|
|
|
|
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
001-34657
(Commission
File Number)
|
75-2679109
(I.R.S. Employer
Identification Number)
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
(a)
|
On April 17, 2019, Texas Capital Bancshares, Inc. (the "Company") issued a press release and made a concurrent public presentation regarding its operating and financial results for its fiscal quarter and year ended
March 31, 2019
. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.
|
|
|
Number of Shares
|
|
|
||||||||
|
|
Voted For
|
|
Votes Withheld
|
|
Broker Non-Votes
|
||||||
Larry L. Helm
|
|
41,133,959
|
|
|
|
591,523
|
|
|
|
1,830,013
|
|
|
C. Keith Cargill
|
|
41,250,945
|
|
|
|
474,537
|
|
|
|
1,830,013
|
|
|
Jonathan E. Baliff
|
|
41,207,225
|
|
|
|
518,257
|
|
|
|
1,830,013
|
|
|
James H. Browning
|
|
24,992,957
|
|
|
|
16,802,525
|
|
|
|
1,830,013
|
|
|
David S. Huntley
|
|
41,145,200
|
|
|
|
580,282
|
|
|
|
1,830,013
|
|
|
Charles S. Hyle
|
|
41,165,093
|
|
|
|
560,389
|
|
|
|
1,830,013
|
|
|
Elysia Holt Ragusa
|
|
19,068,725
|
|
|
|
22,656,757
|
|
|
|
1,830,013
|
|
|
Steven P. Rosenberg
|
|
40,425,209
|
|
|
|
1,300,273
|
|
|
|
1,830,013
|
|
|
Robert W. Stallings
|
|
40,745,841
|
|
|
|
979,641
|
|
|
|
1,830,013
|
|
|
Dale W. Tremblay
|
|
38,485,454
|
|
|
|
3,240,028
|
|
|
|
1,830,013
|
|
|
Ian J. Turpin
|
|
24,515,913
|
|
|
|
17,209,569
|
|
|
|
1,830,013
|
|
|
Patricia A. Watson
|
|
41,053,341
|
|
|
|
672,141
|
|
|
|
1,830,013
|
|
|
|
Number of Shares
|
||||||||||||||
|
Voted For
|
|
Voted Against
|
|
Abstentions
|
|
Broker Non-Votes
|
||||||||
|
40,805,744
|
|
|
|
880,558
|
|
|
|
39,177
|
|
|
|
1,830,016
|
|
|
|
Number of Shares
|
|||||||||||||
|
Voted For
|
|
Voted Against
|
|
Abstentions
|
|
Broker Non-Votes
|
|||||||
|
42,253,557
|
|
|
|
1,281,184
|
|
|
|
20,754
|
|
|
|
0
|
|
(d)
|
Exhibits
|
99.1
|
99.2
|
Date:
|
April 17, 2019
|
TEXAS CAPITAL BANCSHARES, INC.
|
|||
|
|
|
|
||
|
|
|
By:
|
|
/s/ Julie Anderson
|
|
|
|
|
|
Julie Anderson
Chief Financial Officer |
•
|
Loans held for investment ("LHI"), excluding mortgage finance loans, increased
2%
on a linked quarter basis (increasing 1% on an average basis) and
8%
from the first quarter of 2018 (increasing
9%
on an average basis).
|
•
|
Total mortgage finance loans, including mortgage correspondent aggregation ("MCA") loans held for sale ("LHS"), increased
5%
on a linked quarter basis (decreasing 1% on an average basis) and increased
42%
from the first quarter of 2018 (increasing
33%
on an average basis).
|
•
|
Demand deposits decreased
8%
and total deposits remained flat on a linked quarter basis (decreased 6% and increased 1%, respectively, on an average basis), and decreased
9%
and increased
10%
, respectively, from the first quarter of 2018 (decreased
14%
and increased
8%
, respectively, on an average basis).
|
•
|
Net income increased
15%
on a linked quarter basis and increased
15%
from the first quarter of 2018.
|
•
|
EPS increased
16%
on a linked quarter basis and increased
16%
from the first quarter of 2018.
|
|
Q1 2019
|
|
Q1 2018
|
|
% Change
|
|||||
QUARTERLY OPERATING RESULTS
|
|
|
|
|
|
|||||
Net income
|
$
|
82,839
|
|
|
$
|
71,945
|
|
|
15
|
%
|
Net income available to common stockholders
|
$
|
80,401
|
|
|
$
|
69,507
|
|
|
16
|
%
|
Diluted EPS
|
$
|
1.60
|
|
|
$
|
1.38
|
|
|
16
|
%
|
Diluted shares
|
50,345
|
|
|
50,353
|
|
|
—
|
%
|
||
ROA
|
1.26
|
%
|
|
1.22
|
%
|
|
|
|||
ROE
|
13.58
|
%
|
|
13.39
|
%
|
|
|
|||
BALANCE SHEET
|
|
|
|
|
|
|||||
LHS
|
$
|
1,901,637
|
|
|
$
|
1,088,565
|
|
|
75
|
%
|
LHI, mortgage finance
|
6,299,710
|
|
|
4,689,938
|
|
|
34
|
%
|
||
LHI
|
17,061,590
|
|
|
15,741,772
|
|
|
8
|
%
|
||
Total LHI
|
23,361,300
|
|
|
20,431,710
|
|
|
14
|
%
|
||
Total loans
|
25,262,937
|
|
|
21,520,275
|
|
|
17
|
%
|
||
Total assets
|
28,383,111
|
|
|
24,449,147
|
|
|
16
|
%
|
||
Demand deposits
|
6,743,607
|
|
|
7,413,340
|
|
|
(9
|
)%
|
||
Total deposits
|
20,650,127
|
|
|
18,764,533
|
|
|
10
|
%
|
||
Stockholders’ equity
|
2,581,942
|
|
|
2,273,429
|
|
|
14
|
%
|
TEXAS CAPITAL BANCSHARES, INC.
|
|||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
|
|||||||||||||||
(Dollars in thousands except per share data)
|
|||||||||||||||
|
1st Quarter
|
4th Quarter
|
3rd Quarter
|
2nd Quarter
|
1st Quarter
|
||||||||||
|
2019
|
2018
|
2018
|
2018
|
2018
|
||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
325,561
|
|
$
|
321,718
|
|
$
|
301,754
|
|
$
|
286,852
|
|
$
|
253,869
|
|
Interest expense
|
89,947
|
|
81,045
|
|
69,579
|
|
55,140
|
|
43,569
|
|
|||||
Net interest income
|
235,614
|
|
240,673
|
|
232,175
|
|
231,712
|
|
210,300
|
|
|||||
Provision for credit losses
|
20,000
|
|
35,000
|
|
13,000
|
|
27,000
|
|
12,000
|
|
|||||
Net interest income after provision for credit losses
|
215,614
|
|
205,673
|
|
219,175
|
|
204,712
|
|
198,300
|
|
|||||
Non-interest income
|
30,014
|
|
15,280
|
|
25,518
|
|
17,279
|
|
19,947
|
|
|||||
Non-interest expense
|
140,378
|
|
129,862
|
|
136,143
|
|
132,131
|
|
126,960
|
|
|||||
Income before income taxes
|
105,250
|
|
91,091
|
|
108,550
|
|
89,860
|
|
91,287
|
|
|||||
Income tax expense
|
22,411
|
|
19,200
|
|
22,998
|
|
18,424
|
|
19,342
|
|
|||||
Net income
|
82,839
|
|
71,891
|
|
85,552
|
|
71,436
|
|
71,945
|
|
|||||
Preferred stock dividends
|
2,438
|
|
2,437
|
|
2,438
|
|
2,437
|
|
2,438
|
|
|||||
Net income available to common stockholders
|
$
|
80,401
|
|
$
|
69,454
|
|
$
|
83,114
|
|
$
|
68,999
|
|
$
|
69,507
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS
|
$
|
1.60
|
|
$
|
1.38
|
|
$
|
1.65
|
|
$
|
1.38
|
|
$
|
1.38
|
|
Diluted shares
|
50,345,399
|
|
50,333,412
|
|
50,381,349
|
|
50,096,015
|
|
50,353,497
|
|
|||||
CONSOLIDATED BALANCE SHEET DATA
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
28,383,111
|
|
$
|
28,257,767
|
|
$
|
27,127,107
|
|
$
|
27,781,910
|
|
$
|
24,449,147
|
|
LHI
|
17,061,590
|
|
16,690,550
|
|
16,569,538
|
|
16,536,721
|
|
15,741,772
|
|
|||||
LHI, mortgage finance
|
6,299,710
|
|
5,877,524
|
|
5,477,787
|
|
5,923,058
|
|
4,689,938
|
|
|||||
LHS
|
1,901,637
|
|
1,969,474
|
|
1,651,930
|
|
1,276,768
|
|
1,088,565
|
|
|||||
Liquidity assets
(1)
|
2,154,155
|
|
2,865,874
|
|
2,615,570
|
|
3,288,107
|
|
2,296,673
|
|
|||||
Investment securities
|
230,749
|
|
120,216
|
|
117,389
|
|
24,408
|
|
24,929
|
|
|||||
Demand deposits
|
6,743,607
|
|
7,317,161
|
|
7,031,460
|
|
7,648,125
|
|
7,413,340
|
|
|||||
Total deposits
|
20,650,127
|
|
20,606,113
|
|
20,385,637
|
|
20,334,871
|
|
18,764,533
|
|
|||||
Other borrowings
|
4,497,892
|
|
4,541,174
|
|
3,686,818
|
|
4,520,849
|
|
2,835,540
|
|
|||||
Subordinated notes
|
281,858
|
|
281,767
|
|
281,677
|
|
281,586
|
|
281,496
|
|
|||||
Long-term debt
|
113,406
|
|
113,406
|
|
113,406
|
|
113,406
|
|
113,406
|
|
|||||
Stockholders’ equity
|
2,581,942
|
|
2,500,394
|
|
2,426,442
|
|
2,343,530
|
|
2,273,429
|
|
|||||
|
|
|
|
|
|
||||||||||
End of period shares outstanding
|
50,263,611
|
|
50,200,710
|
|
50,177,260
|
|
50,151,064
|
|
49,669,774
|
|
|||||
Book value
|
$
|
48.38
|
|
$
|
46.82
|
|
$
|
45.37
|
|
$
|
43.74
|
|
$
|
42.75
|
|
Tangible book value
(2)
|
$
|
48.02
|
|
$
|
46.45
|
|
$
|
45.00
|
|
$
|
43.36
|
|
$
|
42.37
|
|
SELECTED FINANCIAL RATIOS
|
|
|
|
|
|
||||||||||
Net interest margin
|
3.73
|
%
|
3.78
|
%
|
3.70
|
%
|
3.93
|
%
|
3.71
|
%
|
|||||
Return on average assets
|
1.26
|
%
|
1.09
|
%
|
1.31
|
%
|
1.16
|
%
|
1.22
|
%
|
|||||
Return on average common equity
|
13.58
|
%
|
11.82
|
%
|
14.68
|
%
|
12.72
|
%
|
13.39
|
%
|
|||||
Non-interest income to average earning assets
|
0.47
|
%
|
0.24
|
%
|
0.40
|
%
|
0.29
|
%
|
0.35
|
%
|
|||||
Efficiency ratio
(3)
|
52.8
|
%
|
50.7
|
%
|
52.8
|
%
|
53.1
|
%
|
55.1
|
%
|
|||||
Non-interest expense to average earning assets
|
2.21
|
%
|
2.03
|
%
|
2.15
|
%
|
2.23
|
%
|
2.23
|
%
|
|||||
Tangible common equity to total tangible assets
(4)
|
8.5
|
%
|
8.3
|
%
|
8.3
|
%
|
7.8
|
%
|
8.6
|
%
|
|||||
Common Equity Tier 1
|
8.6
|
%
|
8.6
|
%
|
8.6
|
%
|
8.3
|
%
|
8.8
|
%
|
|||||
Tier 1 capital
|
9.6
|
%
|
9.5
|
%
|
9.6
|
%
|
9.3
|
%
|
9.9
|
%
|
|||||
Total capital
|
11.4
|
%
|
11.3
|
%
|
11.5
|
%
|
11.1
|
%
|
11.9
|
%
|
|||||
Leverage
|
10.0
|
%
|
9.9
|
%
|
9.7
|
%
|
9.9
|
%
|
9.9
|
%
|
(1)
|
Liquidity assets include Federal funds sold and interest-bearing deposits in other banks.
|
(2)
|
Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
|
(3)
|
Non-interest expense divided by the sum of net interest income and non-interest income.
|
(4)
|
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, 2019
|
March 31, 2018
|
%
Change
|
|||||
Assets
|
|
|
|
|||||
Cash and due from banks
|
$
|
177,137
|
|
$
|
154,497
|
|
15
|
%
|
Interest-bearing deposits
|
2,129,155
|
|
2,271,673
|
|
(6
|
)%
|
||
Federal funds sold and securities purchased under resale agreements
|
25,000
|
|
25,000
|
|
—
|
%
|
||
Securities, available-for-sale
|
230,749
|
|
24,929
|
|
826
|
%
|
||
LHS, at fair value
|
1,901,637
|
|
1,088,565
|
|
75
|
%
|
||
LHI, mortgage finance
|
6,299,710
|
|
4,689,938
|
|
34
|
%
|
||
LHI (net of unearned income)
|
17,061,590
|
|
15,741,772
|
|
8
|
%
|
||
Less: Allowance for loan losses
|
208,573
|
|
190,898
|
|
9
|
%
|
||
LHI, net
|
23,152,727
|
|
20,240,812
|
|
14
|
%
|
||
Mortgage servicing rights, net
|
44,088
|
|
76,561
|
|
(42
|
)%
|
||
Premises and equipment, net
|
24,200
|
|
27,564
|
|
(12
|
)%
|
||
Accrued interest receivable and other assets
|
679,966
|
|
520,624
|
|
31
|
%
|
||
Goodwill and intangibles, net
|
18,452
|
|
18,922
|
|
(2
|
)%
|
||
Total assets
|
$
|
28,383,111
|
|
$
|
24,449,147
|
|
16
|
%
|
|
|
|
|
|||||
Liabilities and Stockholders’ Equity
|
|
|
|
|||||
Liabilities:
|
|
|
|
|||||
Deposits:
|
|
|
|
|||||
Non-interest bearing
|
$
|
6,743,607
|
|
$
|
7,413,340
|
|
(9
|
)%
|
Interest bearing
|
13,906,520
|
|
11,351,193
|
|
23
|
%
|
||
Total deposits
|
20,650,127
|
|
18,764,533
|
|
10
|
%
|
||
|
|
|
|
|
||||
Accrued interest payable
|
24,488
|
|
5,174
|
|
373
|
%
|
||
Other liabilities
|
233,398
|
|
175,569
|
|
33
|
%
|
||
Federal funds purchased and repurchase agreements
|
897,892
|
|
535,540
|
|
68
|
%
|
||
Other borrowings
|
3,600,000
|
|
2,300,000
|
|
57
|
%
|
||
Subordinated notes, net
|
281,858
|
|
281,496
|
|
—
|
%
|
||
Trust preferred subordinated debentures
|
113,406
|
|
113,406
|
|
—
|
%
|
||
Total liabilities
|
25,801,169
|
|
22,175,718
|
|
16
|
%
|
||
|
|
|
|
|||||
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, 2019 and 2018
|
150,000
|
|
150,000
|
|
—
|
%
|
||
Common stock, $.01 par value:
|
|
|
|
|||||
Authorized shares - 100,000,000
|
|
|
|
|||||
Issued shares - 50,264,028 and 49,670,191 at March 31, 2019 and 2018, respectively
|
503
|
|
497
|
|
1
|
%
|
||
Additional paid-in capital
|
969,079
|
|
962,553
|
|
1
|
%
|
||
Retained earnings
|
1,461,893
|
|
1,159,925
|
|
26
|
%
|
||
Treasury stock (shares at cost: 417 at March 31, 2019 and 2018)
|
(8
|
)
|
(8
|
)
|
—
|
%
|
||
Accumulated other comprehensive income, net of taxes
|
475
|
|
462
|
|
3
|
%
|
||
Total stockholders’ equity
|
2,581,942
|
|
2,273,429
|
|
14
|
%
|
||
Total liabilities and stockholders’ equity
|
$
|
28,383,111
|
|
$
|
24,449,147
|
|
16
|
%
|
TEXAS CAPITAL BANCSHARES, INC.
|
|
|
||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
||||
(Dollars in thousands except per share data)
|
|
|
||||
|
Three Months Ended March 31,
|
|||||
|
2019
|
2018
|
||||
Interest income
|
|
|
||||
Interest and fees on loans
|
$
|
312,703
|
|
$
|
243,864
|
|
Investment securities
|
1,460
|
|
206
|
|
||
Federal funds sold and securities purchased under resale agreements
|
379
|
|
1,045
|
|
||
Interest-bearing deposits in other banks
|
11,019
|
|
8,754
|
|
||
Total interest income
|
325,561
|
|
253,869
|
|
||
Interest expense
|
|
|
||||
Deposits
|
69,054
|
|
31,702
|
|
||
Federal funds purchased
|
3,516
|
|
969
|
|
||
Other borrowings
|
11,854
|
|
5,680
|
|
||
Subordinated notes
|
4,191
|
|
4,191
|
|
||
Trust preferred subordinated debentures
|
1,332
|
|
1,027
|
|
||
Total interest expense
|
89,947
|
|
43,569
|
|
||
Net interest income
|
235,614
|
|
210,300
|
|
||
Provision for credit losses
|
20,000
|
|
12,000
|
|
||
Net interest income after provision for credit losses
|
215,614
|
|
198,300
|
|
||
Non-interest income
|
|
|
||||
Service charges on deposit accounts
|
2,979
|
|
3,137
|
|
||
Wealth management and trust fee income
|
2,009
|
|
1,924
|
|
||
Brokered loan fees
|
5,066
|
|
5,168
|
|
||
Servicing income
|
2,734
|
|
5,492
|
|
||
Swap fees
|
1,031
|
|
1,562
|
|
||
Net gain/(loss) on sale of LHS
|
(505
|
)
|
(2,173
|
)
|
||
Other
|
16,700
|
|
4,837
|
|
||
Total non-interest income
|
30,014
|
|
19,947
|
|
||
Non-interest expense
|
|
|
||||
Salaries and employee benefits
|
77,823
|
|
72,537
|
|
||
Net occupancy expense
|
7,879
|
|
7,234
|
|
||
Marketing
|
11,708
|
|
8,677
|
|
||
Legal and professional
|
10,030
|
|
7,530
|
|
||
Communications and technology
|
9,198
|
|
6,633
|
|
||
FDIC insurance assessment
|
5,122
|
|
6,103
|
|
||
Servicing related expenses
|
5,382
|
|
3,805
|
|
||
Allowance and other carrying costs for OREO
|
—
|
|
2,155
|
|
||
Other
|
13,236
|
|
12,286
|
|
||
Total non-interest expense
|
140,378
|
|
126,960
|
|
||
Income before income taxes
|
105,250
|
|
91,287
|
|
||
Income tax expense
|
22,411
|
|
19,342
|
|
||
Net income
|
82,839
|
|
71,945
|
|
||
Preferred stock dividends
|
2,438
|
|
2,438
|
|
||
Net income available to common stockholders
|
$
|
80,401
|
|
$
|
69,507
|
|
|
|
|
||||
Basic earnings per common share
|
$
|
1.60
|
|
$
|
1.40
|
|
Diluted earnings per common share
|
$
|
1.60
|
|
$
|
1.38
|
|
TEXAS CAPITAL BANCSHARES, INC.
|
|||||||||||||||
SUMMARY OF LOAN LOSS EXPERIENCE
|
|||||||||||||||
(Dollars in thousands)
|
|||||||||||||||
|
1st Quarter
|
4th Quarter
|
3rd Quarter
|
2nd Quarter
|
1st Quarter
|
||||||||||
|
2019
|
2018
|
2018
|
2018
|
2018
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
191,522
|
|
$
|
190,306
|
|
$
|
179,096
|
|
$
|
190,898
|
|
$
|
184,655
|
|
Loans charged-off:
|
|
|
|
|
|
||||||||||
Commercial
|
4,865
|
|
34,419
|
|
1,301
|
|
38,305
|
|
5,667
|
|
|||||
Real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Consumer
|
—
|
|
—
|
|
767
|
|
—
|
|
—
|
|
|||||
Leases
|
—
|
|
—
|
|
319
|
|
—
|
|
—
|
|
|||||
Total charge-offs
|
4,865
|
|
34,419
|
|
2,387
|
|
38,305
|
|
5,667
|
|
|||||
Recoveries:
|
|
|
|
|
|
||||||||||
Commercial
|
266
|
|
1,399
|
|
389
|
|
320
|
|
360
|
|
|||||
Real estate
|
—
|
|
26
|
|
11
|
|
8
|
|
24
|
|
|||||
Construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Consumer
|
10
|
|
360
|
|
10
|
|
9
|
|
59
|
|
|||||
Leases
|
1
|
|
1
|
|
12
|
|
1
|
|
19
|
|
|||||
Total recoveries
|
277
|
|
1,786
|
|
422
|
|
338
|
|
462
|
|
|||||
Net charge-offs
|
4,588
|
|
32,633
|
|
1,965
|
|
37,967
|
|
5,205
|
|
|||||
Provision for loan losses
|
21,639
|
|
33,849
|
|
13,175
|
|
26,165
|
|
11,448
|
|
|||||
Ending balance
|
$
|
208,573
|
|
$
|
191,522
|
|
$
|
190,306
|
|
$
|
179,096
|
|
$
|
190,898
|
|
|
|
|
|
|
|
||||||||||
Allowance for off-balance sheet credit losses:
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
11,434
|
|
$
|
10,283
|
|
$
|
10,458
|
|
$
|
9,623
|
|
$
|
9,071
|
|
Provision for off-balance sheet credit losses
|
(1,639
|
)
|
1,151
|
|
(175
|
)
|
835
|
|
552
|
|
|||||
Ending balance
|
$
|
9,795
|
|
$
|
11,434
|
|
$
|
10,283
|
|
$
|
10,458
|
|
$
|
9,623
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses
|
$
|
218,368
|
|
$
|
202,956
|
|
$
|
200,589
|
|
$
|
189,554
|
|
$
|
200,521
|
|
|
|
|
|
|
|
||||||||||
Total provision for credit losses
|
$
|
20,000
|
|
$
|
35,000
|
|
$
|
13,000
|
|
$
|
27,000
|
|
$
|
12,000
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses to LHI
|
0.89
|
%
|
0.85
|
%
|
0.86
|
%
|
0.80
|
%
|
0.93
|
%
|
|||||
Allowance for loan losses to average LHI
|
0.96
|
%
|
0.88
|
%
|
0.87
|
%
|
0.86
|
%
|
0.98
|
%
|
|||||
Net charge-offs to average LHI
(1)
|
0.09
|
%
|
0.60
|
%
|
0.04
|
%
|
0.73
|
%
|
0.11
|
%
|
|||||
Net charge-offs to average LHI for last twelve months
(1)
|
0.36
|
%
|
0.37
|
%
|
0.22
|
%
|
0.28
|
%
|
0.15
|
%
|
|||||
Total provision for credit losses to average LHI
(1)
|
0.37
|
%
|
0.64
|
%
|
0.24
|
%
|
0.52
|
%
|
0.25
|
%
|
|||||
Total allowance for credit losses to LHI
|
0.93
|
%
|
0.90
|
%
|
0.91
|
%
|
0.84
|
%
|
0.98
|
%
|
(1)
|
Interim period ratios are annualized.
|
TEXAS CAPITAL BANCSHARES, INC.
|
|
|
|
|
|
||||||||||
SUMMARY OF NON-PERFORMING ASSETS AND PAST DUE LOANS
|
|
|
|
||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
||||||||||
|
1st Quarter
|
4th Quarter
|
3rd Quarter
|
2nd Quarter
|
1st Quarter
|
||||||||||
|
2019
|
2018
|
2018
|
2018
|
2018
|
||||||||||
|
|
|
|
|
|
||||||||||
Non-performing assets (NPAs):
|
|
|
|
|
|
||||||||||
Non-accrual loans
|
$
|
133,690
|
|
$
|
80,375
|
|
$
|
107,532
|
|
$
|
83,295
|
|
$
|
123,542
|
|
Other real estate owned (OREO)
|
—
|
|
79
|
|
79
|
|
9,526
|
|
9,558
|
|
|||||
Total LHI NPAs
|
$
|
133,690
|
|
$
|
80,454
|
|
$
|
107,611
|
|
$
|
92,821
|
|
$
|
133,100
|
|
|
|
|
|
|
|
||||||||||
Non-accrual loans to LHI
|
0.57
|
%
|
0.36
|
%
|
0.49
|
%
|
0.37
|
%
|
0.60
|
%
|
|||||
Total LHI NPAs to LHI plus OREO
|
0.57
|
%
|
0.36
|
%
|
0.49
|
%
|
0.41
|
%
|
0.65
|
%
|
|||||
Total LHI NPAs to earning assets
|
0.49
|
%
|
0.29
|
%
|
0.41
|
%
|
0.35
|
%
|
0.56
|
%
|
|||||
Allowance for loan losses to non-accrual loans
|
1.6x
|
|
2.4x
|
|
1.8x
|
|
2.2x
|
|
1.5x
|
|
|||||
|
|
|
|
|
|
||||||||||
Loans past due 90 days and still accruing
(1)
|
$
|
12,245
|
|
$
|
9,353
|
|
$
|
11,295
|
|
$
|
7,357
|
|
$
|
13,563
|
|
Loans past due 90 days to LHI
|
0.05
|
%
|
0.04
|
%
|
0.05
|
%
|
0.03
|
%
|
0.07
|
%
|
|||||
LHS past due 90 days and still accruing
(2)
|
$
|
13,693
|
|
$
|
16,829
|
|
$
|
25,238
|
|
$
|
27,858
|
|
$
|
35,226
|
|
(1)
|
At
March 31, 2019
, loans past due 90 days and still accruing includes premium finance loans of
$12.0 million
. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
|
(2)
|
Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as LHS 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. Also includes loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not obligation, to repurchase and thus must record as LHS on our balance sheet regardless of whether the repurchase option has been exercised.
|
TEXAS CAPITAL BANCSHARES, INC.
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|||||||||||||||
(Dollars in thousands)
|
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
1st Quarter
|
4th Quarter
|
3rd Quarter
|
2nd Quarter
|
1st Quarter
|
||||||||||
|
2019
|
2018
|
2018
|
2018
|
2018
|
||||||||||
Interest income
|
|
|
|
|
|
||||||||||
Interest and fees on loans
|
$
|
312,703
|
|
$
|
310,470
|
|
$
|
291,189
|
|
$
|
279,447
|
|
$
|
243,864
|
|
Investment securities
|
1,460
|
|
1,274
|
|
1,161
|
|
193
|
|
206
|
|
|||||
Federal funds sold and securities purchased under resale agreements
|
379
|
|
984
|
|
1,018
|
|
745
|
|
1,045
|
|
|||||
Interest-bearing deposits in other banks
|
11,019
|
|
8,990
|
|
8,386
|
|
6,467
|
|
8,754
|
|
|||||
Total interest income
|
325,561
|
|
321,718
|
|
301,754
|
|
286,852
|
|
253,869
|
|
|||||
Interest expense
|
|
|
|
|
|
||||||||||
Deposits
|
69,054
|
|
61,773
|
|
52,034
|
|
39,607
|
|
31,702
|
|
|||||
Federal funds purchased
|
3,516
|
|
2,097
|
|
1,800
|
|
1,665
|
|
969
|
|
|||||
Other borrowings
|
11,854
|
|
11,726
|
|
10,317
|
|
8,484
|
|
5,680
|
|
|||||
Subordinated notes
|
4,191
|
|
4,191
|
|
4,191
|
|
4,191
|
|
4,191
|
|
|||||
Trust preferred subordinated debentures
|
1,332
|
|
1,258
|
|
1,237
|
|
1,193
|
|
1,027
|
|
|||||
Total interest expense
|
89,947
|
|
81,045
|
|
69,579
|
|
55,140
|
|
43,569
|
|
|||||
Net interest income
|
235,614
|
|
240,673
|
|
232,175
|
|
231,712
|
|
210,300
|
|
|||||
Provision for credit losses
|
20,000
|
|
35,000
|
|
13,000
|
|
27,000
|
|
12,000
|
|
|||||
Net interest income after provision for credit losses
|
215,614
|
|
205,673
|
|
219,175
|
|
204,712
|
|
198,300
|
|
|||||
Non-interest income
|
|
|
|
|
|
||||||||||
Service charges on deposit accounts
|
2,979
|
|
3,168
|
|
3,477
|
|
3,005
|
|
3,137
|
|
|||||
Wealth management and trust fee income
|
2,009
|
|
2,152
|
|
2,065
|
|
2,007
|
|
1,924
|
|
|||||
Brokered loan fees
|
5,066
|
|
5,408
|
|
6,141
|
|
5,815
|
|
5,168
|
|
|||||
Servicing income
|
2,734
|
|
2,861
|
|
4,987
|
|
4,967
|
|
5,492
|
|
|||||
Swap fees
|
1,031
|
|
1,356
|
|
1,355
|
|
1,352
|
|
1,562
|
|
|||||
Net gain/(loss) on sale of LHS
|
(505
|
)
|
(8,087
|
)
|
(444
|
)
|
(5,230
|
)
|
(2,173
|
)
|
|||||
Other
|
16,700
|
|
8,422
|
|
7,937
|
|
5,363
|
|
4,837
|
|
|||||
Total non-interest income
|
30,014
|
|
15,280
|
|
25,518
|
|
17,279
|
|
19,947
|
|
|||||
Non-interest expense
|
|
|
|
|
|
||||||||||
Salaries and employee benefits
|
77,823
|
|
69,500
|
|
77,327
|
|
72,404
|
|
72,537
|
|
|||||
Net occupancy expense
|
7,879
|
|
7,390
|
|
8,362
|
|
7,356
|
|
7,234
|
|
|||||
Marketing
|
11,708
|
|
10,208
|
|
10,214
|
|
10,236
|
|
8,677
|
|
|||||
Legal and professional
|
10,030
|
|
13,042
|
|
10,764
|
|
11,654
|
|
7,530
|
|
|||||
Communications and technology
|
9,198
|
|
8,845
|
|
7,435
|
|
7,143
|
|
6,633
|
|
|||||
FDIC insurance assessment
|
5,122
|
|
5,423
|
|
6,524
|
|
6,257
|
|
6,103
|
|
|||||
Servicing related expenses
|
5,382
|
|
2,555
|
|
4,207
|
|
4,367
|
|
3,805
|
|
|||||
Allowance and other carrying costs for OREO
|
—
|
|
7
|
|
(1,864
|
)
|
176
|
|
2,155
|
|
|||||
Other
|
13,236
|
|
12,892
|
|
13,174
|
|
12,538
|
|
12,286
|
|
|||||
Total non-interest expense
|
140,378
|
|
129,862
|
|
136,143
|
|
132,131
|
|
126,960
|
|
|||||
Income before income taxes
|
105,250
|
|
91,091
|
|
108,550
|
|
89,860
|
|
91,287
|
|
|||||
Income tax expense
|
22,411
|
|
19,200
|
|
22,998
|
|
18,424
|
|
19,342
|
|
|||||
Net income
|
82,839
|
|
71,891
|
|
85,552
|
|
71,436
|
|
71,945
|
|
|||||
Preferred stock dividends
|
2,438
|
|
2,437
|
|
2,438
|
|
2,437
|
|
2,438
|
|
|||||
Net income available to common shareholders
|
$
|
80,401
|
|
$
|
69,454
|
|
$
|
83,114
|
|
$
|
68,999
|
|
$
|
69,507
|
|
TEXAS CAPITAL BANCSHARES, INC.
|
||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL SUMMARY - UNAUDITED
|
||||||||||||||||||||||||||||||||||||||||||||
Consolidated Daily Average Balances, Average Yields and Rates
|
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
|
1st Quarter 2019
|
|
4th Quarter 2018
|
|
3rd Quarter 2018
|
|
2nd Quarter 2018
|
|
1st Quarter 2018
|
|||||||||||||||||||||||||||||||||||
|
Average
Balance
|
Revenue/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Revenue/
Expense
|
Yield/
Rate
|
|
Average
Balance |
Revenue/
Expense
|
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense
|
Yield/
Rate |
|
Average
Balance |
Revenue/
Expense
|
Yield/
Rate |
|||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Investment securities - Taxable
|
$
|
30,625
|
|
$
|
274
|
|
3.62
|
%
|
|
$
|
23,977
|
|
$
|
259
|
|
4.29
|
%
|
|
$
|
24,221
|
|
$
|
191
|
|
3.14
|
%
|
|
$
|
24,514
|
|
$
|
193
|
|
3.15
|
%
|
|
$
|
23,854
|
|
$
|
206
|
|
3.50
|
%
|
Investment securities - Non-taxable
(2)
|
114,341
|
|
1,501
|
|
5.33
|
%
|
|
93,394
|
|
1,285
|
|
5.46
|
%
|
|
91,298
|
|
1,228
|
|
5.33
|
%
|
|
—
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
|
—
|
%
|
||||||||||
Federal funds sold and securities purchased under resale agreements
|
63,652
|
|
379
|
|
2.41
|
%
|
|
173,654
|
|
984
|
|
2.25
|
%
|
|
203,972
|
|
1,018
|
|
1.98
|
%
|
|
166,613
|
|
745
|
|
1.79
|
%
|
|
261,641
|
|
1,045
|
|
1.62
|
%
|
||||||||||
Interest-bearing deposits in other banks
|
1,823,106
|
|
11,019
|
|
2.45
|
%
|
|
1,585,763
|
|
8,990
|
|
2.25
|
%
|
|
1,697,787
|
|
8,386
|
|
1.96
|
%
|
|
1,498,474
|
|
6,467
|
|
1.73
|
%
|
|
2,302,938
|
|
8,754
|
|
1.54
|
%
|
||||||||||
LHS, at fair value
|
2,122,302
|
|
25,303
|
|
4.84
|
%
|
|
2,049,395
|
|
24,407
|
|
4.72
|
%
|
|
1,484,459
|
|
17,272
|
|
4.62
|
%
|
|
1,516,047
|
|
17,026
|
|
4.50
|
%
|
|
1,187,594
|
|
12,535
|
|
4.28
|
%
|
||||||||||
LHI, mortgage finance loans
|
4,931,879
|
|
46,368
|
|
3.81
|
%
|
|
5,046,540
|
|
47,305
|
|
3.72
|
%
|
|
5,443,829
|
|
49,715
|
|
3.62
|
%
|
|
4,898,411
|
|
47,056
|
|
3.85
|
%
|
|
4,097,995
|
|
37,362
|
|
3.70
|
%
|
||||||||||
LHI
(1)(2)
|
16,866,456
|
|
242,155
|
|
5.82
|
%
|
|
16,643,559
|
|
239,995
|
|
5.72
|
%
|
|
16,331,622
|
|
225,604
|
|
5.48
|
%
|
|
15,883,317
|
|
216,755
|
|
5.47
|
%
|
|
15,425,323
|
|
195,333
|
|
5.14
|
%
|
||||||||||
Less allowance for loan
losses
|
192,122
|
|
—
|
|
—
|
|
|
182,814
|
|
—
|
|
—
|
|
|
179,227
|
|
—
|
|
—
|
|
|
189,238
|
|
—
|
|
—
|
|
|
184,238
|
|
—
|
|
—
|
|
||||||||||
LHI, net of allowance
|
21,606,213
|
|
288,523
|
|
5.42
|
%
|
|
21,507,285
|
|
287,300
|
|
5.30
|
%
|
|
21,596,224
|
|
275,319
|
|
5.06
|
%
|
|
20,592,490
|
|
263,811
|
|
5.14
|
%
|
|
19,339,080
|
|
232,695
|
|
4.88
|
%
|
||||||||||
Total earning assets
|
25,760,239
|
|
326,999
|
|
5.15
|
%
|
|
25,433,468
|
|
323,225
|
|
5.04
|
%
|
|
25,097,961
|
|
303,414
|
|
4.80
|
%
|
|
23,798,138
|
|
288,242
|
|
4.86
|
%
|
|
23,115,107
|
|
255,235
|
|
4.48
|
%
|
||||||||||
Cash and other assets
|
894,797
|
|
|
|
|
828,156
|
|
|
|
|
877,954
|
|
|
|
|
808,099
|
|
|
|
|
797,506
|
|
|
|
||||||||||||||||||||
Total assets
|
$
|
26,655,036
|
|
|
|
|
$
|
26,261,624
|
|
|
|
|
$
|
25,975,915
|
|
|
|
|
$
|
24,606,237
|
|
|
|
|
$
|
23,912,613
|
|
|
|
|||||||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Transaction deposits
|
$
|
3,263,976
|
|
$
|
16,001
|
|
1.99
|
%
|
|
$
|
3,233,960
|
|
$
|
15,150
|
|
1.86
|
%
|
|
$
|
3,253,310
|
|
$
|
13,642
|
|
1.66
|
%
|
|
$
|
2,889,834
|
|
$
|
10,295
|
|
1.43
|
%
|
|
$
|
2,792,954
|
|
$
|
8,651
|
|
1.26
|
%
|
Savings deposits
|
8,751,200
|
|
41,673
|
|
1.93
|
%
|
|
8,354,332
|
|
36,913
|
|
1.75
|
%
|
|
7,820,742
|
|
29,930
|
|
1.52
|
%
|
|
7,784,937
|
|
25,454
|
|
1.31
|
%
|
|
7,982,256
|
|
21,958
|
|
1.12
|
%
|
||||||||||
Time deposits
|
2,010,476
|
|
11,380
|
|
2.30
|
%
|
|
1,886,016
|
|
9,710
|
|
2.04
|
%
|
|
1,778,831
|
|
8,462
|
|
1.89
|
%
|
|
979,735
|
|
3,858
|
|
1.58
|
%
|
|
506,375
|
|
1,093
|
|
0.88
|
%
|
||||||||||
Total interest bearing deposits
|
14,025,652
|
|
69,054
|
|
2.00
|
%
|
|
13,474,308
|
|
61,773
|
|
1.82
|
%
|
|
12,852,883
|
|
52,034
|
|
1.61
|
%
|
|
11,654,506
|
|
39,607
|
|
1.36
|
%
|
|
11,281,585
|
|
31,702
|
|
1.14
|
%
|
||||||||||
Other borrowings
|
2,412,254
|
|
15,370
|
|
2.58
|
%
|
|
2,290,520
|
|
13,823
|
|
2.39
|
%
|
|
2,275,640
|
|
12,117
|
|
2.11
|
%
|
|
2,113,391
|
|
10,149
|
|
1.93
|
%
|
|
1,721,914
|
|
6,649
|
|
1.57
|
%
|
||||||||||
Subordinated notes
|
281,799
|
|
4,191
|
|
6.03
|
%
|
|
281,708
|
|
4,191
|
|
5.90
|
%
|
|
281,619
|
|
4,191
|
|
5.90
|
%
|
|
281,527
|
|
4,191
|
|
5.97
|
%
|
|
281,437
|
|
4,191
|
|
6.04
|
%
|
||||||||||
Trust preferred subordinated debentures
|
113,406
|
|
1,332
|
|
4.76
|
%
|
|
113,406
|
|
1,258
|
|
4.40
|
%
|
|
113,406
|
|
1,237
|
|
4.33
|
%
|
|
113,406
|
|
1,193
|
|
4.22
|
%
|
|
113,406
|
|
1,027
|
|
3.67
|
%
|
||||||||||
Total interest bearing liabilities
|
16,833,111
|
|
89,947
|
|
2.17
|
%
|
|
16,159,942
|
|
81,045
|
|
1.99
|
%
|
|
15,523,548
|
|
69,579
|
|
1.78
|
%
|
|
14,162,830
|
|
55,140
|
|
1.56
|
%
|
|
13,398,342
|
|
43,569
|
|
1.32
|
%
|
||||||||||
Demand deposits
|
7,047,120
|
|
|
|
|
7,462,392
|
|
|
|
|
7,940,503
|
|
|
|
|
8,017,578
|
|
|
|
|
8,147,721
|
|
|
|
||||||||||||||||||||
Other liabilities
|
223,142
|
|
|
|
|
157,278
|
|
|
|
|
116,302
|
|
|
|
|
100,074
|
|
|
|
|
110,698
|
|
|
|
||||||||||||||||||||
Stockholders’ equity
|
2,551,663
|
|
|
|
|
2,482,012
|
|
|
|
|
2,395,562
|
|
|
|
|
2,325,755
|
|
|
|
|
2,255,852
|
|
|
|
||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
26,655,036
|
|
|
|
|
$
|
26,261,624
|
|
|
|
|
$
|
25,975,915
|
|
|
|
|
$
|
24,606,237
|
|
|
|
|
$
|
23,912,613
|
|
|
|
|||||||||||||||
Net interest income
(2)
|
|
$
|
237,052
|
|
|
|
|
$
|
242,180
|
|
|
|
|
$
|
233,835
|
|
|
|
|
$
|
233,102
|
|
|
|
|
$
|
211,666
|
|
|
|||||||||||||||
Net interest margin
|
|
|
|
3.73
|
%
|
|
|
|
3.78
|
%
|
|
|
|
3.70
|
%
|
|
|
|
3.93
|
%
|
|
|
|
3.71
|
%
|
(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.
|