Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company
of Texas Capital Bank, announced operating results for the third
quarter of 2023.
Net income available to common stockholders was
$57.4 million, or $1.18 per diluted share, for the third quarter of
2023, compared to $64.3 million, or $1.33 per diluted share, for
the second quarter of 2023 and $37.1 million, or $0.74 per diluted
share, for the third quarter of 2022.
“Our quarterly results demonstrate the power of
the platform we built over the last two years,” said Rob C. Holmes,
President and CEO. “Our capability and expertise to provide
solutions for our clients extends well beyond traditional lending
products and is complimented by near record levels of capital and
liquidity.”
FINANCIAL
RESULTS |
|
|
|
|
|
(dollars and shares in
thousands) |
|
|
|
|
|
|
3rd Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
OPERATING
RESULTS |
|
|
|
|
|
Net income |
$ |
61,679 |
|
|
$ |
68,651 |
|
|
$ |
41,418 |
|
Net income available to common stockholders |
$ |
57,366 |
|
|
$ |
64,339 |
|
|
$ |
37,105 |
|
Diluted earnings per common share |
$ |
1.18 |
|
|
$ |
1.33 |
|
|
$ |
0.74 |
|
Diluted common shares |
|
48,529 |
|
|
|
48,421 |
|
|
|
50,418 |
|
Return on average assets |
|
0.81 |
% |
|
|
0.95 |
% |
|
|
0.52 |
% |
Return on average common equity |
|
8.08 |
% |
|
|
9.17 |
% |
|
|
5.36 |
% |
|
|
|
|
|
|
BALANCE
SHEET |
|
|
|
|
|
Loans held for investment |
$ |
16,183,882 |
|
|
$ |
16,227,203 |
|
|
$ |
14,878,959 |
|
Loans held for investment, mortgage finance |
|
4,429,489 |
|
|
|
5,098,812 |
|
|
|
4,908,822 |
|
Total loans held for investment |
|
20,613,371 |
|
|
|
21,326,015 |
|
|
|
19,787,781 |
|
Loans held for sale |
|
155,073 |
|
|
|
29,097 |
|
|
|
3,142,178 |
|
Total assets |
|
29,628,249 |
|
|
|
28,976,544 |
|
|
|
30,408,513 |
|
Non-interest bearing deposits |
|
9,352,883 |
|
|
|
9,429,352 |
|
|
|
11,494,685 |
|
Total deposits |
|
23,878,978 |
|
|
|
23,318,240 |
|
|
|
24,498,563 |
|
Stockholders’ equity |
|
3,077,700 |
|
|
|
3,081,927 |
|
|
|
2,885,775 |
|
|
|
|
|
|
|
THIRD QUARTER
2023 COMPARED TO
SECOND QUARTER
2023
For the third quarter of 2023, net income
available to common stockholders was $57.4 million, or $1.18 per
diluted share, compared to $64.3 million, or $1.33 per diluted
share, for the second quarter of 2023.
Provision for credit losses for the third
quarter of 2023 was $18.0 million, compared to $7.0 million for the
second quarter of 2023. The $18.0 million provision for credit
losses recorded in the third quarter of 2023 resulted primarily
from an increase in criticized loans, partially offset by decreases
in total loans held for investment (“LHI”) and non-accrual
loans.
Net interest income of $232.1 million for the
third quarter of 2023 was relatively flat as compared to $232.0
million for the second quarter of 2023, as increases in average
earning assets and yields on average earning assets were offset by
increases in funding costs and average interest-bearing
liabilities. Net interest margin for the third quarter of 2023 was
3.13%, a decrease of 16 basis points from the second quarter of
2023. LHI, excluding mortgage finance, yields increased 29 basis
points from the second quarter of 2023 and LHI, mortgage finance
yields decreased 68 basis points from the second quarter of 2023.
Total cost of deposits was 2.62% for the third quarter of 2023, a
25 basis point increase from the second quarter of 2023.
Non-interest income for the third quarter of
2023 increased $861,000, or 2%, compared to the second quarter of
2023, primarily due to an increase in investment banking and
trading income, partially offset by a decrease in other
non-interest income.
Non-interest expense for the third quarter of
2023 decreased $1.8 million, or 1%, compared to the second quarter
of 2023, primarily due to decreases in salaries and benefits and
marketing expenses, partially offset by increases in legal and
professional and Federal Deposit Insurance Corporation (“FDIC”)
insurance assessment expenses.
THIRD QUARTER
2023 COMPARED TO
THIRD QUARTER
2022
Net income available to common stockholders was
$57.4 million, or $1.18 per diluted share, for the third quarter of
2023, compared to $37.1 million, or $0.74 per diluted share, for
the third quarter of 2022.
The third quarter of 2023 included a $18.0
million provision for credit losses, reflecting an increase in
criticized loans, partially offset by decreases in total LHI and
non-accrual loans, compared to a $12.0 million provision for credit
losses for the third quarter of 2022.
Net interest income decreased to $232.1 million
for the third quarter of 2023, compared to $239.1 million for the
third quarter of 2022, primarily due to an increase in funding
costs and a decrease in average earning assets, partially offset by
an increase in yields on average earning assets. Net interest
margin increased 8 basis points to 3.13% for the third quarter of
2023, as compared to the third quarter of 2022. LHI, excluding
mortgage finance, yields increased 247 basis points compared to the
third quarter of 2022 and LHI, mortgage finance yields decreased
132 basis points from the third quarter of 2022. Total cost of
deposits increased 169 basis points compared to the third quarter
of 2022.
Non-interest income for the third quarter of
2023 increased $21.5 million, or 85%, compared to the third quarter
of 2022. The increase was primarily due to an increase in
investment banking and trading income.
Non-interest expense for the third quarter of
2023 decreased $17.2 million, or 9%, compared to the third quarter
of 2022, primarily due to decreases in salaries and benefits and
marketing expenses, partially offset by increases in communications
and technology and FDIC insurance assessment expenses. The third
quarter of 2022 included $13.7 million in salaries and benefits
expense related to the sale of our premium finance subsidiary.
CREDIT QUALITY
Net charge-offs of $8.9 million were recorded
during the third quarter of 2023, compared to net charge-offs of
$8.2 million and $2.7 million during the second quarter of 2023 and
the third quarter of 2022, respectively. Criticized loans totaled
$677.4 million at September 30, 2023, compared to $619.4
million at June 30, 2023 and $484.0 million at September 30,
2022. Non-accrual LHI totaled $63.1 million at September 30,
2023, compared to $81.0 million at June 30, 2023 and $35.9 million
at September 30, 2022. The ratio of non-accrual LHI to total
LHI for the third quarter of 2023 was 0.31%, compared to 0.38% for
the second quarter of 2023 and 0.18% for the third quarter of 2022.
The ratio of total allowance for credit losses to total LHI was
1.41% at September 30, 2023, compared to 1.32% and 1.30% at
June 30, 2023 and September 30, 2022, respectively.
REGULATORY RATIOS AND
CAPITAL
All regulatory ratios continue to be in excess
of “well capitalized” requirements as of September 30, 2023.
Our CET1, tier 1 capital, total capital and leverage ratios were
12.7%, 14.3%, 17.1% and 12.1%, respectively, at September 30,
2023, compared to 12.2%, 13.7%, 16.4% and 12.4%, respectively, at
June 30, 2023 and 11.1%, 12.6%, 15.2% and 10.7%, respectively, at
September 30, 2022. At September 30, 2023, our ratio of
tangible common equity to total tangible assets was 9.4%, compared
to 9.6% at June 30, 2023 and 8.5% at September 30, 2022.
About Texas Capital Bancshares,
Inc.
Texas Capital Bancshares, Inc. (NASDAQ: TCBI), a
member of the Russell 2000 Index and the S&P MidCap 400, is the
holding company of Texas Capital Bank, a full-service financial
services firm that delivers customized solutions to businesses,
entrepreneurs and individual customers. Founded in 1998, the firm
is headquartered in Dallas with offices in Austin, Houston, San
Antonio, and Fort Worth, and has built a network of clients across
the country. With the ability to service clients through their
entire lifecycles, Texas Capital Bank has established commercial
banking, consumer banking, investment banking and wealth management
capabilities.
Forward Looking Statements
This communication contains “forward-looking
statements” within the meaning of and pursuant to the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, TCBI’s financial condition, results of operations, business
plans and future performance. These statements are not historical
in nature and may often be identified by the use of words such as
“believes,” “projects,” “expects,” “may,” “estimates,” “should,”
“plans,” “targets,” “intends” “could,” “would,” “anticipates,”
“potential,” “confident,” “optimistic” or the negative thereof, or
other variations thereon, or comparable terminology, or by
discussions of strategy, objectives, estimates, trends, guidance,
expectations and future plans.
Because forward-looking statements relate to
future results and occurrences, they are subject to inherent and
various uncertainties, risks, and changes in circumstances that are
difficult to predict, may change over time, are based on
management’s expectations and assumptions at the time the
statements are made and are not guarantees of future results.
Numerous risks and other factors, many of which are beyond
management’s control, could cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements. While there can be no assurance that
any list of risks is complete, important risks and other factors
that could cause actual results to differ materially from those
contemplated by forward-looking statements include, but are not
limited to: economic or business conditions in Texas, the United
States or globally that impact TCBI or its customers; negative
credit quality developments arising from the foregoing or other
factors; recent adverse developments in the banking industry
highlighted by high-profile bank failures and the potential impact
of such developments on customer confidence, liquidity, and
regulatory responses to these developments, including in the
context of regulatory examinations and related findings and
actions; TCBI’s ability to effectively manage its liquidity; TCBI’s
ability to pursue and execute upon growth plans, whether as a
function of capital, liquidity or other limitations; TCBI’s ability
to effectively manage information technology systems, including
third party vendors, cyber or data privacy incidents or other
failures, disruptions or security breaches; elevated or further
changes in interest rates, including the impact of interest rates
on TCBI’s securities portfolio and funding costs, as well as
related balance sheet implications stemming from the fair value of
our assets and liabilities; the effectiveness of TCBI’s risk
management processes strategies and monitoring; fluctuations in
commercial and residential real estate values, especially as they
relate to the value of collateral supporting TCBI’s loans; TCBI’s
ability to successfully execute its business strategy, including
developing and executing new lines of business and new products and
services; the failure to identify, attract and retain key personnel
and other employees; increased or expanded competition from banks
and other financial service providers in TCBI’s markets; negative
press and social media attention with respect to the banking
industry or TCBI, in particular; the transition away from the
London Interbank Offered Rate (LIBOR); legislative and regulatory
changes; severe weather, natural disasters, climate change, acts of
war, terrorism, global conflict (including those already reported
by the media, as well as others that may arise), or other external
events, as well as related legislative and regulatory initiatives;
and the risks and factors more fully described in TCBI’s most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and other documents and filings with the SEC. The information
contained in this communication speaks only as of its date. Except
to the extent required by applicable law or regulation, we disclaim
any obligation to update such factors or to publicly announce the
results of any revisions to any of the forward-looking statements
included herein to reflect future events or developments.
TEXAS
CAPITAL BANCSHARES, INC. |
SELECTED
FINANCIAL HIGHLIGHTS (UNAUDITED) |
(dollars in
thousands except per share data) |
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
Interest income |
$ |
425,769 |
|
$ |
401,916 |
|
$ |
385,166 |
|
$ |
371,292 |
|
$ |
322,072 |
|
Interest expense |
|
193,698 |
|
|
169,926 |
|
|
149,821 |
|
|
123,687 |
|
|
82,991 |
|
Net interest income |
|
232,071 |
|
|
231,990 |
|
|
235,345 |
|
|
247,605 |
|
|
239,081 |
|
Provision for credit losses |
|
18,000 |
|
|
7,000 |
|
|
28,000 |
|
|
34,000 |
|
|
12,000 |
|
Net interest income after
provision for credit losses |
|
214,071 |
|
|
224,990 |
|
|
207,345 |
|
|
213,605 |
|
|
227,081 |
|
Non-interest income |
|
46,872 |
|
|
46,011 |
|
|
37,403 |
|
|
277,667 |
|
|
25,332 |
|
Non-interest expense |
|
179,891 |
|
|
181,644 |
|
|
194,027 |
|
|
213,090 |
|
|
197,047 |
|
Income before income
taxes |
|
81,052 |
|
|
89,357 |
|
|
50,721 |
|
|
278,182 |
|
|
55,366 |
|
Income tax expense |
|
19,373 |
|
|
20,706 |
|
|
12,060 |
|
|
60,931 |
|
|
13,948 |
|
Net income |
|
61,679 |
|
|
68,651 |
|
|
38,661 |
|
|
217,251 |
|
|
41,418 |
|
Preferred stock dividends |
|
4,313 |
|
|
4,312 |
|
|
4,313 |
|
|
4,312 |
|
|
4,313 |
|
Net income available to common stockholders |
$ |
57,366 |
|
$ |
64,339 |
|
$ |
34,348 |
|
$ |
212,939 |
|
$ |
37,105 |
|
Diluted earnings per common share |
$ |
1.18 |
|
$ |
1.33 |
|
$ |
0.70 |
|
$ |
4.23 |
|
$ |
0.74 |
|
Diluted common shares |
|
48,528,698 |
|
|
48,421,276 |
|
|
48,880,725 |
|
|
50,282,663 |
|
|
50,417,884 |
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET DATA |
|
|
|
|
|
Total assets |
$ |
29,628,249 |
|
$ |
28,976,544 |
|
$ |
28,596,653 |
|
$ |
28,414,642 |
|
$ |
30,408,513 |
|
Loans held for investment |
|
16,183,882 |
|
|
16,227,203 |
|
|
16,014,497 |
|
|
15,197,307 |
|
|
14,878,959 |
|
Loans held for investment, mortgage finance |
|
4,429,489 |
|
|
5,098,812 |
|
|
4,060,570 |
|
|
4,090,033 |
|
|
4,908,822 |
|
Loans held for sale |
|
155,073 |
|
|
29,097 |
|
|
27,608 |
|
|
36,357 |
|
|
3,142,178 |
|
Interest bearing cash and cash equivalents |
|
3,975,860 |
|
|
2,587,131 |
|
|
3,385,494 |
|
|
4,778,623 |
|
|
3,399,638 |
|
Investment securities |
|
4,069,717 |
|
|
4,226,653 |
|
|
4,345,969 |
|
|
3,585,114 |
|
|
3,369,622 |
|
Non-interest bearing deposits |
|
9,352,883 |
|
|
9,429,352 |
|
|
9,500,583 |
|
|
9,618,081 |
|
|
11,494,685 |
|
Total deposits |
|
23,878,978 |
|
|
23,318,240 |
|
|
22,179,697 |
|
|
22,856,880 |
|
|
24,498,563 |
|
Short-term borrowings |
|
1,400,000 |
|
|
1,350,000 |
|
|
2,100,000 |
|
|
1,201,142 |
|
|
1,701,480 |
|
Long-term debt |
|
858,471 |
|
|
857,795 |
|
|
932,119 |
|
|
931,442 |
|
|
930,766 |
|
Stockholders’ equity |
|
3,077,700 |
|
|
3,081,927 |
|
|
3,079,974 |
|
|
3,055,351 |
|
|
2,885,775 |
|
|
|
|
|
|
|
End of period shares outstanding |
|
48,015,003 |
|
|
47,992,521 |
|
|
47,851,862 |
|
|
48,783,763 |
|
|
49,897,726 |
|
Book value per share |
$ |
57.85 |
|
$ |
57.97 |
|
$ |
58.10 |
|
$ |
56.48 |
|
$ |
51.82 |
|
Tangible book value per
share(1) |
$ |
57.82 |
|
$ |
57.93 |
|
$ |
58.06 |
|
$ |
56.45 |
|
$ |
51.48 |
|
|
|
|
|
|
|
SELECTED FINANCIAL RATIOS |
|
|
|
|
|
Net interest margin |
|
3.13 |
% |
|
3.29 |
% |
|
3.33 |
% |
|
3.26 |
% |
|
3.05 |
% |
Return on average assets |
|
0.81 |
% |
|
0.95 |
% |
|
0.53 |
% |
|
2.80 |
% |
|
0.52 |
% |
Return on average common equity |
|
8.08 |
% |
|
9.17 |
% |
|
5.06 |
% |
|
30.66 |
% |
|
5.36 |
% |
Non-interest income to average earning assets |
|
0.64 |
% |
|
0.66 |
% |
|
0.54 |
% |
|
3.70 |
% |
|
0.33 |
% |
Efficiency ratio(2) |
|
64.5 |
% |
|
65.3 |
% |
|
71.1 |
% |
|
40.6 |
% |
|
74.5 |
% |
Non-interest expense to average earning assets |
|
2.46 |
% |
|
2.61 |
% |
|
2.78 |
% |
|
2.84 |
% |
|
2.53 |
% |
Common equity to total
assets |
|
9.4 |
% |
|
9.6 |
% |
|
9.7 |
% |
|
9.7 |
% |
|
8.5 |
% |
Tangible common equity to
total tangible assets(3) |
|
9.4 |
% |
|
9.6 |
% |
|
9.7 |
% |
|
9.7 |
% |
|
8.5 |
% |
Common Equity Tier 1 |
|
12.7 |
% |
|
12.2 |
% |
|
12.4 |
% |
|
13.0 |
% |
|
11.1 |
% |
Tier 1 capital |
|
14.3 |
% |
|
13.7 |
% |
|
14.0 |
% |
|
14.7 |
% |
|
12.6 |
% |
Total capital |
|
17.1 |
% |
|
16.4 |
% |
|
16.9 |
% |
|
17.7 |
% |
|
15.2 |
% |
Leverage |
|
12.1 |
% |
|
12.4 |
% |
|
12.0 |
% |
|
11.5 |
% |
|
10.7 |
% |
(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, less goodwill and intangibles, divided
by total assets, less goodwill and intangibles.
|
|
TEXAS
CAPITAL BANCSHARES, INC. |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(dollars in
thousands) |
|
September 30, 2023 |
September 30, 2022 |
% Change |
Assets |
|
|
|
Cash and due from banks |
$ |
216,916 |
|
$ |
240,609 |
|
(10 |
)% |
Interest bearing cash and cash
equivalents |
|
3,975,860 |
|
|
3,399,638 |
|
17 |
% |
Available-for-sale debt
securities |
|
3,147,865 |
|
|
2,380,774 |
|
32 |
% |
Held-to-maturity debt
securities |
|
881,352 |
|
|
955,875 |
|
(8 |
)% |
Equity securities |
|
40,500 |
|
|
32,973 |
|
23 |
% |
Investment securities |
|
4,069,717 |
|
|
3,369,622 |
|
21 |
% |
Loans held for sale |
|
155,073 |
|
|
3,142,178 |
|
(95 |
)% |
Loans held for investment,
mortgage finance |
|
4,429,489 |
|
|
4,908,822 |
|
(10 |
)% |
Loans held for investment |
|
16,183,882 |
|
|
14,878,959 |
|
9 |
% |
Less: Allowance for credit
losses on loans |
|
244,902 |
|
|
234,613 |
|
4 |
% |
Loans held for investment, net |
|
20,368,469 |
|
|
19,553,168 |
|
4 |
% |
Premises and equipment,
net |
|
31,050 |
|
|
27,180 |
|
14 |
% |
Accrued interest receivable
and other assets |
|
809,668 |
|
|
648,172 |
|
25 |
% |
Other assets held for
sale |
|
— |
|
|
26,450 |
|
(100 |
)% |
Goodwill and intangibles,
net |
|
1,496 |
|
|
1,496 |
|
— |
% |
Total
assets |
$ |
29,628,249 |
|
$ |
30,408,513 |
|
(3 |
)% |
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Liabilities: |
|
|
|
Non-interest bearing
deposits |
$ |
9,352,883 |
|
$ |
11,494,685 |
|
(19 |
)% |
Interest bearing deposits |
|
14,526,095 |
|
|
13,003,878 |
|
12 |
% |
Total deposits |
|
23,878,978 |
|
|
24,498,563 |
|
(3 |
)% |
Accrued interest payable |
|
31,149 |
|
|
18,465 |
|
69 |
% |
Other liabilities |
|
381,951 |
|
|
297,900 |
|
28 |
% |
Other liabilities held for
sale |
|
— |
|
|
75,564 |
|
(100 |
)% |
Short-term borrowings |
|
1,400,000 |
|
|
1,701,480 |
|
(18 |
)% |
Long-term debt |
|
858,471 |
|
|
930,766 |
|
(8 |
)% |
Total
liabilities |
|
26,550,549 |
|
|
27,522,738 |
|
(4 |
)% |
|
|
|
|
Stockholders’
equity: |
|
|
|
Preferred stock, $.01 par
value, $1,000 liquidation value: |
|
|
|
Authorized shares - 10,000,000 |
|
|
|
Issued shares - 300,000 shares issued at September 30, 2023
and 2022 |
|
300,000 |
|
|
300,000 |
|
— |
% |
Common stock, $.01 par value: |
|
|
|
Authorized shares - 100,000,000 |
|
|
|
Issued shares - 51,110,447 and
50,840,022 at September 30, 2023 and 2022, respectively |
|
511 |
|
|
509 |
|
— |
% |
Additional paid-in capital |
|
1,039,074 |
|
|
1,020,153 |
|
2 |
% |
Retained earnings |
|
2,419,555 |
|
|
2,050,563 |
|
18 |
% |
Treasury stock - 3,095,444 and
942,296 shares at cost at September 30, 2023 and 2022,
respectively |
|
(175,528 |
) |
|
(50,031 |
) |
N/M |
|
Accumulated other comprehensive loss, net of taxes |
|
(505,912 |
) |
|
(435,419 |
) |
16 |
% |
Total stockholders’
equity |
|
3,077,700 |
|
|
2,885,775 |
|
7 |
% |
Total liabilities and
stockholders’ equity |
$ |
29,628,249 |
|
$ |
30,408,513 |
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
(dollars in thousands except
per share data) |
|
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|
2023 |
2022 |
2023 |
2022 |
Interest
income |
|
|
|
|
Interest and fees on loans |
$ |
345,138 |
$ |
282,474 |
$ |
975,443 |
$ |
688,422 |
Investment securities |
|
27,070 |
|
15,002 |
|
79,840 |
|
46,969 |
Interest bearing cash and cash
equivalents |
|
53,561 |
|
24,596 |
|
157,568 |
|
37,561 |
Total interest income |
|
425,769 |
|
322,072 |
|
1,212,851 |
|
772,952 |
Interest
expense |
|
|
|
|
Deposits |
|
160,117 |
|
60,317 |
|
417,602 |
|
94,513 |
Short-term borrowings |
|
19,576 |
|
10,011 |
|
52,573 |
|
15,628 |
Long-term debt |
|
14,005 |
|
12,663 |
|
43,270 |
|
34,651 |
Total interest expense |
|
193,698 |
|
82,991 |
|
513,445 |
|
144,792 |
Net interest
income |
|
232,071 |
|
239,081 |
|
699,406 |
|
628,160 |
Provision for credit
losses |
|
18,000 |
|
12,000 |
|
53,000 |
|
32,000 |
Net interest income
after provision for credit losses |
|
214,071 |
|
227,081 |
|
646,406 |
|
596,160 |
Non-interest
income |
|
|
|
|
Service charges on deposit
accounts |
|
5,297 |
|
5,797 |
|
15,477 |
|
18,014 |
Wealth management and trust
fee income |
|
3,509 |
|
3,631 |
|
10,653 |
|
11,594 |
Brokered loan fees |
|
2,532 |
|
3,401 |
|
6,842 |
|
11,504 |
Investment banking and trading
income |
|
29,191 |
|
7,812 |
|
75,457 |
|
23,117 |
Other |
|
6,343 |
|
4,691 |
|
21,857 |
|
7,626 |
Total non-interest income |
|
46,872 |
|
25,332 |
|
130,286 |
|
71,855 |
Non-interest
expense |
|
|
|
|
Salaries and benefits |
|
110,010 |
|
128,764 |
|
351,730 |
|
331,981 |
Occupancy expense |
|
9,910 |
|
9,433 |
|
29,011 |
|
27,192 |
Marketing |
|
4,757 |
|
8,282 |
|
20,168 |
|
21,765 |
Legal and professional |
|
17,614 |
|
16,775 |
|
47,797 |
|
38,365 |
Communications and
technology |
|
19,607 |
|
18,470 |
|
57,655 |
|
48,819 |
Federal Deposit Insurance
Corporation insurance assessment |
|
5,769 |
|
3,953 |
|
11,632 |
|
11,252 |
Other |
|
12,224 |
|
11,370 |
|
37,569 |
|
35,068 |
Total non-interest expense |
|
179,891 |
|
197,047 |
|
555,562 |
|
514,442 |
Income before income
taxes |
|
81,052 |
|
55,366 |
|
221,130 |
|
153,573 |
Income tax expense |
|
19,373 |
|
13,948 |
|
52,139 |
|
38,346 |
Net
income |
|
61,679 |
|
41,418 |
|
168,991 |
|
115,227 |
Preferred stock
dividends |
|
4,313 |
|
4,313 |
|
12,938 |
|
12,938 |
Net income available
to common stockholders |
$ |
57,366 |
$ |
37,105 |
$ |
156,053 |
$ |
102,289 |
|
|
|
|
|
Basic earnings per
common share |
$ |
1.19 |
$ |
0.74 |
$ |
3.24 |
$ |
2.03 |
Diluted earnings per
common share |
$ |
1.18 |
$ |
0.74 |
$ |
3.20 |
$ |
2.00 |
|
|
TEXAS
CAPITAL BANCSHARES, INC. |
SUMMARY
OF CREDIT LOSS EXPERIENCE |
(dollars in
thousands) |
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Allowance for credit
losses on loans: |
|
|
|
|
|
Beginning balance |
$ |
237,343 |
|
$ |
260,928 |
|
$ |
253,469 |
|
$ |
234,613 |
|
$ |
229,013 |
|
Loans charged-off: |
|
|
|
|
|
Commercial |
|
13,246 |
|
|
8,852 |
|
|
20,732 |
|
|
17,106 |
|
|
3,135 |
|
Consumer |
|
41 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total charge-offs |
|
13,287 |
|
|
8,852 |
|
|
20,732 |
|
|
17,106 |
|
|
3,135 |
|
Recoveries: |
|
|
|
|
|
Commercial |
|
4,346 |
|
|
611 |
|
|
819 |
|
|
2,105 |
|
|
400 |
|
Consumer |
|
— |
|
|
2 |
|
|
3 |
|
|
2 |
|
|
2 |
|
Total recoveries |
|
4,346 |
|
|
613 |
|
|
822 |
|
|
2,107 |
|
|
402 |
|
Net charge-offs |
|
8,941 |
|
|
8,239 |
|
|
19,910 |
|
|
14,999 |
|
|
2,733 |
|
Provision for credit losses on
loans |
|
16,500 |
|
|
(15,346 |
) |
|
27,369 |
|
|
33,855 |
|
|
8,333 |
|
Ending balance |
$ |
244,902 |
|
$ |
237,343 |
|
$ |
260,928 |
|
$ |
253,469 |
|
$ |
234,613 |
|
|
|
|
|
|
|
Allowance for
off-balance sheet credit losses: |
|
|
|
|
|
Beginning balance |
$ |
44,770 |
|
$ |
22,424 |
|
$ |
21,793 |
|
$ |
21,648 |
|
$ |
17,981 |
|
Provision for off-balance
sheet credit losses |
|
1,500 |
|
|
22,346 |
|
|
631 |
|
|
145 |
|
|
3,667 |
|
Ending balance |
$ |
46,270 |
|
$ |
44,770 |
|
$ |
22,424 |
|
$ |
21,793 |
|
$ |
21,648 |
|
|
|
|
|
|
|
Total allowance for credit
losses |
$ |
291,172 |
|
$ |
282,113 |
|
$ |
283,352 |
|
$ |
275,262 |
|
$ |
256,261 |
|
Total provision for credit
losses |
$ |
18,000 |
|
$ |
7,000 |
|
$ |
28,000 |
|
$ |
34,000 |
|
$ |
12,000 |
|
|
|
|
|
|
|
Allowance for credit losses on
loans to total loans held for investment |
|
1.19 |
% |
|
1.11 |
% |
|
1.30 |
% |
|
1.31 |
% |
|
1.19 |
% |
Allowance for credit losses on
loans to average total loans held for investment |
|
1.17 |
% |
|
1.15 |
% |
|
1.38 |
% |
|
1.31 |
% |
|
1.06 |
% |
Net charge-offs to average
total loans held for investment(1) |
|
0.17 |
% |
|
0.16 |
% |
|
0.43 |
% |
|
0.31 |
% |
|
0.05 |
% |
Net charge-offs to average
total loans held for investment for last 12 months(1) |
|
0.26 |
% |
|
0.23 |
% |
|
0.19 |
% |
|
0.09 |
% |
|
0.03 |
% |
Total provision for credit
losses to average total loans held for investment(1) |
|
0.34 |
% |
|
0.14 |
% |
|
0.60 |
% |
|
0.70 |
% |
|
0.22 |
% |
Total allowance for credit
losses to total loans held for investment |
|
1.41 |
% |
|
1.32 |
% |
|
1.41 |
% |
|
1.43 |
% |
|
1.30 |
% |
(1) Interim period ratios are annualized.
|
|
|
|
|
|
|
|
|
|
|
|
TEXAS CAPITAL
BANCSHARES, INC. |
|
|
|
|
|
SUMMARY OF
NON-PERFORMING ASSETS AND PAST DUE LOANS |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Non-accrual loans held for
investment |
$ |
63,129 |
|
$ |
81,039 |
|
$ |
93,951 |
|
$ |
48,338 |
|
$ |
35,864 |
|
Non-accrual loans held for
sale(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,340 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-performing
assets |
$ |
63,129 |
|
$ |
81,039 |
|
$ |
93,951 |
|
$ |
48,338 |
|
$ |
37,204 |
|
|
|
|
|
|
|
Non-accrual loans held for
investment to total loans held for investment |
|
0.31 |
% |
|
0.38 |
% |
|
0.47 |
% |
|
0.25 |
% |
|
0.18 |
% |
Total non-performing assets to
total assets |
|
0.21 |
% |
|
0.28 |
% |
|
0.33 |
% |
|
0.17 |
% |
|
0.12 |
% |
Allowance for credit losses on
loans to non-accrual loans held for investment |
|
3.9 |
x |
|
2.9 |
x |
|
2.8 |
x |
|
5.2 |
x |
|
6.5 |
x |
Total allowance for credit
losses to non-accrual loans held for investment |
|
4.6 |
x |
|
3.5 |
x |
|
3.0 |
x |
|
5.7 |
x |
|
6.9 |
x |
|
|
|
|
|
|
Loans held for investment past
due 90 days and still accruing |
$ |
4,602 |
|
$ |
64 |
|
$ |
3,098 |
|
$ |
131 |
|
$ |
30,664 |
|
Loans held for investment past
due 90 days to total loans held for investment |
|
0.02 |
% |
|
— |
% |
|
0.02 |
% |
|
— |
% |
|
0.15 |
% |
Loans held for sale past due
90 days and still accruing(1)(2) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
4,877 |
|
(1) Third quarter 2022 includes $1.3 million in
non-accrual loans and $3.1 million in loans past due 90 days and
still accruing associated to our insurance premium finance
subsidiary that were transferred from loans held for investment to
loans held for sale as of September 30, 2022.(2) Includes loans
guaranteed by U.S. government agencies that were repurchased out of
Ginnie Mae securities. Loans are recorded as loans held for sale
and carried at fair value on the balance sheet. Interest on these
past due loans accrues at the debenture rate guaranteed by the U.S.
government.
|
|
TEXAS
CAPITAL BANCSHARES, INC. |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
|
2023 |
2023 |
2023 |
2022 |
2022 |
Interest
income |
|
|
|
|
|
Interest and fees on
loans |
$ |
345,138 |
$ |
332,867 |
$ |
297,438 |
$ |
295,372 |
$ |
282,474 |
Investment securities |
|
27,070 |
|
27,478 |
|
25,292 |
|
16,210 |
|
15,002 |
Interest bearing deposits in
other banks |
|
53,561 |
|
41,571 |
|
62,436 |
|
59,710 |
|
24,596 |
Total interest income |
|
425,769 |
|
401,916 |
|
385,166 |
|
371,292 |
|
322,072 |
Interest
expense |
|
|
|
|
|
Deposits |
|
160,117 |
|
137,391 |
|
120,094 |
|
96,150 |
|
60,317 |
Short-term borrowings |
|
19,576 |
|
18,253 |
|
14,744 |
|
13,449 |
|
10,011 |
Long-term debt |
|
14,005 |
|
14,282 |
|
14,983 |
|
14,088 |
|
12,663 |
Total interest expense |
|
193,698 |
|
169,926 |
|
149,821 |
|
123,687 |
|
82,991 |
Net interest
income |
|
232,071 |
|
231,990 |
|
235,345 |
|
247,605 |
|
239,081 |
Provision for credit
losses |
|
18,000 |
|
7,000 |
|
28,000 |
|
34,000 |
|
12,000 |
Net interest income
after provision for credit losses |
|
214,071 |
|
224,990 |
|
207,345 |
|
213,605 |
|
227,081 |
Non-interest
income |
|
|
|
|
|
Service charges on deposit
accounts |
|
5,297 |
|
5,158 |
|
5,022 |
|
5,252 |
|
5,797 |
Wealth management and trust
fee income |
|
3,509 |
|
3,715 |
|
3,429 |
|
3,442 |
|
3,631 |
Brokered loan fees |
|
2,532 |
|
2,415 |
|
1,895 |
|
2,655 |
|
3,401 |
Investment banking and trading
income |
|
29,191 |
|
27,498 |
|
18,768 |
|
11,937 |
|
7,812 |
Gain on disposal of
subsidiary |
|
— |
|
— |
|
— |
|
248,526 |
|
— |
Other |
|
6,343 |
|
7,225 |
|
8,289 |
|
5,855 |
|
4,691 |
Total non-interest income |
|
46,872 |
|
46,011 |
|
37,403 |
|
277,667 |
|
25,332 |
Non-interest
expense |
|
|
|
|
|
Salaries and benefits |
|
110,010 |
|
113,050 |
|
128,670 |
|
102,925 |
|
128,764 |
Occupancy expense |
|
9,910 |
|
9,482 |
|
9,619 |
|
17,030 |
|
9,433 |
Marketing |
|
4,757 |
|
6,367 |
|
9,044 |
|
10,623 |
|
8,282 |
Legal and professional |
|
17,614 |
|
15,669 |
|
14,514 |
|
37,493 |
|
16,775 |
Communications and
technology |
|
19,607 |
|
20,525 |
|
17,523 |
|
20,434 |
|
18,470 |
Federal Deposit Insurance
Corporation insurance assessment |
|
5,769 |
|
3,693 |
|
2,170 |
|
3,092 |
|
3,953 |
Other |
|
12,224 |
|
12,858 |
|
12,487 |
|
21,493 |
|
11,370 |
Total non-interest expense |
|
179,891 |
|
181,644 |
|
194,027 |
|
213,090 |
|
197,047 |
Income before income
taxes |
|
81,052 |
|
89,357 |
|
50,721 |
|
278,182 |
|
55,366 |
Income tax expense |
|
19,373 |
|
20,706 |
|
12,060 |
|
60,931 |
|
13,948 |
Net
income |
|
61,679 |
|
68,651 |
|
38,661 |
|
217,251 |
|
41,418 |
Preferred stock
dividends |
|
4,313 |
|
4,312 |
|
4,313 |
|
4,312 |
|
4,313 |
Net income available
to common shareholders |
$ |
57,366 |
$ |
64,339 |
$ |
34,348 |
$ |
212,939 |
$ |
37,105 |
|
|
TEXAS
CAPITAL BANCSHARES, INC. |
TAXABLE
EQUIVALENT NET INTEREST INCOME ANALYSIS
(UNAUDITED)(1) |
(dollars in
thousands) |
|
3rd Quarter 2023 |
|
2nd Quarter 2023 |
|
1st Quarter 2023 |
|
4th Quarter 2022 |
|
3rd Quarter 2022 |
|
AverageBalance |
Income/Expense |
Yield/Rate |
|
AverageBalance |
Income/Expense |
Yield/Rate |
|
AverageBalance |
Income/Expense |
Yield/Rate |
|
AverageBalance |
Income/Expense |
Yield/Rate |
|
AverageBalance |
Income/Expense |
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities(2) |
$ |
4,204,749 |
$ |
27,070 |
2.33 |
% |
|
$ |
4,306,881 |
$ |
27,478 |
2.36 |
% |
|
$ |
4,060,456 |
$ |
25,292 |
2.31 |
% |
|
$ |
3,385,372 |
$ |
16,210 |
1.70 |
% |
|
$ |
3,509,044 |
$ |
15,002 |
1.58 |
% |
Interest bearing cash and cash
equivalents |
|
3,965,045 |
|
53,561 |
5.36 |
% |
|
|
3,286,091 |
|
41,571 |
5.07 |
% |
|
|
5,541,341 |
|
62,436 |
4.57 |
% |
|
|
6,158,769 |
|
59,710 |
3.85 |
% |
|
|
4,453,806 |
|
24,596 |
2.19 |
% |
Loans held for sale |
|
31,878 |
|
647 |
8.06 |
% |
|
|
28,414 |
|
599 |
8.46 |
% |
|
|
43,472 |
|
938 |
8.75 |
% |
|
|
1,053,157 |
|
12,064 |
4.54 |
% |
|
|
1,029,983 |
|
11,316 |
4.36 |
% |
Loans held for investment,
mortgage finance |
|
4,697,702 |
|
31,217 |
2.64 |
% |
|
|
4,376,235 |
|
36,198 |
3.32 |
% |
|
|
3,286,804 |
|
28,528 |
3.52 |
% |
|
|
4,279,367 |
|
43,708 |
4.05 |
% |
|
|
5,287,531 |
|
52,756 |
3.96 |
% |
Loans held for
investment(3) |
|
16,317,324 |
|
313,346 |
7.62 |
% |
|
|
16,217,314 |
|
296,183 |
7.33 |
% |
|
|
15,598,854 |
|
268,131 |
6.97 |
% |
|
|
15,105,083 |
|
239,746 |
6.30 |
% |
|
|
16,843,922 |
|
218,513 |
5.15 |
% |
Less: Allowance for credit
losses on loans |
|
238,883 |
|
— |
— |
|
|
|
261,027 |
|
— |
— |
|
|
|
252,727 |
|
— |
— |
|
|
|
233,246 |
|
— |
— |
|
|
|
229,005 |
|
— |
— |
|
Loans held for investment,
net |
|
20,776,143 |
|
344,563 |
6.58 |
% |
|
|
20,332,522 |
|
332,381 |
6.56 |
% |
|
|
18,632,931 |
|
296,659 |
6.46 |
% |
|
|
19,151,204 |
|
283,454 |
5.87 |
% |
|
|
21,902,448 |
|
271,269 |
4.91 |
% |
Total earning assets |
|
28,977,815 |
|
425,841 |
5.75 |
% |
|
|
27,953,908 |
|
402,029 |
5.69 |
% |
|
|
28,278,200 |
|
385,325 |
5.45 |
% |
|
|
29,748,502 |
|
371,438 |
4.89 |
% |
|
|
30,895,281 |
|
322,183 |
4.10 |
% |
Cash and other assets |
|
1,106,031 |
|
|
|
|
1,049,145 |
|
|
|
|
1,041,745 |
|
|
|
|
989,900 |
|
|
|
|
918,630 |
|
|
Total
assets |
$ |
30,083,846 |
|
|
|
$ |
29,003,053 |
|
|
|
$ |
29,319,945 |
|
|
|
$ |
30,738,402 |
|
|
|
$ |
31,813,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction deposits |
$ |
1,755,451 |
$ |
13,627 |
3.08 |
% |
|
$ |
1,345,742 |
$ |
9,468 |
2.82 |
% |
|
$ |
776,500 |
$ |
3,853 |
2.01 |
% |
|
$ |
1,105,466 |
$ |
4,977 |
1.79 |
% |
|
$ |
1,444,964 |
$ |
5,239 |
1.44 |
% |
Savings deposits |
|
10,858,306 |
|
127,323 |
4.65 |
% |
|
|
10,590,558 |
|
114,275 |
4.33 |
% |
|
|
11,195,402 |
|
105,707 |
3.83 |
% |
|
|
10,563,049 |
|
80,801 |
3.03 |
% |
|
|
10,249,387 |
|
46,555 |
1.80 |
% |
Time deposits |
|
1,610,235 |
|
19,167 |
4.72 |
% |
|
|
1,531,922 |
|
13,648 |
3.57 |
% |
|
|
1,430,657 |
|
10,534 |
2.99 |
% |
|
|
1,625,857 |
|
10,372 |
2.53 |
% |
|
|
1,701,238 |
|
8,523 |
1.99 |
% |
Total interest bearing
deposits |
|
14,223,992 |
|
160,117 |
4.47 |
% |
|
|
13,468,222 |
|
137,391 |
4.09 |
% |
|
|
13,402,559 |
|
120,094 |
3.63 |
% |
|
|
13,294,372 |
|
96,150 |
2.87 |
% |
|
|
13,395,589 |
|
60,317 |
1.79 |
% |
Short-term borrowings |
|
1,393,478 |
|
19,576 |
5.57 |
% |
|
|
1,397,253 |
|
18,253 |
5.24 |
% |
|
|
1,242,881 |
|
14,744 |
4.81 |
% |
|
|
1,387,660 |
|
13,449 |
3.84 |
% |
|
|
1,931,537 |
|
10,011 |
2.06 |
% |
Long-term debt |
|
858,167 |
|
14,005 |
6.47 |
% |
|
|
883,871 |
|
14,282 |
6.48 |
% |
|
|
931,796 |
|
14,983 |
6.52 |
% |
|
|
931,107 |
|
14,088 |
6.00 |
% |
|
|
921,707 |
|
12,663 |
5.45 |
% |
Total interest bearing
liabilities |
|
16,475,637 |
|
193,698 |
4.66 |
% |
|
|
15,749,346 |
|
169,926 |
4.33 |
% |
|
|
15,577,236 |
|
149,821 |
3.90 |
% |
|
|
15,613,139 |
|
123,687 |
3.14 |
% |
|
|
16,248,833 |
|
82,991 |
2.03 |
% |
Non-interest bearing
deposits |
|
10,016,579 |
|
|
|
|
9,749,105 |
|
|
|
|
10,253,731 |
|
|
|
|
11,642,969 |
|
|
|
|
12,214,531 |
|
|
Other liabilities |
|
474,869 |
|
|
|
|
389,155 |
|
|
|
|
436,621 |
|
|
|
|
426,543 |
|
|
|
|
305,554 |
|
|
Stockholders’ equity |
|
3,116,761 |
|
|
|
|
3,115,447 |
|
|
|
|
3,052,357 |
|
|
|
|
3,055,751 |
|
|
|
|
3,044,993 |
|
|
Total liabilities and
stockholders’ equity |
$ |
30,083,846 |
|
|
|
$ |
29,003,053 |
|
|
|
$ |
29,319,945 |
|
|
|
$ |
30,738,402 |
|
|
|
$ |
31,813,911 |
|
|
Net interest
income |
|
$ |
232,143 |
|
|
|
$ |
232,103 |
|
|
|
$ |
235,504 |
|
|
|
$ |
247,751 |
|
|
|
$ |
239,192 |
|
Net interest
margin |
|
|
3.13 |
% |
|
|
|
3.29 |
% |
|
|
|
3.33 |
% |
|
|
|
3.26 |
% |
|
|
|
3.05 |
% |
(1) Taxable equivalent rates used where
applicable.(2) Yields on investment securities are calculated using
available-for-sale securities at amortized cost.(3) Average
balances include non-accrual loans.
INVESTOR CONTACT
Jocelyn Kukulka, 469.399.8544
jocelyn.kukulka@texascapitalbank.com
MEDIA CONTACT
Julia Monter, 469.399.8425
julia.monter@texascapitalbank.com
Texas Capital Bancshares (NASDAQ:TCBI)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Texas Capital Bancshares (NASDAQ:TCBI)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024