TEXAS CAPITAL BANCSHARES INC/TX - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - TEXAS CAPITAL BANCSHARES INC/TX	a07222015-8k.htm
EX-99.2 - EXHIBIT 99.2 - TEXAS CAPITAL BANCSHARES INC/TX	q22015earningswebcast.htm

Exhibit 99.1

July 22, 2015

MEDIA & INVESTOR CONTACT

Heather Worley, 214.932.6646

heather.worley@texascapitalbank.com

TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES OPERATING RESULTS FOR Q2 2015

DALLAS - July 22, 2015 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the second quarter of 2015.

“Our continued strong performance in 2015 is highlighted with outstanding loan and deposit growth and related earnings," said Keith Cargill, CEO. "For 2015 we have experienced solid growth and market share movement in core loans held for investment and a continued benefit from growth and refinancing activity in our mortgage finance business. We are pleased to announce our new Mortgage Correspondent Aggregation ("MCA") business, which we believe will successfully complement our mortgage finance business. This logical extension of our industry-leading service to current and prospective clients is expected to be highly profitable and capital efficient.”


•	Loans held for investment, excluding mortgage finance, increased 3% and total loans decreased 1% on a linked quarter basis, growing 22% and 25%, respectively, from the second quarter of 2014.


•	Mortgage finance loans decreased 9% on a linked quarter basis and increased 33% from the second quarter of 2014.


•	Demand deposits increased 7% and total deposits remained flat on a linked quarter basis, growing 55% and 32%, respectively, from the second quarter of 2014.


•	Net income increased 8% on a linked quarter basis and increased 14% from the second quarter of 2014.


•	EPS increased 9% on a linked quarter basis, and increased 7% from the second quarter of 2014.

FINANCIAL SUMMARY

(dollars and shares in thousands)



	Q2 2015			Q2 2014			% Change
QUARTERLY OPERATING RESULTS
Net income	$	37,937		$	33,421		14	%
Net income available to common stockholders	$	35,500		$	30,984		15	%
Diluted EPS	$	0.76		$	0.71		7	%
ROA	0.83		%	1.08		%
ROE	10.32		%	11.38		%
Diluted shares	46,443			43,845

BALANCE SHEET
Total assets	$	17,817,338		$	13,534,352		32	%
Demand deposits	6,479,073			4,181,774			55	%
Total deposits	14,188,276			10,757,316			32	%
Loans held for investment	11,123,325			9,153,005			22	%
Loans held for investment, mortgage finance	4,906,415			3,700,253			33	%
Total loans	16,029,740			12,853,258			25	%
Stockholders’ equity	1,554,529			1,262,816			23	%

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income of $37.9 million and net income available to common stockholders of $35.5 million for the quarter ended June 30, 2015 compared to net income of $33.4 million and net income available to common stockholders of $31.0 million for the same period in 2014. On a fully diluted basis, earnings per common share were $.76 for the quarter ended June 30, 2015 compared to $.71 for the same period of 2014.

Return on average common equity (“ROE”) was 10.32 percent and return on average assets (“ROA”) was .83 percent for the second quarter of 2015, compared to 11.38 percent and 1.08 percent, respectively, for the second quarter of 2014. The ROE decrease resulted from the 23 percent year-over-year increase in average common equity, reflecting the 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 $2.1 billion increase in average liquidity assets, which include Federal funds sold and deposits in other banks, from the second quarter of 2014 to the second quarter of 2015.

Net interest income was $142.3 million for the second quarter of 2015, compared to $115.4 million for the second quarter of 2014 and $130.0 million for the first quarter of 2015. The net interest margin for the second quarter of 2015 was 3.22 percent, a 65 basis point decrease from the second quarter of 2014 and consistent with 3.22 percent the first quarter of 2015. The year-over-year decrease in net interest margin is 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 16 basis points for the second quarter of 2015, compared to 17 basis points for the second quarter of 2014.

Average loans, excluding mortgage finance loans, for the second quarter of 2015 were $10.9 billion, an increase of $2.0 billion, or 22 percent, from the second quarter of 2014, and an increase of $438.9 million, or 4 percent, from the first quarter of 2015. Average mortgage finance loans for the second quarter of 2015 were $4.6 billion, an increase of $1.8 billion, or 62 percent, from the second quarter of 2014 and an increase of $826.5 million, or 22 percent, from the first quarter of 2015.

Average total deposits for the second quarter of 2015 increased $4.6 billion from the second quarter of 2014 and increased $945.4 million from the first quarter of 2015. Average demand deposits for the second quarter of 2015 increased $3.2 billion, or 87 percent, to $6.8 billion from $3.6 billion during the second quarter of 2014 and increased $1.2 billion, or 22 percent, from the first quarter of 2015.

We recorded a $14.5 million provision for credit losses in the second quarter of 2015 compared to $4.0 million in the second quarter of 2014 and $11.0 million in the first quarter of 2015. The provision for the second 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, excluding mortgage finance loans, as well as a change in applied risk weights which are based in part on historical loss experience as well as changes in the composition of our pass-rated loan portfolio. The combined reserve at June 30, 2015 increased to 1.14 percent of loans excluding mortgage finance loans due to continuing loan growth, as compared to 1.06 percent at June 30, 2014 and 1.08 percent at March 31, 2015. 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 second quarter of 2015, bringing the ratio of total non-performing assets to total loans plus other real estate owned (“OREO”) to .77 percent compared to .33 percent in the second quarter of 2014 and .43 percent in the first quarter of 2015. Net charge-offs for the second quarter of 2015 were $3.7 million compared to net charge-offs of $2.5 million in the second quarter of 2014 and net charge-offs of $3.1 million in the first quarter of 2015. For the second quarter of 2015, net charge-offs were .10 percent of total loans, compared to .08 percent for the same period in 2014. At June 30, 2015, non-performing assets included OREO of $609,000 compared to $685,000 as of June 30, 2014.

Non-interest income increased $2.2 million, or 21 percent, during the second quarter of 2015 compared to the same period of 2014. Brokered loan fees, swap fees and service charges increased $1.9 million, $625,000 and $385,000, respectively, during the second 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 $692,000 decrease in other non-interest income during the second quarter of 2015 compared to the same period of 2014.

Non-interest expense for the second quarter of 2015 increased $11.5 million, or 16 percent, to $81.3 million from $69.8 million in the second quarter of 2014. The increase is primarily related to an $8.3 million increase in salaries and employee benefits expense, a $1.3 million increase in communications and technology expense, a $957,000 increase in other non-interest expense, a $735,000 increase in net occupancy expense, and a $130,000 increase in marketing expense, all of which were due to general business growth. FDIC insurance assessment expense for the second quarter of 2015 increased $1.7 million compared to the same quarter in 2014 as a result of the increase in total assets from June 30, 2014 to June 30, 2015. Partially offsetting these increases was a $1.6 million decrease in legal and professional expense during the second quarter of 2015.

Stockholders’ equity increased by 23 percent from $1.3 billion at June 30, 2014 to $1.6 billion at June 30, 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 June 30, 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)
	2^nd Quarter			1^st Quarter			4^th Quarter			3^rd Quarter			2^nd Quarter
	2015			2015			2014			2014			2014
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	153,374		$	140,908		$	137,833		$	135,290		$	124,813
Interest expense	11,089			10,899			10,251			9,629			9,406
Net interest income	142,285			130,009			127,582			125,661			115,407
Provision for credit losses	14,500			11,000			6,500			6,500			4,000
Net interest income after provision for credit losses	127,785			119,009			121,082			119,161			111,407
Non-interest income	12,771			12,267			11,226			10,396			10,533
Non-interest expense	81,276			76,517			74,117			71,915			69,765
Income before income taxes	59,280			54,759			58,191			57,642			52,175
Income tax expense	21,343			19,709			20,357			20,810			18,754
Net income	37,937			35,050			37,834			36,832			33,421
Preferred stock dividends	2,437			2,438			2,437			2,438			2,437
Net income available to common stockholders	$	35,500		$	32,612		$	35,397		$	34,394		$	30,984

Diluted EPS	$	.76		$	.70		$	.78		$	.78		$	.71
Diluted shares	46,443,413			46,367,870			45,092,511			43,849,838			43,845,015

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	17,817,338		$	17,325,458		$	15,899,946		$	14,268,561		$	13,534,352
Loans held for investment	11,123,325			10,760,978			10,154,887			9,686,422			9,153,005
Loans held for investment, mortgage finance	4,906,415			5,408,750			4,102,125			3,774,467			3,700,253
Securities	35,361			37,649			41,719			43,938			49,330
Demand deposits	6,479,073			6,050,817			5,011,619			4,722,479			4,181,774
Total deposits	14,188,276			14,122,306			12,673,300			11,715,808			10,757,316
Other borrowings	1,509,007			1,125,458			1,192,681			735,689			1,000,548
Subordinated notes	286,000			286,000			286,000			286,000			286,000
Long-term debt	113,406			113,406			113,406			113,406			113,406
Stockholders’ equity	1,554,529			1,517,958			1,484,190			1,297,922			1,262,816

End of period shares outstanding	45,812,971			45,772,245			45,735,007			43,179,134			43,105,444
Book value	$	30.66		$	29.89		$	29.14		$	26.59		$	25.82
Tangible book value⁽¹⁾	$	30.22		$	29.44		$	28.69		$	26.10		$	25.33

SELECTED FINANCIAL RATIOS
Net interest margin	3.22		%	3.22		%	3.56		%	3.77		%	3.87		%
Return on average assets	0.83		%	0.84		%	1.03		%	1.07		%	1.08		%
Return on average common equity	10.32		%	9.82		%	11.41		%	12.11		%	11.38		%
Non-interest income to earning assets	0.29		%	0.30		%	0.31		%	0.31		%	0.35		%
Efficiency ratio⁽²⁾	52.4		%	53.8		%	53.4		%	52.9		%	55.4		%
Non-interest expense to earning assets	1.84		%	1.89		%	2.07		%	2.16		%	2.34		%
Tangible common equity to total tangible assets⁽³⁾	7.8		%	7.8		%	8.3		%	7.9		%	8.1		%


(1)	Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.


(2)	Non-interest expense divided by the sum of net interest income and non-interest income.


(3)	Stockholders’ equity excluding preferred stock and accumulated other comprehensive income less goodwill and intangibles divided by total assets less accumulated other comprehensive income and goodwill and intangibles.



TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	June 30, 2015			June 30, 2014			% Change
Assets
Cash and due from banks	$	117,387		$	116,525		1	%
Interest-bearing deposits	1,321,064			240,617			449	%
Federal funds sold and securities purchased under resale agreements	16,300			—			100	%
Securities, available-for-sale	35,361			49,330			(28	)%
Loans held for investment, mortgage finance	4,906,415			3,700,253			33	%
Loans held for investment (net of unearned income)	11,123,325			9,153,005			22	%
Less: Allowance for loan losses	118,770			91,114			30	%
Loans held for investment, net	15,910,970			12,762,144			25	%
Premises and equipment, net	17,951			15,762			14	%
Accrued interest receivable and other assets	378,068			329,036			15	%
Goodwill and intangibles, net	20,237			20,938			(3	)%
Total assets	$	17,817,338		$	13,534,352		32	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	6,479,073		$	4,181,774		55	%
Interest bearing	7,502,937			6,233,357			20	%
Interest bearing in foreign branches	206,266			342,185			(40	)%
Total deposits	14,188,276			10,757,316			32	%

Accrued interest payable	4,905			4,671			5	%
Other liabilities	161,215			109,595			47	%
Federal funds purchased and repurchase agreements	109,007			300,532			(64	)%
Other borrowings	1,400,000			700,016			100	%
Subordinated notes	286,000			286,000			—
Trust preferred subordinated debentures	113,406			113,406			—
Total liabilities	16,262,809			12,271,536			33	%

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 6,000,000 shares issued at June 30, 2015 and 2014	150,000			150,000			−
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 45,813,388 and 43,105,861 at June 30, 2015 and 2014, respectively	458			431			6	%
Additional paid-in capital	712,222			557,919			28	%
Retained earnings	690,826			552,923			25	%
Treasury stock (shares at cost: 417 at June 30, 2015 and 2014)	(8		)	(8		)	—
Accumulated other comprehensive income, net of taxes	1,031			1,551			(34	)%
Total stockholders’ equity	1,554,529			1,262,816			23	%
Total liabilities and stockholders’ equity	$	17,817,338		$	13,534,352		32	%



TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
	Three Months Ended June 30				Six Months Ended June 30
	2015		2014		2015		2014
Interest income
Interest and fees on loans	$	151,606	$	124,234	$	290,780	$	240,106
Securities	323		471		681		1,011
Federal funds sold	118		8		234		48
Deposits in other banks	1,327		100		2,587		259
Total interest income	153,374		124,813		294,282		241,424
Interest expense
Deposits	5,642		4,246		11,270		8,276
Federal funds purchased	93		115		161		210
Repurchase agreements	4		4		8		8
Other borrowings	528		181		918		253
Subordinated notes	4,191		4,241		8,382		7,720
Trust preferred subordinated debentures	631		619		1,249		1,235
Total interest expense	11,089		9,406		21,988		17,702
Net interest income	142,285		115,407		272,294		223,722
Provision for credit losses	14,500		4,000		25,500		9,000
Net interest income after provision for credit losses	127,785		111,407		246,794		214,722
Non-interest income
Service charges on deposit accounts	2,149		1,764		4,243		3,460
Trust fee income	1,287		1,242		2,487		2,524
Bank owned life insurance (BOLI) income	476		521		960		1,030
Brokered loan fees	5,277		3,357		9,509		6,181
Swap fees	1,035		410		3,021		1,634
Other	2,547		3,239		4,818		6,060
Total non-interest income	12,771		10,533		25,038		20,889
Non-interest expense
Salaries and employee benefits	48,200		39,896		94,028		81,952
Net occupancy expense	5,808		5,073		11,499		9,841
Marketing	3,925		3,795		8,143		7,554
Legal and professional	5,618		7,181		9,666		12,583
Communications and technology	5,647		4,361		10,725		8,285
FDIC insurance assessment	4,211		2,544		8,001		5,269
Allowance and other carrying costs for OREO	6		11		15		56
Other	7,861		6,904		15,716		13,542
Total non-interest expense	81,276		69,765		157,793		139,082
Income before income taxes	59,280		52,175		114,039		96,529
Income tax expense	21,343		18,754		41,052		34,843
Net income	37,937		33,421		72,987		61,686
Preferred stock dividends	2,437		2,437		4,875		4,875
Net income available to common stockholders	$	35,500	$	30,984	$	68,112	$	56,811

Basic earnings per common share	$	0.78	$	0.72	$	1.49	$	1.33
Diluted earnings per common share	$	0.76	$	0.71	$	1.47	$	1.30



TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
	2^nd Quarter			1^st Quarter			4^th Quarter			3^rd Quarter			2^nd Quarter
	2015			2015			2014			2014			2014
Reserve for loan losses:
Beginning balance	$	108,078		$	100,954		$	96,322		$	91,114		$	90,234
Loans charged-off:
Commercial	5,418			3,102			1,285			992			5,190
Real estate	—			346			—			—			246
Consumer	—			62			165			—			40
Total loans charged-off	5,418			3,510			1,450			992			5,476
Recoveries:
Commercial	1,424			286			190			329			2,033
Real estate	12			8			34			2			35
Construction	272			83			—			—			—
Consumer	6			4			96			35			6
Leases	15			8			2			31			925
Total recoveries	1,729			389			322			397			2,999
Net charge-offs	3,689			3,121			1,128			595			2,477
Provision for loan losses	14,381			10,245			5,760			5,803			3,357
Ending balance	$	118,770		$	108,078		$	100,954		$	96,322		$	91,114

Reserve for off-balance sheet credit losses:
Beginning balance	$	7,815		$	7,060		$	6,320		$	5,623		$	4,980
Provision for off-balance sheet credit losses	119			755			740			697			643
Ending balance	$	7,934		$	7,815		$	7,060		$	6,320		$	5,623

Total reserves for credit losses	$	126,704		$	115,893		$	108,014		$	102,642		$	96,737

Total provision for credit losses	$	14,500		$	11,000		$	6,500		$	6,500		$	4,000

Reserve to loans	0.74		%	0.67		%	0.71		%	0.72		%	0.71		%
Reserve to loans excluding mortgage finance loans⁽²⁾	1.07		%	1.00		%	0.99		%	0.99		%	1.00		%
Reserve to average loans	0.77		%	0.76		%	0.75		%	0.75		%	0.77		%
Reserve to average loans excluding mortgage finance loans⁽²⁾	1.09		%	1.03		%	1.02		%	1.02		%	1.01		%
Net charge-offs to average loans⁽¹⁾	0.10		%	0.09		%	0.03		%	0.02		%	0.08		%
Net charge-offs to average loans excluding mortgage finance loans⁽¹⁾⁽²⁾	0.14		%	0.12		%	0.05		%	0.03		%	0.11		%
Net charge-offs to average loans for last twelve months⁽¹⁾	0.06		%	0.06		%	0.05		%	0.05		%	0.06		%
Net charge-offs to average loans, excluding mortgage finance loans, for last twelve months⁽¹⁾⁽²⁾	0.08		%	0.08		%	0.07		%	0.07		%	0.07		%
Total provision for credit losses to average loans⁽¹⁾	0.37		%	0.31		%	0.19		%	0.20		%	0.14		%
Total provision for credit losses to average loans excluding mortgage finance loans⁽¹⁾⁽²⁾	0.53		%	0.42		%	0.26		%	0.27		%	0.18		%
Combined reserves for credit losses to loans	0.79		%	0.72		%	0.76		%	0.76		%	0.75		%
Combined reserves for credit losses to loans, excluding mortgage finance loans⁽²⁾	1.14		%	1.08		%	1.06		%	1.06		%	1.06		%

Non-performing assets (NPAs):
Non-accrual loans	$	122,920		$	68,307		$	43,304		$	37,733		$	41,565
Other real estate owned (OREO)	609			605			568			617			685
Total	$	123,529		$	68,912		$	43,872		$	38,350		$	42,250



	2^nd Quarter			1^st Quarter			4^th Quarter			3^rd Quarter			2^nd Quarter
	2015			2015			2014			2014			2014

Non-accrual loans to loans	0.77		%	0.42		%	0.30		%	0.28		%	0.32		%
Non-accrual loans to loans excluding mortgage finance loans⁽²⁾	1.11		%	0.63		%	0.43		%	0.39		%	0.45		%
Total NPAs to loans plus OREO	0.77		%	0.43		%	0.31		%	0.28		%	0.33		%
Total NPAs to loans excluding mortgage finance loans plus OREO⁽²⁾	1.11		%	0.64		%	0.43		%	0.40		%	0.46		%
Total NPAs to earning assets	0.72		%	0.41		%	0.28		%	0.28		%	0.32		%
Reserve for loan losses to non-accrual loans	1.0x			1.6x			2.3x			2.6x			2.2x

Restructured loans	$	249		$	319		$	1,806		$	1,853		$	249
Loans past due 90 days and still accruing⁽³⁾	$	5,482		$	2,971		$	5,274		$	6,102		$	4,793

Loans past due 90 days to loans	0.03		%	0.02		%	0.04		%	0.05		%	0.04		%
Loans past due 90 days to loans excluding mortgage finance loans⁽²⁾	0.05		%	0.03		%	0.05		%	0.06		%	0.05		%


(1)	Interim period ratios are annualized.


(2)	The indicated ratios are presented with and excluding the mortgage finance loans because the risk profile of our mortgage finance loans is different than our other loans held for investment. No provision for credit losses is allocated to these loans based on the internal risk grade assigned.


(3)	At June 30, 2015, loans past due 90 days and still accruing includes premium finance loans of $4.8 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.



TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands)

	2^nd Quarter		1^st Quarter		4^th Quarter		3^rd Quarter		2^nd Quarter
	2015		2015		2014		2014		2014
Interest income
Interest and fees on loans	$	151,606	$	139,174	$	136,882	$	134,618	$	124,234
Securities	323		358		389		428		471
Federal funds sold	118		116		91		68		8
Deposits in other banks	1,327		1,260		471		176		100
Total interest income	153,374		140,908		137,833		135,290		124,813
Interest expense
Deposits	5,642		5,628		5,263		4,606		4,246
Federal funds purchased	93		68		81		82		115
Repurchase agreements	4		4		4		5		4
Other borrowings	528		390		35		68		181
Subordinated notes	4,191		4,191		4,241		4,241		4,241
Trust preferred subordinated debentures	631		618		627		627		619
Total interest expense	11,089		10,899		10,251		9,629		9,406
Net interest income	142,285		130,009		127,582		125,661		115,407
Provision for credit losses	14,500		11,000		6,500		6,500		4,000
Net interest income after provision for credit losses	127,785		119,009		121,082		119,161		111,407
Non-interest income
Service charges on deposit accounts	2,149		2,094		1,976		1,817		1,764
Trust fee income	1,287		1,200		1,223		1,190		1,242
Bank owned life insurance (BOLI) income	476		484		520		517		521
Brokered loan fees	5,277		4,232		3,979		3,821		3,357
Swap fees	1,035		1,986		894		464		410
Other	2,547		2,271		2,634		2,587		3,239
Total non-interest income	12,771		12,267		11,226		10,396		10,533
Non-interest expense
Salaries and employee benefits	48,200		45,828		43,910		43,189		39,896
Net occupancy expense	5,808		5,691		5,746		5,279		5,073
Marketing	3,925		4,218		4,411		4,024		3,795
Legal and professional	5,618		4,048		3,725		4,874		7,181
Communications and technology	5,647		5,078		5,454		4,928		4,361
FDIC insurance assessment	4,211		3,790		2,875		2,775		2,544
Allowance and other carrying costs for OREO	6		9		24		5		11
Other	7,861		7,855		7,972		6,841		6,904
Total non-interest expense	81,276		76,517		74,117		71,915		69,765
Income before income taxes	59,280		54,759		58,191		57,642		52,175
Income tax expense	21,343		19,709		20,357		20,810		18,754
Net income	37,937		35,050		37,834		36,832		33,421
Preferred stock dividends	2,437		2,438		2,437		2,438		2,437
Net income available to common shareholders	$	35,500	$	32,612	$	35,397	$	34,394	$	30,984



TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY - UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates Continuing Operations
(Dollars in thousands)
	2^nd Quarter 2015						1^st Quarter 2015						4^th Quarter 2014						3^rd Quarter 2014						2^nd Quarter 2014
	Average Balance		Revenue/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Revenue/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Revenue/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Revenue/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Revenue/ Expense ⁽¹⁾		Yield/ Rate
Assets
Securities - Taxable	$	35,081	$	311	3.56	%	$	37,145	$	332	3.62	%	$	39,258	$	355	3.59	%	$	41,716	$	383	3.64	%	$	44,216	$	410	3.72	%
Securities - Non-taxable⁽²⁾	1,427		18		5.06	%	2,785		40		5.82	%	3,257		52		6.33	%	4,697		69		5.83	%	6,271		94		6.01	%
Federal funds sold and securities purchased under resale agreements	200,690		118		0.24	%	191,297		116		0.25	%	139,761		91		0.26	%	105,793		68		0.26	%	14,997		8		0.21	%
Deposits in other banks	2,103,732		1,327		0.25	%	2,019,567		1,260		0.25	%	742,240		471		0.25	%	283,062		176		0.25	%	183,061		100		0.22	%
Loans held for investment, mortgage finance loans	4,573,478		33,773		2.96	%	3,746,938		27,631		2.99	%	3,471,737		26,773		3.06	%	3,452,782		27,275		3.13	%	2,822,560		23,231		3.30	%
Loans held for investment	10,941,029		117,833		4.32	%	10,502,172		111,543		4.31	%	9,921,611		110,109		4.40	%	9,423,548		107,343		4.52	%	8,984,521		101,003		4.51	%
Less reserve for loan losses	109,086		—		—		101,042		—		—		96,139		—		—		91,427		—		—		90,105		—		—
Loans, net of reserve	15,405,421		151,606		3.95	%	14,148,068		139,174		3.99	%	13,297,209		136,882		4.08	%	12,784,903		134,618		4.18	%	11,716,976		124,234		4.25	%
Total earning assets	17,746,351		153,380		3.47	%	16,398,862		140,922		3.49	%	14,221,725		137,851		3.85	%	13,220,171		135,314		4.06	%	11,965,521		124,846		4.18	%
Cash and other assets	493,034						459,030						409,635						409,727						396,938
Total assets	$	18,239,385					$	16,857,892					$	14,631,360					$	13,629,898					$	12,362,459

Liabilities and Stockholders’ Equity
Transaction deposits	$	1,404,521	$	458	0.13	%	$	1,401,626	$	444	0.13	%	$	1,150,530	$	401	0.14	%	$	1,010,003	$	287	0.11	%	$	895,827	$	170	0.08	%
Savings deposits	5,610,277		4,332		0.31	%	5,891,344		4,420		0.30	%	5,479,395		4,121		0.30	%	4,991,779		3,519		0.28	%	4,679,140		3,395		0.29	%
Time deposits	516,582		657		0.51	%	447,681		506		0.46	%	406,040		413		0.40	%	485,558		475		0.39	%	401,024		390		0.39	%
Deposits in foreign branches	246,035		195		0.32	%	304,225		258		0.34	%	369,471		328		0.35	%	369,202		325		0.35	%	350,043		291		0.33	%
Total interest bearing deposits	7,777,415		5,642		0.29	%	8,044,876		5,628		0.28	%	7,405,436		5,263		0.28	%	6,856,542		4,606		0.27	%	6,326,034		4,246		0.27	%
Other borrowings	1,565,874		625		0.16	%	1,172,675		462		0.16	%	251,737		120		0.19	%	310,157		155		0.20	%	666,696		300		0.18	%
Subordinated notes	286,000		4,191		5.88	%	286,000		4,191		5.94	%	286,000		4,241		5.88	%	286,000		4,241		5.88	%	286,000		4,241		5.95	%
Trust preferred subordinated debentures	113,406		631		2.23	%	113,406		618		2.21	%	113,406		627		2.19	%	113,406		627		2.19	%	113,406		619		2.19	%
Total interest bearing liabilities	9,742,695		11,089		0.46	%	9,616,957		10,899		0.46	%	8,056,579		10,251		0.50	%	7,566,105		9,629		0.50	%	7,392,136		9,406		0.51	%
Demand deposits	6,804,994						5,592,124						5,047,876						4,669,772						3,629,941
Other liabilities	161,614						152,639						146,259						117,418						98,595
Stockholders’ equity	1,530,082						1,496,172						1,380,646						1,276,603						1,241,787
Total liabilities and stockholders’ equity	$	18,239,385					$	16,857,892					$	14,631,360					$	13,629,898					$	12,362,459

Net interest income⁽²⁾			$	142,291					$	130,023					$	127,600					$	125,685					$	115,440
Net interest margin					3.22	%					3.22	%					3.56	%					3.77	%					3.87	%


(1)	The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.


(2)	Taxable equivalent rates used where applicable.

TEXAS CAPITAL BANCSHARES INC/TX - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 22, 2015

Attached files

TEXAS CAPITAL BANCSHARES INC/TX Reports