Exhibit 99.1
FOR IMMEDIATE RELEASE
April 25, 2012
INVESTOR CONTACT
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com
TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2012
DALLAS – April 25, 2012 – Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2012.
• | Net income increased 5% on a linked quarter basis and 127% from the first quarter of 2011 |
• | EPS increased 4% on a linked quarter basis and 126% from the first quarter of 2011 |
• | Demand deposits were consistent and total deposits increased 9% on a linked quarter basis; both grew 18% and 16%, respectively, from the first quarter of 2011 |
• | Loans held for investment increased 4% and total loans increased 5% on a linked quarter basis; both grew 23% and 46%, respectively, from the first quarter of 2011 |
“We are pleased to report another quarter of excellent growth and improved profitability for Texas Capital,” said George Jones, CEO. “Along with improvements in key measures of operating performance and credit quality, we also experienced significant growth in income, loans, deposits and capital. With a strong pipeline in place, we are optimistic about our ability to continue to provide excellent results for our shareholders.”
FINANCIAL SUMMARY
(dollars and shares in thousands)
Q1 2012 | Q1 2011 | % Change | ||||||||||
QUARTERLY OPERATING RESULTS(1) | ||||||||||||
Net Income | $ | 27,081 | $ | 11,939 | 127 | % | ||||||
Diluted EPS | $ | .70 | $ | .31 | 126 | % | ||||||
ROA | 1.33 | % | .78 | % | ||||||||
ROE | 17.36 | % | 8.91 | % | ||||||||
Diluted Shares | 38,914 | 38,342 | ||||||||||
BALANCE SHEET(1) | ||||||||||||
Total Assets | $ | 8,559,917 | $ | 6,061,046 | 41 | % | ||||||
Demand Deposits | 1,751,443 | 1,480,695 | 18 | % | ||||||||
Total Deposits | 6,063,558 | 5,221,991 | 16 | % | ||||||||
Loans Held for Investment | 5,792,349 | 4,711,424 | 23 | % | ||||||||
Total Loans | 8,047,630 | 5,522,824 | 46 | % | ||||||||
Stockholders’ Equity | 647,341 | 544,925 | 19 | % |
(1) | Operating results, assets and loans are reporting from continuing operations |
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income from continuing operations of $27.1 million for the quarter ended March 31, 2012 compared to $11.9 million for the first quarter of 2011. On a fully diluted basis, earnings per common share from continuing operations were $.70 for the three months ended March 31, 2012, compared to $.31 for the same period last year. The discussion below relates only to continuing operations.
Return on average equity was 17.36 percent and return on average assets was 1.33 percent for the first quarter of 2012, compared to 8.91 percent and .78 percent, respectively, for the first quarter of 2011.
Net interest income was $88.2 million for the first quarter of 2012, compared to $88.1 million in the fourth quarter of 2011 and $64.5 million for the first quarter of 2011. The net interest margin in the first quarter of 2012 was 4.54 percent, an 8 basis point increase from the first quarter of 2011 and a 6 basis point decrease from the fourth quarter of 2011. The year over year increase in net interest margin and net interest income is due to the reduction in funding costs.
Average loans held for investment for the first quarter of 2012 were $5.7 billion, an increase of $939.1 million from the first quarter of 2011 and increased $265.7 million from the fourth quarter of 2011. Average loans held for sale for the first quarter of 2012 increased $1.3 billion compared to the first quarter of 2011 and decreased $57.3 million from the fourth quarter of 2011.
Average total deposits for the first quarter of 2012 increased by $516.0 million from the first quarter of 2011 and increased by $210.6 million from the fourth quarter of 2011. For the same periods, the average balance of demand deposits increased by $282.7 million, or 20 percent, to $1.7 billion from $1.4 billion during the first quarter of 2011 and increased $41.3 million from the fourth quarter of 2011.
In the first quarter of 2012, we experienced decreases in levels of non-performing assets and credit losses. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $5.7 million in the first quarter of 2012 compared to $10.8 million in the first quarter of 2011 and $7.1 million in the fourth quarter of 2011. We recorded a $3.0 million provision for credit losses in the first quarter of 2012 compared to $7.5 million in the first quarter of 2011 and $6.0 million in the fourth quarter of 2011. At March 31, 2012, the combined reserve decreased to 1.29 percent of loans held for investment as compared to 1.53 percent at March 31, 2011 and 1.31 percent at December 31, 2011. 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 2012, net charge-offs were $828,000, compared to net charge-offs of $9.0 million in the first quarter of 2011 and net charge-offs of $3.4 million in the fourth quarter of 2011. Non-accrual loans were $50.2 million, or .87 percent of loans held for investment at the end of the first quarter of 2012, $116.5 million, or 2.47 percent, at the end of the first quarter of 2011 and $54.6 million, or .98 percent, at the end of the fourth quarter 2011. At March 31, 2012, total OREO was $32.6 million compared to $26.2 million at the end of the first quarter of 2011, and $34.1 million at the end of the fourth quarter of 2011. The OREO balance of $32.6 million at March 31, 2012 is stated net of a $6.3 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $2.7 million in the first quarter of 2012 compared to $3.3 million in the first quarter of 2011 and $1.1 million in the fourth quarter of 2011.
Non-interest income increased $1.5 million during the first quarter of 2012, or 20 percent, compared to the same period of 2011 primarily related to a $1.1 million increase in brokered loan fees.
Non-interest expense for the first quarter of 2012 increased $5.9 million, or 13 percent, to $52.3 million from $46.4 million in the first quarter of 2011. The increase is primarily related to a $4.8 million increase in salaries and employee benefits to $29.0 million from $24.2 million, which was primarily due to general business growth. Marketing expense increased $700,000 from the first quarter of 2011 due to expansion of customer bases in both loans and deposits. Additionally, legal and professional expense increased $1.3 million from the first quarter of 2011. Allowance and other carrying costs for OREO expense decreased $688,000 to $3.3 million, which included a $2.7 million valuation expense. Of the $2.7 million valuation expense in the first
2
quarter of 2012, $1.9 million related to direct write-downs of the OREO balance and $856,000 related to increasing the valuation allowance, compared to $1.4 million and $1.9 million, respectively, in the same period of 2011. Additionally, FDIC insurance expense decreased $942,000 from the first quarter of 2011.
Stockholders’ equity increased by 19 percent from $544.9 million at March 31, 2011 to $647.3 million at March 31, 2012, primarily related to retained net income. The Bank is well capitalized under regulatory guidelines and at March 31, 2012, the Company’s ratio of tangible common equity to total tangible assets was 7.3 percent.
ABOUT TEXAS CAPITAL BANCSHARES, INC.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.
This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.
3
TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)
1st Quarter 2012 | 4th Quarter 2011 | 3rd Quarter 2011 | 2nd Quarter 2011 | 1st Quarter 2011 | ||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
Interest income | $ | 93,131 | $ | 92,967 | $ | 83,263 | $ | 75,259 | $ | 70,111 | ||||||||||
Interest expense | 4,902 | 4,820 | 4,065 | 4,165 | 5,613 | |||||||||||||||
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Net interest income | 88,229 | 88,147 | 79,198 | 71,094 | 64,498 | |||||||||||||||
Provision for credit losses | 3,000 | 6,000 | 7,000 | 8,000 | 7,500 | |||||||||||||||
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Net interest income after provision for credit losses | 85,229 | 82,147 | 72,198 | 63,094 | 56,998 | |||||||||||||||
Non-interest income | 9,190 | 8,994 | 7,603 | 7,951 | 7,684 | |||||||||||||||
Non-interest expense | 52,276 | 50,353 | 46,186 | 45,263 | 46,399 | |||||||||||||||
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Income from continuing operations before income taxes | 42,143 | 40,788 | 33,615 | 25,782 | 18,283 | |||||||||||||||
Income tax expense | 15,062 | 15,043 | 11,905 | 9,074 | 6,344 | |||||||||||||||
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Income from continuing operations | 27,081 | 25,745 | 21,710 | 16,708 | 11,939 | |||||||||||||||
Income (loss) from discontinued operations (after-tax) | 4 | (5 | ) | (7 | ) | (54 | ) | (60 | ) | |||||||||||
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Net income | $ | 27,085 | $ | 25,740 | $ | 21,703 | $ | 16,654 | $ | 11,879 | ||||||||||
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Diluted EPS from continuing operations | $ | .70 | $ | .67 | $ | .56 | $ | .44 | $ | .31 | ||||||||||
Diluted EPS | $ | .70 | $ | .67 | $ | .56 | $ | .43 | $ | .31 | ||||||||||
Diluted shares | 38,914,241 | 38,609,094 | 38,435,386 | 38,332,888 | 38,341,679 | |||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 8,559,917 | $ | 8,137,225 | $ | 7,705,372 | $ | 6,709,338 | $ | 6,061,046 | ||||||||||
Loans held for investment | 5,792,349 | 5,572,371 | 5,302,584 | 5,164,293 | 4,711,424 | |||||||||||||||
Loans held for sale | 2,255,281 | 2,080,081 | 1,909,567 | 1,122,330 | 811,400 | |||||||||||||||
Securities | 123,828 | 143,710 | 142,895 | 157,821 | 171,990 | |||||||||||||||
Demand deposits | 1,751,443 | 1,751,944 | 1,661,125 | 1,483,159 | 1,480,695 | |||||||||||||||
Total deposits | 6,063,558 | 5,556,257 | 5,486,463 | 5,421,726 | 5,221,991 | |||||||||||||||
Other borrowings | 1,657,728 | 1,768,116 | 1,451,894 | 561,902 | 133,995 | |||||||||||||||
Long-term debt | 113,406 | 113,406 | 113,406 | 113,406 | 113,406 | |||||||||||||||
Stockholders’ equity | 647,341 | 616,331 | 587,944 | 563,924 | 544,925 | |||||||||||||||
End of period shares outstanding | 37,912,054 | 37,666,291 | 37,457,762 | 37,329,726 | 37,216,929 | |||||||||||||||
Book value(1) | $ | 16.96 | $ | 16.24 | $ | 15.56 | $ | 14.97 | $ | 14.50 | ||||||||||
Tangible book value(1) | $ | 16.42 | $ | 15.69 | $ | 15.01 | $ | 14.41 | $ | 14.25 | ||||||||||
SELECTED FINANCIAL RATIOS | ||||||||||||||||||||
From continuing operations | ||||||||||||||||||||
Net interest margin | 4.54 | % | 4.60 | % | 4.81 | % | 4.86 | % | 4.46 | % | ||||||||||
Return on average assets | 1.33 | % | 1.28 | % | 1.25 | % | 1.08 | % | .78 | % | ||||||||||
Return on average equity | 17.36 | % | 17.05 | % | 14.93 | % | 12.13 | % | 8.91 | % | ||||||||||
Non-interest income to earning assets | .47 | % | .47 | % | .46 | % | .54 | % | .53 | % | ||||||||||
Efficiency ratio | 53.7 | % | 51.8 | % | 53.2 | % | 57.3 | % | 64.3 | % | ||||||||||
Efficiency ratio (excluding OREO valuation charge) | 50.8 | % | 50.7 | % | 51.3 | % | 56.3 | % | 59.7 | % | ||||||||||
Non-interest expense to earning assets | 2.69 | % | 2.62 | % | 2.80 | % | 3.08 | % | 3.20 | % | ||||||||||
Non-interest expense to earning assets (excluding OREO valuation charge) | 2.55 | % | 2.57 | % | 2.70 | % | 3.03 | % | 2.97 | % | ||||||||||
Tangible common equity to total tangible assets | 7.3 | % | 7.3 | % | 7.3 | % | 8.0 | % | 8.8 | % | ||||||||||
Tier 1 capital ratio | 9.5 | % | 9.6 | % | 9.7 | % | 10.2 | % | 11.2 | % | ||||||||||
Total capital ratio | 10.4 | % | 10.6 | % | 10.7 | % | 11.3 | % | 12.5 | % | ||||||||||
Tier 1 leverage ratio | 8.9 | % | 8.8 | % | 9.8 | % | 10.5 | % | 10.3 | % |
(1) | Excluding securities gains/losses. |
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
March 31, 2012 | March 31, 2011 | % Change | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 66,806 | $ | 61,186 | 9 | % | ||||||
Interest-bearing deposits | 61,324 | 152,294 | (60 | )% | ||||||||
Federal funds sold | 20,680 | 10,240 | 102 | % | ||||||||
Securities, available-for-sale | 123,828 | 171,990 | (28 | )% | ||||||||
Loans held for sale | 2,255,281 | 811,400 | 178 | % | ||||||||
Loans held for sale from discontinued operations | 390 | 488 | (20 | )% | ||||||||
Loans held for investment (net of unearned income) | 5,792,349 | 4,711,424 | 23 | % | ||||||||
Less: Allowance for loan losses | 71,992 | 70,248 | 2 | % | ||||||||
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Loans held for investment, net | 5,720,357 | 4,641,176 | 23 | % | ||||||||
Premises and equipment, net | 11,445 | 11,652 | (2 | )% | ||||||||
Accrued interest receivable and other assets | 279,866 | 191,706 | 46 | % | ||||||||
Goodwill and intangibles, net | 20,330 | 9,402 | 116 | % | ||||||||
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Total assets | $ | 8,560,307 | $ | 6,061,534 | 41 | % | ||||||
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Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 1,751,443 | $ | 1,480,695 | 18 | % | ||||||
Interest bearing | 3,902,123 | 3,429,358 | 14 | % | ||||||||
Interest bearing in foreign branches | 409,992 | 311,938 | 31 | % | ||||||||
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Total deposits | 6,063,558 | 5,221,991 | 16 | % | ||||||||
Accrued interest payable | 893 | 1,662 | (46 | )% | ||||||||
Other liabilities | 77,381 | 45,555 | 70 | % | ||||||||
Federal funds purchased | 383,927 | 115,870 | 231 | % | ||||||||
Repurchase agreements | 23,740 | 14,716 | 61 | % | ||||||||
Other borrowings | 1,250,061 | 3,409 | N/M | |||||||||
Trust preferred subordinated debentures | 113,406 | 113,406 | — | |||||||||
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Total liabilities | 7,912,966 | 5,516,609 | 43 | % | ||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, $1,000 liquidation value: | ||||||||||||
Authorized shares – 10,000,000 Issued shares | — | — | — | |||||||||
Common stock, $.01 par value: | ||||||||||||
Authorized shares – 100,000,000 Issued shares – 37,912,054 and 37,217,346 at March 31, 2012 and 2011, respectively | 379 | 372 | 2 | % | ||||||||
Additional paid-in capital | 353,567 | 341,680 | 3 | % | ||||||||
Retained earnings | 288,868 | 197,686 | 46 | % | ||||||||
Treasury stock (shares at cost: 417 at March 31, 2012 and 2011, respectively) | (8 | ) | (8 | ) | — | |||||||
Accumulated other comprehensive income, net of taxes | 4,535 | 5,195 | (13 | )% | ||||||||
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Total stockholders’ equity | 647,341 | 544,925 | 19 | % | ||||||||
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Total liabilities and stockholders’ equity | $ | 8,560,307 | $ | 6,061,534 | 41 | % | ||||||
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TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended March 31 | ||||||||
2012 | 2011 | |||||||
Interest income | ||||||||
Loans | $ | 91,774 | $ | 68,040 | ||||
Securities | 1,307 | 1,846 | ||||||
Federal funds sold | 1 | 28 | ||||||
Deposits in other banks | 49 | 197 | ||||||
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Total interest income | 93,131 | 70,111 | ||||||
Interest expense | ||||||||
Deposits | 3,472 | 4,871 | ||||||
Federal funds purchased | 281 | 107 | ||||||
Repurchase agreements | 3 | 2 | ||||||
Other borrowings | 435 | — | ||||||
Trust preferred subordinated debentures | 711 | 633 | ||||||
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Total interest expense | 4,902 | 5,613 | ||||||
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Net interest income | 88,229 | 64,498 | ||||||
Provision for credit losses | 3,000 | 7,500 | ||||||
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Net interest income after provision for credit losses | 85,229 | 56,998 | ||||||
Non-interest income | ||||||||
Service charges on deposit accounts | 1,604 | 1,783 | ||||||
Trust fee income | 1,114 | 954 | ||||||
Bank owned life insurance (BOLI) income | 521 | 523 | ||||||
Brokered loan fees | 3,651 | 2,520 | ||||||
Equipment rental income | 161 | 783 | ||||||
Other | 2,139 | 1,121 | ||||||
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Total non-interest income | 9,190 | 7,684 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 29,019 | 24,172 | ||||||
Net occupancy expense | 3,604 | 3,310 | ||||||
Leased equipment depreciation | 139 | 556 | ||||||
Marketing | 2,823 | 2,123 | ||||||
Legal and professional | 3,991 | 2,723 | ||||||
Communications and technology | 2,483 | 2,347 | ||||||
FDIC insurance assessment | 1,569 | 2,511 | ||||||
Allowance and other carrying costs for OREO | 3,342 | 4,030 | ||||||
Other | 5,306 | 4,627 | ||||||
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Total non-interest expense | 52,276 | 46,399 | ||||||
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Income from continuing operations before income taxes | 42,143 | 18,283 | ||||||
Income tax expense | 15,062 | 6,344 | ||||||
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Income from continuing operations | 27,081 | 11,939 | ||||||
Income (loss) from discontinued operations (after-tax) | 4 | (60 | ) | |||||
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Net income | $ | 27,085 | $ | 11,879 | ||||
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Basic earnings per common share: | ||||||||
Income from continuing operations | $ | .72 | $ | .32 | ||||
Net income | $ | .72 | $ | .32 | ||||
Diluted earnings per common share: | ||||||||
Income from continuing operations | $ | .70 | $ | .31 | ||||
Net income | $ | .70 | $ | .31 |
6
TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
1st Quarter 2012 | 4th Quarter 2011 | 3rd Quarter 2011 | 2nd Quarter 2011 | 1st Quarter 2011 | ||||||||||||||||
Reserve for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 70,295 | $ | 67,897 | $ | 67,748 | $ | 70,248 | $ | 71,510 | ||||||||||
Loans charged-off: | ||||||||||||||||||||
Commercial | 462 | 1,348 | 1,523 | 3,654 | 1,993 | |||||||||||||||
Real estate – construction | — | — | — | — | ||||||||||||||||
Real estate – term | 559 | 2,438 | 5,049 | 6,424 | 7,364 | |||||||||||||||
Consumer | — | — | — | 283 | 34 | |||||||||||||||
Leases | 95 | 238 | (16 | ) | 464 | 532 | ||||||||||||||
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Total loans charged-off | 1,116 | 4,024 | 6,556 | 10,825 | 9,923 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial | 159 | 390 | 109 | 143 | 546 | |||||||||||||||
Real estate – construction | — | — | 5 | — | 243 | |||||||||||||||
Real estate – term | 108 | 45 | 152 | 122 | 31 | |||||||||||||||
Consumer | 5 | 4 | 1 | 3 | 1 | |||||||||||||||
Leases | 16 | 171 | 36 | 26 | 150 | |||||||||||||||
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Total recoveries | 288 | 610 | 303 | 294 | 971 | |||||||||||||||
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Net charge-offs | 828 | 3,414 | 6,253 | 10,531 | 8,952 | |||||||||||||||
Provision for loan losses | 2,525 | 5,812 | 6,402 | 8,031 | 7,690 | |||||||||||||||
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Ending balance | $ | 71,992 | $ | 70,295 | $ | 67,897 | $ | 67,748 | $ | 70,248 | ||||||||||
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Reserve for off-balance sheet credit losses: | ||||||||||||||||||||
Beginning balance | $ | 2,462 | $ | 2,274 | $ | 1,676 | $ | 1,707 | $ | 1,897 | ||||||||||
Provision (benefit) for off-balance sheet credit losses | 475 | 188 | 598 | (31 | ) | (190 | ) | |||||||||||||
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Ending balance | $ | 2,937 | $ | 2,462 | $ | 2,274 | $ | 1,676 | $ | 1,707 | ||||||||||
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Total reserves for credit losses | $ | 74,929 | $ | 72,757 | $ | 70,171 | $ | 69,424 | $ | 71,955 | ||||||||||
Total provision for credit losses | $ | 3,000 | $ | 6,000 | $ | 7,000 | $ | 8,000 | $ | 7,500 | ||||||||||
Reserve to loans held for investment(2) | 1.24 | % | 1.26 | % | 1.28 | % | 1.31 | % | 1.49 | % | ||||||||||
Reserve to average loans held for investment(2) | 1.27 | % | 1.30 | % | 1.30 | % | 1.39 | % | 1.49 | % | ||||||||||
Net charge-offs to average loans(1)(2) | .06 | % | .25 | % | .48 | % | .86 | % | .77 | % | ||||||||||
Net charge-offs to average loans for last twelve months(1)(2) | .40 | % | .58 | % | .90 | % | 1.06 | % | 1.11 | % | ||||||||||
Total provision for credit losses to average loans(1)(2) | .21 | % | .44 | % | .53 | % | .66 | % | .64 | % | ||||||||||
Combined reserves for credit losses to loans held for investment(2) | 1.29 | % | 1.31 | % | 1.32 | % | 1.34 | % | 1.53 | % | ||||||||||
Non-performing assets (NPAs): | ||||||||||||||||||||
Non-accrual loans | $ | 50,160 | $ | 54,580 | $ | 66,714 | $ | 77,884 | $ | 116,479 | ||||||||||
Other real estate owned (OREO) (4) | 32,601 | 34,077 | 35,796 | 27,285 | 26,172 | |||||||||||||||
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Total | $ | 82,761 | $ | 88,657 | $ | 102,510 | $ | 105,169 | $ | 142,651 | ||||||||||
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Non-accrual loans to loans(2) | .87 | % | .98 | % | 1.26 | % | 1.51 | % | 2.47 | % | ||||||||||
Total NPAs to loans plus OREO(2) | 1.42 | % | 1.58 | % | 1.92 | % | 2.03 | % | 3.01 | % | ||||||||||
Reserve for loan losses to non-accrual loans | 1.4x | 1.3x | 1.0x | .9x | .6x | |||||||||||||||
Restructured loans | $ | 12,582 | $ | 25,104 | $ | 24,963 | $ | 23,540 | $ | 22,219 | ||||||||||
Loans past due 90 days and still accruing(3) | $ | 5,941 | $ | 5,467 | $ | 3,003 | $ | 10,333 | $ | 2,529 | ||||||||||
Loans past due 90 days to loans(2) | .10 | % | .10 | % | .06 | % | .20 | % | .05 | % |
(1) | Interim period ratios are annualized. |
(2) | Excludes loans held for sale. |
(3) | At March 31, 2012, loans past due 90 days and still accruing includes premium finance loans of $4.4 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
(4) | At March 31, 2012, OREO balance is net of $6.3 million valuation allowance. |
7
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
1st Quarter 2012 | 4th Quarter 2011 | 3rd Quarter 2011 | 2nd Quarter 2011 | 1st Quarter 2011 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans | $ | 91,774 | $ | 91,512 | $ | 81,692 | $ | 73,509 | $ | 68,040 | ||||||||||
Securities | 1,307 | 1,408 | 1,524 | 1,680 | 1,846 | |||||||||||||||
Federal funds sold | 1 | 1 | 3 | 5 | 28 | |||||||||||||||
Deposits in other banks | 49 | 46 | 44 | 65 | 197 | |||||||||||||||
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Total interest income | 93,131 | 92,967 | 83,263 | 75,259 | 70,111 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 3,472 | 3,471 | 3,191 | 3,417 | 4,871 | |||||||||||||||
Federal funds purchased | 281 | 273 | 128 | 94 | 107 | |||||||||||||||
Repurchase agreements | 3 | 4 | 2 | 2 | 2 | |||||||||||||||
Other borrowings | 435 | 404 | 110 | 14 | — | |||||||||||||||
Trust preferred subordinated debentures | 711 | 668 | 634 | 638 | 633 | |||||||||||||||
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Total interest expense | 4,902 | 4,820 | 4,065 | 4,165 | 5,613 | |||||||||||||||
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Net interest income | 88,229 | 88,147 | 79,198 | 71,094 | 64,498 | |||||||||||||||
Provision for credit losses | 3,000 | 6,000 | 7,000 | 8,000 | 7,500 | |||||||||||||||
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Net interest income after provision for credit losses | 85,229 | 82,147 | 72,198 | 63,094 | 56,998 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposit accounts | 1,604 | 1,504 | 1,585 | 1,608 | 1,783 | |||||||||||||||
Trust fee income | 1,114 | 1,108 | 1,091 | 1,066 | 954 | |||||||||||||||
Bank owned life insurance (BOLI) income | 521 | 500 | 533 | 539 | 523 | |||||||||||||||
Brokered loan fees | 3,651 | 3,408 | 2,849 | 2,558 | 2,520 | |||||||||||||||
Equipment rental income | 161 | 223 | 223 | 676 | 783 | |||||||||||||||
Other | 2,139 | 2,251 | 1,322 | 1,504 | 1,121 | |||||||||||||||
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Total non-interest income | 9,190 | 8,994 | 7,603 | 7,951 | 7,684 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 29,019 | 26,658 | 25,596 | 24,109 | 24,172 | |||||||||||||||
Net occupancy expense | 3,604 | 3,537 | 3,367 | 3,443 | 3,310 | |||||||||||||||
Leased equipment depreciation | 139 | 198 | 281 | 447 | 556 | |||||||||||||||
Marketing | 2,823 | 3,798 | 2,455 | 2,733 | 2,123 | |||||||||||||||
Legal and professional | 3,991 | 4,362 | 3,647 | 4,264 | 2,723 | |||||||||||||||
Communications and technology | 2,483 | 2,468 | 2,210 | 2,584 | 2,347 | |||||||||||||||
FDIC insurance assessment | 1,569 | 1,595 | 1,465 | 1,972 | 2,511 | |||||||||||||||
Allowance and other carrying costs for OREO | 3,342 | 2,383 | 2,150 | 1,023 | 4,030 | |||||||||||||||
Other | 5,306 | 5,354 | 5,015 | 4,688 | 4,627 | |||||||||||||||
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Total non-interest expense | 52,276 | 50,353 | 46,186 | 45,263 | 46,399 | |||||||||||||||
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Income from continuing operations before income taxes | 42,143 | 40,788 | 33,615 | 25,782 | 18,283 | |||||||||||||||
Income tax expense | 15,062 | 15,043 | 11,905 | 9,074 | 6,344 | |||||||||||||||
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Income from continuing operations | 27,081 | 25,745 | 21,710 | 16,708 | 11,939 | |||||||||||||||
Income (loss) from discontinued operations (after-tax) | 4 | (5 | ) | (7 | ) | (54 | ) | (60 | ) | |||||||||||
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Net income | $ | 27,085 | $ | 25,740 | $ | 21,703 | $ | 16,654 | $ | 11,879 |
8
TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
1st Quarter 2012 | 4th Quarter 2011 | 3rd Quarter 2011 | 2nd Quarter 2011 | 1st 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 | $ | 109,003 | $ | 1,041 | 3.84 | % | $ | 109,761 | $ | 1,126 | 4.07 | % | $ | 115,871 | $ | 1,214 | 4.16 | % | $ | 127,269 | $ | 1,346 | 4.24 | % | $ | 140,007 | $ | 1,500 | 4.35 | % | ||||||||||||||||||||||||||||||
Securities – Non-taxable(2) | 28,506 | 409 | 5.77 | % | 30,065 | 434 | 5.73 | % | 33,051 | 477 | 5.73 | % | 35,804 | 514 | 5.76 | % | 37,154 | 532 | 5.81 | % | ||||||||||||||||||||||||||||||||||||||||
Federal funds sold | 6,848 | 1 | 0.06 | % | 8,505 | 1 | 0.05 | % | 20,864 | 3 | 0.06 | % | 14,303 | 5 | 0.14 | % | 44,322 | 28 | 0.26 | % | ||||||||||||||||||||||||||||||||||||||||
Deposits in other banks | 49,470 | 49 | 0.41 | % | 42,644 | 46 | 0.43 | % | 36,495 | 44 | 0.48 | % | 77,928 | 65 | 0.33 | % | 277,228 | 197 | 0.29 | % | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 2,036,622 | 21,315 | 4.21 | % | 2,093,883 | 22,332 | 4.23 | % | 1,191,375 | 13,340 | 4.44 | % | 808,165 | 9,591 | 4.76 | % | 735,682 | 8,677 | 4.78 | % | ||||||||||||||||||||||||||||||||||||||||
Loans held for investment | 5,660,993 | 70,459 | 5.01 | % | 5,395,253 | 69,180 | 5.09 | % | 5,219,496 | 68,352 | 5.20 | % | 4,890,696 | 63,918 | 5.24 | % | 4,721,928 | 59,363 | 5.10 | % | ||||||||||||||||||||||||||||||||||||||||
Less reserve for loan losses | 70,261 | — | — | 67,214 | — | — | 66,215 | — | — | 68,031 | — | — | 70,142 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
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Loans, net of reserve | 7,627,354 | 91,774 | 4.84 | % | 7,421,922 | 91,512 | 4.89 | % | 6,344,656 | 81,692 | 5.11 | % | 5,630,830 | 73,509 | 5.24 | % | 5,387,468 | 68,040 | 5.12 | % | ||||||||||||||||||||||||||||||||||||||||
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Total earning assets | 7,821,181 | 93,274 | 4.80 | % | 7,612,897 | 93,119 | 4.85 | % | 6,550,937 | 83,430 | 5.05 | % | 5,886,134 | 75,439 | 5.14 | % | 5,886,179 | 70,297 | 4.84 | % | ||||||||||||||||||||||||||||||||||||||||
Cash and other assets | 388,009 | 382,577 | 333,563 | 306,372 | 297,060 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Total assets | $ | 8,209,190 | $ | 7,995,474 | $ | 6,884,500 | $ | 6,192,506 | $ | 6,183,239 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 565,319 | $ | 140 | 0.10 | % | $ | 429,980 | $ | 33 | 0.03 | % | $ | 412,203 | $ | 52 | 0.05 | % | $ | 375,084 | $ | 55 | 0.06 | % | $ | 345,978 | $ | 55 | 0.06 | % | ||||||||||||||||||||||||||||||
Savings deposits | 2,535,412 | 2,083 | 0.33 | % | 2,422,465 | 2,062 | 0.34 | % | 2,253,123 | 1,664 | 0.29 | % | 2,465,118 | 1,700 | 0.28 | % | 2,469,435 | 2,371 | 0.39 | % | ||||||||||||||||||||||||||||||||||||||||
Time deposits | 624,823 | 920 | 0.59 | % | 534,441 | 927 | 0.69 | % | 468,196 | 1,032 | 0.87 | % | 541,337 | 1,351 | 1.00 | % | 709,604 | 1,921 | 1.10 | % | ||||||||||||||||||||||||||||||||||||||||
Deposits in foreign branches | 409,422 | 329 | 0.32 | % | 578,728 | 449 | 0.31 | % | 588,221 | 443 | 0.30 | % | 415,998 | 311 | 0.30 | % | 376,570 | 524 | 0.56 | % | ||||||||||||||||||||||||||||||||||||||||
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Total interest bearing deposits | 4,134,976 | 3,472 | 0.34 | % | 3,965,614 | 3,471 | 0.35 | % | 3,721,743 | 3,191 | 0.34 | % | 3,797,537 | 3,417 | 0.36 | % | 3,901,587 | 4,871 | 0.51 | % | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 1,554,716 | 719 | 0.19 | % | 1,588,198 | 681 | 0.17 | % | 894,073 | 240 | 0.11 | % | 233,388 | 110 | 0.19 | % | 159,450 | 109 | 0.28 | % | ||||||||||||||||||||||||||||||||||||||||
Trust preferred subordinated debentures | 113,406 | 711 | 2.52 | % | 113,406 | 668 | 2.34 | % | 113,406 | 634 | 2.22 | % | 113,406 | 638 | 2.26 | % | 113,406 | 633 | 2.26 | % | ||||||||||||||||||||||||||||||||||||||||
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Total interest bearing liabilities | 5,803,098 | 4,902 | 0.34 | % | 5,667,218 | 4,820 | 0.34 | % | 4,729,222 | 4,065 | 0.34 | % | 4,144,331 | 4,165 | 0.40 | % | 4,174,443 | 5,613 | 0.55 | % | ||||||||||||||||||||||||||||||||||||||||
Demand deposits | 1,700,390 | 1,659,132 | 1,525,087 | 1,455,366 | 1,417,734 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 78,108 | 70,142 | 53,233 | 40,177 | 47,753 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 627,594 | 598,982 | 576,958 | 552,632 | 543,309 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 8,209,190 | $ | 7,995,474 | $ | 6,884,500 | $ | 6,192,506 | $ | 6,183,239 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Net interest income | $ | 88,372 | $ | 88,299 | $ | 79,365 | $ | 71,274 | $ | 64,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 4.54 | % | 4.60 | % | 4.81 | % | 4.86 | % | 4.46 | % |
(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