Texas Capital Bancshares (TCBI) 8-K Regulation FD Disclosure

November 12, 2014

Keith Cargill, President and CEO

Peter Bartholow,  Chief Operating Officer and CFO

Bank of America Merrill Lynch

Financial Services Conference

Exhibit 99.1

Certain matters discussed in this presentation may contain forward-looking statements, which are subject to risks and

uncertainties and are based on Texas Capital’s current estimates or expectations of future events or future results. Texas

Capital is under no obligation, and expressly disclaims such obligation, to update, alter or revise its forward-looking

statements, whether as a result of new information, future events or otherwise. A number of factors, many of which are

beyond Texas Capital’s control, could cause actual results to differ materially from future results expressed or implied by

such forward-looking statements.

These risks and uncertainties include 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

Annual Report on Form 10-K and other filings made by Texas Capital with the Securities and Exchange Commission.

2

Overview & Strategy

3

Texas Capital Bancshares, Inc. is a business bank operating

principally in the five largest MSAs in Texas.  

•

All five Texas markets highly ranked in US in terms of job and

economic growth, now with major business relocations to Texas

•

Broad range of commercial businesses

•

Borrowers

with

borrowing

needs

of

$2

to

$15mm

–

Middle

market businesses, high net worth entrepreneurs

•

Organic

growth

model

–

no

bank

acquisitions

•

Growth in loans and deposits driven by recruiting, acclimating

and retaining highly experienced bankers with established

relationships and industry expertise

•

Exceptional growth opportunities with small market share in

Texas markets and position in businesses outside of Texas

Growth Strategy

Strong Credit Culture

•

Critical focus credit quality and risk management

•

Business model predicted and demonstrated success of focus

Opening Remarks & Financial Highlights

4

Core

Earnings

Power

Strong

Balanced

Growth

Credit

Quality

•

Exceptional growth in traditional LHI balances despite highly competitive C&I market

•

Growth in mortgage finance loans (MFLs) as seasonality returns

•

Continued strong growth in deposits, improving low-cost funding composition

•

Average DDA growth exceptionally strong in Q3-2014

•

Asset sensitivity position continues to be very favorable

•

Growth in total loans produced strong growth in net revenue

•

Operating leverage improved with rate of growth in net revenue greater than NIE

•

Business

model

focused

on

organic

growth

demonstrates

ability

to

produce

high

returns on invested capital

•

Growth driven by improvement in market share with increased capacity resulting from

success in recruiting and product extension

•

Credit metrics remain strong

•

NCOs at 3 bps in Q3-2014 and 8 bps YTD

•

Further

reduction

in

NPAs

–

now

below

pre-crisis

levels

•

High allowance coverage ratios

•

Provision primarily related to growth in core LHI

Revenue & Expense

5

•

High returns maintained with effective

deployment of additional capital

•

Significant improvement in operating leverage

and Efficiency Ratio

•

Strong capacity for Net Revenue growth

•

Total loans spreads remained above 4.00%

•

Net Revenue increased 8% from Q2-2014

•

Reduction in NIM driven by MFL growth, liquidity

build and debt issuance in Q1

•

Reduced rate of growth in NIE

•

Effective utilization of professional resources and

reduction in legal expense

•

Linked quarter increase in incentive expense linked to

performance and change in stock price

•

Provision expense related to growth

represents net interest income contribution of

loan growth for 3+ months

Revenue & Expense Trends

Revenue & Expense Highlights

Operating Revenue 

CAGR: 19%

Net Interest

Income

CAGR:

20%

Non-interest Income

CAGR: 8%

Non-interest Expense

CAGR: 15%

Net Income

CAGR: 43%

* Annualized based on 9/30/14 data.

0

100,000

200,000

300,000

400,000

500,000

2009

2010

2011

2012

2013

YTD Q3-

2014*

Non-interest Income

Net Interest Income

Non-interest Expense

Net Interest Income & Margin

6

•

Net interest income growth of 9% from

Q2-2014 and 16% from Q3-2013

•

Yields on traditional LHI stable with 6%

growth from Q2-2014

•

MFL growth benefits NII

•

Yield reduction based on profile of customers

•

Composition resulted in 5 bps reduction in NIM

•

Favorable deposit position

•

Core

funding

costs

–

deposits

and

borrowed

funds

–

down

slightly

to

16

bps

•

Deposit growth consistent with plan to

increase liquidity

•

Minor benefit to NII

•

Impact on NIM consistent with objectives

•

NIM reduction of 5 bps compared to Q2-2014

Net Interest Income & Margin Trends

NIM Highlights

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Net Interest income ($MM)

Net Interest Margin (%)

Earning Asset Yield (%)

Total Loan Spread (%)

Analysis of Net Interest Income & Expenses

7

NII ($MM)

NIM (%)

$115.4

Q2 2014

3.87%

-

Increase in liquidity

(.05)

(1.6)

Mix shift with MFL growth

(.05)

(1.5)

Decrease in MF loan yields

(.04)

.2

Increase in LHI loan yields

.01

-

Increase in contribution from

free funds

.02

1.4

Impact of increase in day count

-

11.6

Impact of increase in earning

assets

-

.2

Other

.01

$125.7

Q3 2014

3.77%

Non interest expense ($MM)

Linked quarter

increases/

(decreases)

Q2 2014

$69.8

Salaries

and

employee

benefits

–

related

to stock price changes

1.4

Salaries and employee benefits –

performance based incentives, LTI and

annual incentive pool

1.8

Legal

&

other

professional

–

effective

use of professional services; legal

reduced and varies by quarter

(2.3)

Salaries and employee benefits –

continued build out

.6

All other

.6

Q3 2014

$71.9

Performance Summary

8

(in thousands)

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Net interest income

$  125,661

$  115,407

$  108,315

$  111,475

$  108,776

Non-interest income

10,396

10,533

10,356

11,184

10,431

Net revenue

136,057

125,940

118,671

122,659

119,207

Provision for credit losses

6,500

4,000

5,000

5,000

5,000

OREO valuation and write-down expense

-

-

-

466

-

Total provision  and OREO valuation

6,500

4,000

5,000

5,466

5,000

Non-interest expense

71,915

69,768

69,321

69,825

62,009

Income before income taxes

57,642

52,172

44,350

47,368

52,198

Income tax expense

20,810

18,754

16,089

17,012

18,724

Net income

36,832

33,418

28,261

30,356

33,474

Preferred stock dividends

2,438

2,437

2,438

2,438

2,437

Net income available to common shareholders

$   34,394

$   30,981

$   25,823

$   27,918

$   31,037

Diluted EPS

$         .78

$         .71

$         .60

$         .67

$         .74

Net interest margin

3.77%

3.87%

3.99%

4.21%

4.21%

ROA

1.07%

1.08%

1.01%

1.10%

1.25%

ROE

12.11%

11.38%

10.20%

11.94%

13.74%

Efficiency

(1)

52.9%

55.4%

58.4%

56.9%

52.0%

(1)  Excludes OREO valuation charge

2014 Outlook

9

Business Driver

2014 Outlook v. 2013 Results

Changes Since 10/22/2014

Average  LHI

Low 20’s percent growth, pace  

declining

-

Average LHI –

Mortgage Finance

Low 20s percent growth, 

with some decrease in Q4-2014

Increased from low/mid teens

Average Deposits

Upper 20’s percent growth

Increased from low 20’s

Liquidity Assets

Growth with 5-8 bps  impact on NIM;

impact increasing with minimal

impact on net interest income

No change, depends on growth in 

MFLs and deposits

Net Interest Income

Low double-digit percent growth

-

Net Interest Margin

Small decrease from previous

outlook, now 3.75% to 3.85%

Decreased from 3.80% to 3.90% due

to growth in MFLs and liquidity

Net Charge-Offs

Less than 0.15%, and continued

strong credit quality

-

NIE

High single-digit to low double-digit

percent growth

-

Efficiency Ratio

Less than 55%, slight reduction from

2013

-

Loan & Deposit Growth

10

•

Broad-based

growth

in

average

traditional

LHI

–

Growth

of

$439.0

million

(5%)

from

Q2-2014

and

$1.7

billion

(22%) from Q3-2013

•

Period-end balance $262.9 million higher than Q3-2014 average balance and 20% above Q3-2013 period-end

balance.  Quarter-end balance is 30% above average for all of 2013

•

MF performance exceeded industry trends with increase in averages of 22% from Q2-2014

•

Average DDA increased 29% from Q2-2014 and 49% from Q3-2013

•

Total average deposits increased 16% from Q2-2014 and 32% from Q3-2013

Growth Highlights

Balance Trends

Total Loan Composition

($13.5 Billion at 9/30/14)

Demand Deposit CAGR: 42%

Total Deposit CAGR: 25%

Loans Held for Investment CAGR: 18%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2009

2010

2011

2012

2013

2014

Demand Deposits

Interest Bearing Deposits

Loans HFI

Business

Assets

30%

Energy

6%

Highly Liquid

Assets

1%

Mortgage 

Finance

28%

Other Assets

3%

Comml R/E

Mkt. Risk

17%

Residential

R/E Mkt.

Risk

8%

Owner

Occupied R/E

5%

Unsecured

2%

Asset Quality

11

•

Total credit cost of $6.5 million for Q3-2014, compared

to $4.0 million in Q2-2014 and $5.0 million in Q3-2013

•

NCOs $595,000, or 3 bps, in Q3-2014 compared to 11

bps in Q2-2014 and less than 1 bp in Q3-2013

•

No OREO valuation charge in Q3-2014,  Q2-2014 or Q3-

2013

•

Reduction in NPAs and OREO now less than $1 million

Asset Quality Highlights

Non-accrual loans

Q3-2014

Commercial

$         25,006

Construction

–

Real estate

12,717

Consumer

–

Equipment leases

10

Total non-accrual loans

37,733

Non-accrual loans as % of loans

excluding MF

.39%

Non-accrual loans as % of total

loans

.28%

OREO

617

Total Non-accruals + OREO

$         38,350

Non-accrual loans + OREO as %

of loans excluding MF + OREO

.40%

Reserve to non-accrual loans

2.6x

NCO / Average Traditional LHI

1.14%

0.58%

0.10%

0.07%

0.08%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

2010

2011

2012

2013

2014

EPS Growth

12

2009^

2010

2011

2012

2013

YTD

9/30/2014

^Excludes $.15 effect of preferred TARP dividend during

2009. Reported EPS was $0.56.

EPS Growth

(5-yr CAGR of 40%)

$0.71

$1.00

$1.99

$3.01

$2.72

$2.09

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Closing Comments

•

Proven organic growth business model continues to produce in key

lines of

business with improvements in operating leverage

•

Solid core earnings power and strong asset growth expected to continue in

2014 and beyond

•

Continue to have critical focus on maintaining excellent credit quality

•

Continued success in building liquidity

•

Continue to be highly asset sensitive based on how we run our business; now

better positioned to take advantage of increases in short-term rates

•

Successful track record of acquisition and retention of talent and customers

13

Q&A

14

Appendix

15

Average Balances, Yields & Rates -

Quarterly

16

(in thousands)

Q3 2014

Q2 2014

Q3 2013

Avg. Bal.

Yield Rate

Avg. Bal.

Yield Rate

Avg. Bal.

Yield Rate

Assets

Securities

$      46,413

3.86%

$      50,487

4.00%

$        71,717

4.25%

Fed funds sold & liquidity investments

388,855

.25%

198,058

.22%

167,613

.19%

Loans held for investment, mortgage finance

3,452,782

3.13%

2,822,560

3.30%

2,362,118

3.79%

Loans held for investment

9,423,259

4.52%

8,984,230

4.51%

7,731,901

4.72%

Total loans, net of reserve

12,784,614

4.18%

11,716,685

4.25%

10,014,468

4.53%

Total earning assets

13,219,882

4.06%

11,965,230

4.19%

10,253,798

4.46%

Total assets

$13,629,609

$12,362,168

$10,637,766

Liabilities and Stockholders’

Equity

Total interest bearing deposits

$  6,856,542

.27%

$  6,326,034

.27%

$  5,612,874

.26%

Other borrowings

309,868

.20%

666,405

.18%

539,767

.20%

Subordinated notes

286,000

5.88%

286,000

5.95%

111,000

6.54%

Long-term debt

113,406

2.19%

113,406

2.19%

113,406

2.23%

Total interest bearing liabilities

7,565,816

.50%

7,391,845

.51%

6,377,047

.40%

Demand deposits

4,669,772

3,629,941

3,124,602

Stockholders’

equity

1,276,603

1,241,787

1,046,477

Total liabilities

and

stockholders’

equity

$13,629,609

.28%

$12,362,168

.31%

$10,637,766

.24%

Net interest margin

3.77%

3.87%

4.21%

Total deposits and borrowed funds

$11,836,182

.16%

$10,622,380

.17%

$  9,277,243

.17%

Loan spread

4.02%

4.08%

4.36%

Average Balance Sheet -

Quarterly

17

(in thousands)

QTD Average

Q3/Q2 %

Change

YOY %

Change

Q3 2014

Q2 2014

Q3 2013

Total assets

$13,629,609

$12,362,168

$10,637,766

10%

28%

Loans held for investment

9,423,259

8,984,230

7,731,901

5%

22%

Loans held for investment, mortgage

finance

3,452,782

2,822,560

2,362,118

22%

46%

Total loans

12,876,041

11,806,790

10,094,019

9%

28%

Securities

46,413

50,487

71,717

(8)%

(35)%

Demand deposits

4,669,772

3,629,941

3,124,602

29%

49%

Total deposits

11,526,314

9,955,975

8,737,476

16%

32%

Stockholders’

equity

1,276,603

1,241,787

1,046,477

3%

22%

Ending Balance Sheet -

Quarterly

18

(in thousands)

Period End

Q3/Q2 %

Change

YOY %

Change

Q3 2014

Q2 2014

Q3 2013

Total assets

$14,266,214

$13,532,536

$10,797,448

5%

32%

Loans held for investment

9,686,134

9,152,715

8,051,328

6%

20%

Loans held for investment, mortgage

finance

3,774,467

3,700,253

2,262,085

2%

67%

Total loans

13,460,601

12,852,968

10,313,413

5%

31%

Securities

43,938

49,330

67,815

(11)%

(35)%

Demand deposits

4,722,479

4,181,774

3,242,060

13%

46%

Total deposits

11,715,808

10,757,316

8,957,081

9%

31%

Stockholders’

equity

1,297,922

1,262,816

1,066,629

3%

22%