Exhibit 99.1
![(TEXAS CAPITAL BANCSHARES LOGO)](https://capedge.com/proxy/8-K/0000950134-09-008207/d67368d6736800.gif)
For immediate release
April 22, 2009
April 22, 2009
INVESTOR CONTACT
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com
TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2009
DALLAS — April 22, 2009 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2009.
• | Loans held for investment were flat and total loans decreased 2% on a linked quarter basis and grew 15% and 19%, respectively, from Q1 2008 | ||
• | Demand deposits grew 4% and total deposits declined 10% on a linked quarter basis and grew 21% and declined 5%, respectively, from Q1 2008 | ||
• | Net income increased 76% on a linked quarter basis and decreased 24% from Q1 2008 | ||
• | Net income available to common shareholders increased 49% on a linked quarter basis and decreased 35% from Q1 2008 | ||
• | EPS increased 55% on a linked quarter basis and decreased 43% from Q1 2008 |
“We are pleased with the results for this quarter, especially in light of the challenging economic environment,” said George Jones, CEO. “We are taking advantage of some unique opportunities presented by these circumstances. We are glad we are in Texas, as economists believe Texas will emerge from this downturn faster and better positioned than the rest of the country.”
FINANCIAL SUMMARY
(dollars and shares in thousands)
Q1 2009 | Q1 2008 | % Change | ||||||||||
QUARTERLY OPERATING RESULTS | ||||||||||||
Net Income(1) | $ | 6,125 | $ | 8,030 | (24 | %) | ||||||
Net Income Available to Common Shareholders(1) | $ | 5,195 | $ | 8,030 | (35 | %) | ||||||
Diluted EPS(1) | $ | .17 | $ | .30 | (43 | %) | ||||||
ROA(1) | .48 | % | .76 | % | ||||||||
ROE(1) | 5.44 | % | 10.64 | % | ||||||||
Diluted Shares | 31,072 | 26,528 | ||||||||||
2009 | 2008 | % Change | ||||||||||
BALANCE SHEET | ||||||||||||
Total Assets(1) | $ | 5,009,931 | $ | 4,351,514 | 15 | % | ||||||
Demand Deposits | 608,939 | 503,554 | 21 | % | ||||||||
Total Deposits | 3,010,960 | 3,155,313 | (5 | )% | ||||||||
Loans Held for Investment | 4,019,247 | 3,493,631 | 15 | % | ||||||||
Total Loans(1) | 4,446,229 | 3,733,491 | 19 | % | ||||||||
Stockholders’ Equity | 471,990 | 312,016 | 51 | % |
(1) | From continuing operations |
1
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income available to common shareholders from continuing operations of $5.2 million for the quarter ended March 31, 2009 compared to $8.0 million for the first quarter of 2008. On a fully diluted basis, earnings per common share from continuing operations were $.17 for the three months ended March 31, 2009, compared to $.30 for the same quarter last year. The effect of the TARP preferred stock dividends net of income earned on the TARP proceeds reduced earnings per share by $.03 for the three months ended March 31, 2009. Shares for the first quarter of 2009 were affected by the issuance of 4 million shares in September 2008. Results of discontinued operations were net losses of $95,000 and $148,000 for the first quarter 2009 and 2008, respectively. The discussion below relates only to continuing operations.
Return on average equity was 5.44 percent and return on average assets was .48 percent for the first quarter of 2009, compared to 10.64 percent and .76 percent, respectively for the first quarter of 2008. The reduction in the ROE resulted primarily from the 51 percent increase in stockholders’ equity since March 31, 2008.
Net interest income was $41.2 million for the first quarter of 2009, compared to $36.6 million for the first quarter of 2008. The increase was due to an increase in average earning assets of $900.5 million over levels reported in the first quarter of 2008. The increase in average earning assets included a $538.3 million increase in average loans held for investment and an increase of $415.7 million in average loans held for sale, offset by a decrease of $60.5 million in average securities. The net interest margin in the first quarter of 2009 was 3.39 percent, a 26 basis point decrease from the first quarter of 2008 and a 2 basis point decrease from the fourth quarter of 2008 due to asset sensitivity, funding costs associated with growth and the impact of the increase in non-accrual loans.
Average total deposits increased by $182.4 million from the first quarter of 2008 and decreased by $125.7 million from the fourth quarter of 2008. For the same periods, the average balance of demand deposits increased by $167.4 million or 36 percent to $636.7 million from $469.3 million during the first quarter of 2008 and increased $70.2 million, or 12 percent, from the fourth quarter of 2008.
As a result of the overall economic downturn, we have experienced increases in levels of non-performing assets. In the first quarter of 2009, net charge-offs were $2.6 million, compared to net charge-offs of $2.6 million in the first quarter of 2008 and net charge-offs of $5.2 million in the fourth quarter of 2008. Non-accrual loans were $50.7 million or 1.26 percent of loans at the end of the first quarter of 2009, compared to $13.6 million, or .39 percent of loans at the end of the first quarter of 2008, and $47.5 million, or 1.18 percent of loans at the end of the fourth quarter of 2008. Loans 90 days past due and still accruing were $4.6 million at the end of the first quarter of 2009 compared to $5.2 million at the end of the first quarter of 2008, and $4.1 million at the end of the fourth quarter of 2008. At March 31, 2009, the $4.6 million of past due loans included $1.7 million in premium finance loans. At March 31, 2009, total other real estate owned was $27.5 million compared to $3.1 million at the end of the first quarter of 2008, and $25.9 million at the end of the fourth quarter of 2008. The Company recorded an $8.5 million provision for loan losses in the first quarter of 2009, compared to $3.8 million in the first quarter of 2008 and $11.0 million in the fourth quarter of 2008. The first quarter provision resulted in an increase in the reserve to 1.31 percent of loans held for investment as compared to .97 percent at March 31, 2008, and 1.16 percent at the end of the fourth quarter of 2008. 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.
Non-interest income for the first quarter of 2009 increased $1.2 million, or 21 percent, to $6.9 million from $5.7 million in the first quarter of 2008. The increase is primarily related to a $1.4 million increase in brokered loan fees, a $408,000 increase in service charge income, and offset by a $332,000 decrease in trust fee income.
2
Non-interest expense for the first quarter of 2009 increased $4.0 million, or 15 percent, to $30.3 million from $26.3 million in the first quarter of 2008. The increase is primarily related to an $877,000 increase in salaries and employee benefits to $16.2 million from $15.3 million, which was primarily due to general business growth. Additionally, other non-interest expense increased $2.7 million to $6.7 million and included an increase in OREO-related expenses of approximately $1.1 million and an increase in FDIC assessment expense of $1.2 million.
Stockholders equity increased by 51 percent from $312.0 million in March 2008 to $472.0 million at the end of the first quarter of 2009. Contributing to the increase was retained net income of $23.0 million and proceeds of sales of common and preferred stock totaling $130.0 million. In September 2008, we raised $55.0 million in common equity from institutional investors. On January 16, 2009, we completed the issuance of $75.0 million of perpetual preferred stock and related warrants under the U.S. Department of Treasury’s voluntary Capital Purchase Program (“the Program”). In November 2008, we applied for up to $130.0 million of additional capital under the Program. After receiving approval for the $130.0 million, we determined that we would accept $75.0 million under the Program, strengthening our position in a difficult economic environment. We were well capitalized under regulatory guidelines prior to the capital additions, but the $130 million from the two transactions strengthened our already well-capitalized position. At March 31, 2009, our ratio of tangible common equity to total tangible assets was 7.8%.
On April 15, 2009, we filed a universal shelf registration on Form S-3 which allows us to issue from time to time up to $150 million of various debt and equity securities such as senior debt securities, subordinated debt securities, convertible debt, preferred stock, common stock, warrants, and units.
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.
3
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 | ||||||||||||||||
2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
Interest income | $ | 55,806 | $ | 58,873 | $ | 62,240 | $ | 61,008 | $ | 66,809 | ||||||||||
Interest expense | 14,589 | 20,161 | 23,974 | 22,848 | 30,210 | |||||||||||||||
Net interest income | 41,217 | 38,712 | 38,266 | 38,160 | 36,599 | |||||||||||||||
Provision for loan losses | 8,500 | 11,000 | 4,000 | 8,000 | 3,750 | |||||||||||||||
Net interest income after provision for loan losses | 32,717 | 27,712 | 34,266 | 30,160 | 32,849 | |||||||||||||||
Non-interest income | 6,900 | 5,950 | 4,885 | 5,952 | 5,683 | |||||||||||||||
Non-interest expense | 30,306 | 28,443 | 27,675 | 27,256 | 26,277 | |||||||||||||||
Income from continuing operations before income taxes | 9,311 | 5,219 | 11,476 | 8,856 | 12,255 | |||||||||||||||
Income tax expense | 3,186 | 1,732 | 3,911 | 3,056 | 4,225 | |||||||||||||||
Income from continuing operations | 6,125 | 3,487 | 7,565 | 5,800 | 8,030 | |||||||||||||||
Loss from discontinued operations (after-tax) | (95 | ) | (100 | ) | (252 | ) | (116 | ) | (148 | ) | ||||||||||
Net income | 6,030 | 3,387 | 7,313 | 5,684 | 7,882 | |||||||||||||||
Preferred stock dividends | 930 | — | — | — | — | |||||||||||||||
Net income available to common shareholders | $ | 5,100 | $ | 3,387 | $ | 7,313 | $ | 5,684 | $ | 7,882 | ||||||||||
Diluted EPS from continuing operations | $ | .17 | $ | .11 | $ | .27 | $ | .22 | $ | .30 | ||||||||||
Diluted EPS | $ | .16 | $ | .11 | $ | .26 | $ | .21 | $ | .30 | ||||||||||
Diluted shares | 31,072,444 | 31,037,610 | 27,792,938 | 26,805,358 | 26,527,904 | |||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 5,009,931 | $ | 5,139,564 | $ | 4,742,043 | $ | 4,662,507 | $ | 4,351,514 | ||||||||||
Loans held for investment | 4,019,247 | 4,027,871 | 3,840,172 | 3,704,262 | 3,493,631 | |||||||||||||||
Loans held for sale | 426,982 | 496,351 | 343,002 | 328,838 | 239,860 | |||||||||||||||
Securities | 361,898 | 378,752 | 365,145 | 390,223 | 425,513 | |||||||||||||||
Demand deposits | 608,939 | 587,161 | 561,227 | 610,629 | 503,554 | |||||||||||||||
Total deposits | 3,010,960 | 3,333,187 | 3,388,963 | 3,593,077 | 3,155,313 | |||||||||||||||
Other borrowings | 1,386,783 | 1,280,607 | 835,025 | 621,127 | 751,482 | |||||||||||||||
Long-term debt | 113,406 | 113,406 | 113,406 | 113,406 | 113,406 | |||||||||||||||
Stockholders’ equity | 471,990 | 387,073 | 380,858 | 314,917 | 312,016 | |||||||||||||||
End of period shares | 31,014,575 | 30,971,189 | 30,844,202 | 26,780,386 | 26,631,763 | |||||||||||||||
Book value (excluding securities gains/losses) | $ | 12.64 | $ | 12.44 | $ | 12.33 | $ | 11.80 | $ | 11.55 | ||||||||||
Tangible book value (excluding securities gains/losses) | $ | 12.39 | $ | 12.19 | $ | 12.08 | $ | 11.51 | $ | 11.26 | ||||||||||
SELECTED FINANCIAL RATIOS | ||||||||||||||||||||
From continuing operations | ||||||||||||||||||||
Net interest margin | 3.39 | % | 3.41 | % | 3.47 | % | 3.65 | % | 3.65 | % | ||||||||||
Return on average assets | .48 | % | .29 | % | .65 | % | .53 | % | .76 | % | ||||||||||
Return on average equity | 5.44 | % | 3.61 | % | 9.12 | % | 7.40 | % | 10.64 | % | ||||||||||
Non-interest income to earning assets | .56 | % | .52 | % | .44 | % | .57 | % | .56 | % | ||||||||||
Efficiency ratio | 63.0 | % | 63.7 | % | 64.1 | % | 61.8 | % | 62.1 | % | ||||||||||
Non-interest expense to earning assets | 2.48 | % | 2.49 | % | 2.49 | % | 2.59 | % | 2.61 | % | ||||||||||
From consolidated | ||||||||||||||||||||
Net interest margin | 3.39 | % | 3.41 | % | 3.47 | % | 3.65 | % | 3.65 | % | ||||||||||
Return on average assets | .47 | % | .28 | % | .63 | % | .52 | % | .74 | % | ||||||||||
Return on average equity | 5.36 | % | 3.50 | % | 8.81 | % | 7.25 | % | 10.45 | % | ||||||||||
Tier 1 capital ratio | 11.9 | % | 10.0 | % | 10.5 | % | 9.3 | % | 9.7 | % | ||||||||||
Total capital ratio | 13.0 | % | 10.9 | % | 11.4 | % | 10.3 | % | 10.8 | % | ||||||||||
Tier 1 leverage ratio | 11.0 | % | 10.2 | % | 10.5 | % | 9.3 | % | 9.4 | % |
4
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
March 31, | March 31, | % | ||||||||||
2009 | 2008 | Change | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 60,631 | $ | 78,975 | (23 | )% | ||||||
Federal funds sold | 10,000 | — | 100 | % | ||||||||
Securities, available-for-sale | 361,898 | 425,513 | (15 | )% | ||||||||
Loans held for sale | 426,982 | 239,860 | 78 | % | ||||||||
Loans held for sale from discontinued operations | 591 | 730 | (19 | )% | ||||||||
Loans held for investment (net of unearned income) | 4,019,247 | 3,493,631 | 15 | % | ||||||||
Less: Allowance for loan losses | 52,727 | 34,021 | 55 | % | ||||||||
Loans held for investment, net | 3,966,520 | 3,459,610 | 15 | % | ||||||||
Premises and equipment, net | 8,457 | 6,092 | 39 | % | ||||||||
Accrued interest receivable and other assets | 167,795 | 133,654 | 26 | % | ||||||||
Goodwill and intangibles, net | 7,648 | 7,810 | (2 | )% | ||||||||
Total assets | $ | 5,010,522 | $ | 4,352,244 | 15 | % | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 608,939 | $ | 503,554 | 21 | % | ||||||
Interest bearing | 1,984,946 | 1,718,339 | 16 | % | ||||||||
Interest bearing in foreign branches | 417,075 | 933,420 | (55 | )% | ||||||||
Total deposits | 3,010,960 | 3,155,313 | (5 | )% | ||||||||
Accrued interest payable | 5,181 | 5,742 | (10 | )% | ||||||||
Other liabilities | 22,202 | 14,285 | 55 | % | ||||||||
Federal funds purchased | 514,270 | 312,212 | 65 | % | ||||||||
Repurchase agreements | 62,892 | 8,964 | 602 | % | ||||||||
Other short-term borrowings | 809,621 | 430,306 | 88 | % | ||||||||
Trust preferred subordinated debentures | 113,406 | 113,406 | — | |||||||||
Total liabilities | 4,538,532 | 4,040,228 | 12 | % | ||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, $1,000 liquidation value | ||||||||||||
Authorized shares — 10,000,000 | ||||||||||||
Issued shares — 75,000 at March 31, 2009 | 70,984 | — | 100 | % | ||||||||
Common stock, $.01 par value: | ||||||||||||
Authorized shares — 100,000,000 | ||||||||||||
Issued shares — 31,014,575 and 26,631,763 at March 31, 2009 and March 31, 2008, respectively | 310 | 266 | 17 | % | ||||||||
Additional paid-in capital | 260,647 | 193,917 | 34 | % | ||||||||
Retained earnings | 134,951 | 113,467 | 19 | % | ||||||||
Treasury stock (shares at cost: 417 at March 31, 2009 and 84,691 at March 31, 2008) | (8 | ) | (581 | ) | (99 | )% | ||||||
Deferred compensation | — | 573 | (100 | )% | ||||||||
Accumulated other comprehensive income, net of taxes | 5,106 | 4,374 | 17 | % | ||||||||
Total stockholders’ equity | 471,990 | 312,016 | 51 | % | ||||||||
Total liabilities and stockholders’ equity | $ | 5,010,522 | $ | 4,352,244 | 15 | % | ||||||
5
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
(Dollars in thousands except per share data)
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
Interest income | ||||||||
Interest and fees on loans | $ | 51,912 | $ | 61,897 | ||||
Securities | 3,851 | 4,860 | ||||||
Federal funds sold | 15 | 40 | ||||||
Deposits in other banks | 28 | 12 | ||||||
Total interest income | 55,806 | 66,809 | ||||||
Interest expense | ||||||||
Deposits | 11,579 | 21,724 | ||||||
Federal funds purchased | 618 | 2,950 | ||||||
Repurchase agreements | 14 | 322 | ||||||
Other borrowings | 1,178 | 3,327 | ||||||
Trust preferred subordinated debentures | 1,200 | 1,887 | ||||||
Total interest expense | 14,589 | 30,210 | ||||||
Net interest income | 41,217 | 36,599 | ||||||
Provision for loan losses | 8,500 | 3,750 | ||||||
Net interest income after provision for loan losses | 32,717 | 32,849 | ||||||
Non-interest income | ||||||||
Service charges on deposit accounts | 1,525 | 1,117 | ||||||
Trust fee income | 884 | 1,216 | ||||||
Bank owned life insurance (BOLI) income | 274 | 311 | ||||||
Brokered loan fees | 1,906 | 473 | ||||||
Equipment rental income | 1,456 | 1,516 | ||||||
Other | 855 | 1,050 | ||||||
Total non-interest income | 6,900 | 5,683 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 16,219 | 15,342 | ||||||
Net occupancy expense | 2,754 | 2,365 | ||||||
Leased equipment depreciation | 1,123 | 1,193 | ||||||
Marketing | 555 | 677 | ||||||
Legal and professional | 2,071 | 1,826 | ||||||
Communications and data processing | 836 | 854 | ||||||
Other | 6,748 | 4,020 | ||||||
Total non-interest expense | 30,306 | 26,277 | ||||||
Income from continuing operations before income taxes | 9,311 | 12,255 | ||||||
Income tax expense | 3,186 | 4,225 | ||||||
Income from continuing operations | 6,125 | 8,030 | ||||||
Loss from discontinued operations (after-tax) | (95 | ) | (148 | ) | ||||
Net income | 6,030 | 7,882 | ||||||
Preferred stock dividends | 930 | — | ||||||
Net income available to common stockholders | $ | 5,100 | $ | 7,882 | ||||
Basic earnings per common share: | ||||||||
Income from continuing operations | $ | .17 | $ | .30 | ||||
Net income | $ | .16 | $ | .30 | ||||
Diluted earnings per common share: | ||||||||
Income from continuing operations | $ | .17 | $ | .30 | ||||
Net income | $ | .16 | $ | .30 |
6
TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
(Dollars in thousands)
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||||
2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
Beginning balance | $ | 46,835 | $ | 40,998 | $ | 38,460 | $ | 34,021 | $ | 32,821 | ||||||||||
Loans charged-off: | ||||||||||||||||||||
Commercial | 1,695 | 535 | 592 | 3,165 | 3,086 | |||||||||||||||
Real estate — construction | 60 | 1,195 | 553 | 118 | — | |||||||||||||||
Real estate — term | 236 | 3,432 | 267 | 464 | 5 | |||||||||||||||
Consumer | 419 | 64 | 129 | — | — | |||||||||||||||
Leases | 226 | — | — | — | 29 | |||||||||||||||
Total | 2,636 | 5,226 | 1,541 | 3,747 | 3,120 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial | 21 | 43 | 27 | 165 | 524 | |||||||||||||||
Consumer | — | — | 13 | — | — | |||||||||||||||
Leases | 7 | — | 12 | 21 | 46 | |||||||||||||||
Real estate — term | — | 20 | 27 | — | — | |||||||||||||||
Total recoveries | 28 | 63 | 79 | 186 | 570 | |||||||||||||||
Net charge-offs | 2,608 | 5,163 | 1,462 | 3,561 | 2,550 | |||||||||||||||
Provision for loan losses | 8,500 | 11,000 | 4,000 | 8,000 | 3,750 | |||||||||||||||
Ending balance | $ | 52,727 | $ | 46,835 | $ | 40,998 | $ | 38,460 | $ | 34,021 | ||||||||||
Reserve to loans held for investment(2) | 1.31 | % | 1.16 | % | 1.07 | % | 1.04 | % | .97 | % | ||||||||||
Reserve to average loans held for investment(2) | 1.31 | % | 1.21 | % | 1.08 | % | 1.07 | % | .98 | % | ||||||||||
Net charge-offs to average loans(1) (2) | .26 | % | .53 | % | .15 | % | .40 | % | .29 | % | ||||||||||
Net charge-offs to average loans for last twelve months(1) (2) | .34 | % | .35 | % | .28 | % | .25 | % | .16 | % | ||||||||||
Provision for loan losses to average loans(1) (2) | .85 | % | 1.13 | % | .42 | % | .89 | % | .43 | % | ||||||||||
Non-performing loans: | ||||||||||||||||||||
Loans past due 90 days and still accruing(3) (4) | $ | 4,637 | $ | 4,115 | $ | 2,970 | $ | 22,763 | $ | 5,199 | ||||||||||
Non-accrual (4) | 50,683 | 47,499 | 46,579 | 16,753 | 13,564 | |||||||||||||||
Total | $ | 55,320 | $ | 51,614 | $ | 49,549 | $ | 39,516 | $ | 18,763 | ||||||||||
Other real estate owned | $ | 27,501 | $ | 25,904 | $ | 5,792 | $ | 5,615 | $ | 3,126 | ||||||||||
Reserve to non-performing loans | 1.0x | .9x | .8x | 1.0x | 1.8x | |||||||||||||||
Reserve to non-accrual loans | 1.0x | 1.0x | .9x | 2.3x | 2.5x | |||||||||||||||
Reserve to non-performing assets | .6x | .6x | .7x | .9x | 1.6x | |||||||||||||||
Non-accrual loans to loans(2) | 1.26 | % | 1.18 | % | 1.21 | % | .45 | % | .39 | % | ||||||||||
Loans past due 90 days to loans(2) | .12 | % | .10 | % | .08 | % | .61 | % | .15 | % | ||||||||||
Non-performing loans to loans(2) | 1.38 | % | 1.28 | % | 1.29 | % | 1.07 | % | .54 | % |
(1) | Interim period ratios are annualized. | |
(2) | Excludes loans held for sale. | |
(3) | At March 31, 2009, loans past due 90 days and still accruing includes premium finance loans of $1.7 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 March 31, 2009, non-performing assets include $4.0 million of mortgage warehouse loans which were transferred to the loans held for investment portfolio at lower of cost or market, and some were subsequently moved to other real estate owned. |
7
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
(Dollars in thousands)
�� | ||||||||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||||
2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 51,912 | $ | 54,814 | $ | 57,909 | $ | 56,389 | $ | 61,897 | ||||||||||
Securities | 3,851 | 4,031 | 4,281 | 4,550 | 4,860 | |||||||||||||||
Federal funds sold | 15 | 27 | 40 | 61 | 40 | |||||||||||||||
Deposits in other banks | 28 | 1 | 10 | 8 | 12 | |||||||||||||||
Total interest income | 55,806 | 58,873 | 62,240 | 61,008 | 66,809 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 11,579 | 16,075 | 18,338 | 16,715 | 21,724 | |||||||||||||||
Federal funds purchased | 618 | 1,046 | 2,273 | 1,963 | 2,950 | |||||||||||||||
Repurchase agreements | 14 | 79 | 86 | 54 | 322 | |||||||||||||||
Other borrowings | 1,178 | 1,353 | 1,791 | 2,652 | 3,327 | |||||||||||||||
Trust preferred subordinated debentures | 1,200 | 1,608 | 1,486 | 1,464 | 1,887 | |||||||||||||||
Total interest expense | 14,589 | 20,161 | 23,974 | 22,848 | 30,210 | |||||||||||||||
Net interest income | 41,217 | 38,712 | 38,266 | 38,160 | 36,599 | |||||||||||||||
Provision for loan losses | 8,500 | 11,000 | 4,000 | 8,000 | 3,750 | |||||||||||||||
Net interest income after provision for loan losses | 32,717 | 27,712 | 34,266 | 30,160 | 32,849 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposit accounts | 1,525 | 1,133 | 1,161 | 1,288 | 1,117 | |||||||||||||||
Trust fee income | 884 | 1,036 | 1,234 | 1,206 | 1,216 | |||||||||||||||
Bank owned life insurance (BOLI) income | 274 | 315 | 299 | 315 | 311 | |||||||||||||||
Brokered loan fees | 1,906 | 1,074 | 1,024 | 671 | 473 | |||||||||||||||
Equipment rental income | 1,456 | 1,482 | 1,487 | 1,510 | 1,516 | |||||||||||||||
Other | 855 | 910 | (320 | ) | 962 | 1,050 | ||||||||||||||
Total non-interest income | 6,900 | 5,950 | 4,885 | 5,952 | 5,683 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 16,219 | 14,688 | 16,039 | 15,369 | 15,342 | |||||||||||||||
Net occupancy expense | 2,754 | 2,534 | 2,300 | 2,432 | 2,365 | |||||||||||||||
Leased equipment depreciation | 1,123 | 1,142 | 1,153 | 1,179 | 1,193 | |||||||||||||||
Marketing | 555 | 882 | 521 | 649 | 677 | |||||||||||||||
Legal and professional | 2,071 | 2,793 | 2,358 | 2,645 | 1,826 | |||||||||||||||
Communications and data processing | 836 | 832 | 858 | 770 | 854 | |||||||||||||||
Other | 6,748 | 5,572 | 4,446 | 4,212 | 4,020 | |||||||||||||||
Total non-interest expense | 30,306 | 28,443 | 27,675 | 27,256 | 26,277 | |||||||||||||||
Income from continuing operations before income taxes | 9,311 | 5,219 | 11,476 | 8,856 | 12,255 | |||||||||||||||
Income tax expense | 3,186 | 1,732 | 3,911 | 3,056 | 4,225 | |||||||||||||||
Income from continuing operations | 6,125 | 3,487 | 7,565 | 5,800 | 8,030 | |||||||||||||||
Loss from discontinued operations (after-tax) | (95 | ) | (100 | ) | (252 | ) | (116 | ) | (148 | ) | ||||||||||
Net income | 6,030 | 3,387 | 7,313 | 5,684 | 7,882 | |||||||||||||||
Preferred stock dividends | 930 | — | — | — | — | |||||||||||||||
Net income available to common stockholders | $ | 5,100 | $ | 3,387 | $ | 7,313 | $ | 5,684 | $ | 7,882 | ||||||||||
8
��
TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY — UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
1st Quarter 2009 | 4th Quarter 2008 | 3rd Quarter 2008 | 2nd Quarter 2008 | 1st Quarter 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||||||||
Balance | Expense(1) | Rate | Balance | Expense(1) | Rate | Balance | Expense(1) | Rate | Balance | Expense(1) | Rate | Balance | Expense(1) | Rate | ||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities — Taxable | $ | 321,802 | $ | 3,431 | 4.32 | % | $ | 313,992 | $ | 3,610 | 4.57 | % | $ | 325,317 | $ | 3,852 | 4.71 | % | $ | 356,445 | $ | 4,114 | 4.64 | % | $ | 380,257 | $ | 4,424 | 4.68 | % | ||||||||||||||||||||||||||||||
Securities — Non-taxable(2) | 46,055 | 646 | 5.69 | % | 46,272 | 648 | 5.57 | % | 47,271 | 660 | 5.55 | % | 48,129 | 671 | 5.61 | % | 48,144 | 671 | 5.61 | % | ||||||||||||||||||||||||||||||||||||||||
Federal funds sold | 14,923 | 15 | 0.41 | % | 23,050 | 27 | 0.47 | % | 8,001 | 40 | 1.99 | % | 11,127 | 61 | 2.20 | % | 4,714 | 40 | 3.41 | % | ||||||||||||||||||||||||||||||||||||||||
Deposits in other banks | 11,207 | 28 | 1.01 | % | 5,761 | 1 | 0.07 | % | 2,554 | 10 | 1.56 | % | 1,103 | 8 | 2.92 | % | 1,251 | 12 | 3.86 | % | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 587,401 | 6,487 | 4.48 | % | 316,409 | 4,441 | 5.58 | % | 288,103 | 4,137 | 5.78 | % | 246,026 | 3,654 | 5.97 | % | 171,672 | 2,610 | 6.11 | % | ||||||||||||||||||||||||||||||||||||||||
Loans held for investment | 4,022,180 | 45,425 | 4.58 | % | 3,875,586 | 50,373 | 5.17 | % | 3,781,289 | 53,772 | 5.66 | % | 3,597,342 | 52,735 | 5.90 | % | 3,483,840 | 59,287 | 6.84 | % | ||||||||||||||||||||||||||||||||||||||||
Less reserve for loan losses | 46,686 | — | — | 38,145 | — | — | 38,180 | — | — | 33,181 | — | — | 33,519 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Loans, net of reserve | 4,562,895 | 51,912 | 4.61 | % | 4,153,850 | 54,814 | 5.25 | % | 4,031,212 | 57,909 | 5.71 | % | 3,810,187 | 56,389 | 5.95 | % | 3,621,993 | 61,897 | 6.87 | % | ||||||||||||||||||||||||||||||||||||||||
Total earning assets | 4,956,882 | 56,032 | 4.58 | % | 4,542,925 | 59,100 | 5.18 | % | 4,414,355 | 62,471 | 5.63 | % | 4,226,991 | 61,243 | 5.83 | % | 4,056,359 | 67,044 | 6.65 | % | ||||||||||||||||||||||||||||||||||||||||
Cash and other assets | 238,723 | 218,335 | 201,589 | 198,946 | 207,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,195,605 | $ | 4,761,260 | $ | 4,615,944 | $ | 4,425,937 | $ | 4,263,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 129,850 | $ | 44 | 0.14 | % | $ | 103,111 | $ | 67 | 0.26 | % | $ | 103,905 | $ | 122 | 0.47 | % | $ | 111,587 | $ | 129 | 0.46 | % | $ | 108,349 | $ | 145 | 0.54 | % | ||||||||||||||||||||||||||||||
Savings deposits | 745,355 | 1,420 | 0.77 | % | 729,337 | 2,350 | 1.28 | % | 778,956 | 3,371 | 1.72 | % | 840,933 | 3,563 | 1.70 | % | 790,185 | 5,118 | 2.61 | % | ||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,277,824 | 8,066 | 2.56 | % | 1,405,426 | 10,603 | 3.00 | % | 1,275,798 | 10,524 | 3.28 | % | 930,698 | 8,345 | 3.61 | % | 727,494 | 7,875 | 4.35 | % | ||||||||||||||||||||||||||||||||||||||||
Deposits in foreign branches | 444,549 | 2,049 | 1.87 | % | 555,573 | 3,055 | 2.19 | % | 720,211 | 4,321 | 2.39 | % | 755,593 | 4,678 | 2.49 | % | 956,603 | 8,586 | 3.61 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | 2,597,578 | 11,579 | 1.81 | % | 2,793,447 | 16,075 | 2.29 | % | 2,878,870 | 18,338 | 2.53 | % | 2,638,811 | 16,715 | 2.55 | % | 2,582,631 | 21,724 | 3.38 | % | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 1,367,691 | 1,810 | 0.54 | % | 881,868 | 2,478 | 1.12 | % | 709,157 | 4,150 | 2.33 | % | 830,482 | 4,669 | 2.26 | % | 773,149 | 6,599 | 3.43 | % | ||||||||||||||||||||||||||||||||||||||||
Trust preferred subordinated debentures | 113,406 | 1,200 | 4.29 | % | 113,406 | 1,608 | 5.64 | % | 113,406 | 1,486 | 5.21 | % | 113,406 | 1,464 | 5.19 | % | 113,406 | 1,887 | 6.69 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 4,078,675 | 14,589 | 1.45 | % | 3,788,721 | 20,161 | 2.12 | % | 3,701,433 | 23,974 | 2.58 | % | 3,582,699 | 22,848 | 2.56 | % | 3,469,186 | 30,210 | 3.50 | % | ||||||||||||||||||||||||||||||||||||||||
Demand deposits | 636,704 | 566,513 | 567,914 | 513,327 | 469,299 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 23,619 | 21,323 | 16,452 | 14,613 | 22,071 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 456,607 | 384,703 | 330,145 | 315,298 | 303,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,195,605 | $ | 4,761,260 | $ | 4,615,944 | $ | 4,425,937 | $ | 4,263,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 41,443 | $ | 38,939 | $ | 38,497 | $ | 38,395 | $ | 36,834 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.39 | % | 3.41 | % | 3.47 | % | 3.65 | % | 3.65 | % |
(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. |
9