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Texas Capital Bancshares, Inc. Announces Operating Results for Q3 2013

DALLAS, Oct. 23, 2013 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (Nasdaq:TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the third quarter of 2013.

  • Net income increased 39% on a linked quarter basis and increased 3% from the third quarter of 2012 (47% increase on a linked quarter basis and 9% increase from the third quarter of 2012 excluding charge related to FDIC assessment)
  • EPS increased 42% on a linked quarter basis and decreased 8% from the third quarter of 2012 (52% increase on a linked quarter basis and 1% decrease from the third quarter of 2012 excluding charge related to FDIC assessment)
  • Demand deposits increased 11% and total deposits increased 12% on a linked quarter basis, growing 53% and 33%, respectively, from the third quarter of 2012
  • Loans held for investment increased 7% and total loans remained consistent on a linked quarter basis, growing 23% and 10% from the third quarter of 2012

"Our quality growth, both in loans held for investment and in deposits, continues," said George Jones, CEO. "We are taking advantage of the benefits of our model in attracting great people who produce the results we reported today. It is our commitment to our shareholders to stay focused on those things that improve shareholder value."

FINANCIAL SUMMARY
(dollars and shares in thousands)
Q3 2013 Q3 2012 % Change
QUARTERLY OPERATING RESULTS(1)
Net Income $33,474 $32,570 3%
Net Income Available to Common Shareholders $31,037 $32,570 (5)%
Diluted EPS $.74 $.80 (8)%
ROA 1.25% 1.40%
ROE 13.74% 17.27%
Diluted Shares 41,792 40,756
BALANCE SHEET(1)
Total Assets $10,797,448 $9,881,362 9%
Demand Deposits 3,242,060 2,114,279 53%
Total Deposits 8,957,081 6,717,579 33%
Loans Held for Investment 8,051,328 6,549,089 23%
Total Loans 10,313,413 9,367,711 10%
Stockholders' Equity 1,066,629 802,406 33%
(1) Operating results, assets and loans are reporting from continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $33.5 million and net income available to common shareholders of $31.0 million for the quarter ended September 30, 2013, compared to $32.6 million for both net income from continuing operations and net income available to common shareholders for the third quarter of 2012. On a fully diluted basis, earnings per common share from continuing operations were $.74 for the three months ended September 30, 2013, compared to $.80 for the same period last year. The preferred dividend is equal to $.06 per share for the third quarter of 2013. The discussion below relates only to continuing operations.

Return on average common equity was 13.74 percent and return on average assets was 1.25 percent for the third quarter of 2013, compared to 17.27 percent and 1.40 percent, respectively, for the third quarter of 2012.

Net interest income was $108.8 million for the third quarter of 2013, compared to $101.2 million in the second quarter of 2013 and $96.9 million for the third quarter of 2012. The net interest margin in the third quarter of 2013 was 4.21 percent, a 2 basis point increase from the second quarter of 2013 and a 15 basis point decrease from the third quarter of 2012. The year over year decrease in net interest margin is due to the growth in loans with lower yields offset with a reduction in the total cost of deposits and borrowed funds. The year over year growth in loans more than compensated for the reduction in yields and produced strong growth in net interest income.

Average loans held for investment for the third quarter of 2013 were $7.7 billion, an increase of $1.4 billion from the third quarter of 2012 and $579.6 million from the second quarter of 2013. Average loans held for sale for the third quarter of 2013 decreased $69.9 million compared to the third quarter of 2012 and decreased $44.1 million from the second quarter of 2013.

Average total deposits for the third quarter of 2013 increased by $2.1 billion from the third quarter of 2012 and increased by $692.9 million from the second quarter of 2013. For the same periods, the average balance of demand deposits increased by $1.1 billion, or 55 percent, to $3.1 billion from $2.0 billion during the third quarter of 2012 and increased $210.3 million from the second quarter of 2013.

In the third quarter of 2013, we experienced continued decreases in levels of non-performing assets. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned ("OREO") totaled $5.0 million in the third quarter of 2013 compared to $3.1 million in the third quarter of 2012 and $7.4 million in the second quarter of 2013. We recorded a $5.0 million provision for credit losses in the third quarter of 2013 compared to $3.0 million in the third quarter of 2012 and $7.0 million in the second quarter of 2013. The substantial majority of the provision in the third quarter of 2013 was directly related to the significant growth in loans held for investment during the quarter. Due to growth and improving credit quality, at September 30, 2013, the combined reserve decreased to 1.10 percent of loans held for investment as compared to 1.11 percent at June 30, 2013 and 1.18 percent at September 30, 2012. In management's opinion, the reserve is appropriate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank's loan portfolio. In the third quarter of 2013, net charge-offs were $46,000, compared to net charge-offs of $2.4 million in the second quarter of 2013 and $1.2 million in the third quarter of 2012. For the first nine months of 2013, the net charge-off ratio was 7 basis points compared to 6 basis points for the same period in 2012. Non-accrual loans were $35.7 million, or .44 percent of loans held for investment at the end of the third quarter of 2013, $57.3 million, or .87 percent, at the end of the third quarter of 2012 and $38.5 million, or .51 percent, at the end of the second quarter 2013. At September 30, 2013, total OREO was $12.8 million compared to $19.1 million at the end of the third quarter of 2012, and $13.1 million at the end of the second quarter of 2013. The OREO balance of $12.8 million at September 30, 2013, is stated net of a $4.6 million valuation allowance. We did not record a valuation charge for OREO in the third quarter of 2013 compared to $64,000 in the third quarter of 2012 and $383,000 in the second quarter of 2013.

Non-interest income decreased $121,000 during the third quarter of 2013, or 1 percent, compared to the same period of 2012 primarily related to a $761,000 decrease in brokered loan fees earned in the mortgage finance division. Swap fee income decreased $414,000 during the third quarter of 2013 due to a decrease in swap transactions as compared to the same period in 2012. Offsetting these decreases was a $1.2 million increase in other non-interest income during the third quarter of 2013 as compared to the same period in 2012.

Non-interest expense for the third quarter of 2013 increased $8.5 million, or 16 percent, to $62.0 million from $53.5 million in the third quarter of 2012. The increase is primarily related to a $5.0 million increase in salaries and employee benefits to $36.0 million from $31.0 million due to general business growth. Non-interest expense also includes a $3.0 million assessment by the FDIC that was paid during the third quarter of 2013. The assessment related to the year-end call reports for 2011 and 2012, which were amended for the change in the risk weight applicable to our mortgage finance loan portfolio. As previously disclosed, the amendment caused one capital ratio to fall below "well-capitalized" for each quarter end. We do not believe this is an assessment warranted under our circumstances, and we have disputed the charge. Any recovery of the $3.0 million expense would be credited to non-interest expense in a future quarter.

Stockholders' equity increased 33 percent from $802.4 million at September 30, 2012 to $1.1 billion at September 30, 2013, primarily related to the offering of 6.0 million shares of preferred shares for proceeds of $145.1 million in the first quarter of 2013 and retained net income. The Bank is well capitalized under regulatory guidelines and at September 30, 2013, the Company's ratio of tangible common equity to total tangible assets was 8.3 percent.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (Nasdaq:TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and individuals. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares' control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2013 2013 2013 2012 2012
CONSOLIDATED STATEMENT OF INCOME
Interest income $115,217 $107,264 $104,179 $107,769 $102,011
Interest expense 6,441 6,044 6,137 6,614 5,156
Net interest income 108,776 101,220 98,042 101,155 96,855
Provision for credit losses 5,000 7,000 2,000 4,500 3,000
Net interest income after provision for credit losses 103,776 94,220 96,042 96,655 93,855
Non-interest income 10,431 11,128 11,281 12,836 10,552
Non-interest expense 62,009 68,734 55,700 60,074 53,521
Income from continuing operations before income taxes 52,198 36,614 51,623 49,417 50,886
Income tax expense 18,724 12,542 18,479 17,982 18,316
Income from continuing operations 33,474 24,072 33,144 31,435 32,570
Income (loss) from discontinued operations (after-tax) 2 1 (1) (6) (34)
Net income 33,476 24,073 33,143 31,429 32,536
Preferred stock dividends 2,437 2,438 81
Net income available to common shareholders $31,039 $21,635 $33,062 $31,429 $32,536
Diluted EPS from continuing operations $.74 $.52 $.80 $.76 $.80
Diluted EPS $.74 $.52 $.80 $.76 $.80
Diluted shares 41,791,674 41,723,525 41,429,244 41,505,026 40,755,733
CONSOLIDATED BALANCE SHEET DATA
Total assets $10,797,448 $10,977,990 $10,020,565 $10,540,542 $9,881,362
Loans held for investment 8,051,328 7,510,662 6,920,011 6,785,535 6,549,089
Loans held for sale 2,262,085 2,838,234 2,577,830 3,175,272 2,818,622
Securities 67,815 75,861 87,527 100,195 107,288
Demand deposits 3,242,060 2,928,735 2,628,446 2,535,375 2,114,279
Total deposits 8,957,081 7,980,598 7,745,831 7,440,804 6,717,579
Other borrowings 449,724 1,634,630 938,134 1,947,161 2,046,169
Subordinated notes 111,000 111,000 111,000 111,000 111,000
Long-term debt 113,406 113,406 113,406 113,406 113,406
Stockholders' equity 1,066,629 1,034,955 1,013,195 836,242 802,406
End of period shares outstanding 40,934,623 40,862,481 40,771,414 40,727,579 40,580,283
Book value (excluding securities gains/losses) $22.35 $21.60 $21.10 $20.45 $19.68
Tangible book value (excluding securities gains/losses) $21.82 $21.08 $20.62 $19.96 $19.18
SELECTED FINANCIAL RATIOS
Net interest margin 4.21% 4.19% 4.27% 4.27% 4.36%
Return on average assets 1.25% 0.95% 1.38% 1.27% 1.40%
Return on average common equity 13.74% 9.94% 15.82% 15.35% 17.27%
Non-interest income to earning assets .40% .46% .49% .54% .47%
Efficiency ratio 52.0% 61.2% 50.9% 52.7% 49.8%
Efficiency ratio (excluding OREO valuation/write-down) 52.0% 60.8% 50.9% 51.9% 49.8%
Non-interest expense to earning assets 2.40% 2.84% 2.42% 2.53% 2.40%
Non-interest expense to earning assets (excluding OREO valuation charge) 2.40% 2.83% 2.42% 2.49% 2.40%
Tangible common equity to total tangible assets 8.3% 7.9% 8.4% 7.7% 7.9%
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30, September 30, %
2013 2012 Change
Assets
Cash and due from banks $118,268 $88,220 34%
Interest-bearing deposits 76,690 60,971 26%
Federal funds sold 100 100%
Securities, available-for-sale 67,815 107,288 (37)%
Loans held for sale 2,262,085 2,818,622 (20)%
Loans held for sale from discontinued operations 296 304 (3)%
Loans held for investment (net of unearned income) 8,051,328 6,549,089 23%
Less: Allowance for loan losses 84,006 73,722 14%
Loans held for investment, net 7,967,322 6,475,367 23%
Premises and equipment, net 12,653 11,280 12%
Accrued interest receivable and other assets 271,052 299,582 (10)%
Goodwill and intangibles, net 21,463 20,032 7%
Total assets $10,797,744 $9,881,666 9%
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing $3,242,060 $2,114,279 53%
Interest bearing 5,344,152 4,171,405 28%
Interest bearing in foreign branches 370,869 431,895 (14)%
Total deposits 8,957,081 6,717,579 33%
Accrued interest payable 743 1,039 (28)%
Other liabilities 99,161 90,067 10%
Federal funds purchased 169,794 473,330 (64)%
Repurchase agreements 29,899 22,788 31%
Other borrowings 250,031 1,550,051 (84)%
Subordinated notes 111,000 111,000
Trust preferred subordinated debentures 113,406 113,406
Total liabilities 9,731,115 9,079,260 7%
Stockholders' equity:
Preferred stock, $.01 par value, $1,000 liquidation value: 150,000 100%
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 40,935,040 and 38,114,429 at September 30, 2013 and 2012, respectively 409 409
Additional paid-in capital 446,249 447,104 N/M
Retained earnings 468,191 351,026 33%
Treasury stock (shares at cost: 417 at September 30, 2013 and 2012, respectively) (8) (8)
Accumulated other comprehensive income, net of taxes 1,788 3,878 (54)%
Total stockholders' equity 1,066,629 802,406 33%
Total liabilities and stockholders' equity $10,797,744 $9,881,666 9%
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2013 2012 2013 2012
Interest income
Interest and fees on loans $114,453 $100,830 $324,053 $286,895
Securities 682 1,125 2,394 3,635
Federal funds sold 22 2 41 7
Deposits in other banks 60 54 172 151
Total interest income 115,217 102,011 326,660 290,688
Interest expense
Deposits 3,699 3,378 10,172 10,332
Federal funds purchased 152 268 570 789
Repurchase agreements 4 3 13 10
Other borrowings 119 607 475 1,534
Subordinated notes 1,829 208 5,487 208
Trust preferred subordinated debentures 638 692 1,905 2,091
Total interest expense 6,441 5,156 18,622 14,964
Net interest income 108,776 96,855 308,038 275,724
Provision for credit losses 5,000 3,000 14,000 7,000
Net interest income after provision for credit losses 103,776 93,855 294,038 268,724
Non-interest income
Service charges on deposit accounts 1,659 1,684 5,109 4,912
Trust fee income 1,263 1,216 3,773 3,562
Bank owned life insurance (BOLI) income 423 549 1,384 1,658
Brokered loan fees 4,078 4,839 13,600 12,618
Swap fees 983 1,397 3,616 2,815
Other 2,025 867 5,358 4,639
Total non-interest income 10,431 10,552 32,840 30,204
Non-interest expense
Salaries and employee benefits 36,012 31,009 114,744 90,258
Net occupancy expense 4,342 3,653 12,334 10,936
Marketing 3,974 3,472 12,020 9,469
Legal and professional 3,937 4,916 12,584 12,237
Communications and technology 3,696 2,885 10,165 8,088
Allowance and other carrying costs for OREO 267 552 1,179 7,706
FDIC insurance assessment 4,357 1,332 6,134 4,497
Other 5,424 5,702 17,283 16,579
Total non-interest expense 62,009 53,521 186,443 159,770
Income from continuing operations before income taxes 52,198 50,886 140,435 139,158
Income tax expense 18,724 18,316 49,745 49,884
Income from continuing operations 33,474 32,570 90,690 89,274
Income (loss) from discontinued operations (after-tax) 2 (34) 2 (31)
Net income 33,476 32,536 90,692 89,243
Preferred stock dividends 2,437 4,956
Net income available to common shareholders $31,039 $32,536 $85,736 $89,243
Basic earnings per common share:
Income from continuing operations $.76 $.82 $2.10 $2.32
Net income $.76 $.82 $2.10 $2.32
Diluted earnings per common share:
Income from continuing operations $.74 $.80 $2.05 $2.25
Net income $.74 $.80 $2.05 $2.25
TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2013 2013 2013 2012 2012
Reserve for loan losses:
Beginning balance $79,428 $75,000 $74,337 $73,722 $72,404
Loans charged-off:
Commercial 496 2,826 1,648 4,044 1,154
Real estate – term 13 26 105 284
Consumer 26 19 49
Leases 2 34 49
Total loans charged-off 511 2,878 1,772 4,078 1,536
Recoveries:
Commercial 233 348 397 350 132
Real estate – construction 10
Real estate – term 195 7 8 226 130
Consumer 19 15 30 7 18
Leases 18 140 121 21 16
Total recoveries 465 510 556 604 306
Net charge-offs 46 2,368 1,216 3,474 1,230
Provision for loan losses 4,624 6,796 1,879 4,089 2,548
Ending balance $84,006 $79,428 $75,000 $74,337 $73,722
Reserve for off-balance sheet credit losses:
Beginning balance $4,180 $3,976 $3,855 $3,444 $2,992
Provision for off-balance sheet credit losses 376 204 121 411 452
Ending balance $4,556 $4,180 $3,976 $3,855 $3,444
Total reserves for credit losses $88,562 $83,608 $78,976 $78,192 $77,166
Total provision for credit losses $5,000 $7,000 $2,000 $4,500 $3,000
Reserve to loans held for investment(2) 1.04% 1.06% 1.08% 1.10% 1.13%
Reserve to average loans held for investment(2) 1.09% 1.11% 1.10% 1.12% 1.16%
Net charge-offs to average loans(1)(2) .00% .13% .07% .21% .08%
Net charge-offs to average loans for last twelve months(1)(2) .10% .12% .10% .10% .10%
Total provision for credit losses to average loans(1)(2) 0.26% .39% .12% .27% .19%
Combined reserves for credit losses to loans held for investment(2) 1.10% 1.11% 1.14% 1.15% 1.18%
Non-performing assets (NPAs):
Non-accrual loans $35,737 $38,450 $43,424 $55,833 $57,275
Other real estate owned (OREO) (4) 12,805 13,053 14,426 15,991 19,079
Total $48,542 $51,503 $57,850 $71,824 $76,354
Non-accrual loans to loans(2) .44% .51% .63% .82% .87%
Total NPAs to loans plus OREO(2) .60% .68% .83% 1.06% 1.16%
Total NPAs to earning assets .47% .49% .60% .71% 0.81%
Reserve for loan losses to non-accrual loans 2.4x 2.1x 1.7x 1.3x 1.3x
Restructured loans $4,691 $4,765 $11,755 $10,407 $9,145
Loans past due 90 days and still accruing(3) $7,510 $7,633 $12,614 $3,674 $3,622
Loans past due 90 days to loans(2) .09% .10% .18% .05% .06%
(1) Interim period ratios are annualized.
(2) Excludes loans held for sale.
(3) At September 30, 2013, loans past due 90 days and still accruing includes premium finance loans of $3.1 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.
(4) At September 30, 2013, OREO balance is net of $4.6 million valuation allowance.
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
2013 2013 2013 2012 2012
Interest income
Interest and fees on loans $114,453 $106,418 $103,182 $106,653 $100,830
Securities 682 773 939 1,053 1,125
Federal funds sold 22 13 6 6 2
Deposits in other banks 60 60 52 57 54
Total interest income 115,217 107,264 104,179 107,769 102,011
Interest expense
Deposits 3,699 3,228 3,245 3,312 3,378
Federal funds purchased 152 206 212 190 268
Repurchase agreements 4 5 4 3 3
Other borrowings 119 143 213 615 607
Subordinated notes 1,829 1,829 1,829 1,829 208
Trust preferred subordinated debentures 638 633 634 665 692
Total interest expense 6,441 6,044 6,137 6,614 5,156
Net interest income 108,776 101,220 98,042 101,155 96,855
Provision for credit losses 5,000 7,000 2,000 4,500 3,000
Net interest income after provision for credit losses 103,776 94,220 96,042 96,655 93,855
Non-interest income
Service charges on deposit accounts 1,659 1,749 1,701 1,693 1,684
Trust fee income 1,263 1,269 1,241 1,260 1,216
Bank owned life insurance (BOLI) income 423 463 498 510 549
Brokered loan fees 4,078 4,778 4,744 4,978 4,839
Swap fees 983 981 1,652 2,093 1,397
Other 2,025 1,888 1,445 2,302 867
Total non-interest income 10,431 11,128 11,281 12,836 10,552
Non-interest expense
Salaries and employee benefits 36,012 45,191 33,541 31,198 31,009
Net occupancy expense 4,342 4,135 3,857 3,916 3,653
Marketing 3,974 4,074 3,972 3,980 3,472
Legal and professional 3,937 4,707 3,940 5,320 4,916
Communications and technology 3,696 3,347 3,122 3,070 2,885
Allowance and other carrying costs for OREO 267 482 430 1,369 552
FDIC insurance assessment 4,357 699 1,078 1,071 1,332
Litigation settlement expense (908) 4,000
Other 6,332 6,099 5,760 6,150 5,702
Total non-interest expense 62,009 68,734 55,700 60,074 53,521
Income from continuing operations before income taxes 52,198 36,614 51,623 49,417 50,886
Income tax expense 18,724 12,542 18,479 17,982 18,316
Income from continuing operations 33,474 24,072 33,144 31,435 32,570
Income (loss) from discontinued operations (after-tax) 2 1 (1) (6) (34)
Net income 33,476 24,073 33,143 31,429 32,536
Preferred stock dividends 2,437 2,438 81
Net income available to common shareholders $31,039 $21,635 $33,062 $31,429 $32,536
TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
3rd Quarter 2013 2nd Quarter 2013 1st Quarter 2013 4th Quarter 2012 3rd Quarter 2012
Average Revenue/ Yield/ Average Revenue/ Yield/ Average Revenue/ Yield/ Average Revenue/ Yield/ Average Revenue/ Yield/
Balance Expense (1) Rate Balance Expense (1) Rate Balance Expense (1) Rate Balance Expense (1) Rate Balance Expense (1) Rate
Assets
Securities – Taxable $54,838 $522 3.78% $60,063 $594 3.97% $71,220 $729 4.15% $78,182 $811 4.13% $84,583 $881 4.14%
Securities – Non-taxable(2) 16,879 246 5.78% 18,843 275 5.85% 22,174 323 5.91% 25,301 372 5.85% 25,717 376 5.82%
Federal funds sold and securities purchased under resale agreements 78,896 22 0.11% 54,448 13 0.10% 24,785 6 0.10% 21,617 6 0.11% 9,360 2 0.09%
Deposits in other banks 88,717 60 0.27% 91,177 60 0.26% 78,718 52 0.27% 69,886 57 0.32% 64,859 54 0.33%
Loans held for sale 2,362,118 22,547 3.79% 2,406,246 22,440 3.74% 2,362,646 22,641 3.89% 2,658,092 26,440 3.96% 2,432,027 24,433 4.00%
Loans held for investment 7,731,901 91,906 4.72% 7,152,323 83,978 4.71% 6,842,766 80,541 4.77% 6,662,817 80,213 4.79% 6,313,263 76,397 4.81%
Less reserve for loan losses 79,551 75,006 74,442 73,912 72,373
Loans, net of reserve 10,014,468 114,453 4.53% 9,483,563 106,418 4.50% 9,130,970 103,182 4.58% 9,246,997 106,653 4.59% 8,672,917 100,830 4.63%
Total earning assets 10,253,798 115,303 4.46% 9,708,094 107,360 4.44% 9,327,867 104,292 4.53% 9,441,983 107,899 4.55% 8,857,436 102,143 4.59%
Cash and other assets 383,968 402,898 401,692 427,299 399,428
Total assets $10,637,766 $10,110,992 $9,729,559 $9,869,282 $9,256,864
Liabilities and Stockholders' Equity
Transaction deposits $794,630 $102 0.05% $1,051,199 $233 0.09% $1,003,735 $253 0.10% $941,947 $244 0.10% $803,776 $247 0.12%
Savings deposits 4,057,792 2,863 0.28% 3,340,420 2,292 0.28% 3,246,675 2,297 0.29% 2,933,904 2,299 0.31% 2,922,852 2,185 0.30%
Time deposits 402,920 414 0.41% 397,868 407 0.41% 403,113 414 0.42% 423,685 448 0.42% 491,783 576 0.47%
Deposits in foreign branches 357,532 320 0.36% 340,713 296 0.35% 335,265 281 0.34% 362,580 321 0.35% 431,412 370 0.34%
Total interest bearing deposits 5,612,874 3,699 0.26% 5,130,200 3,228 0.25% 4,988,788 3,245 0.26% 4,662,116 3,312 0.28% 4,649,823 3,378 0.29%
Other borrowings 539,767 275 0.20% 727,158 354 0.20% 1,041,573 429 0.17% 1,725,129 808 0.19% 1,639,953 878 0.21%
Subordinated notes 111,000 1,829 6.54% 111,000 1,829 6.61% 111,000 1,829 6.68% 111,000 1,829 6.56% 12,065 208 6.86%
Trust preferred subordinated debentures 113,406 638 2.23% 113,406 633 2.24% 113,406 634 2.27% 113,406 665 2.33% 113,406 692 2.43%
Total interest bearing liabilities 6,377,047 6,441 0.40% 6,081,764 6,044 0.40% 6,254,767 6,137 0.40% 6,611,651 6,614 0.40% 6,415,247 5,156 0.32%
Demand deposits 3,124,602 2,914,341 2,529,927 2,356,758 2,010,694
Other liabilities 89,640 91,608 90,538 86,308 80,810
Stockholders' equity 1,046,477 1,023,279 854,327 814,565 750,113
Total liabilities and stockholders' equity $10,637,766 $10,110,992 $9,729,559 $9,869,282 $9,256,864
Net interest income $108,862 $101,316 $98,155 $101,285 $96,987
Net interest margin 4.21% 4.19% 4.27% 4.27% 4.36%
(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.

CONTACT: MEDIA CONTACT Heather Worley, 214.932.6827 heather.worley@texascapitalbank.com INVESTOR CONTACT Myrna Vance, 214.932.6646 myrna.vance@texascapitalbank.com

Source:Texas Capital Bancshares, Inc.