TCBI - Texas Capital Bancshares Inc. Announces Operating Results for Q4 and Full Year 2020
DALLAS, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the fourth quarter and full year of 2020.
"While 2020 was certainly a challenging year, I am pleased with our strong fourth quarter results," said Larry Helm, Executive Chairman and CEO. "I want to thank our employees for their hard work and commitment to serving our clients during this unprecedented time. Though we are still navigating the pandemic, I am confident that Texas Capital Bank is well positioned for the future due to the actions we took in 2020. Looking ahead, Rob Holmes, our new CEO, officially joins us next week. Under his leadership, I have no doubt that Texas Capital Bank will continue to enhance its level of execution and recruit and develop the best talent, enabling us to drive long term shareholder value."
- Net income of $60.2 million ($1.14 per share) reported for the fourth quarter of 2020, an increase of $3.1 million on a linked quarter basis and a decrease of $4.2 million from the fourth quarter of 2019.
- Average mortgage finance loans held for investment ("LHI") increased 5% on a linked quarter basis and 21% from the fourth quarter of 2019.
- Credit quality improved in the fourth quarter of 2020, reflecting declines in non-performing assets and criticized loans of $40.0 million and $157.1 million, respectively, on a linked quarter basis.
- Successfully deployed $1.8 billion of excess liquidity into higher yielding investment securities in the fourth quarter of 2020.
FINANCIAL SUMMARY
| (dollars and shares in thousands) |
| 2020 |
| 2019 |
| % Change |
| ANNUAL OPERATING RESULTS |
| Net income |
| $ |
| 66,289 |
| $ |
| 312,015 |
| (79 |
| )% |
| Net income available to common stockholders |
| $ |
| 56,539 |
| $ |
| 302,265 |
| (81 |
| )% |
| Diluted earnings per common share |
| $ |
| 1.12 |
| $ |
| 5.99 |
| (81 |
| )% |
| Diluted shares |
| 50,583 |
| 50,419 |
| — |
| % |
| ROA |
| 0.18 |
| % |
| 1.01 |
| % |
| ROE |
| 2.10 |
| % |
| 11.95 |
| % |
| QUARTERLY OPERATING RESULTS |
| Net income |
| $ |
| 60,176 |
| $ |
| 64,420 |
| (7 |
| )% |
| Net income available to common stockholders |
| $ |
| 57,739 |
| $ |
| 61,983 |
| (7 |
| )% |
| Diluted earnings per common share |
| $ |
| 1.14 |
| $ |
| 1.23 |
| (7 |
| )% |
| Diluted common shares |
| 50,794 |
| 50,462 |
| 1 |
| % |
| ROA |
| 0.61 |
| % |
| 0.74 |
| % |
| ROE |
| 8.50 |
| % |
| 9.26 |
| % |
| BALANCE SHEET |
| Loans held for sale ("LHS") |
| $ |
| 283,165 |
| $ |
| 2,577,134 |
| (89 |
| )% |
| LHI, mortgage finance |
| 9,079,409 |
| 8,169,849 |
| 11 |
| % |
| LHI |
| 15,351,451 |
| 16,476,413 |
| (7 |
| )% |
| Total LHI |
| 24,430,860 |
| 24,646,262 |
| (1 |
| )% |
| Total assets |
| 37,726,096 |
| 32,548,069 |
| 16 |
| % |
| Demand deposits |
| 12,740,947 |
| 9,438,459 |
| 35 |
| % |
| Total deposits |
| 30,996,589 |
| 26,478,593 |
| 17 |
| % |
| Stockholders’ equity |
| 2,871,224 |
| 2,801,321 |
| 2 |
| % |
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income of $66.3 million and net income available to common stockholders of $56.5 million for the year ended December 31, 2020, compared to net income of $312.0 million and net income available to common stockholders of $302.3 million for the year ended December 31, 2019. For the fourth quarter of 2020, net income was $60.2 million, compared to net income of $57.1 million for the third quarter of 2020, and net income of $64.4 million for the fourth quarter of 2019. On a fully diluted basis, earnings per common share were $1.12 for the year ended December 31, 2020 compared to $5.99 for the same period in 2019. Diluted earnings per common share were $1.14 for the quarter ended December 31, 2020, compared to $1.08 for the quarter ended September 30, 2020 and $1.23 for the quarter ended December 31, 2019. The increase in net income for the fourth quarter of 2020 as compared to the third quarter of 2020 resulted primarily from a $15.4 million increase in net interest income and a $14.9 million decrease in non-interest expense, offset by a $17.5 million decrease in non-interest income.
We recorded a $32.0 million provision for credit losses for the fourth quarter of 2020 utilizing the Current Expected Credit Loss ("CECL") methodology adopted in the first quarter of 2020, compared to $30.0 million for the third quarter of 2020 and $17.0 million for the fourth quarter of 2019. We recorded $65.4 million in net charge-offs during the fourth quarter of 2020, including $27.6 million in energy net charge-offs and $34.2 million in leveraged lending net charge-offs, all of which were loans that had been previously identified as problem loans, compared to $1.6 million during the third quarter of 2020 and $12.8 million during the fourth quarter of 2019. Criticized loans totaled $918.4 million at December 31, 2020, compared to $1.1 billion at September 30, 2020 and $584.1 million at December 31, 2019. Criticized loan levels have declined in the fourth quarter of 2020 as compared to the third quarter of 2020, however remain elevated when compared to 2019 due to the downgrade of loans to borrowers that have been impacted by the COVID-19 pandemic or that are in categories that are expected to be more significantly impacted by COVID-19.
Non-performing assets ("NPAs") totaled $122.0 million at December 31, 2020, a decrease of $40.0 million compared to the third quarter of 2020 and a decrease of $103.4 million compared to the fourth quarter of 2019. Non-accrual energy loans totaled $51.7 million (42% of total NPAs) at December 31, 2020, compared to $73.8 million (46% of total NPAs) at September 30, 2020 and $125.0 million (55% of total NPAs) at December 31, 2019. Non-accrual leveraged lending loans totaled $18.9 million (15% of total NPAs) at December 31, 2020, compared to $31.3 million (19% of total NPAs) at September 30, 2020 and $73.2 million (32% of total NPAs) at December 31, 2019. The ratio of total LHI NPAs to total LHI plus other real estate owned ("OREO") for the fourth quarter of 2020 was 0.50%, compared to 0.64% for the third quarter of 2020 and 0.91% for the fourth quarter of 2019.
Net interest income was $223.0 million for the fourth quarter of 2020, compared to $207.6 million for the third quarter of 2020 and $248.4 million for the fourth quarter of 2019. Net interest margin for the fourth quarter of 2020 was 2.32%, an increase of 10 basis points from the third quarter of 2020 and a decrease of 63 basis points from the fourth quarter of 2019. The shift in earning assets, primarily the increases in liquidity assets and investment securities, and decrease in LHI, excluding mortgage finance, contributed to the year-over-year decrease in net interest margin. LHI yields, excluding mortgage finance loans, increased 28 basis points from the third quarter of 2020, and decreased 104 basis points compared to the fourth quarter of 2019. LHI, mortgage finance yields for the fourth quarter of 2020 decreased 7 basis points compared to the third quarter of 2020, and increased 11 basis points compared to the fourth quarter of 2019. Additionally, total cost of deposits for the fourth quarter of 2020 decreased 5 basis points to 0.29% compared to 0.34% for the third quarter of 2020, and decreased 70 basis points from 0.99% for the fourth quarter of 2019.
Non-interest income decreased $17.5 million, or 29%, during the fourth quarter of 2020 compared to the third quarter of 2020, and increased $25.1 million, or 141%, compared to the fourth quarter of 2019. The linked quarter decrease was primarily related to a decrease in net gain/(loss) on sale of LHS, resulting primarily from decreased margins and lower sales volume. The year-over-year increase was primarily related to increases in net gain/(loss) on sale of LHS, servicing fee income and brokered loan fees. The year-over-year increase in net gain/(loss) on sale of LHS was due to lower hedge costs in the fourth quarter of 2020 as a result of holding purchased loans for shorter durations than in prior periods, and is offset by the year-over-year decline in net interest income on LHS. The year-over-year increase in servicing fee income was due to an increase in the outstanding balance of our servicing portfolio. The year-over-year increase in brokered loan fees was due to an increase in total mortgage finance volumes in the fourth quarter of 2020.
Non-interest expense for the fourth quarter of 2020 decreased $14.9 million, or 9%, compared to the third quarter of 2020, and decreased $17.3 million, or 10%, compared to the fourth quarter of 2019. The linked quarter decrease was primarily related to decreases in salaries and employee benefits and communications and technology expense, offset by an increase in servicing-related expense. The year-over-year decrease was primarily due to decreases in salaries and employee benefits, marketing and legal and profession expenses, partially offset by an increase in servicing-related expense. The linked quarter decrease in communication and technology expense was primarily due to non-recurring software expenses recorded in the third quarter of 2020. The linked-quarter and year-over-year decreases in salaries and employee benefits was the result of cost savings related to our second quarter 2020 workforce reduction. The linked-quarter and year-over-year increases in servicing-related expense was primarily due to an increase in MSR amortization, resulting primarily from an increase in the cost basis of our MSR asset.
All regulatory ratios continue to be in excess of "well-capitalized" requirements as of December 31, 2020. Our CET 1, tier 1 capital, total capital and leverage ratios were 9.4%, 10.3%, 12.1% and 7.5%, respectively, at December 31, 2020, compared to 9.1%, 9.9%, 11.8% and 7.6%, respectively, at September 30, 2020. At December 31, 2020, our ratio of tangible common equity to total tangible assets was 7.1% compared to 6.8% at September 30, 2020.
About Texas Capital Bancshares, Inc.
Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, 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.
Forward Looking Statements
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our financial condition, results of operations, business plans and future performance. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should,” “projects,” “targeted,,” “continue,,” “intend” and similar expressions.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. 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 factors include, but are not limited to, (1) the credit quality of our loan portfolio, (2) general economic conditions in the United States, globally and in our markets and the impact they may have on us and our customers,, including the continued impact on our customers from volatility in oil and gas prices, (3) the material risks and uncertainties for the U.S. and world economies, and for our business, resulting from the ongoing COVID-19 pandemic and any other pandemic, epidemic or health-related crisis, (4) expectations regarding rates of default and credit losses, (5) volatility in the mortgage industry, (6) our business strategies, (7) our expectations about future financial performance, future growth and earnings, (8) the appropriateness of our allowance for credit losses and provision for credit losses, (9) our ability to identify, attract and retain qualified employees, (10) the impact of changing regulatory requirements and legislative changes on our business, (11) increased competition from banking organizations and other financial service providers, (12) interest rate risk, (13) greater than expected costs or difficulties related to the integration of new lines of business, products or new service offerings, (14) technological changes, (15) the cost and effects of cyber incidents or other failures, interruptions or security breaches of our systems or those of third-party providers, and (16) our success at managing the risk and uncertainties involved in the foregoing items.
In addition, statements about the potential effects of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope, duration and severity of the COVID-19 pandemic, actions taken by governmental authorities and other parties in response to the COVID-19 pandemic, the scale of distribution and public acceptance of any vaccines for COVID-19 and the effectiveness of such vaccines in stemming or stopping the spread of COVID-19, and the direct and indirect impact of the COVID-19 pandemic on our customers, clients, third parties and us.
These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
| TEXAS CAPITAL BANCSHARES, INC. |
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) |
| (dollars in thousands except per share data) |
| 4th Quarter |
| 3rd Quarter |
| 2nd Quarter |
| 1st Quarter |
| 4th Quarter |
| 2020 |
| 2020 |
| 2020 |
| 2020 |
| 2019 |
| CONSOLIDATED STATEMENTS OF INCOME |
| Interest income |
| $ |
| 255,163 |
| $ |
| 243,731 |
| $ |
| 252,010 |
| $ |
| 306,008 |
| $ |
| 337,757 |
| Interest expense |
| 32,153 |
| 36,162 |
| 42,082 |
| 77,689 |
| 89,372 |
| Net interest income |
| 223,010 |
| 207,569 |
| 209,928 |
| 228,319 |
| 248,385 |
| Provision for credit losses |
| 32,000 |
| 30,000 |
| 100,000 |
| 96,000 |
| 17,000 |
| Net interest income after provision for credit losses |
| 191,010 |
| 177,569 |
| 109,928 |
| 132,319 |
| 231,385 |
| Non-interest income |
| 42,886 |
| 60,348 |
| 70,502 |
| 11,780 |
| 17,761 |
| Non-interest expense |
| 150,886 |
| 165,741 |
| 222,352 |
| 165,417 |
| 168,187 |
| Income/(loss) before income taxes |
| 83,010 |
| 72,176 |
| (41,922 |
| ) |
| (21,318 |
| ) |
| 80,959 |
| Income tax expense/(benefit) |
| 22,834 |
| 15,060 |
| (7,606 |
| ) |
| (4,631 |
| ) |
| 16,539 |
| Net income/(loss) |
| 60,176 |
| 57,116 |
| (34,316 |
| ) |
| (16,687 |
| ) |
| 64,420 |
| Preferred stock dividends |
| 2,437 |
| 2,438 |
| 2,437 |
| 2,438 |
| 2,437 |
| Net income/(loss) available to common stockholders |
| $ |
| 57,739 |
| $ |
| 54,678 |
| $ |
| (36,753 |
| ) |
| $ |
| (19,125 |
| ) |
| $ |
| 61,983 |
| Diluted earnings/(loss) per common share |
| $ |
| 1.14 |
| $ |
| 1.08 |
| $ |
| (0.73 |
| ) |
| $ |
| (0.38 |
| ) |
| $ |
| 1.23 |
| Diluted common shares |
| 50,794,421 |
| 50,573,073 |
| 50,416,331 |
| 50,474,802 |
| 50,461,723 |
| CONSOLIDATED BALANCE SHEET DATA |
| Total assets |
| $ |
| 37,726,096 |
| $ |
| 38,432,872 |
| $ |
| 36,613,127 |
| $ |
| 35,879,416 |
| $ |
| 32,548,069 |
| LHI |
| 15,351,451 |
| 15,789,958 |
| 16,552,203 |
| 16,857,579 |
| 16,476,413 |
| LHI, mortgage finance |
| 9,079,409 |
| 9,378,104 |
| 8,972,626 |
| 7,588,803 |
| 8,169,849 |
| LHS |
| 283,165 |
| 648,009 |
| 454,581 |
| 774,064 |
| 2,577,134 |
| Liquidity assets (1) |
| 9,032,807 |
| 10,461,544 |
| 9,540,044 |
| 9,498,189 |
| 4,263,766 |
| Investment securities |
| 3,196,970 |
| 1,367,313 |
| 234,969 |
| 228,784 |
| 239,871 |
| Demand deposits |
| 12,740,947 |
| 12,339,212 |
| 10,835,911 |
| 9,420,303 |
| 9,438,459 |
| Total deposits |
| 30,996,589 |
| 31,959,487 |
| 30,187,695 |
| 27,134,263 |
| 26,478,593 |
| Other borrowings |
| 3,111,751 |
| 2,908,183 |
| 2,895,790 |
| 5,195,267 |
| 2,541,766 |
| Subordinated notes |
| 282,490 |
| 282,400 |
| 282,309 |
| 282,219 |
| 282,129 |
| Long-term debt |
| 113,406 |
| 113,406 |
| 113,406 |
| 113,406 |
| 113,406 |
| Stockholders’ equity |
| 2,871,224 |
| 2,800,404 |
| 2,734,755 |
| 2,772,596 |
| 2,801,321 |
| End of period shares outstanding |
| 50,470,450 |
| 50,455,552 |
| 50,435,672 |
| 50,407,778 |
| 50,337,741 |
| Book value |
| $ |
| 53.92 |
| $ |
| 52.53 |
| $ |
| 51.25 |
| $ |
| 52.03 |
| $ |
| 52.67 |
| Tangible book value (2) |
| $ |
| 53.57 |
| $ |
| 52.18 |
| $ |
| 50.89 |
| $ |
| 51.67 |
| $ |
| 52.31 |
| SELECTED FINANCIAL RATIOS |
| Net interest margin |
| 2.32 |
| % |
| 2.22 |
| % |
| 2.30 |
| % |
| 2.78 |
| % |
| 2.95 |
| % |
| Return on average assets |
| 0.61 |
| % |
| 0.59 |
| % |
| (0.36 |
| )% |
| (0.20 |
| )% |
| 0.74 |
| % |
| Return on average common equity |
| 8.50 |
| % |
| 8.24 |
| % |
| (5.48 |
| )% |
| (2.85 |
| )% |
| 9.26 |
| % |
| Non-interest income to average earning assets |
| 0.44 |
| % |
| 0.64 |
| % |
| 0.77 |
| % |
| 0.14 |
| % |
| 0.21 |
| % |
| Efficiency ratio (3) |
| 56.7 |
| % |
| 61.9 |
| % |
| 79.3 |
| % |
| 68.9 |
| % |
| 63.2 |
| % |
| Non-interest expense to average earning assets |
| 1.56 |
| % |
| 1.76 |
| % |
| 2.43 |
| % |
| 2.00 |
| % |
| 1.98 |
| % |
| Tangible common equity to total tangible assets (4) |
| 7.1 |
| % |
| 6.8 |
| % |
| 7.0 |
| % |
| 7.3 |
| % |
| 8.1 |
| % |
| Common Equity Tier 1 |
| 9.4 |
| % |
| 9.1 |
| % |
| 8.8 |
| % |
| 9.3 |
| % |
| 8.9 |
| % |
| Tier 1 capital |
| 10.3 |
| % |
| 9.9 |
| % |
| 9.7 |
| % |
| 10.2 |
| % |
| 9.7 |
| % |
| Total capital |
| 12.1 |
| % |
| 11.8 |
| % |
| 11.6 |
| % |
| 12.0 |
| % |
| 11.4 |
| % |
| Leverage |
| 7.5 |
| % |
| 7.6 |
| % |
| 7.5 |
| % |
| 8.5 |
| % |
| 8.4 |
| % |
| (1) |
| Liquidity assets include Federal funds sold and interest-bearing deposits in other banks. |
| (2) |
| Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end. |
| (3) |
| Non-interest expense 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) |
| December 31, 2020 |
| December 31, 2019 |
| % Change |
| Assets |
| Cash and due from banks |
| $ |
| 173,573 |
| $ |
| 161,817 |
| 7 |
| % |
| Interest-bearing deposits |
| 9,032,807 |
| 4,233,766 |
| 113 |
| % |
| Federal funds sold and securities purchased under resale agreements |
| — |
| 30,000 |
| (100 |
| )% |
| Securities, available-for-sale |
| 3,196,970 |
| 239,871 |
| 1,233 |
| % |
| LHS ($239.1 million and $2,571.3 million at December 31, 2020 and 2019, respectively, at fair value) |
| 283,165 |
| 2,577,134 |
| (89 |
| )% |
| LHI, mortgage finance |
| 9,079,409 |
| 8,169,849 |
| 11 |
| % |
| LHI (net of unearned income) |
| 15,351,451 |
| 16,476,413 |
| (7 |
| )% |
| Less: Allowance for credit losses on loans |
| 254,615 |
| 195,047 |
| 31 |
| % |
| LHI, net |
| 24,176,245 |
| 24,451,215 |
| (1 |
| )% |
| Mortgage servicing rights, net |
| 105,424 |
| 64,904 |
| 62 |
| % |
| Premises and equipment, net |
| 24,546 |
| 31,212 |
| (21 |
| )% |
| Accrued interest receivable and other assets |
| 715,699 |
| 740,051 |
| (3 |
| )% |
| Goodwill and intangibles, net |
| 17,667 |
| 18,099 |
| (2 |
| )% |
| Total assets |
| $ |
| 37,726,096 |
| $ |
| 32,548,069 |
| 16 |
| % |
| Liabilities and Stockholders’ Equity |
| Liabilities: |
| Deposits: |
| Non-interest bearing |
| $ |
| 12,740,947 |
| $ |
| 9,438,459 |
| 35 |
| % |
| Interest bearing |
| 18,255,642 |
| 17,040,134 |
| 7 |
| % |
| Total deposits |
| 30,996,589 |
| 26,478,593 |
| 17 |
| % |
| Accrued interest payable |
| 11,150 |
| 12,760 |
| (13 |
| )% |
| Other liabilities |
| 339,486 |
| 318,094 |
| 7 |
| % |
| Federal funds purchased and repurchase agreements |
| 111,751 |
| 141,766 |
| (21 |
| )% |
| Other borrowings |
| 3,000,000 |
| 2,400,000 |
| 25 |
| % |
| Subordinated notes, net |
| 282,490 |
| 282,129 |
| — |
| % |
| Trust preferred subordinated debentures |
| 113,406 |
| 113,406 |
| — |
| % |
| Total liabilities |
| 34,854,872 |
| 29,746,748 |
| 17 |
| % |
| Stockholders’ equity: |
| Preferred stock, $.01 par value, $1,000 liquidation value: |
| Authorized shares - 10,000,000 |
| Issued shares - 6,000,000 shares issued at December 31, 2020 and 2019 |
| 150,000 |
| 150,000 |
| — |
| % |
| Common stock, $.01 par value: |
| Authorized shares - 100,000,000 |
| Issued shares - 50,470,867 and 50,338,158 at December 31, 2020 and 2019, respectively |
| 504 |
| 503 |
| — |
| % |
| Additional paid-in capital |
| 991,898 |
| 978,205 |
| 1 |
| % |
| Retained earnings |
| 1,713,056 |
| 1,663,671 |
| 3 |
| % |
| Treasury stock (shares at cost: 417 at December 31, 2020 and 2019) |
| (8 |
| ) |
| (8 |
| ) |
| — |
| % |
| Accumulated other comprehensive income, net of taxes |
| 15,774 |
| 8,950 |
| N/M |
| Total stockholders’ equity |
| 2,871,224 |
| 2,801,321 |
| 2 |
| % |
| Total liabilities and stockholders’ equity |
| $ |
| 37,726,096 |
| $ |
| 32,548,069 |
| 16 |
| % |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| (dollars in thousands except per share data) |
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| 2020 |
| 2019 |
| 2020 |
| 2019 |
| Interest income |
| Interest and fees on loans |
| $ |
| 242,776 |
| $ |
| 312,147 |
| $ |
| 1,011,175 |
| $ |
| 1,284,036 |
| Investment securities |
| 9,594 |
| 2,618 |
| 17,475 |
| 8,654 |
| Federal funds sold and securities purchased under resale agreements |
| 1 |
| 439 |
| 693 |
| 1,529 |
| Interest-bearing deposits in other banks |
| 2,792 |
| 22,553 |
| 27,569 |
| 71,093 |
| Total interest income |
| 255,163 |
| 337,757 |
| 1,056,912 |
| 1,365,312 |
| Interest expense |
| Deposits |
| 23,819 |
| 70,987 |
| 146,117 |
| 293,537 |
| Federal funds purchased |
| 110 |
| 1,319 |
| 1,083 |
| 11,872 |
| Other borrowings |
| 3,407 |
| 11,712 |
| 20,923 |
| 58,393 |
| Subordinated notes |
| 4,191 |
| 4,191 |
| 16,764 |
| 16,764 |
| Trust preferred subordinated debentures |
| 626 |
| 1,163 |
| 3,199 |
| 5,026 |
| Total interest expense |
| 32,153 |
| 89,372 |
| 188,086 |
| 385,592 |
| Net interest income |
| 223,010 |
| 248,385 |
| 868,826 |
| 979,720 |
| Provision for credit losses |
| 32,000 |
| 17,000 |
| 258,000 |
| 75,000 |
| Net interest income after provision for credit losses |
| 191,010 |
| 231,385 |
| 610,826 |
| 904,720 |
| Non-interest income |
| Service charges on deposit accounts |
| 3,004 |
| 2,785 |
| 11,620 |
| 11,320 |
| Wealth management and trust fee income |
| 2,681 |
| 2,342 |
| 9,998 |
| 8,810 |
| Brokered loan fees |
| 12,610 |
| 8,645 |
| 46,423 |
| 29,738 |
| Servicing income |
| 8,834 |
| 4,030 |
| 27,029 |
| 13,439 |
| Swap fees |
| 473 |
| 1,559 |
| 5,182 |
| 4,387 |
| Net gain/(loss) on sale of LHS |
| 6,761 |
| (7,757 |
| ) |
| 58,026 |
| (20,259 |
| ) |
| Other |
| 8,523 |
| 6,157 |
| 27,238 |
| 45,005 |
| Total non-interest income |
| 42,886 |
| 17,761 |
| 185,516 |
| 92,440 |
| Non-interest expense |
| Salaries and employee benefits |
| 78,449 |
| 90,248 |
| 340,529 |
| 328,483 |
| Net occupancy expense |
| 8,373 |
| 9,075 |
| 34,955 |
| 32,989 |
| Marketing |
| 3,435 |
| 12,807 |
| 23,581 |
| 53,355 |
| Legal and professional |
| 12,129 |
| 21,032 |
| 52,132 |
| 52,460 |
| Communications and technology |
| 15,405 |
| 13,801 |
| 103,054 |
| 44,826 |
| FDIC insurance assessment |
| 6,592 |
| 5,613 |
| 25,955 |
| 20,093 |
| Servicing-related expenses |
| 15,867 |
| 2,960 |
| 64,625 |
| 22,573 |
| Merger-related expenses |
| — |
| 1,370 |
| 17,756 |
| 1,370 |
| Other |
| 10,636 |
| 11,281 |
| 41,809 |
| 44,701 |
| Total non-interest expense |
| 150,886 |
| 168,187 |
| 704,396 |
| 600,850 |
| Income before income taxes |
| 83,010 |
| 80,959 |
| 91,946 |
| 396,310 |
| Income tax expense |
| 22,834 |
| 16,539 |
| 25,657 |
| 84,295 |
| Net income |
| 60,176 |
| 64,420 |
| 66,289 |
| 312,015 |
| Preferred stock dividends |
| 2,437 |
| 2,437 |
| 9,750 |
| 9,750 |
| Net income available to common stockholders |
| $ |
| 57,739 |
| $ |
| 61,983 |
| $ |
| 56,539 |
| $ |
| 302,265 |
| Basic earnings per common share |
| $ |
| 1.14 |
| $ |
| 1.23 |
| $ |
| 1.12 |
| $ |
| 6.01 |
| Diluted earnings per common share |
| $ |
| 1.14 |
| $ |
| 1.23 |
| $ |
| 1.12 |
| $ |
| 5.99 |
| TEXAS CAPITAL BANCSHARES, INC. |
| SUMMARY OF CREDIT LOSS EXPERIENCE |
| (dollars in thousands) |
| 4th Quarter |
| 3rd Quarter |
| 2nd Quarter |
| 1st Quarter |
| 4th Quarter |
| 2020 |
| 2020 |
| 2020 |
| 2020 |
| 2019 |
| Allowance for credit losses on loans: |
| Beginning balance |
| $ |
| 290,165 |
| $ |
| 264,722 |
| $ |
| 240,958 |
| $ |
| 195,047 |
| $ |
| 190,138 |
| Impact of CECL adoption |
| — |
| — |
| — |
| 8,585 |
| — |
| Loans charged-off: |
| Commercial |
| 37,984 |
| 2,436 |
| 12,287 |
| 20,653 |
| 13,968 |
| Energy |
| 33,283 |
| 141 |
| 62,368 |
| 37,730 |
| 797 |
| Real estate |
| 180 |
| — |
| — |
| — |
| — |
| Total charge-offs |
| 71,447 |
| 2,577 |
| 74,655 |
| 58,383 |
| 14,765 |
| Recoveries: |
| Commercial |
| 394 |
| 113 |
| 513 |
| 257 |
| 1,754 |
| Energy |
| 5,696 |
| 880 |
| — |
| 423 |
| 209 |
| Total recoveries |
| 6,090 |
| 993 |
| 513 |
| 680 |
| 1,963 |
| Net charge-offs |
| 65,357 |
| 1,584 |
| 74,142 |
| 57,703 |
| 12,802 |
| Provision for credit losses on loans |
| 29,807 |
| 27,027 |
| 97,906 |
| 95,029 |
| 17,711 |
| Ending balance |
| $ |
| 254,615 |
| $ |
| 290,165 |
| $ |
| 264,722 |
| $ |
| 240,958 |
| $ |
| 195,047 |
| Allowance for off-balance sheet credit losses: |
| Beginning balance |
| $ |
| 15,241 |
| $ |
| 12,268 |
| $ |
| 10,174 |
| $ |
| 8,640 |
| $ |
| 9,351 |
| Impact of CECL adoption |
| — |
| — |
| — |
| 563 |
| — |
| Provision for off-balance sheet credit losses |
| 2,193 |
| 2,973 |
| 2,094 |
| 971 |
| (711 |
| ) |
| Ending balance |
| $ |
| 17,434 |
| $ |
| 15,241 |
| $ |
| 12,268 |
| $ |
| 10,174 |
| $ |
| 8,640 |
| Total allowance for credit losses |
| $ |
| 272,049 |
| $ |
| 305,406 |
| $ |
| 276,990 |
| $ |
| 251,132 |
| $ |
| 203,687 |
| Total provision for credit losses |
| $ |
| 32,000 |
| $ |
| 30,000 |
| $ |
| 100,000 |
| $ |
| 96,000 |
| $ |
| 17,000 |
| Allowance for credit losses on loans to LHI |
| 1.04 |
| % |
| 1.15 |
| % |
| 1.04 |
| % |
| 0.99 |
| % |
| 0.79 |
| % |
| Allowance for credit losses on loans to average LHI |
| 1.01 |
| % |
| 1.14 |
| % |
| 1.03 |
| % |
| 1.02 |
| % |
| 0.79 |
| % |
| Net charge-offs to average LHI (1) |
| 1.03 |
| % |
| 0.02 |
| % |
| 1.16 |
| % |
| 0.98 |
| % |
| 0.21 |
| % |
| Net charge-offs to average LHI for last twelve months (1) |
| 0.80 |
| % |
| 0.59 |
| % |
| 0.73 |
| % |
| 0.53 |
| % |
| 0.31 |
| % |
| Total provision for credit losses to average LHI (1) |
| 0.51 |
| % |
| 0.47 |
| % |
| 1.57 |
| % |
| 1.63 |
| % |
| 0.27 |
| % |
| Total allowance for credit losses to LHI |
| 1.11 |
| % |
| 1.21 |
| % |
| 1.09 |
| % |
| 1.03 |
| % |
| 0.83 |
| % |
| (1) |
| Interim period ratios are annualized. |
| TEXAS CAPITAL BANCSHARES, INC. |
| SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS |
| (dollars in thousands) |
| 4th Quarter |
| 3rd Quarter |
| 2nd Quarter |
| 1st Quarter |
| 4th Quarter |
| 2020 |
| 2020 |
| 2020 |
| 2020 |
| 2019 |
| Non-performing assets (NPAs): |
| Non-accrual loans |
| $ |
| 121,989 |
| $ |
| 161,946 |
| $ |
| 174,031 |
| $ |
| 219,165 |
| $ |
| 225,384 |
| Other real estate owned (OREO) |
| — |
| — |
| — |
| — |
| — |
| Total LHI NPAs |
| $ |
| 121,989 |
| $ |
| 161,946 |
| $ |
| 174,031 |
| $ |
| 219,165 |
| $ |
| 225,384 |
| Non-accrual loans to LHI |
| 0.50 |
| % |
| 0.64 |
| % |
| 0.68 |
| % |
| 0.90 |
| % |
| 0.91 |
| % |
| Total LHI NPAs to LHI plus OREO |
| 0.50 |
| % |
| 0.64 |
| % |
| 0.68 |
| % |
| 0.90 |
| % |
| 0.91 |
| % |
| Total LHI NPAs to earning assets |
| 0.33 |
| % |
| 0.43 |
| % |
| 0.49 |
| % |
| 0.63 |
| % |
| 0.71 |
| % |
| Allowance for credit losses on loans to non-accrual loans |
| 2.1x |
| 1.8x |
| 1.5x |
| 1.1x |
| .9x |
| LHI past due 90 days and still accruing (1) |
| $ |
| 12,541 |
| $ |
| 15,896 |
| $ |
| 21,079 |
| $ |
| 21,274 |
| $ |
| 17,584 |
| LHI past due 90 days to LHI |
| 0.05 |
| % |
| 0.06 |
| % |
| 0.08 |
| % |
| 0.09 |
| % |
| 0.07 |
| % |
| LHS non-accrual (2) |
| $ |
| 6,966 |
| $ |
| — |
| $ |
| — |
| $ |
| — |
| $ |
| — |
| LHS past due 90 days and still accruing (3) |
| $ |
| 16,667 |
| $ |
| 15,631 |
| $ |
| 10,152 |
| $ |
| 9,014 |
| $ |
| 8,207 |
| (1) |
| At December 31, 2020, loans past due 90 days and still accruing includes premium finance loans of $6.4 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
| (2) |
| Includes one non-accrual loan previously reported in loans HFI that was transferred to loans HFS as of December 31, 2020 and subsequently sold at carrying value. |
| (3) |
| Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as LHS and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. Also includes loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not obligation, to repurchase and thus must record as LHS on our balance sheet regardless of whether the repurchase option has been exercised. |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| (dollars in thousands) |
| 4th Quarter |
| 3rd Quarter |
| 2nd Quarter |
| 1st Quarter |
| 4th Quarter |
| 2020 |
| 2020 |
| 2020 |
| 2020 |
| 2019 |
| Interest income |
| Interest and fees on loans |
| $ |
| 242,776 |
| $ |
| 237,179 |
| $ |
| 247,595 |
| $ |
| 283,625 |
| $ |
| 312,147 |
| Investment securities |
| 9,594 |
| 3,674 |
| 2,024 |
| 2,183 |
| 2,618 |
| Federal funds sold and securities purchased under resale agreements |
| 1 |
| 1 |
| 77 |
| 614 |
| 439 |
| Interest-bearing deposits in other banks |
| 2,792 |
| 2,877 |
| 2,314 |
| 19,586 |
| 22,553 |
| Total interest income |
| 255,163 |
| 243,731 |
| 252,010 |
| 306,008 |
| 337,757 |
| Interest expense |
| Deposits |
| 23,819 |
| 27,830 |
| 32,294 |
| 62,174 |
| 70,987 |
| Federal funds purchased |
| 110 |
| 128 |
| 176 |
| 669 |
| 1,319 |
| Other borrowings |
| 3,407 |
| 3,365 |
| 4,569 |
| 9,582 |
| 11,712 |
| Subordinated notes |
| 4,191 |
| 4,191 |
| 4,191 |
| 4,191 |
| 4,191 |
| Trust preferred subordinated debentures |
| 626 |
| 648 |
| 852 |
| 1,073 |
| 1,163 |
| Total interest expense |
| 32,153 |
| 36,162 |
| 42,082 |
| 77,689 |
| 89,372 |
| Net interest income |
| 223,010 |
| 207,569 |
| 209,928 |
| 228,319 |
| 248,385 |
| Provision for credit losses |
| 32,000 |
| 30,000 |
| 100,000 |
| 96,000 |
| 17,000 |
| Net interest income after provision for credit losses |
| 191,010 |
| 177,569 |
| 109,928 |
| 132,319 |
| 231,385 |
| Non-interest income |
| Service charges on deposit accounts |
| 3,004 |
| 2,864 |
| 2,459 |
| 3,293 |
| 2,785 |
| Wealth management and trust fee income |
| 2,681 |
| 2,502 |
| 2,348 |
| 2,467 |
| 2,342 |
| Brokered loan fees |
| 12,610 |
| 15,034 |
| 10,764 |
| 8,015 |
| 8,645 |
| Servicing income |
| 8,834 |
| 7,329 |
| 6,120 |
| 4,746 |
| 4,030 |
| Swap fees |
| 473 |
| 484 |
| 1,468 |
| 2,757 |
| 1,559 |
| Net gain/(loss) on sale of LHS |
| 6,761 |
| 25,242 |
| 39,023 |
| (13,000 |
| ) |
| (7,757 |
| ) |
| Other |
| 8,523 |
| 6,893 |
| 8,320 |
| 3,502 |
| 6,157 |
| Total non-interest income |
| 42,886 |
| 60,348 |
| 70,502 |
| 11,780 |
| 17,761 |
| Non-interest expense |
| Salaries and employee benefits |
| 78,449 |
| 84,096 |
| 100,791 |
| 77,193 |
| 90,248 |
| Net occupancy expense |
| 8,373 |
| 8,736 |
| 9,134 |
| 8,712 |
| 9,075 |
| Marketing |
| 3,435 |
| 3,636 |
| 7,988 |
| 8,522 |
| 12,807 |
| Legal and professional |
| 12,129 |
| 11,207 |
| 11,330 |
| 17,466 |
| 21,032 |
| Communications and technology |
| 15,405 |
| 31,098 |
| 42,760 |
| 13,791 |
| 13,801 |
| FDIC insurance assessment |
| 6,592 |
| 6,374 |
| 7,140 |
| 5,849 |
| 5,613 |
| Servicing-related expenses |
| 15,867 |
| 12,287 |
| 20,117 |
| 16,354 |
| 2,960 |
| Merger-related expenses |
| — |
| — |
| 10,486 |
| 7,270 |
| 1,370 |
| Other |
| 10,636 |
| 8,307 |
| 12,606 |
| 10,260 |
| 11,281 |
| Total non-interest expense |
| 150,886 |
| 165,741 |
| 222,352 |
| 165,417 |
| 168,187 |
| Income/(loss) before income taxes |
| 83,010 |
| 72,176 |
| (41,922 |
| ) |
| (21,318 |
| ) |
| 80,959 |
| Income tax expense/(benefit) |
| 22,834 |
| 15,060 |
| (7,606 |
| ) |
| (4,631 |
| ) |
| 16,539 |
| Net income/(loss) |
| 60,176 |
| 57,116 |
| (34,316 |
| ) |
| (16,687 |
| ) |
| 64,420 |
| Preferred stock dividends |
| 2,437 |
| 2,438 |
| 2,437 |
| 2,438 |
| 2,437 |
| Net income/(loss) available to common shareholders |
| $ |
| 57,739 |
| $ |
| 54,678 |
| $ |
| (36,753 |
| ) |
| $ |
| (19,125 |
| ) |
| $ |
| 61,983 |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS AND RATES - UNAUDITED |
| (dollars in thousands) |
| 4th Quarter 2020 |
| 3rd Quarter 2020 |
| 2nd Quarter 2020 |
| 1st Quarter 2020 |
| 4th Quarter 2019 |
| Average Balance |
| Revenue/ Expense |
| Yield/ Rate |
| Average Balance |
| Revenue/ Expense |
| Yield/ Rate |
| Average Balance |
| Revenue/ Expense |
| Yield/ Rate |
| Average Balance |
| Revenue/ Expense |
| Yield/ Rate |
| Average Balance |
| Revenue/ Expense |
| Yield/ Rate |
| Assets |
| Investment securities - Taxable |
| $ |
| 2,137,481 |
| $ |
| 7,748 |
| 1.44 |
| % |
| $ |
| 525,149 |
| $ |
| 1,905 |
| 1.44 |
| % |
| $ |
| 38,829 |
| $ |
| 185 |
| 1.92 |
| % |
| $ |
| 42,799 |
| $ |
| 274 |
| 2.57 |
| % |
| $ |
| 40,904 |
| $ |
| 693 |
| 6.72 |
| % |
| Investment securities - Non-taxable (2) |
| 200,781 |
| 2,337 |
| 4.63 |
| % |
| 190,797 |
| 2,239 |
| 4.67 |
| % |
| 195,806 |
| 2,327 |
| 4.78 |
| % |
| 195,578 |
| 2,417 |
| 4.97 |
| % |
| 197,591 |
| 2,437 |
| 4.89 |
| % |
| Federal funds sold and securities purchased under resale agreements |
| 1,709 |
| 1 |
| 0.13 |
| % |
| 12,051 |
| 1 |
| 0.04 |
| % |
| 245,434 |
| 77 |
| 0.13 |
| % |
| 199,727 |
| 614 |
| 1.24 |
| % |
| 102,320 |
| 439 |
| 1.70 |
| % |
| Interest-bearing deposits in other banks |
| 10,808,548 |
| 2,792 |
| 0.10 |
| % |
| 11,028,962 |
| 2,877 |
| 0.10 |
| % |
| 10,521,240 |
| 2,314 |
| 0.09 |
| % |
| 6,225,948 |
| 19,586 |
| 1.27 |
| % |
| 5,387,000 |
| 22,553 |
| 1.66 |
| % |
| LHS, at fair value |
| 410,637 |
| 2,475 |
| 2.40 |
| % |
| 543,606 |
| 3,867 |
| 2.83 |
| % |
| 380,624 |
| 2,547 |
| 2.69 |
| % |
| 3,136,381 |
| 27,480 |
| 3.52 |
| % |
| 3,567,836 |
| 33,411 |
| 3.72 |
| % |
| LHI, mortgage finance loans |
| 9,550,119 |
| 78,906 |
| 3.29 |
| % |
| 9,061,984 |
| 76,464 |
| 3.36 |
| % |
| 8,676,521 |
| 74,518 |
| 3.45 |
| % |
| 7,054,682 |
| 55,324 |
| 3.15 |
| % |
| 7,870,888 |
| 63,114 |
| 3.18 |
| % |
| LHI (1)(2) |
| 15,620,410 |
| 161,750 |
| 4.12 |
| % |
| 16,286,036 |
| 157,230 |
| 3.84 |
| % |
| 17,015,041 |
| 170,970 |
| 4.04 |
| % |
| 16,598,775 |
| 201,781 |
| 4.89 |
| % |
| 16,667,259 |
| 216,686 |
| 5.16 |
| % |
| Less allowance for credit losses on loans |
| 290,189 |
| — |
| — |
| 264,769 |
| — |
| — |
| 236,823 |
| — |
| — |
| 201,837 |
| — |
| — |
| 189,353 |
| — |
| — |
| LHI, net of allowance |
| 24,880,340 |
| 240,656 |
| 3.85 |
| % |
| 25,083,251 |
| 233,694 |
| 3.71 |
| % |
| 25,454,739 |
| 245,488 |
| 3.88 |
| % |
| 23,451,620 |
| 257,105 |
| 4.41 |
| % |
| 24,348,794 |
| 279,800 |
| 4.56 |
| % |
| Total earning assets |
| 38,439,496 |
| 256,009 |
| 2.65 |
| % |
| 37,383,816 |
| 244,583 |
| 2.60 |
| % |
| 36,836,672 |
| 252,938 |
| 2.76 |
| % |
| 33,252,053 |
| 307,476 |
| 3.72 |
| % |
| 33,644,445 |
| 339,333 |
| 4.00 |
| % |
| Cash and other assets |
| 1,031,195 |
| 1,037,760 |
| 1,075,864 |
| 976,520 |
| 974,866 |
| Total assets |
| $ |
| 39,470,691 |
| $ |
| 38,421,576 |
| $ |
| 37,912,536 |
| $ |
| 34,228,573 |
| $ |
| 34,619,311 |
| Liabilities and Stockholders’ Equity |
| Transaction deposits |
| $ |
| 4,384,493 |
| $ |
| 6,604 |
| 0.60 |
| % |
| $ |
| 4,275,574 |
| $ |
| 6,652 |
| 0.62 |
| % |
| $ |
| 3,923,966 |
| $ |
| 5,998 |
| 0.61 |
| % |
| $ |
| 3,773,067 |
| $ |
| 13,582 |
| 1.45 |
| % |
| $ |
| 3,817,294 |
| $ |
| 16,428 |
| 1.71 |
| % |
| Savings deposits |
| 12,982,189 |
| 12,671 |
| 0.39 |
| % |
| 12,786,719 |
| 12,808 |
| 0.40 |
| % |
| 12,537,467 |
| 13,510 |
| 0.43 |
| % |
| 11,069,429 |
| 35,961 |
| 1.31 |
| % |
| 11,111,326 |
| 40,603 |
| 1.45 |
| % |
| Time deposits |
| 2,355,199 |
| 4,544 |
| 0.77 |
| % |
| 2,844,083 |
| 8,370 |
| 1.17 |
| % |
| 3,434,388 |
| 12,786 |
| 1.50 |
| % |
| 2,842,535 |
| 12,631 |
| 1.79 |
| % |
| 2,453,655 |
| 13,956 |
| 2.26 |
| % |
| Total interest bearing deposits |
| 19,721,881 |
| 23,819 |
| 0.48 |
| % |
| 19,906,376 |
| 27,830 |
| 0.56 |
| % |
| 19,895,821 |
| 32,294 |
| 0.65 |
| % |
| 17,685,031 |
| 62,174 |
| 1.41 |
| % |
| 17,382,275 |
| 70,987 |
| 1.62 |
| % |
| Other borrowings |
| 3,022,077 |
| 3,517 |
| 0.46 |
| % |
| 2,811,435 |
| 3,493 |
| 0.49 |
| % |
| 3,612,263 |
| 4,745 |
| 0.53 |
| % |
| 3,020,255 |
| 10,251 |
| 1.37 |
| % |
| 2,822,465 |
| 13,031 |
| 1.83 |
| % |
| Subordinated notes |
| 282,435 |
| 4,191 |
| 5.90 |
| % |
| 282,343 |
| 4,191 |
| 5.91 |
| % |
| 282,252 |
| 4,191 |
| 5.97 |
| % |
| 282,165 |
| 4,191 |
| 5.97 |
| % |
| 282,074 |
| 4,191 |
| 5.89 |
| % |
| Trust preferred subordinated debentures |
| 113,406 |
| 626 |
| 2.20 |
| % |
| 113,406 |
| 648 |
| 2.28 |
| % |
| 113,406 |
| 852 |
| 3.02 |
| % |
| 113,406 |
| 1,073 |
| 3.80 |
| % |
| 113,406 |
| 1,163 |
| 4.07 |
| % |
| Total interest bearing liabilities |
| 23,139,799 |
| 32,153 |
| 0.55 |
| % |
| 23,113,560 |
| 36,162 |
| 0.62 |
| % |
| 23,903,742 |
| 42,082 |
| 0.71 |
| % |
| 21,100,857 |
| 77,689 |
| 1.48 |
| % |
| 20,600,220 |
| 89,372 |
| 1.72 |
| % |
| Demand deposits |
| 13,174,114 |
| 12,202,065 |
| 10,865,896 |
| 10,003,495 |
| 10,933,887 |
| Other liabilities |
| 303,480 |
| 314,500 |
| 293,698 |
| 270,868 |
| 278,964 |
| Stockholders’ equity |
| 2,853,298 |
| 2,791,451 |
| 2,849,200 |
| 2,853,353 |
| 2,806,240 |
| Total liabilities and stockholders’ equity |
| $ |
| 39,470,691 |
| $ |
| 38,421,576 |
| $ |
| 37,912,536 |
| $ |
| 34,228,573 |
| $ |
| 34,619,311 |
| Net interest income (2) |
| $ |
| 223,856 |
| $ |
| 208,421 |
| $ |
| 210,856 |
| $ |
| 229,787 |
| $ |
| 249,961 |
| Net interest margin |
| 2.32 |
| % |
| 2.22 |
| % |
| 2.30 |
| % |
| 2.78 |
| % |
| 2.95 |
| % |
| (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. |
INVESTOR CONTACTJulie Anderson, 214.932.6773julie.anderson@texascapitalbank.comMEDIA CONTACTShannon Wherry, 469.399.8527shannon.wherry@texascapitalbank.com