 36,495 44 0.48 %
Loans held for sale 2,432,027 24,433 4.00 % 2,062,449 21,087 4.11 % 2,036,622 21,315 4.21 % 2,093,883 22,332 4.23 % 1,191,375 13,340 4.44 %
Loans held for investment 6,313,263 76,397 4.81 % 5,950,913 73,204 4.95 % 5,660,993 70,459 5.01 % 5,395,253 69,180 5.09 % 5,219,496 68,352 5.20 %
Less reserve for loan

losses

  72,373    

 

    71,779    

 

    70,261    

 

    67,214    

 

    66,215    

 

 
Loans, net of reserve   8,672,917     100,830   4.63 %   7,941,583     94,291   4.78 %   7,627,354     91,774   4.84 %   7,421,922     91,512   4.89 %   6,344,656     81,692   5.11 %
Total earning assets 8,857,436 102,143 4.59 % 8,128,516 95,684 4.73 % 7,821,181 93,274 4.80 % 7,612,897 93,119 4.85 % 6,550,937 83,430 5.05 %
Cash and other assets   399,428   394,086   388,009   382,577   333,563
Total assets $ 9,256,864 $ 8,522,602 $ 8,209,190 $ 7,995,474 $ 6,884,500
 
Liabilities and Stockholders' Equity
Transaction deposits $ 803,776 $ 247 0.12 % $ 694,463 $ 198 0.11 % $ 565,319 $ 140 0.10 % $ 429,980 $ 33 0.03 % $ 412,203 $ 52 0.05 %
Savings deposits 2,922,852 2,185 0.30 % 2,664,598 2,107 0.32 % 2,535,412 2,083 0.33 % 2,422,465 2,062 0.34 % 2,253,123 1,664 0.29 %
Time deposits 491,783 576 0.47 % 584,581 831 0.57 % 624,823 920 0.59 % 534,441 927 0.69 % 468,196 1,032 0.87 %
Deposits in foreign branches

 

431,412     370   0.34 %   444,478     346   0.31 %   409,422     329   0.32 %   578,728     449   0.31 %   588,221     443   0.30 %
Total interest bearing deposits 4,649,823

3,378

0.29

%

4,388,120

3,482

0.32

%

4,134,976

3,472

0.34

%

3,965,614

3,471

0.35

%

3,721,743

3,191

0.34

%

Other borrowings 1,639,953 878 0.21 % 1,428,575 736 0.21 % 1,554,716 719 0.19 % 1,588,198 681 0.17 % 894,073 240 0.11 %
Subordinated notes 12,065 208 6.86 %
Trust preferred subordinated debentures   113,406    

692

 

2.43

%

  113,406    

688

 

2.44

%

  113,406    

711

 

2.52

%

  113,406    

668

 

2.34

%

  113,406    

634

 

2.22

%

Total interest bearing liabilities 6,415,247

5,156

0.32

%

5,930,101

4,906

0.33

%

5,803,098

4,902

0.34

%

5,667,218

4,820

0.34

%

4,729,222

4,065

0.34

%

Demand deposits 2,010,694 1,864,456 1,700,390 1,659,132 1,525,087
Other liabilities 80,810 69,076 78,108 70,142 53,233
Stockholders' equity   750,113   658,969   627,594   598,982   576,958
Total liabilities and stockholders' equity $ 9,256,864 $ 8,522,602 $ 8,209,190 $ 7,995,474 $ 6,884,500
 
Net interest income $ 96,987 $ 90,778 $ 88,372 $ 88,299 $ 79,365
Net interest margin 4.36 % 4.49 % 4.54 % 4.60 % 4.81 %

(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

View Comments and Join the Discussion!