Texas Capital Bancshares, Inc. (Nasdaq:TCBI), the parent company of
Texas Capital Bank, announced earnings and operating results for
the first quarter of 2014.
"Our successful capital raising efforts in January 2014 have
positioned us for growth in 2014 and beyond. We experienced
exceptional core LHI growth in the first quarter, a period that can
be seasonally challenging. We also demonstrated the benefit of our
efforts to increase our competitive position in Mortgage Finance,"
said Keith Cargill, President and CEO. "Our focus continues to be
leveraging the recruiting success in the last twelve months that
continued in the first quarter. The business model is producing
solid growth and earnings for our shareholders in a challenging
rate and regulatory environment."
- Loans held for investment, excluding mortgage finance,
increased 5% and total loans increased 3% on a linked quarter
basis, growing 29% and 22%, respectively, from the first quarter of
2013.
- Demand deposits increased 3% and total deposits increased 5% on
a linked quarter basis, growing 31% and 26%, respectively, from the
first quarter of 2013.
- Offerings of 1.9 million common shares and $175 million of
5.25% subordinated notes due 2026 were completed in January 2014,
increasing regulatory capital by $281.5 million, and increasing
outstanding common shares by 5% and annual interest expense $9.2
million.
- Net income decreased 7% on a linked quarter basis and decreased
15% from the first quarter of 2013 attributable in part to the
subordinated note offering.
- EPS decreased 10% on a linked quarter basis and decreased 25%
from the first quarter of 2013, attributable in part to the effects
of the common stock and subordinated note offerings and the absence
of preferred stock dividends in the first quarter of 2013.
FINANCIAL SUMMARY |
|
|
|
(dollars and shares in thousands) |
|
|
|
|
|
|
|
|
Q1 2014 |
Q1 2013 |
% Change |
QUARTERLY OPERATING
RESULTS(1) |
|
|
|
Net income |
$ 28,261 |
$ 33,144 |
(15)% |
Net income available to common
shareholders |
$ 25,823 |
$ 33,063 |
(22)% |
Diluted EPS |
$ .60 |
$ .80 |
(25)% |
ROA |
1.01% |
1.38% |
|
ROE |
10.20% |
15.82% |
|
Diluted shares |
43,220 |
41,429 |
|
|
|
|
|
BALANCE SHEET(1) |
|
|
|
Total assets |
$12,143,296 |
$10,020,565 |
21% |
Demand deposits |
3,451,294 |
2,628,446 |
31% |
Total deposits |
9,729,128 |
7,745,831 |
26% |
Loans held for investment |
8,928,033 |
6,920,011 |
29% |
Loans held for investment,
mortgage finance |
2,688,044 |
2,577,830 |
4% |
Total loans |
11,616,077 |
9,497,841 |
22% |
Stockholders' equity |
1,230,131 |
1,013,195 |
21% |
|
|
|
|
(1) Operating results, assets and loans are
reporting from continuing operations |
|
|
|
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income from
continuing operations of $28.3 million and net income available to
common shareholders of $25.8 million for the quarter ended March
31, 2014, compared to $33.1 million for both net income from
continuing operations and net income available to common
shareholders for the same period in 2013. On a fully diluted basis,
earnings per common share from continuing operations were $.60 for
the three months ended March 31, 2014, compared to $.80 for the
same period in 2013. We completed an equity offering of 1.9 million
shares in January 2014, which increased diluted shares by 1.2
million shares, or 3%, for the quarter. We also completed a $175.0
million subordinated debt offering in January 2014, which resulted
in an additional $1.6 million in interest expense ($.02 per common
share) during the first quarter. The results for the first quarter
of 2014 also include $2.4 million ($.06 per common share) of
preferred dividends that were not paid in the first quarter of
2013. The discussion below relates only to continuing
operations.
Return on average common equity ("ROE") was 10.20 percent and
return on average assets was 1.01 percent for the first quarter of
2014, compared to 15.82 percent and 1.38 percent, respectively, for
the first quarter of 2013. The sale of 1.9 million common
shares in the first quarter of 2014 increased common equity by
$106.5 million and had the effect of reducing ROE. Tangible book
value per share increased more than $2.00, or approximately 10
percent, during the first quarter of 2014.
Net interest income was $108.3 million for the first quarter of
2014, compared to $111.5 million in the fourth quarter of 2013 and
$98.0 million for the first quarter of 2013. The net interest
margin in the first quarter of 2014 was 3.99 percent, a 28 basis
point decrease from the first quarter of 2013 and a 22 basis point
decrease from the fourth quarter of 2013. The 22 basis point
decrease in net interest margin from the fourth quarter of 2013
included a 6 basis point decrease attributable to the interest
accrued on the subordinated notes issued in January 2014 and an 11
basis point decrease in the total loan yield. The year-over-year
decrease in net interest margin is due to the growth in loans with
lower yields, the impact of the subordinated note offering ($1.6
million) and the $200.5 million increase in the average balance of
liquidity assets, which includes Federal funds sold and deposits
from other banks. The cost of total deposits and borrowed funds
remained at 17 basis points for the first quarter of 2014.
Average loans, excluding mortgage finance loans ("MFLs"), for
the first quarter of 2014 were $8.7 billion, an increase of $1.9
billion, or 27 percent, from the first quarter of 2013, and an
increase of $575.4 million, or 7 percent, from the fourth quarter
of 2013. Average MFLs for the first quarter of 2014 decreased
$335.4 million to $2.0 billion compared to the first quarter of
2013 and decreased $211.5 million from the fourth quarter of 2013.
Despite the reduction in MFLs, total average loans grew 17 percent
from the first quarter of 2013 and increased 4 percent from the
fourth quarter of 2013. The MFL balance at quarter-end was $660.8
million greater than the average balance for the first quarter of
2014.
Average total deposits for the first quarter of 2014 increased
$2.0 billion from the first quarter of 2013 and increased $310.2
million from the fourth quarter of 2013. Average demand deposits
for the first quarter of 2014 increased $851.6 million, or 34
percent, to $3.4 billion from $2.5 billion during the first quarter
of 2013 and increased $92.2 million, or 3 percent, from the fourth
quarter of 2013. Growth in average total deposits of $2.0 billion
exceeded the growth in total average loans by $428.2 million,
resulting in an increase in average liquidity assets by $200.5
million, or 194%, and a reduction in the level of average other
borrowings by $748.6 million from the first quarter of 2013.
In the first quarter of 2014, we experienced a slight increase
in the levels of non-performing assets which was attributable to
one borrower. Credit costs, including the provision for credit
losses and valuation charges related to other real estate owned
("OREO") totaled $5.0 million in the first quarter of 2014 compared
to $2.1 million in the first quarter of 2013 and $5.5 million in
the fourth quarter of 2013. We recorded a $5.0 million provision
for credit losses in the first quarter of 2014 compared to $2.0
million in the first quarter of 2013 and $5.0 million in the fourth
quarter of 2013. The substantial majority of the provision for the
first quarter of 2014 was directly related to the significant
growth in loans, excluding mortgage finance loans, during the
quarter. The combined reserve at March 31, 2014 decreased to 1.07
percent of loans excluding MFLs due to continuing loan growth, as
compared to 1.14 percent at March 31, 2013 and 1.09 percent at
December 31, 2013. 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 2014, net
charge-offs were $2.1 million compared to net charge-offs of $1.2
million in the first quarter of 2013 and net charge-offs of $1.3
million in the fourth quarter of 2013. Non-accrual loans were $43.6
million, or .48 percent of loans excluding MFLs as of March 31,
2014, $43.4 million, or .63 percent, as of March 31, 2013 and $32.4
million, or .38 percent, as of December 31, 2013. At March 31,
2014, total OREO was $2.4 million compared to $14.4 million as of
March 31, 2013, and $5.1 million as of December 31, 2013. The OREO
balance of $2.4 million at March 31, 2014 does not include a
valuation allowance. There was no valuation charge for OREO
reflected in non-interest expense in the first quarter of 2014
compared to $71,000 in the first quarter of 2013 and $466,000 in
the fourth quarter of 2013.
Non-interest income decreased $925,000, or 8 percent, during the
first quarter of 2014 compared to the same period of 2013 primarily
related to a $1.9 million decrease in brokered loan fees as a
result of declining mortgage finance volumes during the first
quarter of 2014 as compared to the first quarter of 2013.
Non-interest expense for the first quarter of 2014 increased
$13.6 million, or 24 percent, to $69.3 million from $55.7 million
in the first quarter of 2013. The increase is primarily related to
an $8.6 million increase in salaries and employee benefits to $42.1
million for the first quarter of 2014 from $33.5 million for the
same period in 2013, which was primarily due to general business
growth and an increase in cost the of incentives tied to our stock
price. Legal and professional expense increased $1.5 million in the
first quarter as compared to the same period of 2013, due to
general business growth, including additional regulatory costs.
FDIC insurance assessment increased $1.6 million to $2.7
million in the first quarter of 2014 as a result of the higher
rates applied to banks with over $10 billion in assets.
Stockholders' equity increased by 21 percent from $1.0 billion
at March 31, 2013 to $1.2 billion at March 31, 2014, primarily due
to the offering of 1.9 million common shares for net proceeds of
$106.5 million in the first quarter of 2014 and retention of net
income. In addition to the equity offering, we also completed a
bank subordinated debt offering of $175.0 million, increasing our
total regulatory capital by approximately $281.5 million. The Bank
is well capitalized under regulatory guidelines and at March 31,
2014, our ratio of tangible common equity to total tangible assets
was 8.7 percent.
ABOUT TEXAS CAPITAL BANCSHARES, INC.
Texas Capital Bancshares, Inc. (Nasdaq:TCBI), a member of the
Russell 2000® Index and the S&P SmallCap 600®, is the parent
company of Texas Capital Bank, a commercial bank that delivers
highly personalized financial services to businesses and
entrepreneurs. 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 management's current estimates or
expectations of future events or future results. We are under no
obligation, and expressly disclaim such obligation, to update,
alter or revise our forward-looking statements, whether as a result
of new information, future events, or otherwise. A number of
factors, many of which are beyond our 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, deterioration of the
credit quality of our loan portfolio, increased defaults and loan
losses, 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 our Annual Report
on Form 10-K and in other filings made by Texas Capital with the
Securities and Exchange Commission.
TEXAS CAPITAL
BANCSHARES, INC. |
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|
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|
|
SELECTED
FINANCIAL HIGHLIGHTS (UNAUDITED) |
|
|
|
|
|
(Dollars in thousands
except per share data) |
|
|
|
|
|
|
1st Quarter 2014 |
4th Quarter 2013 |
3rd Quarter 2013 |
2nd Quarter 2013 |
1st Quarter 2013 |
CONSOLIDATED STATEMENT OF
INCOME |
|
|
|
|
|
Interest income |
$ 116,611 |
$ 117,965 |
$ 115,217 |
$ 107,264 |
$ 104,179 |
Interest expense |
8,296 |
6,490 |
6,441 |
6,044 |
6,137 |
Net interest income |
108,315 |
111,475 |
108,776 |
101,220 |
98,042 |
Provision for credit losses |
5,000 |
5,000 |
5,000 |
7,000 |
2,000 |
Net interest income after provision for
credit losses |
103,315 |
106,475 |
103,776 |
94,220 |
96,042 |
Non-interest income |
10,356 |
11,184 |
10,431 |
11,128 |
11,281 |
Non-interest expense |
69,321 |
70,291 |
62,009 |
68,734 |
55,700 |
Income from continuing operations before
income taxes |
44,350 |
47,368 |
52,198 |
36,614 |
51,623 |
Income tax expense |
16,089 |
17,012 |
18,724 |
12,542 |
18,479 |
Income from continuing operations |
28,261 |
30,356 |
33,474 |
24,072 |
33,144 |
Income (loss) from discontinued
operations (after-tax) |
4 |
3 |
2 |
1 |
(1) |
Net income |
28,265 |
30,359 |
33,476 |
24,073 |
33,143 |
Preferred stock dividends |
2,438 |
2,438 |
2,437 |
2,438 |
81 |
Net income available to common
shareholders |
$ 25,827 |
$ 27,921 |
$ 31,039 |
$ 21,635 |
$ 33,062 |
Diluted EPS from continuing operations |
$ .60 |
$ .67 |
$ .74 |
$ .52 |
$ .80 |
Diluted EPS |
$ .60 |
$ .67 |
$ .74 |
$ .52 |
$ .80 |
|
|
|
|
|
|
Diluted shares |
43,219,961 |
41,888,768 |
41,791,674 |
41,723,525 |
41,429,244 |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
DATA |
|
|
|
|
|
Total assets |
$12,143,296 |
$11,714,397 |
$10,797,448 |
$10,977,990 |
$10,020,565 |
Loans held for investment |
8,928,033 |
8,486,309 |
8,051,328 |
7,510,662 |
6,920,011 |
Loans held for investment, mortgage
finance |
2,688,044 |
2,784,265 |
2,262,085 |
2,838,234 |
2,577,830 |
Securities |
52,960 |
63,214 |
67,815 |
75,861 |
87,527 |
Demand deposits |
3,451,294 |
3,347,567 |
3,242,060 |
2,928,735 |
2,628,446 |
Total deposits |
9,729,128 |
9,257,379 |
8,957,081 |
7,980,598 |
7,745,831 |
Other borrowings |
678,026 |
1,025,630 |
449,724 |
1,634,630 |
938,134 |
Subordinated notes |
286,000 |
111,000 |
111,000 |
111,000 |
111,000 |
Long-term debt |
113,406 |
113,406 |
113,406 |
113,406 |
113,406 |
Stockholders' equity |
1,230,131 |
1,096,350 |
1,066,629 |
1,034,955 |
1,013,195 |
|
|
|
|
|
|
End of period shares outstanding |
42,958,803 |
41,036,370 |
40,934,623 |
40,862,481 |
40,771,414 |
Book value (excluding securities
gains/losses) |
$ 25.11 |
$ 23.02 |
$ 22.35 |
$ 21.60 |
$ 21.10 |
Tangible book value (excluding securities
gains/losses)(1) |
$ 24.62 |
$ 22.50 |
$ 21.82 |
$ 21.08 |
$ 20.62 |
|
|
|
|
|
|
SELECTED FINANCIAL
RATIOS |
|
|
|
|
|
Net interest margin |
3.99% |
4.21% |
4.21% |
4.19% |
4.27% |
Return on average assets |
1.01% |
1.10% |
1.25% |
0.95% |
1.38% |
Return on average common equity |
10.20% |
11.94% |
13.74% |
9.94% |
15.82% |
Non-interest income to earning assets |
.38% |
.42% |
.40% |
.46% |
.49% |
Efficiency ratio(2) |
58.4% |
57.3% |
52.0% |
61.2% |
50.9% |
Efficiency ratio (excluding OREO
valuation/write-down)(3) |
|
|
|
|
|
Non-interest expense to earning assets |
2.55% |
2.65% |
2.40% |
2.84% |
2.42% |
Non-interest expense to earning assets
(excluding OREO valuation charge) |
2.55% |
2.63% |
2.40% |
2.83% |
2.42% |
Tangible common equity to total tangible
assets(4) |
8.7% |
7.9% |
8.3% |
7.9% |
8.4% |
|
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|
|
|
(1)
Stockholders' equity excluding preferred stock and accumulated
other comprehensive income, less goodwill and intangibles, divided
by shares outstanding at period end. |
|
(2)
Non-interest expense divided by the sum of net interest income and
non-interest income. |
|
|
|
|
|
(3)
Non-interest expense excluding OREO valuation/write-down expenses
divided by the sum of net interest income and non-interest
income. |
|
|
|
(4)
Stockholders' equity excluding preferred stock and accumulated
other comprehensive income less goodwill and intangibles divided by
total assets less accumulated other comprehensive income and
goodwill and intangibles. |
|
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
March 31, 2014 |
March 31, 2013 |
% Change |
Assets |
|
|
|
Cash and due from banks |
$ 111,594 |
$ 80,440 |
39% |
Interest-bearing deposits |
146,205 |
86,003 |
70% |
Federal funds sold and securities purchased
under resale agreements |
− |
25,000 |
(100)% |
Securities, available-for-sale |
52,960 |
87,527 |
(39)% |
Loans held for sale from discontinued
operations |
292 |
301 |
(3)% |
Loans held for investment, mortgage
finance |
2,688,044 |
2,577,830 |
4% |
Loans held for investment (net of unearned
income) |
8,928,033 |
6,920,011 |
29% |
Less: Allowance for loan losses |
90,234 |
75,000 |
21% |
Loans held for investment, net |
11,525,843 |
9,422,841 |
22% |
Premises and equipment, net |
11,767 |
11,249 |
5% |
Accrued interest receivable and other
assets |
273,812 |
287,771 |
(5)% |
Goodwill and intangibles, net |
21,115 |
19,734 |
7% |
Total assets |
$ 12,143,588 |
$ 10,020,866 |
21% |
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
Liabilities: |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ 3,451,294 |
$ 2,628,446 |
31% |
Interest bearing |
5,886,363 |
4,739,067 |
24% |
Interest bearing in foreign
branches |
391,471 |
378,318 |
3% |
Total deposits |
9,729,128 |
7,745,831 |
26% |
|
|
|
|
Accrued interest payable |
2,304 |
1,013 |
127% |
Other liabilities |
104,593 |
98,287 |
6% |
Federal funds purchased |
143,573 |
452,998 |
(68)% |
Repurchase agreements |
29,432 |
35,095 |
(16)% |
Other borrowings |
505,021 |
450,041 |
12% |
Subordinated notes |
286,000 |
111,000 |
158% |
Trust preferred subordinated
debentures |
113,406 |
113,406 |
− |
Total liabilities |
10,913,457 |
9,007,671 |
21% |
|
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock, $.01 par
value, $1,000 liquidation value: |
|
|
|
Authorized shares –
10,000,000 |
|
|
|
Issued shares – 6,000,000
shares issued at March 31, 2014 and 2013 |
150,000 |
150,000 |
− |
Common stock, $.01 par
value: |
|
|
|
Authorized shares –
100,000,000 |
|
|
|
Issued shares – 42,959,220 and
40,771,831 at March 31, 2014 and 2013, respectively |
430 |
408 |
5% |
Additional paid-in capital |
556,247 |
444,477 |
25% |
Retained earnings |
521,939 |
415,517 |
26% |
Treasury stock (shares at cost:
417 at March 31, 2014 and 2013) |
(8) |
(8) |
− |
Accumulated other comprehensive
income, net of taxes |
1,523 |
2,801 |
(46)% |
Total stockholders' equity |
1,230,131 |
1,013,195 |
21% |
Total liabilities and stockholders'
equity |
$ 12,143,588 |
$ 10,020,866 |
21% |
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
|
(Dollars in thousands
except per share data) |
|
|
|
|
|
Three Months Ended March
31 |
|
2014 |
2013 |
Interest income |
|
|
Interest and fees on loans |
$ 115,872 |
$ 103,182 |
Securities |
540 |
939 |
Federal funds sold |
40 |
6 |
Deposits in other banks |
159 |
52 |
Total interest income |
116,611 |
104,179 |
Interest expense |
|
|
Deposits |
4,030 |
3,245 |
Federal funds purchased |
95 |
212 |
Repurchase agreements |
4 |
4 |
Other borrowings |
72 |
213 |
Subordinated notes |
3,479 |
1,829 |
Trust preferred subordinated debentures |
616 |
634 |
Total interest expense |
8,296 |
6,137 |
Net interest income |
108,315 |
98,042 |
Provision for credit
losses |
5,000 |
2,000 |
Net interest income after provision
for credit losses |
103,315 |
96,042 |
Non-interest income |
|
|
Service charges on deposit accounts |
1,696 |
1,701 |
Trust fee income |
1,282 |
1,241 |
Bank owned life insurance (BOLI) income |
509 |
498 |
Brokered loan fees |
2,824 |
4,744 |
Swap fees |
1,224 |
1,652 |
Other |
2,821 |
1,445 |
Total non-interest income |
10,356 |
11,281 |
Non-interest expense |
|
|
Salaries and employee benefits |
42,056 |
33,541 |
Net occupancy expense |
4,768 |
3,857 |
Marketing |
3,759 |
3,972 |
Legal and professional |
5,402 |
3,940 |
Communications and technology |
3,924 |
3,122 |
FDIC insurance assessment |
2,725 |
1,078 |
Allowance and other carrying costs for
OREO |
45 |
430 |
Other |
6,642 |
5,760 |
Total non-interest expense |
69,321 |
55,700 |
Income from continuing operations
before income taxes |
44,350 |
51,623 |
Income tax expense |
16,089 |
18,479 |
Income from continuing
operations |
28,261 |
33,144 |
Loss from discontinued operations
(after-tax) |
4 |
(1) |
Net income |
28,265 |
33,143 |
Preferred stock
dividends |
2,438 |
81 |
Net income available to common
shareholders |
$ 25,827 |
$ 33,062 |
|
|
|
Basic earnings per common
share: |
|
|
Income from continuing operations |
$ .61 |
$ .82 |
Net income |
$ .61 |
$ .82 |
|
|
|
Diluted earnings per common
share: |
|
|
Income from continuing operations |
$ .60 |
$ .80 |
Net income |
$ .60 |
$ .80 |
|
|
|
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
|
|
|
SUMMARY OF
LOAN LOSS EXPERIENCE |
|
|
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
1st Quarter 2014 |
4th Quarter 2013 |
3rd Quarter 2013 |
2nd Quarter 2013 |
1st Quarter 2013 |
Reserve for loan losses: |
|
|
|
|
|
Beginning balance |
$ 87,604 |
$ 84,006 |
$ 79,428 |
$ 75,000 |
$ 74,337 |
Loans charged-off: |
|
|
|
|
|
Commercial |
2,336 |
1,605 |
496 |
2,826 |
1,648 |
Real estate – term |
– |
– |
13 |
26 |
105 |
Consumer |
61 |
– |
– |
26 |
19 |
Leases |
50 |
– |
2 |
– |
– |
Total loans charged-off |
2,447 |
1,605 |
511 |
2,878 |
1,772 |
Recoveries: |
|
|
|
|
|
Commercial |
210 |
225 |
233 |
348 |
397 |
Real estate – term |
8 |
60 |
195 |
7 |
8 |
Consumer |
25 |
9 |
19 |
15 |
30 |
Leases |
124 |
43 |
18 |
140 |
121 |
Total recoveries |
367 |
337 |
465 |
510 |
556 |
Net charge-offs |
2,080 |
1,268 |
46 |
2,368 |
1,216 |
Provision for loan losses |
4,710 |
4,866 |
4,624 |
6,796 |
1,879 |
Ending balance |
$ 90,234 |
$ 87,604 |
$ 84,006 |
$ 79,428 |
$ 75,000 |
|
|
|
|
|
|
Reserve for off-balance sheet credit
losses: |
|
|
|
|
|
Beginning balance |
$ 4,690 |
$ 4,556 |
$ 4,180 |
$ 3,976 |
$ 3,855 |
Provision for off-balance sheet credit
losses |
290 |
134 |
376 |
204 |
121 |
Ending balance |
$ 4,980 |
$ 4,690 |
$ 4,556 |
$ 4,180 |
$ 3,976 |
|
|
|
|
|
|
Total reserves for credit losses |
$ 95,214 |
$ 92,294 |
$ 88,562 |
$ 83,608 |
$ 78,976 |
|
|
|
|
|
|
Total provision for credit losses |
$ 5,000 |
$ 5,000 |
$ 5,000 |
$ 7,000 |
$ 2,000 |
|
|
|
|
|
|
Reserve to loans |
.78% |
.78% |
.81% |
.77% |
.79% |
Reserve to loans excluding mortgage finance
loans(2) |
1.01% |
1.03% |
1.04% |
1.06% |
1.08% |
Reserve to average loans |
.84% |
.84% |
.83% |
.83% |
.81% |
Reserve to average loans excluding mortgage
finance loans(2) |
1.04% |
1.08% |
1.09% |
1.11% |
1.10% |
Net charge-offs to average loans(1) |
.08% |
.05% |
.00% |
.10% |
.05% |
Net charge-offs to average loans excluding
mortgage finance loans(1)(2) |
.10% |
.06% |
.00% |
.13% |
.07% |
Net charge-offs to average loans for last
twelve months(1) |
.06% |
.05% |
.07% |
.09% |
.07% |
Net charge-offs to average loans, excluding
mortgage finance loans, for last twelve months(1)(2) |
.07% |
.07% |
.10% |
.12% |
.10% |
Total provision for credit losses to average
loans(1) |
.19% |
.19% |
.20% |
.29% |
.09% |
Total provision for credit losses to average
loans excluding mortgage finance loans(1)(2) |
.23% |
.24% |
.26% |
.39% |
.12% |
Combined reserves for credit losses to
loans |
.82% |
.82% |
.86% |
.81% |
.83% |
Combined reserves for credit losses to loans,
excluding mortgage finance loans(2) |
1.07% |
1.09% |
1.10% |
1.11% |
1.14% |
|
|
|
|
|
|
Non-performing assets (NPAs): |
|
|
|
|
|
Non-accrual loans |
$ 43,213 |
$ 32,375 |
$ 35,737 |
$ 38,450 |
$ 43,424 |
Other real estate owned
(OREO) |
2,420 |
5,110 |
12,805 |
13,053 |
14,426 |
Other repossessed assets |
– |
– |
– |
19 |
– |
Total |
$ 45,633 |
$ 37,485 |
$ 48,542 |
$ 51,522 |
$ 57,850 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans to loans |
.37% |
.29% |
.35% |
.37% |
.46% |
Non-accrual loans to loans excluding mortgage
finance loans(2) |
.48% |
.38% |
.44% |
.51% |
.63% |
Total NPAs to loans plus OREO |
.39% |
.33% |
.47% |
.50% |
.61% |
Total NPAs to loans excluding mortgage
finance loans plus OREO(2) |
.51% |
.44% |
.60% |
.68% |
.83% |
Total NPAs to earning assets |
.39% |
.33% |
.47% |
.49% |
.60% |
Reserve for loan losses to non-accrual
loans |
2.1x |
2.7x |
2.4x |
2.1x |
1.7x |
|
|
|
|
|
|
Restructured loans |
$ 2,825 |
$ 1,935 |
$ 4,691 |
$ 4,765 |
$ 11,755 |
Loans past due 90 days and still
accruing(3) |
$ 7,869 |
$ 9,325 |
$ 7,510 |
$ 7,633 |
$ 12,614 |
|
|
|
|
|
|
Loans past due 90 days to loans |
.07% |
.08% |
.07% |
.07% |
.13% |
Loans past due 90 days to loans excluding
mortgage finance loans(2) |
.09% |
.11% |
.09% |
.10% |
.18% |
|
|
|
|
|
|
(1) Interim
period ratios are annualized. |
|
|
|
|
|
(2) Mortgage
finance loans were previously classified as loans held for sale but
have been reclassified as loans held for investment. The indicated
ratios are presented with and excluding the mortgage finance loans
because the risk profile of our mortgage finance loans is different
than our other loans held for investment. No provision for credit
losses is allocated to these loans based on the internal risk grade
assigned. |
(3) At March
31, 2014, loans past due 90 days and still accruing includes
premium finance loans of $4.7 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. |
|
|
|
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
|
|
|
CONSOLIDATED
STATEMENT OF INCOME (UNAUDITED) |
|
|
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter 2014 |
4th Quarter 2013 |
3rd Quarter 2013 |
2nd Quarter 2013 |
1st Quarter 2013 |
Interest income |
|
|
|
|
|
Interest and fees on loans |
$ 115,872 |
$ 117,261 |
$ 114,453 |
$ 106,418 |
$ 103,182 |
Securities |
540 |
621 |
682 |
773 |
939 |
Federal funds sold |
40 |
24 |
22 |
13 |
6 |
Deposits in other banks |
159 |
59 |
60 |
60 |
52 |
Total interest income |
116,611 |
117,965 |
115,217 |
107,264 |
104,179 |
Interest expense |
|
|
|
|
|
Deposits |
4,030 |
3,858 |
3,699 |
3,228 |
3,245 |
Federal funds purchased |
95 |
116 |
152 |
206 |
212 |
Repurchase agreements |
4 |
5 |
4 |
5 |
4 |
Other borrowings |
72 |
40 |
119 |
143 |
213 |
Subordinated notes |
3,479 |
1,840 |
1,829 |
1,829 |
1,829 |
Trust preferred subordinated debentures |
616 |
631 |
638 |
633 |
634 |
Total interest expense |
8,296 |
6,490 |
6,441 |
6,044 |
6,137 |
Net interest income |
108,315 |
111,475 |
108,776 |
101,220 |
98,042 |
Provision for credit
losses |
5,000 |
5,000 |
5,000 |
7,000 |
2,000 |
Net interest income after provision
for credit losses |
103,315 |
106,475 |
103,776 |
94,220 |
96,042 |
Non-interest income |
|
|
|
|
|
Service charges on deposit accounts |
1,696 |
1,674 |
1,659 |
1,749 |
1,701 |
Trust fee income |
1,282 |
1,250 |
1,263 |
1,269 |
1,241 |
Bank owned life insurance (BOLI) income |
509 |
533 |
423 |
463 |
498 |
Brokered loan fees |
2,824 |
3,380 |
4,078 |
4,778 |
4,744 |
Swap fees |
1,224 |
1,904 |
983 |
981 |
1,652 |
Other |
2,821 |
2,443 |
2,025 |
1,888 |
1,445 |
Total non-interest income |
10,356 |
11,184 |
10,431 |
11,128 |
11,281 |
Non-interest expense |
|
|
|
|
|
Salaries and employee benefits |
42,056 |
43,008 |
36,012 |
45,191 |
33,541 |
Net occupancy expense |
4,768 |
4,487 |
4,342 |
4,135 |
3,857 |
Marketing |
3,759 |
4,183 |
3,974 |
4,074 |
3,972 |
Legal and professional |
5,402 |
5,520 |
3,937 |
4,707 |
3,940 |
Communications and technology |
3,924 |
3,597 |
3,696 |
3,347 |
3,122 |
FDIC insurance assessment |
2,725 |
1,923 |
4,357 |
699 |
1,078 |
Allowance and other carrying costs for
OREO |
45 |
609 |
267 |
482 |
430 |
Litigation settlement expense |
– |
– |
(908) |
– |
– |
Other |
6,642 |
6,964 |
6,332 |
6,099 |
5,760 |
Total non-interest expense |
69,321 |
70,291 |
62,009 |
68,734 |
55,700 |
Income from continuing operations
before income taxes |
44,350 |
47,368 |
52,198 |
36,614 |
51,623 |
Income tax expense |
16,089 |
17,012 |
18,724 |
12,542 |
18,479 |
Income from continuing
operations |
28,261 |
30,356 |
33,474 |
24,072 |
33,144 |
Income (loss) from discontinued
operations (after-tax) |
4 |
3 |
2 |
1 |
(1) |
Net income |
28,265 |
30,359 |
33,476 |
24,073 |
33,143 |
Preferred stock
dividends |
2,438 |
2,438 |
2,437 |
2,438 |
81 |
Net income available to common
shareholders |
$ 25,827 |
$ 27,921 |
$ 31,039 |
$ 21,635 |
$ 33,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEXAS
CAPITAL BANCSHARES, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTERLY
FINANCIAL SUMMARY – UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Daily
Average Balances, Average Yields and Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter 2014 |
4th Quarter 2013 |
3rd Quarter 2013 |
2nd Quarter 2013 |
1st Quarter 2013 |
|
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 |
$ 47,027 |
$ 442 |
3.81% |
$ 50,281 |
$ 480 |
3.79% |
$ 54,838 |
$ 522 |
3.78% |
$ 60,063 |
$ 594 |
3.97% |
$ 71,220 |
$ 729 |
4.15% |
Securities – Non-taxable(2) |
10,554 |
151 |
5.80% |
14,786 |
217 |
5.82% |
16,879 |
246 |
5.78% |
18,843 |
275 |
5.85% |
22,174 |
323 |
5.91% |
Federal funds sold and securities purchased
under resale agreements |
73,746 |
40 |
0.22% |
59,409 |
24 |
0.16% |
78,896 |
22 |
0.11% |
54,448 |
13 |
0.10% |
24,785 |
6 |
0.10% |
Deposits in other banks |
230,296 |
159 |
0.28% |
99,185 |
59 |
0.24% |
88,717 |
60 |
0.27% |
91,177 |
60 |
0.26% |
78,718 |
52 |
0.27% |
Loans held for investment, mortgage finance
loans |
2,027,264 |
16,782 |
3.36% |
2,238,730 |
20,236 |
3.59% |
2,362,118 |
22,547 |
3.79% |
2,406,246 |
22,440 |
3.74% |
2,362,646 |
22,641 |
3.89% |
Loans held for investment |
8,717,969 |
99,090 |
4.61% |
8,142,569 |
97,025 |
4.73% |
7,731,901 |
91,906 |
4.72% |
7,152,323 |
83,978 |
4.71% |
6,842,766 |
80,541 |
4.77% |
Less reserve for loan losses |
87,686 |
– |
– |
84,009 |
– |
– |
79,551 |
– |
– |
75,006 |
– |
– |
74,442 |
– |
– |
Loans, net of reserve |
10,657,547 |
115,872 |
4.41% |
10,297,290 |
117,261 |
4.52% |
10,014,468 |
114,453 |
4.53% |
9,483,563 |
106,418 |
4.50% |
9,130,970 |
103,182 |
4.58% |
Total earning assets |
11,019,170 |
116,664 |
4.29% |
10,520,951 |
118,041 |
4.45% |
10,253,798 |
115,303 |
4.46% |
9,708,094 |
107,360 |
4.44% |
9,327,867 |
104,292 |
4.53% |
Cash and other assets |
382,198 |
|
|
378,315 |
|
|
383,968 |
|
|
402,898 |
|
|
401,692 |
|
|
Total assets |
$11,401,368 |
|
|
$10,899,266 |
|
|
$10,637,766 |
|
|
$10,110,992 |
|
|
$9,729,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction deposits |
$ 782,301 |
$ 80 |
0.04% |
$ 787,720 |
$ 76 |
0.04% |
$ 794,630 |
$ 102 |
0.05% |
$ 1,051,199 |
$ 233 |
0.09% |
$ 1,003,735 |
$ 253 |
0.10% |
Savings deposits |
4,591,493 |
3,304 |
0.29% |
4,365,746 |
3,079 |
0.28% |
4,057,792 |
2,863 |
0.28% |
3,340,420 |
2,292 |
0.28% |
3,246,675 |
2,297 |
0.29% |
Time deposits |
375,563 |
351 |
0.38% |
385,546 |
394 |
0.41% |
402,920 |
414 |
0.41% |
397,868 |
407 |
0.41% |
403,113 |
414 |
0.42% |
Deposits in foreign branches |
355,857 |
295 |
0.34% |
348,240 |
309 |
0.35% |
357,532 |
320 |
0.36% |
340,713 |
296 |
0.35% |
335,265 |
281 |
0.34% |
Total interest bearing deposits |
6,105,214 |
4,030 |
0.27% |
5,887,252 |
3,858 |
0.26% |
5,612,874 |
3,699 |
0.26% |
5,130,200 |
3,228 |
0.25% |
4,988,788 |
3,245 |
0.26% |
Other borrowings |
293,012 |
171 |
0.24% |
314,018 |
161 |
0.20% |
539,767 |
275 |
0.20% |
727,158 |
354 |
0.20% |
1,041,573 |
429 |
0.17% |
Subordinated notes |
227,667 |
3,479 |
6.20% |
111,000 |
1,840 |
6.58% |
111,000 |
1,829 |
6.54% |
111,000 |
1,829 |
6.61% |
111,000 |
1,829 |
6.68% |
Trust preferred subordinated debentures |
113,406 |
616 |
2.20% |
113,406 |
631 |
2.21% |
113,406 |
638 |
2.23% |
113,406 |
633 |
2.24% |
113,406 |
634 |
2.27% |
Total interest bearing liabilities |
6,739,299 |
8,296 |
0.50% |
6,425,676 |
6,490 |
0.40% |
6,377,047 |
6,441 |
0.40% |
6,081,764 |
6,044 |
0.40% |
6,254,767 |
6,137 |
0.40% |
Demand deposits |
3,381,501 |
|
|
3,289,307 |
|
|
3,124,602 |
|
|
2,914,341 |
|
|
2,529,927 |
|
|
Other liabilities |
103,514 |
|
|
106,461 |
|
|
89,640 |
|
|
91,608 |
|
|
90,538 |
|
|
Stockholders' equity |
1,177,054 |
|
|
1,077,822 |
|
|
1,046,477 |
|
|
1,023,279 |
|
|
854,327 |
|
|
Total liabilities and stockholders'
equity |
$11,401,368 |
|
|
$10,899,266 |
|
|
$10,637,766 |
|
|
$10,110,992 |
|
|
$9,729,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income(2) |
|
$ 108,368 |
|
|
$ 111,551 |
|
|
$ 108,862 |
|
|
$ 101,316 |
|
|
$ 98,155 |
|
Net interest margin |
|
|
3.99% |
|
|
4.21% |
|
|
4.21% |
|
|
4.19% |
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: MEDIA & INVESTOR CONTACT
Heather Worley, 214.932.6646
heather.worley@texascapitalbank.com
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