Delaware (State or other jurisdiction of incorporation or organization) | 001-34657 (Commission File Number) | 75-2679109 (I.R.S. Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | On July 22, 2015, Texas Capital Bancshares, Inc. issued a press release and made a concurrent public presentation regarding its operating and financial results for its fiscal quarter ended June 30, 2015. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2. |
(d) | Exhibits |
99.1 | Press Release, dated July 22, 2015 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended June 30, 2015 |
99.2 | Presentation given July 22, 2015 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended June 30, 2015 |
Date: | July 22, 2015 | TEXAS CAPITAL BANCSHARES, INC. | |||
By: | /s/ Peter B. Bartholow | ||||
Peter B. Bartholow Chief Financial Officer |
Exhibit | Description |
99.1 | Press Release, dated July 22, 2015 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended June 30, 2015 |
99.2 | Presentation given July 22, 2015 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended June 30, 2015 |
• | Loans held for investment, excluding mortgage finance, increased 3% and total loans decreased 1% on a linked quarter basis, growing 22% and 25%, respectively, from the second quarter of 2014. |
• | Mortgage finance loans decreased 9% on a linked quarter basis and increased 33% from the second quarter of 2014. |
• | Demand deposits increased 7% and total deposits remained flat on a linked quarter basis, growing 55% and 32%, respectively, from the second quarter of 2014. |
• | Net income increased 8% on a linked quarter basis and increased 14% from the second quarter of 2014. |
• | EPS increased 9% on a linked quarter basis, and increased 7% from the second quarter of 2014. |
Q2 2015 | Q2 2014 | % Change | ||||||||
QUARTERLY OPERATING RESULTS | ||||||||||
Net income | $ | 37,937 | $ | 33,421 | 14 | % | ||||
Net income available to common stockholders | $ | 35,500 | $ | 30,984 | 15 | % | ||||
Diluted EPS | $ | 0.76 | $ | 0.71 | 7 | % | ||||
ROA | 0.83 | % | 1.08 | % | ||||||
ROE | 10.32 | % | 11.38 | % | ||||||
Diluted shares | 46,443 | 43,845 | ||||||||
BALANCE SHEET | ||||||||||
Total assets | $ | 17,817,338 | $ | 13,534,352 | 32 | % | ||||
Demand deposits | 6,479,073 | 4,181,774 | 55 | % | ||||||
Total deposits | 14,188,276 | 10,757,316 | 32 | % | ||||||
Loans held for investment | 11,123,325 | 9,153,005 | 22 | % | ||||||
Loans held for investment, mortgage finance | 4,906,415 | 3,700,253 | 33 | % | ||||||
Total loans | 16,029,740 | 12,853,258 | 25 | % | ||||||
Stockholders’ equity | 1,554,529 | 1,262,816 | 23 | % |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | |||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
Interest income | $ | 153,374 | $ | 140,908 | $ | 137,833 | $ | 135,290 | $ | 124,813 | |||||
Interest expense | 11,089 | 10,899 | 10,251 | 9,629 | 9,406 | ||||||||||
Net interest income | 142,285 | 130,009 | 127,582 | 125,661 | 115,407 | ||||||||||
Provision for credit losses | 14,500 | 11,000 | 6,500 | 6,500 | 4,000 | ||||||||||
Net interest income after provision for credit losses | 127,785 | 119,009 | 121,082 | 119,161 | 111,407 | ||||||||||
Non-interest income | 12,771 | 12,267 | 11,226 | 10,396 | 10,533 | ||||||||||
Non-interest expense | 81,276 | 76,517 | 74,117 | 71,915 | 69,765 | ||||||||||
Income before income taxes | 59,280 | 54,759 | 58,191 | 57,642 | 52,175 | ||||||||||
Income tax expense | 21,343 | 19,709 | 20,357 | 20,810 | 18,754 | ||||||||||
Net income | 37,937 | 35,050 | 37,834 | 36,832 | 33,421 | ||||||||||
Preferred stock dividends | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | ||||||||||
Net income available to common stockholders | $ | 35,500 | $ | 32,612 | $ | 35,397 | $ | 34,394 | $ | 30,984 | |||||
Diluted EPS | $ | .76 | $ | .70 | $ | .78 | $ | .78 | $ | .71 | |||||
Diluted shares | 46,443,413 | 46,367,870 | 45,092,511 | 43,849,838 | 43,845,015 | ||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
Total assets | $ | 17,817,338 | $ | 17,325,458 | $ | 15,899,946 | $ | 14,268,561 | $ | 13,534,352 | |||||
Loans held for investment | 11,123,325 | 10,760,978 | 10,154,887 | 9,686,422 | 9,153,005 | ||||||||||
Loans held for investment, mortgage finance | 4,906,415 | 5,408,750 | 4,102,125 | 3,774,467 | 3,700,253 | ||||||||||
Securities | 35,361 | 37,649 | 41,719 | 43,938 | 49,330 | ||||||||||
Demand deposits | 6,479,073 | 6,050,817 | 5,011,619 | 4,722,479 | 4,181,774 | ||||||||||
Total deposits | 14,188,276 | 14,122,306 | 12,673,300 | 11,715,808 | 10,757,316 | ||||||||||
Other borrowings | 1,509,007 | 1,125,458 | 1,192,681 | 735,689 | 1,000,548 | ||||||||||
Subordinated notes | 286,000 | 286,000 | 286,000 | 286,000 | 286,000 | ||||||||||
Long-term debt | 113,406 | 113,406 | 113,406 | 113,406 | 113,406 | ||||||||||
Stockholders’ equity | 1,554,529 | 1,517,958 | 1,484,190 | 1,297,922 | 1,262,816 | ||||||||||
End of period shares outstanding | 45,812,971 | 45,772,245 | 45,735,007 | 43,179,134 | 43,105,444 | ||||||||||
Book value | $ | 30.66 | $ | 29.89 | $ | 29.14 | $ | 26.59 | $ | 25.82 | |||||
Tangible book value(1) | $ | 30.22 | $ | 29.44 | $ | 28.69 | $ | 26.10 | $ | 25.33 | |||||
SELECTED FINANCIAL RATIOS | |||||||||||||||
Net interest margin | 3.22 | % | 3.22 | % | 3.56 | % | 3.77 | % | 3.87 | % | |||||
Return on average assets | 0.83 | % | 0.84 | % | 1.03 | % | 1.07 | % | 1.08 | % | |||||
Return on average common equity | 10.32 | % | 9.82 | % | 11.41 | % | 12.11 | % | 11.38 | % | |||||
Non-interest income to earning assets | 0.29 | % | 0.30 | % | 0.31 | % | 0.31 | % | 0.35 | % | |||||
Efficiency ratio(2) | 52.4 | % | 53.8 | % | 53.4 | % | 52.9 | % | 55.4 | % | |||||
Non-interest expense to earning assets | 1.84 | % | 1.89 | % | 2.07 | % | 2.16 | % | 2.34 | % | |||||
Tangible common equity to total tangible assets(3) | 7.8 | % | 7.8 | % | 8.3 | % | 7.9 | % | 8.1 | % |
(1) | Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end. |
(2) | Non-interest expense divided by the sum of net interest income and non-interest income. |
(3) | 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) | ||||||||
June 30, 2015 | June 30, 2014 | % Change | ||||||
Assets | ||||||||
Cash and due from banks | $ | 117,387 | $ | 116,525 | 1 | % | ||
Interest-bearing deposits | 1,321,064 | 240,617 | 449 | % | ||||
Federal funds sold and securities purchased under resale agreements | 16,300 | — | 100 | % | ||||
Securities, available-for-sale | 35,361 | 49,330 | (28 | )% | ||||
Loans held for investment, mortgage finance | 4,906,415 | 3,700,253 | 33 | % | ||||
Loans held for investment (net of unearned income) | 11,123,325 | 9,153,005 | 22 | % | ||||
Less: Allowance for loan losses | 118,770 | 91,114 | 30 | % | ||||
Loans held for investment, net | 15,910,970 | 12,762,144 | 25 | % | ||||
Premises and equipment, net | 17,951 | 15,762 | 14 | % | ||||
Accrued interest receivable and other assets | 378,068 | 329,036 | 15 | % | ||||
Goodwill and intangibles, net | 20,237 | 20,938 | (3 | )% | ||||
Total assets | $ | 17,817,338 | $ | 13,534,352 | 32 | % | ||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 6,479,073 | $ | 4,181,774 | 55 | % | ||
Interest bearing | 7,502,937 | 6,233,357 | 20 | % | ||||
Interest bearing in foreign branches | 206,266 | 342,185 | (40 | )% | ||||
Total deposits | 14,188,276 | 10,757,316 | 32 | % | ||||
Accrued interest payable | 4,905 | 4,671 | 5 | % | ||||
Other liabilities | 161,215 | 109,595 | 47 | % | ||||
Federal funds purchased and repurchase agreements | 109,007 | 300,532 | (64 | )% | ||||
Other borrowings | 1,400,000 | 700,016 | 100 | % | ||||
Subordinated notes | 286,000 | 286,000 | — | |||||
Trust preferred subordinated debentures | 113,406 | 113,406 | — | |||||
Total liabilities | 16,262,809 | 12,271,536 | 33 | % | ||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value, $1,000 liquidation value: | ||||||||
Authorized shares - 10,000,000 | ||||||||
Issued shares - 6,000,000 shares issued at June 30, 2015 and 2014 | 150,000 | 150,000 | − | |||||
Common stock, $.01 par value: | ||||||||
Authorized shares - 100,000,000 | ||||||||
Issued shares - 45,813,388 and 43,105,861 at June 30, 2015 and 2014, respectively | 458 | 431 | 6 | % | ||||
Additional paid-in capital | 712,222 | 557,919 | 28 | % | ||||
Retained earnings | 690,826 | 552,923 | 25 | % | ||||
Treasury stock (shares at cost: 417 at June 30, 2015 and 2014) | (8 | ) | (8 | ) | — | |||
Accumulated other comprehensive income, net of taxes | 1,031 | 1,551 | (34 | )% | ||||
Total stockholders’ equity | 1,554,529 | 1,262,816 | 23 | % | ||||
Total liabilities and stockholders’ equity | $ | 17,817,338 | $ | 13,534,352 | 32 | % |
TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||
(Dollars in thousands except per share data) | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Interest income | ||||||||||||
Interest and fees on loans | $ | 151,606 | $ | 124,234 | $ | 290,780 | $ | 240,106 | ||||
Securities | 323 | 471 | 681 | 1,011 | ||||||||
Federal funds sold | 118 | 8 | 234 | 48 | ||||||||
Deposits in other banks | 1,327 | 100 | 2,587 | 259 | ||||||||
Total interest income | 153,374 | 124,813 | 294,282 | 241,424 | ||||||||
Interest expense | ||||||||||||
Deposits | 5,642 | 4,246 | 11,270 | 8,276 | ||||||||
Federal funds purchased | 93 | 115 | 161 | 210 | ||||||||
Repurchase agreements | 4 | 4 | 8 | 8 | ||||||||
Other borrowings | 528 | 181 | 918 | 253 | ||||||||
Subordinated notes | 4,191 | 4,241 | 8,382 | 7,720 | ||||||||
Trust preferred subordinated debentures | 631 | 619 | 1,249 | 1,235 | ||||||||
Total interest expense | 11,089 | 9,406 | 21,988 | 17,702 | ||||||||
Net interest income | 142,285 | 115,407 | 272,294 | 223,722 | ||||||||
Provision for credit losses | 14,500 | 4,000 | 25,500 | 9,000 | ||||||||
Net interest income after provision for credit losses | 127,785 | 111,407 | 246,794 | 214,722 | ||||||||
Non-interest income | ||||||||||||
Service charges on deposit accounts | 2,149 | 1,764 | 4,243 | 3,460 | ||||||||
Trust fee income | 1,287 | 1,242 | 2,487 | 2,524 | ||||||||
Bank owned life insurance (BOLI) income | 476 | 521 | 960 | 1,030 | ||||||||
Brokered loan fees | 5,277 | 3,357 | 9,509 | 6,181 | ||||||||
Swap fees | 1,035 | 410 | 3,021 | 1,634 | ||||||||
Other | 2,547 | 3,239 | 4,818 | 6,060 | ||||||||
Total non-interest income | 12,771 | 10,533 | 25,038 | 20,889 | ||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 48,200 | 39,896 | 94,028 | 81,952 | ||||||||
Net occupancy expense | 5,808 | 5,073 | 11,499 | 9,841 | ||||||||
Marketing | 3,925 | 3,795 | 8,143 | 7,554 | ||||||||
Legal and professional | 5,618 | 7,181 | 9,666 | 12,583 | ||||||||
Communications and technology | 5,647 | 4,361 | 10,725 | 8,285 | ||||||||
FDIC insurance assessment | 4,211 | 2,544 | 8,001 | 5,269 | ||||||||
Allowance and other carrying costs for OREO | 6 | 11 | 15 | 56 | ||||||||
Other | 7,861 | 6,904 | 15,716 | 13,542 | ||||||||
Total non-interest expense | 81,276 | 69,765 | 157,793 | 139,082 | ||||||||
Income before income taxes | 59,280 | 52,175 | 114,039 | 96,529 | ||||||||
Income tax expense | 21,343 | 18,754 | 41,052 | 34,843 | ||||||||
Net income | 37,937 | 33,421 | 72,987 | 61,686 | ||||||||
Preferred stock dividends | 2,437 | 2,437 | 4,875 | 4,875 | ||||||||
Net income available to common stockholders | $ | 35,500 | $ | 30,984 | $ | 68,112 | $ | 56,811 | ||||
Basic earnings per common share | $ | 0.78 | $ | 0.72 | $ | 1.49 | $ | 1.33 | ||||
Diluted earnings per common share | $ | 0.76 | $ | 0.71 | $ | 1.47 | $ | 1.30 |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SUMMARY OF LOAN LOSS EXPERIENCE | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | |||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Reserve for loan losses: | |||||||||||||||
Beginning balance | $ | 108,078 | $ | 100,954 | $ | 96,322 | $ | 91,114 | $ | 90,234 | |||||
Loans charged-off: | |||||||||||||||
Commercial | 5,418 | 3,102 | 1,285 | 992 | 5,190 | ||||||||||
Real estate | — | 346 | — | — | 246 | ||||||||||
Consumer | — | 62 | 165 | — | 40 | ||||||||||
Total loans charged-off | 5,418 | 3,510 | 1,450 | 992 | 5,476 | ||||||||||
Recoveries: | |||||||||||||||
Commercial | 1,424 | 286 | 190 | 329 | 2,033 | ||||||||||
Real estate | 12 | 8 | 34 | 2 | 35 | ||||||||||
Construction | 272 | 83 | — | — | — | ||||||||||
Consumer | 6 | 4 | 96 | 35 | 6 | ||||||||||
Leases | 15 | 8 | 2 | 31 | 925 | ||||||||||
Total recoveries | 1,729 | 389 | 322 | 397 | 2,999 | ||||||||||
Net charge-offs | 3,689 | 3,121 | 1,128 | 595 | 2,477 | ||||||||||
Provision for loan losses | 14,381 | 10,245 | 5,760 | 5,803 | 3,357 | ||||||||||
Ending balance | $ | 118,770 | $ | 108,078 | $ | 100,954 | $ | 96,322 | $ | 91,114 | |||||
Reserve for off-balance sheet credit losses: | |||||||||||||||
Beginning balance | $ | 7,815 | $ | 7,060 | $ | 6,320 | $ | 5,623 | $ | 4,980 | |||||
Provision for off-balance sheet credit losses | 119 | 755 | 740 | 697 | 643 | ||||||||||
Ending balance | $ | 7,934 | $ | 7,815 | $ | 7,060 | $ | 6,320 | $ | 5,623 | |||||
Total reserves for credit losses | $ | 126,704 | $ | 115,893 | $ | 108,014 | $ | 102,642 | $ | 96,737 | |||||
Total provision for credit losses | $ | 14,500 | $ | 11,000 | $ | 6,500 | $ | 6,500 | $ | 4,000 | |||||
Reserve to loans | 0.74 | % | 0.67 | % | 0.71 | % | 0.72 | % | 0.71 | % | |||||
Reserve to loans excluding mortgage finance loans(2) | 1.07 | % | 1.00 | % | 0.99 | % | 0.99 | % | 1.00 | % | |||||
Reserve to average loans | 0.77 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.77 | % | |||||
Reserve to average loans excluding mortgage finance loans(2) | 1.09 | % | 1.03 | % | 1.02 | % | 1.02 | % | 1.01 | % | |||||
Net charge-offs to average loans(1) | 0.10 | % | 0.09 | % | 0.03 | % | 0.02 | % | 0.08 | % | |||||
Net charge-offs to average loans excluding mortgage finance loans(1)(2) | 0.14 | % | 0.12 | % | 0.05 | % | 0.03 | % | 0.11 | % | |||||
Net charge-offs to average loans for last twelve months(1) | 0.06 | % | 0.06 | % | 0.05 | % | 0.05 | % | 0.06 | % | |||||
Net charge-offs to average loans, excluding mortgage finance loans, for last twelve months(1)(2) | 0.08 | % | 0.08 | % | 0.07 | % | 0.07 | % | 0.07 | % | |||||
Total provision for credit losses to average loans(1) | 0.37 | % | 0.31 | % | 0.19 | % | 0.20 | % | 0.14 | % | |||||
Total provision for credit losses to average loans excluding mortgage finance loans(1)(2) | 0.53 | % | 0.42 | % | 0.26 | % | 0.27 | % | 0.18 | % | |||||
Combined reserves for credit losses to loans | 0.79 | % | 0.72 | % | 0.76 | % | 0.76 | % | 0.75 | % | |||||
Combined reserves for credit losses to loans, excluding mortgage finance loans(2) | 1.14 | % | 1.08 | % | 1.06 | % | 1.06 | % | 1.06 | % | |||||
Non-performing assets (NPAs): | |||||||||||||||
Non-accrual loans | $ | 122,920 | $ | 68,307 | $ | 43,304 | $ | 37,733 | $ | 41,565 | |||||
Other real estate owned (OREO) | 609 | 605 | 568 | 617 | 685 | ||||||||||
Total | $ | 123,529 | $ | 68,912 | $ | 43,872 | $ | 38,350 | $ | 42,250 | |||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | |||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Non-accrual loans to loans | 0.77 | % | 0.42 | % | 0.30 | % | 0.28 | % | 0.32 | % | |||||
Non-accrual loans to loans excluding mortgage finance loans(2) | 1.11 | % | 0.63 | % | 0.43 | % | 0.39 | % | 0.45 | % | |||||
Total NPAs to loans plus OREO | 0.77 | % | 0.43 | % | 0.31 | % | 0.28 | % | 0.33 | % | |||||
Total NPAs to loans excluding mortgage finance loans plus OREO(2) | 1.11 | % | 0.64 | % | 0.43 | % | 0.40 | % | 0.46 | % | |||||
Total NPAs to earning assets | 0.72 | % | 0.41 | % | 0.28 | % | 0.28 | % | 0.32 | % | |||||
Reserve for loan losses to non-accrual loans | 1.0x | 1.6x | 2.3x | 2.6x | 2.2x | ||||||||||
Restructured loans | $ | 249 | $ | 319 | $ | 1,806 | $ | 1,853 | $ | 249 | |||||
Loans past due 90 days and still accruing(3) | $ | 5,482 | $ | 2,971 | $ | 5,274 | $ | 6,102 | $ | 4,793 | |||||
Loans past due 90 days to loans | 0.03 | % | 0.02 | % | 0.04 | % | 0.05 | % | 0.04 | % | |||||
Loans past due 90 days to loans excluding mortgage finance loans(2) | 0.05 | % | 0.03 | % | 0.05 | % | 0.06 | % | 0.05 | % |
(1) | Interim period ratios are annualized. |
(2) | The indicated ratios are presented with and excluding the mortgage finance loans because the risk profile of our mortgage finance loans is different than our other loans held for investment. No provision for credit losses is allocated to these loans based on the internal risk grade assigned. |
(3) | At June 30, 2015, loans past due 90 days and still accruing includes premium finance loans of $4.8 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | |||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 151,606 | $ | 139,174 | $ | 136,882 | $ | 134,618 | $ | 124,234 | |||||
Securities | 323 | 358 | 389 | 428 | 471 | ||||||||||
Federal funds sold | 118 | 116 | 91 | 68 | 8 | ||||||||||
Deposits in other banks | 1,327 | 1,260 | 471 | 176 | 100 | ||||||||||
Total interest income | 153,374 | 140,908 | 137,833 | 135,290 | 124,813 | ||||||||||
Interest expense | |||||||||||||||
Deposits | 5,642 | 5,628 | 5,263 | 4,606 | 4,246 | ||||||||||
Federal funds purchased | 93 | 68 | 81 | 82 | 115 | ||||||||||
Repurchase agreements | 4 | 4 | 4 | 5 | 4 | ||||||||||
Other borrowings | 528 | 390 | 35 | 68 | 181 | ||||||||||
Subordinated notes | 4,191 | 4,191 | 4,241 | 4,241 | 4,241 | ||||||||||
Trust preferred subordinated debentures | 631 | 618 | 627 | 627 | 619 | ||||||||||
Total interest expense | 11,089 | 10,899 | 10,251 | 9,629 | 9,406 | ||||||||||
Net interest income | 142,285 | 130,009 | 127,582 | 125,661 | 115,407 | ||||||||||
Provision for credit losses | 14,500 | 11,000 | 6,500 | 6,500 | 4,000 | ||||||||||
Net interest income after provision for credit losses | 127,785 | 119,009 | 121,082 | 119,161 | 111,407 | ||||||||||
Non-interest income | |||||||||||||||
Service charges on deposit accounts | 2,149 | 2,094 | 1,976 | 1,817 | 1,764 | ||||||||||
Trust fee income | 1,287 | 1,200 | 1,223 | 1,190 | 1,242 | ||||||||||
Bank owned life insurance (BOLI) income | 476 | 484 | 520 | 517 | 521 | ||||||||||
Brokered loan fees | 5,277 | 4,232 | 3,979 | 3,821 | 3,357 | ||||||||||
Swap fees | 1,035 | 1,986 | 894 | 464 | 410 | ||||||||||
Other | 2,547 | 2,271 | 2,634 | 2,587 | 3,239 | ||||||||||
Total non-interest income | 12,771 | 12,267 | 11,226 | 10,396 | 10,533 | ||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 48,200 | 45,828 | 43,910 | 43,189 | 39,896 | ||||||||||
Net occupancy expense | 5,808 | 5,691 | 5,746 | 5,279 | 5,073 | ||||||||||
Marketing | 3,925 | 4,218 | 4,411 | 4,024 | 3,795 | ||||||||||
Legal and professional | 5,618 | 4,048 | 3,725 | 4,874 | 7,181 | ||||||||||
Communications and technology | 5,647 | 5,078 | 5,454 | 4,928 | 4,361 | ||||||||||
FDIC insurance assessment | 4,211 | 3,790 | 2,875 | 2,775 | 2,544 | ||||||||||
Allowance and other carrying costs for OREO | 6 | 9 | 24 | 5 | 11 | ||||||||||
Other | 7,861 | 7,855 | 7,972 | 6,841 | 6,904 | ||||||||||
Total non-interest expense | 81,276 | 76,517 | 74,117 | 71,915 | 69,765 | ||||||||||
Income before income taxes | 59,280 | 54,759 | 58,191 | 57,642 | 52,175 | ||||||||||
Income tax expense | 21,343 | 19,709 | 20,357 | 20,810 | 18,754 | ||||||||||
Net income | 37,937 | 35,050 | 37,834 | 36,832 | 33,421 | ||||||||||
Preferred stock dividends | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | ||||||||||
Net income available to common shareholders | $ | 35,500 | $ | 32,612 | $ | 35,397 | $ | 34,394 | $ | 30,984 |
TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL SUMMARY - UNAUDITED | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Daily Average Balances, Average Yields and Rates Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
2nd Quarter 2015 | 1st Quarter 2015 | 4th Quarter 2014 | 3rd Quarter 2014 | 2nd Quarter 2014 | ||||||||||||||||||||||||||||||||||||||||
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 | $ | 35,081 | $ | 311 | 3.56 | % | $ | 37,145 | $ | 332 | 3.62 | % | $ | 39,258 | $ | 355 | 3.59 | % | $ | 41,716 | $ | 383 | 3.64 | % | $ | 44,216 | $ | 410 | 3.72 | % | ||||||||||||||
Securities - Non-taxable(2) | 1,427 | 18 | 5.06 | % | 2,785 | 40 | 5.82 | % | 3,257 | 52 | 6.33 | % | 4,697 | 69 | 5.83 | % | 6,271 | 94 | 6.01 | % | ||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 200,690 | 118 | 0.24 | % | 191,297 | 116 | 0.25 | % | 139,761 | 91 | 0.26 | % | 105,793 | 68 | 0.26 | % | 14,997 | 8 | 0.21 | % | ||||||||||||||||||||||||
Deposits in other banks | 2,103,732 | 1,327 | 0.25 | % | 2,019,567 | 1,260 | 0.25 | % | 742,240 | 471 | 0.25 | % | 283,062 | 176 | 0.25 | % | 183,061 | 100 | 0.22 | % | ||||||||||||||||||||||||
Loans held for investment, mortgage finance loans | 4,573,478 | 33,773 | 2.96 | % | 3,746,938 | 27,631 | 2.99 | % | 3,471,737 | 26,773 | 3.06 | % | 3,452,782 | 27,275 | 3.13 | % | 2,822,560 | 23,231 | 3.30 | % | ||||||||||||||||||||||||
Loans held for investment | 10,941,029 | 117,833 | 4.32 | % | 10,502,172 | 111,543 | 4.31 | % | 9,921,611 | 110,109 | 4.40 | % | 9,423,548 | 107,343 | 4.52 | % | 8,984,521 | 101,003 | 4.51 | % | ||||||||||||||||||||||||
Less reserve for loan losses | 109,086 | — | — | 101,042 | — | — | 96,139 | — | — | 91,427 | — | — | 90,105 | — | — | |||||||||||||||||||||||||||||
Loans, net of reserve | 15,405,421 | 151,606 | 3.95 | % | 14,148,068 | 139,174 | 3.99 | % | 13,297,209 | 136,882 | 4.08 | % | 12,784,903 | 134,618 | 4.18 | % | 11,716,976 | 124,234 | 4.25 | % | ||||||||||||||||||||||||
Total earning assets | 17,746,351 | 153,380 | 3.47 | % | 16,398,862 | 140,922 | 3.49 | % | 14,221,725 | 137,851 | 3.85 | % | 13,220,171 | 135,314 | 4.06 | % | 11,965,521 | 124,846 | 4.18 | % | ||||||||||||||||||||||||
Cash and other assets | 493,034 | 459,030 | 409,635 | 409,727 | 396,938 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 18,239,385 | $ | 16,857,892 | $ | 14,631,360 | $ | 13,629,898 | $ | 12,362,459 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 1,404,521 | $ | 458 | 0.13 | % | $ | 1,401,626 | $ | 444 | 0.13 | % | $ | 1,150,530 | $ | 401 | 0.14 | % | $ | 1,010,003 | $ | 287 | 0.11 | % | $ | 895,827 | $ | 170 | 0.08 | % | ||||||||||||||
Savings deposits | 5,610,277 | 4,332 | 0.31 | % | 5,891,344 | 4,420 | 0.30 | % | 5,479,395 | 4,121 | 0.30 | % | 4,991,779 | 3,519 | 0.28 | % | 4,679,140 | 3,395 | 0.29 | % | ||||||||||||||||||||||||
Time deposits | 516,582 | 657 | 0.51 | % | 447,681 | 506 | 0.46 | % | 406,040 | 413 | 0.40 | % | 485,558 | 475 | 0.39 | % | 401,024 | 390 | 0.39 | % | ||||||||||||||||||||||||
Deposits in foreign branches | 246,035 | 195 | 0.32 | % | 304,225 | 258 | 0.34 | % | 369,471 | 328 | 0.35 | % | 369,202 | 325 | 0.35 | % | 350,043 | 291 | 0.33 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 7,777,415 | 5,642 | 0.29 | % | 8,044,876 | 5,628 | 0.28 | % | 7,405,436 | 5,263 | 0.28 | % | 6,856,542 | 4,606 | 0.27 | % | 6,326,034 | 4,246 | 0.27 | % | ||||||||||||||||||||||||
Other borrowings | 1,565,874 | 625 | 0.16 | % | 1,172,675 | 462 | 0.16 | % | 251,737 | 120 | 0.19 | % | 310,157 | 155 | 0.20 | % | 666,696 | 300 | 0.18 | % | ||||||||||||||||||||||||
Subordinated notes | 286,000 | 4,191 | 5.88 | % | 286,000 | 4,191 | 5.94 | % | 286,000 | 4,241 | 5.88 | % | 286,000 | 4,241 | 5.88 | % | 286,000 | 4,241 | 5.95 | % | ||||||||||||||||||||||||
Trust preferred subordinated debentures | 113,406 | 631 | 2.23 | % | 113,406 | 618 | 2.21 | % | 113,406 | 627 | 2.19 | % | 113,406 | 627 | 2.19 | % | 113,406 | 619 | 2.19 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 9,742,695 | 11,089 | 0.46 | % | 9,616,957 | 10,899 | 0.46 | % | 8,056,579 | 10,251 | 0.50 | % | 7,566,105 | 9,629 | 0.50 | % | 7,392,136 | 9,406 | 0.51 | % | ||||||||||||||||||||||||
Demand deposits | 6,804,994 | 5,592,124 | 5,047,876 | 4,669,772 | 3,629,941 | |||||||||||||||||||||||||||||||||||||||
Other liabilities | 161,614 | 152,639 | 146,259 | 117,418 | 98,595 | |||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,530,082 | 1,496,172 | 1,380,646 | 1,276,603 | 1,241,787 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 18,239,385 | $ | 16,857,892 | $ | 14,631,360 | $ | 13,629,898 | $ | 12,362,459 | ||||||||||||||||||||||||||||||||||
Net interest income(2) | $ | 142,291 | $ | 130,023 | $ | 127,600 | $ | 125,685 | $ | 115,440 | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.22 | % | 3.22 | % | 3.56 | % | 3.77 | % | 3.87 | % |
(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. |
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