×

Texas Capital Bancshares, Inc. Announces Operating Results for Q1 2015

DALLAS, April 22, 2015 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (Nasdaq:TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2015.

"Our strong start in 2015 is highlighted with outstanding loan and deposit growth, and related earnings," said Keith Cargill, CEO. "We experienced solid growth in core loans held for investment during the quarter and benefitted from the increase in refinancing activity in our mortgage finance business. The growth in demand and total deposits was exceptional and reflects continued success in our strategy to extend the duration of our low-cost funding. We are encouraged about prospects for the remainder of the year as we work to leverage our talent and capital to produce improving returns for our stockholders."

  • Loans held for investment, excluding mortgage finance, increased 6% and total loans increased 13% on a linked quarter basis, growing 21% and 39%, respectively, from the first quarter of 2014.
  • Mortgage finance loans increased 32% on a linked quarter basis and 101% from the first quarter of 2014.
  • Demand deposits increased 21% and total deposits increased 11% on a linked quarter basis, growing 75% and 45%, respectively, from the first quarter of 2014.
  • Net income decreased 7% on a linked quarter basis and increased 24% from the first quarter of 2014.
  • EPS decreased 10% on a linked quarter basis, and increased 17% from the first quarter of 2014.

FINANCIAL SUMMARY
(dollars and shares in thousands)
Q1 2015 Q1 2014 % Change
QUARTERLY OPERATING RESULTS
Net income $ 35,050 $ 28,265 24%
Net income available to common stockholders $ 32,612 $ 25,827 26%
Diluted EPS $ .70 $ .60 17%
ROA .84% 1.01%
ROE 9.82% 10.20%
Diluted shares 46,368 43,220
BALANCE SHEET
Total assets $17,325,458 $12,147,070 43%
Demand deposits 6,050,817 3,451,294 75%
Total deposits 14,122,306 9,729,128 45%
Loans held for investment 10,760,978 8,928,325 21%
Loans held for investment, mortgage finance 5,408,750 2,688,044 101%
Total loans 16,169,728 11,616,369 39%
Stockholders' equity 1,517,958 1,230,131 23%

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income of $35.1 million and net income available to common stockholders of $32.6 million for the quarter ended March 31, 2015 compared to net income of $28.3 million and net income available to common stockholders of $25.8 million for the same period in 2014. On a fully diluted basis, earnings per common share were $.70 for the three months ended March 31, 2015 compared to $.60 for the first quarter of 2014 and $.78 for the fourth quarter of 2014. The sale of 2.5 million shares of common stock in the fourth quarter of 2014 increased diluted shares outstanding, contributing to the linked quarter decrease.

Return on average common equity ("ROE") was 9.82 percent and return on average assets ("ROA") was .84 percent for the first quarter of 2015, compared to 10.20 percent and 1.01 percent, respectively, for the first quarter of 2014. The ROE decrease resulted from the 8.4% increase in average common equity, reflecting the first full quarter impact of the common stock offering completed in the fourth quarter of 2014. The ROA decrease resulted from a combination of reduced yields on loans and a $1.9 billion increase in average liquidity assets, which include Federal funds sold and deposits in other banks, from the first quarter of 2014 to the first quarter of 2015.

Net interest income was $130.0 million for the first quarter of 2015, compared to $108.3 million in the first quarter of 2014 and $127.6 million for the fourth quarter of 2014. The net interest margin in the first quarter of 2015 was 3.22 percent, a 77 basis point decrease from the first quarter of 2014 and a 34 basis point decrease from the fourth quarter of 2014. The quarterly and year-over-year decreases in net interest margin are due primarily to a substantial increase in liquidity assets, as well as the growth in loans with lower average yields. The cost of total deposits and borrowed funds was 17 basis points for the first quarter of 2015, consistent with the first quarter of 2014.

Average loans, excluding mortgage finance loans, for the first quarter of 2015 were $10.5 billion, an increase of $1.8 billion, or 20 percent, from the first quarter of 2014, and an increase of $580.8 million, or 6 percent, from the fourth quarter of 2014. Average mortgage finance loans for the first quarter of 2015 were $3.7 billion, an increase of $1.7 billion, or 85 percent, from the first quarter of 2014 and an increase of $275.2 million, or 8 percent, from the fourth quarter of 2014.

Average total deposits for the first quarter of 2015 increased $4.2 billion from the first quarter of 2014 and increased $1.2 billion from the fourth quarter of 2014. Average demand deposits for the first quarter of 2015 increased $2.2 billion, or 65 percent, to $5.6 billion from $3.4 billion during the first quarter of 2014 and increased $544.2 million, or 11 percent, from the fourth quarter of 2014.

We recorded an $11.0 million provision for credit losses in the first quarter of 2015 compared to $5.0 million in the first quarter of 2014 and $6.5 million in the fourth quarter of 2014. The provision for the first quarter of 2015 was driven by the application of our methodology. The increase was primarily related to the growth in traditional loans held for investment and the anticipated downgrades in energy credits. The combined reserve at March 31, 2015 increased to 1.08 percent of loans excluding mortgage finance loans due to continuing loan growth, as compared to 1.07 percent at March 31, 2014 and 1.06 percent at December 31, 2014. 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. We experienced an increase in non-performing asset totals in the first quarter of 2015, bringing the ratio of total non-performing assets to total loans plus other real estate owned ("OREO") to .43 percent compared to .39 percent in the first quarter of 2014 and .31 percent in the fourth quarter of 2014. Net charge-offs for the first quarter of 2015 were $3.1 million compared to net charge-offs of $2.1 million in the first quarter of 2014 and net charge-offs of $1.1 million in the fourth quarter of 2014. For the first quarter of 2015, net charge-offs were .09 percent of total loans, compared to .08 percent for the same period in 2014. At March 31, 2015, non-performing assets included OREO of $605,000 compared to $2.4 million as of March 31, 2014 and $568,000 as of December 31, 2014.

Non-interest income increased $1.9 million, or 18 percent, during the first quarter of 2015 compared to the same period of 2014. Service charges, brokered loan fees and swap fees increased $398,000, $1.4 million and $762,000, respectively, during the first quarter of 2015 compared to the same period of 2014. The increase in brokered loan fees was a result of an increase in mortgage finance volumes. Swap fees fluctuate from quarter to quarter based on the number and volume of transactions closed during the quarter. Offsetting these increases was a $550,000 decrease in other non-interest income during the first quarter of 2015 compared to the same period of 2014.

Non-interest expense for the first quarter of 2015 increased $7.2 million, or 10 percent, to $76.5 million from $69.3 million in the first quarter of 2014. The increase is primarily related to a $3.8 million increase in salaries and employee benefits expense, a $923,000 increase in net occupancy expense, a $459,000 increase in marketing expense, a $1.2 million increase in communications and technology expense and a $1.2 million increase in other non-interest expense, all of which were due to general business growth. FDIC insurance assessment expense for the first quarter of 2015 increased $1.1 million compared to the same quarter in 2014 as a result of the increase in total assets from March 31, 2014 to March 31, 2015. Partially offsetting these increases was a $1.4 million decrease in legal and professional expense during the first quarter of 2015.

Stockholders' equity increased by 23 percent from $1.2 billion at March 31, 2014 to $1.5 billion at March 31, 2015, primarily due to the offering of 2.5 million common shares for net proceeds of $149.6 million in the fourth quarter of 2014 and retention of net income. Texas Capital Bank is well capitalized under regulatory guidelines and at March 31, 2015, our ratio of tangible common equity to total tangible assets was 7.8 percent.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (Nasdaq:TCBI), a member of the Russell 2000® Index and the S&P SmallCap 600®, 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.

This news release may be deemed to include forward-looking statements which are based on management's current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as "believe," "expect," "estimate," "anticipate," "plan," "may," "will," "intend" and similar expressions. The information contained in this release speaks only as of its date. We are under no obligation, and expressly disclaim such obligation, to update, alter or revise our forward-looking statements, whether as a result of new information, future events, or otherwise. 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 risks and uncertainties include, but are not limited to, deterioration of the credit quality of our loan portfolio, the effects of recent declines in oil and gas prices on our customers, increased defaults and loan losses, 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 our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)
1st Quarter
2015
4th Quarter
2014
3rd Quarter
2014
2nd Quarter
2014
1st Quarter
2014
CONSOLIDATED STATEMENTS OF INCOME
Interest income $140,908 $137,833 $135,290 $124,813 $116,611
Interest expense 10,899 10,251 9,629 9,406 8,296
Net interest income 130,009 127,582 125,661 115,407 108,315
Provision for credit losses 11,000 6,500 6,500 4,000 5,000
Net interest income after provision for credit losses 119,009 121,082 119,161 111,407 103,315
Non-interest income 12,267 11,226 10,396 10,533 10,356
Non-interest expense 76,517 74,117 71,915 69,765 69,317
Income before income taxes 54,759 58,191 57,642 52,175 44,354
Income tax expense 19,709 20,357 20,810 18,754 16,089
Net income 35,050 37,834 36,832 33,421 28,265
Preferred stock dividends 2,438 2,437 2,438 2,437 2,438
Net income available to common stockholders $32,612 $35,397 $34,394 $30,984 $25,827
Diluted EPS $ .70 $ .78 $ .78 $ .71 $ .60
Diluted shares 46,367,870 45,092,511 43,849,838 43,845,015 43,219,961
CONSOLIDATED BALANCE SHEET DATA
Total assets $17,325,458 $15,899,946 $14,268,561 $13,534,352 $12,147,070
Loans held for investment 10,760,978 10,154,887 9,686,422 9,153,005 8,928,325
Loans held for investment, mortgage finance 5,408,750 4,102,125 3,774,467 3,700,253 2,688,044
Securities 37,649 41,719 43,938 49,330 52,960
Demand deposits 6,050,817 5,011,619 4,722,479 4,181,774 3,451,294
Total deposits 14,122,306 12,673,300 11,715,808 10,757,316 9,729,128
Other borrowings 1,125,458 1,192,681 735,689 1,000,548 678,026
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 1,517,958 1,484,190 1,297,922 1,262,816 1,230,131
End of period shares outstanding 45,772,245 45,735,007 43,179,134 43,105,444 42,958,803
Book value $29.89 $29.14 $26.59 $25.82 $25.14
Tangible book value(1) $29.44 $28.69 $26.10 $25.33 $24.65
SELECTED FINANCIAL RATIOS
Net interest margin 3.22% 3.56% 3.77% 3.87% 3.99%
Return on average assets .84% 1.03% 1.07% 1.08% 1.01%
Return on average common equity 9.82% 11.41% 12.11% 11.38% 10.20%
Non-interest income to earning assets .30% .31% .31% .35% .38%
Efficiency ratio(2) 53.8% 53.4% 52.9% 55.4% 58.4%
Non-interest expense to earning assets 1.89% 2.07% 2.16% 2.34% 2.55%
Tangible common equity to total tangible assets(3) 7.8% 8.3% 7.9% 8.1% 8.7%
(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,
2015
March 31,
2014
%
Change
Assets
Cash and due from banks $ 99,602 $ 111,594 (11)%
Interest-bearing deposits 734,945 146,205 403%
Securities, available-for-sale 37,649 52,960 (29)%
Loans held for investment, mortgage finance 5,408,750 2,688,044 101%
Loans held for investment (net of unearned income) 10,760,978 8,928,325 21%
Less: Allowance for loan losses 108,078 90,234 20%
Loans held for investment, net 16,061,650 11,526,135 39%
Premises and equipment, net 16,037 11,767 36%
Accrued interest receivable and other assets 355,163 277,294 28%
Goodwill and intangibles, net 20,412 21,115 (3)%
Total assets $ 17,325,458 $ 12,147,070 43%
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing $ 6,050,817 $ 3,451,294 75%
Interest bearing 7,816,310 5,886,363 33%
Interest bearing in foreign branches 255,179 391,471 (35)%
Total deposits 14,122,306 9,729,128 45%
Accrued interest payable 2,545 2,304 10%
Other liabilities 157,785 108,075 47%
Federal funds purchased and repurchase agreements 125,458 143,573 (13)%
Other borrowings 1,000,000 534,453 87%
Subordinated notes 286,000 286,000 --
Trust preferred subordinated debentures 113,406 113,406 --
Total liabilities 15,807,500 10,916,939 45%
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, 2015 and 2014 150,000 150,000
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 45,772,662 and 42,959,220 at March 31, 2015 and 2014, respectively 457 430 6%
Additional paid-in capital 710,943 556,247 28%
Retained earnings 655,326 521,939 26%
Treasury stock (shares at cost: 417 at March 31, 2015 and 2014) (8) (8) --
Accumulated other comprehensive income, net of taxes 1,240 1,523 (19)%
Total stockholders' equity 1,517,958 1,230,131 23%
Total liabilities and stockholders' equity $ 17,325,458 $ 12,147,070 43%
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
Three Months Ended
March 31
2015 2014
Interest income
Interest and fees on loans $ 139,174 $ 115,872
Securities 358 540
Federal funds sold 116 40
Deposits in other banks 1,260 159
Total interest income 140,908 116,611
Interest expense
Deposits 5,628 4,030
Federal funds purchased 68 95
Repurchase agreements 4 4
Other borrowings 390 72
Subordinated notes 4,191 3,479
Trust preferred subordinated debentures 618 616
Total interest expense 10,899 8,296
Net interest income 130,009 108,315
Provision for credit losses 11,000 5,000
Net interest income after provision for credit losses 119,009 103,315
Non-interest income
Service charges on deposit accounts 2,094 1,696
Trust fee income 1,200 1,282
Bank owned life insurance (BOLI) income 484 509
Brokered loan fees 4,232 2,824
Swap fees 1,986 1,224
Other 2,271 2,821
Total non-interest income 12,267 10,356
Non-interest expense
Salaries and employee benefits 45,828 42,056
Net occupancy expense 5,691 4,768
Marketing 4,218 3,759
Legal and professional 4,048 5,402
Communications and technology 5,078 3,924
FDIC insurance assessment 3,790 2,725
Allowance and other carrying costs for OREO 9 45
Other 7,855 6,638
Total non-interest expense 76,517 69,317
Income before income taxes 54,759 44,354
Income tax expense 19,709 16,089
Net income 35,050 28,265
Preferred stock dividends 2,438 2,438
Net income available to common stockholders $ 32,612 $ 25,827
Basic earnings per common share $ .71 $ .61
Diluted earnings per common share $ .70 $ .60
TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
1st Quarter
2015
4th Quarter
2014
3rd Quarter
2014
2nd Quarter
2014
1st Quarter
2014
Reserve for loan losses:
Beginning balance $ 100,954 $ 96,322 $ 91,114 $ 90,234 $ 87,604
Loans charged-off:
Commercial 3,102 1,285 992 5,190 2,336
Real estate 346 246 50
Consumer 62 165 40 61
Total loans charged-off 3,510 1,450 992 5,476 2,447
Recoveries:
Commercial 286 190 329 2,033 210
Real estate 8 34 2 35 8
Construction 83
Consumer 4 96 35 6 25
Leases 8 2 31 925 124
Total recoveries 389 322 397 2,999 367
Net charge-offs 3,121 1,128 595 2,477 2,080
Provision for loan losses 10,245 5,760 5,803 3,357 4,710
Ending balance $ 108,078 $ 100,954 $ 96,322 $ 91,114 $ 90,234
Reserve for off-balance sheet credit losses:
Beginning balance $ 7,060 $ 6,320 $ 5,623 $ 4,980 $ 4,690
Provision for off-balance sheet credit losses 755 740 697 643 290
Ending balance $ 7,815 $ 7,060 $ 6,320 $ 5,623 $ 4,980
Total reserves for credit losses $ 115,893 $ 108,014 $ 102,642 $ 96,737 $ 95,214
Total provision for credit losses $ 11,000 $ 6,500 $ 6,500 $ 4,000 $ 5,000
Reserve to loans .67% .71% .72% .71% .78%
Reserve to loans excluding mortgage finance loans(2) 1.00% .99% .99% 1.00% 1.01%
Reserve to average loans .76% .75% .75% .77% .84%
Reserve to average loans excluding mortgage finance loans(2) 1.03% 1.02% 1.02% 1.01% 1.04%
Net charge-offs to average loans(1) .09% .03% .02% .08% .08%
Net charge-offs to average loans excluding mortgage finance loans(1)(2) .12% .05% .03% .11% .10%
Net charge-offs to average loans for last twelve months(1) .06% .05% .05% .06% .06%
Net charge-offs to average loans, excluding mortgage finance loans, for last twelve months(1)(2) .08% .07% .07% .07% .07%
Total provision for credit losses to average loans(1) .31% .19% .20% .14% .19%
Total provision for credit losses to average loans excluding mortgage finance loans(1)(2) .42% .26% .27% .18% .23%
Combined reserves for credit losses to loans .72% .76% .76% .75% .82%
Combined reserves for credit losses to loans, excluding mortgage finance loans(2) 1.08% 1.06% 1.06% 1.06% 1.07%
Non-performing assets (NPAs):
Non-accrual loans $ 68,307 $ 43,304 $ 37,733 $ 41,565 $ 43,213
Other real estate owned (OREO) 605 568 617 685 2,420
Total $ 68,912 $ 43,872 $ 38,350 $ 42,250 $ 45,633
1st Quarter
2015
4th Quarter
2014
3rd Quarter
2014
2nd Quarter
2014
1st Quarter
2014
Non-accrual loans to loans .42% .30% .28% .32% .37%
Non-accrual loans to loans excluding mortgage finance loans(2) .63% .43% .39% .45% .48%
Total NPAs to loans plus OREO .43% .31% .28% .33% .39%
Total NPAs to loans excluding mortgage finance loans plus OREO(2) .64% .43% .40% .46% .51%
Total NPAs to earning assets .41% .28% .28% .32% .39%
Reserve for loan losses to non-accrual loans 1.6x 2.3x 2.6x 2.2x 2.1x
Restructured loans $ 319 $ 1,806 $ 1,853 $ 249 $ 2,825
Loans past due 90 days and still accruing(3) $ 2,971 $ 5,274 $ 6,102 $ 4,793 $ 7,869
Loans past due 90 days to loans .02% .04% .05% .04% .07%
Loans past due 90 days to loans excluding mortgage finance loans(2) .03% .05% .06% .05% .09%
(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, 2015, loans past due 90 days and still accruing includes premium finance loans of $2.8 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)
1st Quarter
2015
4th Quarter
2014
3rd Quarter
2014
2nd Quarter
2014
1st Quarter
2014
Interest income
Interest and fees on loans $ 139,174 $ 136,882 $ 134,618 $ 124,234 $ 115,872
Securities 358 389 428 471 540
Federal funds sold 116 91 68 8 40
Deposits in other banks 1,260 471 176 100 159
Total interest income 140,908 137,833 135,290 124,813 116,611
Interest expense
Deposits 5,628 5,263 4,606 4,246 4,030
Federal funds purchased 68 81 82 115 95
Repurchase agreements 4 4 5 4 4
Other borrowings 390 35 68 181 72
Subordinated notes 4,191 4,241 4,241 4,241 3,479
Trust preferred subordinated debentures 618 627 627 619 616
Total interest expense 10,899 10,251 9,629 9,406 8,296
Net interest income 130,009 127,582 125,661 115,407 108,315
Provision for credit losses 11,000 6,500 6,500 4,000 5,000
Net interest income after provision for credit losses 119,009 121,082 119,161 111,407 103,315
Non-interest income
Service charges on deposit accounts 2,094 1,976 1,817 1,764 1,696
Trust fee income 1,200 1,223 1,190 1,242 1,282
Bank owned life insurance (BOLI) income 484 520 517 521 509
Brokered loan fees 4,232 3,979 3,821 3,357 2,824
Swap fees 1,986 894 464 410 1,224
Other 2,271 2,634 2,587 3,239 2,821
Total non-interest income 12,267 11,226 10,396 10,533 10,356
Non-interest expense
Salaries and employee benefits 45,828 43,910 43,189 39,896 42,056
Net occupancy expense 5,691 5,746 5,279 5,073 4,768
Marketing 4,218 4,411 4,024 3,795 3,759
Legal and professional 4,048 3,725 4,874 7,181 5,402
Communications and technology 5,078 5,454 4,928 4,361 3,924
FDIC insurance assessment 3,790 2,875 2,775 2,544 2,725
Allowance and other carrying costs for OREO 9 24 5 11 45
Other 7,855 7,972 6,841 6,904 6,638
Total non-interest expense 76,517 74,117 71,915 69,765 69,317
Income before income taxes 54,759 58,191 57,642 52,175 44,354
Income tax expense 19,709 20,357 20,810 18,754 16,089
Net income 35,050 37,834 36,832 33,421 28,265
Preferred stock dividends 2,438 2,437 2,438 2,437 2,438
Net income available to common shareholders $ 32,612 $ 35,397 $ 34,394 $ 30,984 $ 25,827
TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
1st Quarter 2015 4th Quarter 2014 3rd Quarter 2014 2nd Quarter 2014 1st 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 $37,145 $332 3.62% $39,258 $355 3.59% $41,716 $383 3.64% $44,216 $410 3.72% $47,027 $442 3.81%
Securities – Non-taxable(2) 2,785 40 5.82% 3,257 52 6.33% 4,697 69 5.83% 6,271 94 6.01% 10,554 151 5.80%
Federal funds sold and securities purchased under resale agreements 191,297 116 0.25% 139,761 91 0.26% 105,793 68 0.26% 14,997 8 0.21% 73,746 40 0.22%
Deposits in other banks 2,019,567 1,260 0.25% 742,240 471 0.25% 283,062 176 0.25% 183,061 100 0.22% 230,296 159 0.28%
Loans held for investment, mortgage finance loans 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% 2,027,264 16,782 3.36%
Loans held for investment 10,502,172 111,543 4.31% 9,921,323 110,109 4.40% 9,423,259 107,343 4.52% 8,984,230 101,003 4.51% 8,717,969 99,090 4.61%
Less reserve for loan losses 101,042 96,139 91,427 90,105 87,686
Loans, net of reserve 14,148,068 139,174 3.99% 13,296,921 136,882 4.08% 12,784,614 134,618 4.18% 11,716,685 124,234 4.25% 10,657,547 115,872 4.41%
Total earning assets 16,398,862 140,922 3.49% 14,221,437 137,851 3.85% 13,219,882 135,314 4.06% 11,965,230 124,846 4.19% 11,019,170 116,664 4.29%
Cash and other assets 459,030 409,635 409,727 396,938 382,198
Total assets $16,857,892 $14,631,072 $13,629,609 $12,362,168 $11,401,368
Liabilities and Stockholders' Equity
Transaction deposits $1,401,626 $444 0.13% $1,150,530 $401 0.14% $1,010,003 $287 0.11% $895,827 $170 0.08% $782,301 $80 0.04%
Savings deposits 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% 4,591,493 3,304 0.29%
Time deposits 447,681 506 0.46% 406,040 413 0.40% 485,558 475 0.39% 401,024 390 0.39% 375,563 351 0.38%
Deposits in foreign branches 304,225 258 0.34% 369,471 328 0.35% 369,202 325 0.35% 350,043 291 0.33% 355,857 295 0.34%
Total interest bearing deposits 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% 6,105,214 4,030 0.27%
Other borrowings 1,172,675 462 0.16% 251,449 120 0.19% 309,868 155 0.20% 666,405 300 0.18% 293,012 171 0.24%
Subordinated notes 286,000 4,191 5.94% 286,000 4,241 5.88% 286,000 4,241 5.88% 286,000 4,241 5.95% 227,667 3,479 6.20%
Trust preferred subordinated debentures 113,406 618 2.21% 113,406 627 2.19% 113,406 627 2.19% 113,406 619 2.19% 113,406 616 2.20%
Total interest bearing liabilities 9,616,957 10,899 0.46% 8,056,291 10,251 0.50% 7,565,816 9,629 0.50% 7,391,845 9,406 0.51% 6,739,299 8,296 0.50%
Demand deposits 5,592,124 5,047,876 4,669,772 3,629,941 3,381,501
Other liabilities 152,639 146,259 117,418 98,595 103,514
Stockholders' equity 1,496,172 1,380,646 1,276,603 1,241,787 1,177,054
Total liabilities and stockholders' equity $16,857,892 $14,631,072 $13,629,609 $12,362,168 $11,401,368
Net interest income(2) $130,023 $127,600 $125,685 $115,440 $108,368
Net interest margin 3.22% 3.56% 3.77% 3.87% 3.99%
(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 & INVESTOR CONTACT Heather Worley, 214.932.6646 heather.worley@texascapitalbank.com

Source:Texas Capital Bancshares, Inc.