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 April 19, 2017, 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 March 31, 2017. 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. |
Number of Shares | |||||||||
Voted For | Votes Withheld | Broker Non-Votes | |||||||
Larry L. Helm | 43,325,724 | 381,240 | 2,211,619 | ||||||
C. Keith Cargill | 43,481,963 | 225,001 | 2,211,619 | ||||||
Peter B. Bartholow | 39,464,650 | 4,242,314 | 2,211,619 | ||||||
James H. Browning | 43,405,182 | 301,782 | 2,211,619 | ||||||
Preston M. Geren III | 43,563,180 | 143,784 | 2,211,619 | ||||||
Charles S. Hyle | 43,563,674 | 143,290 | 2,211,619 | ||||||
Elysia Holt Ragusa | 43,401,030 | 305,934 | 2,211,619 | ||||||
Steven P. Rosenberg | 43,128,810 | 578,154 | 2,211,619 | ||||||
Robert W. Stallings | 43,327,505 | 379,459 | 2,211,619 | ||||||
Dale W. Tremblay | 39,265,517 | 4,441,447 | 2,211,619 | ||||||
Ian J. Turpin | 43,133,053 | 573,911 | 2,211,619 | ||||||
Patricia A. Watson | 43,386,379 | 320,585 | 2,211,619 |
Number of Shares | |||||||||||
Voted For | Voted Against | Abstentions | Broker Non-Votes | ||||||||
42,200,644 | 1,501,581 | 4,739 | 2,211,619 |
Number of Shares | |||||||||||
One Year | Two Years | Three Years | Abstentions | Broker Non-Votes | |||||||
38,026,782 | 2,040 | 5,653,993 | 24,149 | 2,211,619 |
Number of Shares | |||||||||||
Voted For | Voted Against | Abstentions | Broker Non-Votes | ||||||||
45,385,118 | 531,255 | 2,210 | 0 |
(d) | Exhibits |
99.1 | Press Release, dated April 19, 2017 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended March 31, 2017 |
99.2 | Presentation given April 19, 2017 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2017 |
Date: | April 19, 2017 | TEXAS CAPITAL BANCSHARES, INC. | |||
By: | /s/ Peter B. Bartholow | ||||
Peter B. Bartholow Chief Financial Officer |
Exhibit | Description |
99.1 | Press Release, dated April 19, 2017 announcing Texas Capital Bancshares, Inc.'s operating and financial results for its fiscal quarter ended March 31, 2017 |
99.2 | Presentation given April 19, 2017 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2017 |
• | Loans held for investment ("LHI"), excluding mortgage finance, increased 2% on a linked quarter basis, growing 10% from the first quarter of 2016. |
• | Total mortgage finance loans, including MCA decreased 22% on a linked quarter basis and decreased 16% from the first quarter of 2016. |
• | Demand deposits decreased 11% and total deposits decreased 2% on a linked quarter basis, decreasing 5% and growing 2%, respectively, from the first quarter of 2016. |
• | Net income decreased 12% on a linked quarter basis and increased 69% from the first quarter of 2016. |
• | EPS decreased 17% on a linked quarter basis and increased 63% from the first quarter of 2016. |
• | ROE decreased to 8.60% from 10.82% for the fourth quarter of 2016 and increased from 6.13% for the first quarter of 2016. |
Q1 2017 | Q1 2016 | % Change | ||||||||
QUARTERLY OPERATING RESULTS | ||||||||||
Net income | $ | 42,542 | $ | 25,128 | 69 | % | ||||
Net income available to common stockholders | $ | 40,104 | $ | 22,690 | 77 | % | ||||
Diluted EPS | $ | 0.80 | $ | 0.49 | 63 | % | ||||
Diluted shares | 50,234 | 46,354 | 8 | % | ||||||
ROA | 0.83 | % | 0.53 | % | ||||||
ROE | 8.60 | % | 6.13 | % | ||||||
BALANCE SHEET | ||||||||||
Loans held for sale (MCA) | $ | 884,647 | $ | 94,702 | 834 | % | ||||
LHI, mortgage finance | 3,371,598 | 4,981,304 | (32 | )% | ||||||
LHI | 13,298,918 | 12,059,849 | 10 | % | ||||||
Total LHI | 16,670,516 | 17,041,153 | (2 | )% | ||||||
Total loans | 17,555,163 | 17,135,855 | 2 | % | ||||||
Total assets | 20,864,874 | 20,210,893 | 3 | % | ||||||
Demand deposits | 7,094,696 | 7,455,107 | (5 | )% | ||||||
Total deposits | 16,605,380 | 16,298,847 | 2 | % | ||||||
Stockholders’ equity | 2,050,442 | 1,647,088 | 24 | % |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
Interest income | $ | 183,946 | $ | 188,671 | $ | 182,492 | $ | 172,442 | $ | 159,803 | |||||
Interest expense | 20,587 | 17,448 | 15,753 | 15,373 | 15,020 | ||||||||||
Net interest income | 163,359 | 171,223 | 166,739 | 157,069 | 144,783 | ||||||||||
Provision for credit losses | 9,000 | 9,000 | 22,000 | 16,000 | 30,000 | ||||||||||
Net interest income after provision for credit losses | 154,359 | 162,223 | 144,739 | 141,069 | 114,783 | ||||||||||
Non-interest income | 17,110 | 18,835 | 16,716 | 13,932 | 11,297 | ||||||||||
Non-interest expense | 106,094 | 106,523 | 94,799 | 94,255 | 86,820 | ||||||||||
Income before income taxes | 65,375 | 74,535 | 66,656 | 60,746 | 39,260 | ||||||||||
Income tax expense | 22,833 | 26,149 | 23,931 | 21,866 | 14,132 | ||||||||||
Net income | 42,542 | 48,386 | 42,725 | 38,880 | 25,128 | ||||||||||
Preferred stock dividends | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | ||||||||||
Net income available to common stockholders | $ | 40,104 | $ | 45,949 | $ | 40,287 | $ | 36,443 | $ | 22,690 | |||||
Diluted EPS | $ | 0.80 | $ | 0.96 | $ | 0.87 | $ | 0.78 | $ | 0.49 | |||||
Diluted shares | 50,234,230 | 47,759,548 | 46,509,683 | 46,438,132 | 46,354,378 | ||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
Total assets | $ | 20,864,874 | $ | 21,697,134 | $ | 22,216,388 | $ | 21,080,994 | $ | 20,210,893 | |||||
LHI | 13,298,918 | 13,001,011 | 12,662,394 | 12,502,513 | 12,059,849 | ||||||||||
LHI, mortgage finance | 3,371,598 | 4,497,338 | 4,961,159 | 5,260,027 | 4,981,304 | ||||||||||
Loans held for sale, at fair value | 884,647 | 968,929 | 648,684 | 221,347 | 94,702 | ||||||||||
Liquidity assets | 2,804,921 | 2,725,645 | 3,471,074 | 2,624,170 | 2,644,418 | ||||||||||
Securities | 42,203 | 24,874 | 26,356 | 27,372 | 28,461 | ||||||||||
Demand deposits | 7,094,696 | 7,994,201 | 8,789,740 | 7,984,208 | 7,455,107 | ||||||||||
Total deposits | 16,605,380 | 17,016,831 | 18,145,123 | 16,703,565 | 16,298,847 | ||||||||||
Other borrowings | 1,641,834 | 2,109,575 | 1,751,420 | 2,115,445 | 1,704,859 | ||||||||||
Subordinated notes | 281,134 | 281,044 | 280,954 | 280,863 | 280,773 | ||||||||||
Long-term debt | 113,406 | 113,406 | 113,406 | 113,406 | 113,406 | ||||||||||
Stockholders’ equity | 2,050,442 | 2,009,557 | 1,725,782 | 1,684,735 | 1,647,088 | ||||||||||
End of period shares outstanding | 49,560,100 | 49,503,662 | 46,009,495 | 45,952,911 | 45,902,489 | ||||||||||
Book value | $ | 38.35 | $ | 37.56 | $ | 34.25 | $ | 33.40 | $ | 32.61 | |||||
Tangible book value(1) | $ | 37.95 | $ | 37.17 | $ | 33.82 | $ | 32.97 | $ | 32.18 | |||||
SELECTED FINANCIAL RATIOS | |||||||||||||||
Net interest margin | 3.29 | % | 3.11 | % | 3.14 | % | 3.18 | % | 3.13 | % | |||||
Return on average assets | 0.83 | % | 0.85 | % | 0.78 | % | 0.77 | % | 0.53 | % | |||||
Return on average common equity | 8.60 | % | 10.82 | % | 10.20 | % | 9.65 | % | 6.13 | % | |||||
Non-interest income to earning assets | 0.34 | % | 0.34 | % | 0.32 | % | 0.28 | % | 0.24 | % | |||||
Efficiency ratio(2) | 58.8 | % | 56.0 | % | 51.7 | % | 55.1 | % | 55.6 | % | |||||
Non-interest expense to earning assets | 2.12 | % | 1.93 | % | 1.79 | % | 1.91 | % | 1.88 | % | |||||
Tangible common equity to total tangible assets(3) | 9.0 | % | 8.5 | % | 7.0 | % | 7.2 | % | 7.3 | % | |||||
Common Equity Tier 1 | 9.6 | % | 9.0 | % | 7.6 | % | 7.4 | % | 7.5 | % | |||||
Tier 1 capital | 10.9 | % | 10.2 | % | 8.8 | % | 8.6 | % | 8.8 | % | |||||
Total capital | 13.3 | % | 12.5 | % | 11.1 | % | 10.9 | % | 11.1 | % | |||||
Leverage | 10.3 | % | 9.3 | % | 8.4 | % | 8.7 | % | 9.1 | % |
(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) | ||||||||
March 31, 2017 | March 31, 2016 | % Change | ||||||
Assets | ||||||||
Cash and due from banks | $ | 116,013 | $ | 89,277 | 30 | % | ||
Interest-bearing deposits | 2,779,921 | 2,614,418 | 6 | % | ||||
Federal funds sold and securities purchased under resale agreements | 25,000 | 30,000 | (17 | )% | ||||
Securities, available-for-sale | 42,203 | 28,461 | 48 | % | ||||
Loans held for sale, at fair value | 884,647 | 94,702 | 834 | % | ||||
LHI, mortgage finance | 3,371,598 | 4,981,304 | (32 | )% | ||||
LHI (net of unearned income) | 13,298,918 | 12,059,849 | 10 | % | ||||
Less: Allowance for loan losses | 172,013 | 162,510 | 6 | % | ||||
LHI, net | 16,498,503 | 16,878,643 | (2 | )% | ||||
Mortgage servicing rights, net | 45,526 | 4,253 | 100 | % | ||||
Premises and equipment, net | 20,831 | 22,924 | (9 | )% | ||||
Accrued interest receivable and other assets | 432,835 | 428,344 | 1 | % | ||||
Goodwill and intangibles, net | 19,395 | 19,871 | (2 | )% | ||||
Total assets | $ | 20,864,874 | $ | 20,210,893 | 3 | % | ||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 7,094,696 | $ | 7,455,107 | (5 | )% | ||
Interest bearing | 9,510,684 | 8,843,740 | 8 | % | ||||
Total deposits | 16,605,380 | 16,298,847 | 2 | % | ||||
Accrued interest payable | 3,293 | 2,880 | 14 | % | ||||
Other liabilities | 169,385 | 163,040 | 4 | % | ||||
Federal funds purchased and repurchase agreements | 141,834 | 100,859 | 41 | % | ||||
Other borrowings | 1,500,000 | 1,604,000 | (6 | )% | ||||
Subordinated notes, net | 281,134 | 280,773 | — | |||||
Trust preferred subordinated debentures | 113,406 | 113,406 | — | |||||
Total liabilities | 18,814,432 | 18,563,805 | 1 | % | ||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value, $1,000 liquidation value: | ||||||||
Authorized shares - 10,000,000 | ||||||||
Issued shares - 6,000,000 shares issued at March 31, 2017 and 2016 | 150,000 | 150,000 | − | |||||
Common stock, $.01 par value: | ||||||||
Authorized shares - 100,000,000 | ||||||||
Issued shares - 49,560,517 and 45,902,906 at March 31, 2017 and 2016, respectively | 496 | 459 | 8 | % | ||||
Additional paid-in capital | 956,246 | 715,435 | 34 | % | ||||
Retained earnings | 943,291 | 780,508 | 21 | % | ||||
Treasury stock (shares at cost: 417 at March 31, 2017 and 2016) | (8 | ) | (8 | ) | — | |||
Accumulated other comprehensive income, net of taxes | 417 | 694 | (40 | )% | ||||
Total stockholders’ equity | 2,050,442 | 1,647,088 | 24 | % | ||||
Total liabilities and stockholders’ equity | $ | 20,864,874 | $ | 20,210,893 | 3 | % |
TEXAS CAPITAL BANCSHARES, INC. | ||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||
(Dollars in thousands except per share data) | ||||||
Three Months Ended March 31 | ||||||
2017 | 2016 | |||||
Interest income | ||||||
Interest and fees on loans | $ | 176,624 | $ | 155,885 | ||
Securities | 225 | 261 | ||||
Federal funds sold | 530 | 372 | ||||
Deposits in other banks | 6,567 | 3,285 | ||||
Total interest income | 183,946 | 159,803 | ||||
Interest expense | ||||||
Deposits | 13,293 | 8,822 | ||||
Federal funds purchased | 252 | 126 | ||||
Repurchase agreements | 1 | 3 | ||||
Other borrowings | 2,020 | 1,162 | ||||
Subordinated notes | 4,191 | 4,191 | ||||
Trust preferred subordinated debentures | 830 | 716 | ||||
Total interest expense | 20,587 | 15,020 | ||||
Net interest income | 163,359 | 144,783 | ||||
Provision for credit losses | 9,000 | 30,000 | ||||
Net interest income after provision for credit losses | 154,359 | 114,783 | ||||
Non-interest income | ||||||
Service charges on deposit accounts | 3,045 | 2,110 | ||||
Wealth management and trust fee income | 1,357 | 813 | ||||
Bank owned life insurance (BOLI) income | 466 | 536 | ||||
Brokered loan fees | 5,678 | 4,645 | ||||
Servicing income | 2,201 | (55 | ) | |||
Swap fees | 1,803 | 307 | ||||
Other | 2,560 | 2,941 | ||||
Total non-interest income | 17,110 | 11,297 | ||||
Non-interest expense | ||||||
Salaries and employee benefits | 63,003 | 51,372 | ||||
Net occupancy expense | 6,111 | 5,812 | ||||
Marketing | 4,950 | 3,908 | ||||
Legal and professional | 7,453 | 5,324 | ||||
Communications and technology | 6,506 | 6,217 | ||||
FDIC insurance assessment | 5,994 | 5,469 | ||||
Servicing related expenses | 1,750 | 73 | ||||
Other | 10,327 | 8,645 | ||||
Total non-interest expense | 106,094 | 86,820 | ||||
Income before income taxes | 65,375 | 39,260 | ||||
Income tax expense | 22,833 | 14,132 | ||||
Net income | 42,542 | 25,128 | ||||
Preferred stock dividends | 2,438 | 2,438 | ||||
Net income available to common stockholders | $ | 40,104 | $ | 22,690 | ||
Basic earnings per common share | $ | 0.81 | $ | 0.49 | ||
Diluted earnings per common share | $ | 0.80 | $ | 0.49 |
TEXAS CAPITAL BANCSHARES, INC. | |||||||||||||||
SUMMARY OF LOAN LOSS EXPERIENCE | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | $ | 168,126 | $ | 180,436 | $ | 167,397 | $ | 162,510 | $ | 141,111 | |||||
Loans charged-off: | |||||||||||||||
Commercial | 9,233 | 22,326 | 9,945 | 15,791 | 8,496 | ||||||||||
Real estate | — | — | — | 528 | — | ||||||||||
Consumer | — | 7 | 40 | — | — | ||||||||||
Leases | — | — | — | — | — | ||||||||||
Total charge-offs | 9,233 | 22,333 | 9,985 | 16,319 | 8,496 | ||||||||||
Recoveries: | |||||||||||||||
Commercial | 3,381 | 1,535 | 2,495 | 4,294 | 1,040 | ||||||||||
Real estate | 50 | 27 | 15 | 13 | 8 | ||||||||||
Construction | 101 | — | — | 34 | — | ||||||||||
Consumer | 5 | 5 | 5 | 4 | 7 | ||||||||||
Leases | 8 | 6 | 26 | — | 45 | ||||||||||
Total recoveries | 3,545 | 1,573 | 2,541 | 4,345 | 1,100 | ||||||||||
Net charge-offs | 5,688 | 20,760 | 7,444 | 11,974 | 7,396 | ||||||||||
Provision for loan losses | 9,575 | 8,450 | 20,483 | 16,861 | 28,795 | ||||||||||
Ending balance | $ | 172,013 | $ | 168,126 | $ | 180,436 | $ | 167,397 | $ | 162,510 | |||||
Allowance for off-balance sheet credit losses: | |||||||||||||||
Beginning balance | $ | 11,422 | $ | 10,872 | $ | 9,355 | $ | 10,216 | $ | 9,011 | |||||
Provision for off-balance sheet credit losses | (575 | ) | 550 | 1,517 | (861 | ) | 1,205 | ||||||||
Ending balance | $ | 10,847 | $ | 11,422 | $ | 10,872 | $ | 9,355 | $ | 10,216 | |||||
Total allowance for credit losses | $ | 182,860 | $ | 179,548 | $ | 191,308 | $ | 176,752 | $ | 172,726 | |||||
Total provision for credit losses | $ | 9,000 | $ | 9,000 | $ | 22,000 | $ | 16,000 | $ | 30,000 | |||||
Allowance for loan losses to LHI | 1.03 | % | 0.96 | % | 1.02 | % | 0.94 | % | 0.95 | % | |||||
Allowance for loan losses to LHI excluding mortgage finance loans(2) | 1.29 | % | 1.29 | % | 1.42 | % | 1.34 | % | 1.35 | % | |||||
Allowance for loan losses to average LHI | 1.09 | % | 0.98 | % | 1.05 | % | 1.00 | % | 1.04 | % | |||||
Allowance for loan losses to average LHI excluding mortgage finance loans(2) | 1.33 | % | 1.32 | % | 1.43 | % | 1.36 | % | 1.36 | % | |||||
Net charge-offs to average LHI(1) | 0.15 | % | 0.48 | % | 0.17 | % | 0.29 | % | 0.19 | % | |||||
Net charge-offs to average LHI excluding mortgage finance loans(1)(2) | 0.18 | % | 0.65 | % | 0.24 | % | 0.39 | % | 0.25 | % | |||||
Net charge-offs to average LHI for last twelve months(1) | 0.28 | % | 0.29 | % | 0.18 | % | 0.15 | % | 0.10 | % | |||||
Net charge-offs to average LHI, excluding mortgage finance loans, for last twelve months(1)(2) | 0.36 | % | 0.38 | % | 0.24 | % | 0.20 | % | 0.14 | % | |||||
Total provision for credit losses to average LHI(1) | 0.23 | % | 0.21 | % | 0.51 | % | 0.39 | % | 0.77 | % | |||||
Total provision for credit losses to average LHI excluding mortgage finance loans(1)(2) | 0.28 | % | 0.28 | % | 0.70 | % | 0.52 | % | 1.01 | % | |||||
Combined allowance for credit losses to LHI | 1.10 | % | 1.03 | % | 1.09 | % | 1.00 | % | 1.01 | % | |||||
Combined allowance for credit losses to LHI, excluding mortgage finance loans(2) | 1.37 | % | 1.38 | % | 1.51 | % | 1.41 | % | 1.43 | % | |||||
Non-performing assets (NPAs): | |||||||||||||||
Non-accrual loans | $ | 146,549 | $ | 167,791 | $ | 169,113 | $ | 165,429 | $ | 173,156 | |||||
Other real estate owned (OREO) | 18,833 | 18,961 | 19,009 | 18,727 | 17,585 | ||||||||||
Total | $ | 165,382 | $ | 186,752 | $ | 188,122 | $ | 184,156 | $ | 190,741 | |||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||
Non-accrual loans to LHI | 0.88 | % | 0.96 | % | 0.96 | % | 0.93 | % | 1.02 | % | |||||
Non-accrual loans to LHI excluding mortgage finance loans(2) | 1.10 | % | 1.29 | % | 1.34 | % | 1.32 | % | 1.44 | % | |||||
Total NPAs to LHI plus OREO | 0.99 | % | 1.07 | % | 1.07 | % | 1.04 | % | 1.12 | % | |||||
Total NPAs to LHI excluding mortgage finance loans plus OREO(2) | 1.24 | % | 1.43 | % | 1.48 | % | 1.47 | % | 1.58 | % | |||||
Total NPAs to earning assets | 0.82 | % | 0.89 | % | 0.87 | % | 0.90 | % | 0.97 | % | |||||
Allowance for loan losses to non-accrual loans | 1.2x | 1.0x | 1.1x | 1.0x | 0.9x | ||||||||||
Restructured loans | $ | — | $ | — | $ | — | $ | 249 | $ | 249 | |||||
Loans past due 90 days and still accruing(3) | $ | 8,799 | $ | 10,729 | $ | 9,706 | $ | 7,743 | $ | 10,100 | |||||
Loans past due 90 days to LHI | 0.05 | % | 0.06 | % | 0.06 | % | 0.04 | % | 0.06 | % | |||||
Loans past due 90 days to LHI excluding mortgage finance loans(2) | 0.07 | % | 0.08 | % | 0.08 | % | 0.06 | % | 0.08 | % |
(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 March 31, 2017, loans past due 90 days and still accruing includes premium finance loans of $5.1 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) | |||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 176,624 | $ | 182,909 | $ | 177,724 | $ | 168,064 | $ | 155,885 | |||||
Securities | 225 | 228 | 232 | 246 | 261 | ||||||||||
Federal funds sold | 530 | 338 | 455 | 382 | 372 | ||||||||||
Deposits in other banks | 6,567 | 5,196 | 4,081 | 3,750 | 3,285 | ||||||||||
Total interest income | 183,946 | 188,671 | 182,492 | 172,442 | 159,803 | ||||||||||
Interest expense | |||||||||||||||
Deposits | 13,293 | 10,432 | 8,950 | 8,971 | 8,822 | ||||||||||
Federal funds purchased | 252 | 156 | 126 | 110 | 126 | ||||||||||
Repurchase agreements | 1 | 1 | 3 | 2 | 3 | ||||||||||
Other borrowings | 2,020 | 1,862 | 1,730 | 1,365 | 1,162 | ||||||||||
Subordinated notes | 4,191 | 4,191 | 4,191 | 4,191 | 4,191 | ||||||||||
Trust preferred subordinated debentures | 830 | 806 | 753 | 734 | 716 | ||||||||||
Total interest expense | 20,587 | 17,448 | 15,753 | 15,373 | 15,020 | ||||||||||
Net interest income | 163,359 | 171,223 | 166,739 | 157,069 | 144,783 | ||||||||||
Provision for credit losses | 9,000 | 9,000 | 22,000 | 16,000 | 30,000 | ||||||||||
Net interest income after provision for credit losses | 154,359 | 162,223 | 144,739 | 141,069 | 114,783 | ||||||||||
Non-interest income | |||||||||||||||
Service charges on deposit accounts | 3,045 | 2,940 | 2,880 | 2,411 | 2,110 | ||||||||||
Wealth management and trust fee income | 1,357 | 1,244 | 1,113 | 1,098 | 813 | ||||||||||
Bank owned life insurance (BOLI) income | 466 | 481 | 520 | 536 | 536 | ||||||||||
Brokered loan fees | 5,678 | 7,249 | 7,581 | 5,864 | 4,645 | ||||||||||
Servicing income | 2,201 | 1,410 | 310 | 50 | (55 | ) | |||||||||
Swap fees | 1,803 | 536 | 918 | 1,105 | 307 | ||||||||||
Other | 2,560 | 4,975 | 3,394 | 2,868 | 2,941 | ||||||||||
Total non-interest income | 17,110 | 18,835 | 16,716 | 13,932 | 11,297 | ||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 63,003 | 66,081 | 56,722 | 54,810 | 51,372 | ||||||||||
Net occupancy expense | 6,111 | 5,937 | 5,634 | 5,838 | 5,812 | ||||||||||
Marketing | 4,950 | 4,617 | 4,292 | 4,486 | 3,908 | ||||||||||
Legal and professional | 7,453 | 6,443 | 5,333 | 6,226 | 5,324 | ||||||||||
Communications and technology | 6,506 | 6,334 | 6,620 | 6,391 | 6,217 | ||||||||||
FDIC insurance assessment | 5,994 | 6,573 | 6,355 | 6,043 | 5,469 | ||||||||||
Servicing related expenses | 1,750 | 398 | 620 | 612 | 73 | ||||||||||
Other | 10,327 | 10,140 | 9,223 | 9,849 | 8,645 | ||||||||||
Total non-interest expense | 106,094 | 106,523 | 94,799 | 94,255 | 86,820 | ||||||||||
Income before income taxes | 65,375 | 74,535 | 66,656 | 60,746 | 39,260 | ||||||||||
Income tax expense | 22,833 | 26,149 | 23,931 | 21,866 | 14,132 | ||||||||||
Net income | 42,542 | 48,386 | 42,725 | 38,880 | 25,128 | ||||||||||
Preferred stock dividends | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | ||||||||||
Net income available to common shareholders | $ | 40,104 | $ | 45,949 | $ | 40,287 | $ | 36,443 | $ | 22,690 |
TEXAS CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL SUMMARY - UNAUDITED | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Daily Average Balances, Average Yields and Rates | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | ||||||||||||||||||||||||||||||||||||||||
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 | $ | 31,905 | $ | 224 | 2.84 | % | $ | 25,008 | $ | 221 | 3.53 | % | $ | 26,051 | $ | 228 | 3.47 | % | $ | 27,097 | $ | 240 | 3.57 | % | $ | 28,343 | $ | 254 | 3.60 | % | ||||||||||||||
Securities - Non-taxable(2) | 224 | 3 | 4.85 | % | 531 | 9 | 6.37 | % | 564 | 8 | 5.82 | % | 564 | 8 | 5.87 | % | 759 | 11 | 5.70 | % | ||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 276,910 | 530 | 0.78 | % | 254,008 | 338 | 0.53 | % | 369,215 | 455 | 0.49 | % | 312,832 | 382 | 0.49 | % | 304,425 | 372 | 0.49 | % | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | 3,312,256 | 6,567 | 0.80 | % | 3,812,076 | 5,197 | 0.54 | % | 3,192,141 | 4,080 | 0.51 | % | 2,871,295 | 3,750 | 0.53 | % | 2,649,164 | 3,285 | 0.50 | % | ||||||||||||||||||||||||
Loans held for sale, at fair value | 1,064,322 | 9,535 | 3.63 | % | 944,484 | 7,903 | 3.33 | % | 430,869 | 3,662 | 3.38 | % | 157,898 | 1,350 | 3.44 | % | 126,084 | 1,094 | 3.49 | % | ||||||||||||||||||||||||
LHI, mortgage finance loans | 2,757,566 | 23,105 | 3.40 | % | 4,371,475 | 35,081 | 3.19 | % | 4,658,804 | 36,655 | 3.13 | % | 4,412,091 | 33,974 | 3.10 | % | 3,724,513 | 29,037 | 3.14 | % | ||||||||||||||||||||||||
LHI | 12,980,544 | 145,018 | 4.53 | % | 12,701,868 | 140,130 | 4.39 | % | 12,591,561 | 137,407 | 4.34 | % | 12,276,272 | 132,740 | 4.35 | % | 11,910,788 | 125,754 | 4.25 | % | ||||||||||||||||||||||||
Less allowance for loan losses | 169,318 | — | — | 180,727 | — | — | 168,086 | — | — | 164,316 | — | — | 141,125 | — | — | |||||||||||||||||||||||||||||
LHI, net of allowance | 15,568,792 | 168,123 | 4.38 | % | 16,892,616 | 175,211 | 4.13 | % | 17,082,279 | 174,062 | 4.05 | % | 16,524,047 | 166,714 | 4.06 | % | 15,494,176 | 154,791 | 4.02 | % | ||||||||||||||||||||||||
Total earning assets | 20,254,409 | 184,982 | 3.70 | % | 21,928,723 | 188,879 | 3.43 | % | 21,101,119 | 182,495 | 3.44 | % | 19,893,733 | 172,444 | 3.49 | % | 18,602,951 | 159,807 | 3.46 | % | ||||||||||||||||||||||||
Cash and other assets | 606,762 | 595,671 | 588,440 | 544,737 | 506,025 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 20,861,171 | $ | 22,524,394 | $ | 21,689,559 | $ | 20,438,470 | $ | 19,108,976 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 2,008,401 | $ | 2,193 | 0.44 | % | $ | 2,281,240 | $ | 2,129 | 0.37 | % | $ | 2,301,362 | $ | 1,960 | 0.34 | % | $ | 2,207,726 | $ | 1,749 | 0.32 | % | $ | 2,004,817 | $ | 1,381 | 0.28 | % | ||||||||||||||
Savings deposits | 6,989,748 | 10,483 | 0.61 | % | 6,711,083 | 7,592 | 0.45 | % | 6,177,681 | 6,228 | 0.40 | % | 6,388,133 | 6,494 | 0.41 | % | 6,335,425 | 6,714 | 0.43 | % | ||||||||||||||||||||||||
Time deposits | 427,770 | 617 | 0.59 | % | 474,548 | 711 | 0.60 | % | 501,701 | 763 | 0.61 | % | 486,610 | 727 | 0.60 | % | 509,762 | 727 | 0.57 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 9,425,919 | 13,293 | 0.57 | % | 9,466,871 | 10,432 | 0.44 | % | 8,980,744 | 8,951 | 0.40 | % | 9,082,469 | 8,970 | 0.40 | % | 8,850,004 | 8,822 | 0.40 | % | ||||||||||||||||||||||||
Other borrowings | 1,333,685 | 2,273 | 0.69 | % | 1,553,010 | 2,017 | 0.52 | % | 1,607,613 | 1,860 | 0.46 | % | 1,411,387 | 1,476 | 0.42 | % | 1,346,998 | 1,292 | 0.39 | % | ||||||||||||||||||||||||
Subordinated notes | 281,076 | 4,191 | 6.05 | % | 280,985 | 4,191 | 5.93 | % | 280,895 | 4,191 | 5.94 | % | 280,805 | 4,191 | 6.00 | % | 280,713 | 4,191 | 6.00 | % | ||||||||||||||||||||||||
Trust preferred subordinated debentures | 113,406 | 830 | 2.97 | % | 113,406 | 806 | 2.83 | % | 113,406 | 752 | 2.64 | % | 113,406 | 735 | 2.61 | % | 113,406 | 716 | 2.54 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 11,154,086 | 20,587 | 0.75 | % | 11,414,272 | 17,446 | 0.61 | % | 10,982,658 | 15,754 | 0.57 | % | 10,888,067 | 15,372 | 0.57 | % | 10,591,121 | 15,021 | 0.57 | % | ||||||||||||||||||||||||
Demand deposits | 7,547,338 | 9,129,668 | 8,849,725 | 7,767,693 | 6,730,586 | |||||||||||||||||||||||||||||||||||||||
Other liabilities | 117,877 | 141,153 | 135,141 | 113,927 | 148,418 | |||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 2,041,870 | 1,839,301 | 1,722,035 | 1,668,783 | 1,638,851 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 20,861,171 | $ | 22,524,394 | $ | 21,689,559 | $ | 20,438,470 | $ | 19,108,976 | ||||||||||||||||||||||||||||||||||
Net interest income(2) | $ | 164,395 | $ | 171,433 | $ | 166,741 | $ | 157,072 | $ | 144,786 | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.29 | % | 3.11 | % | 3.14 | % | 3.18 | % | 3.13 | % |
(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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