SEC Info - Texas Capital Bancshares Inc./TX - ‘8-K’ for 4/20/21

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Texas Capital Bancshares Inc./TX – ‘8-K’ for 4/20/21 – ‘EX-99.1’

On: Wednesday, 4/21/21, at 4:08pm ET · For: 4/20/21 · Accession #: 1077428-21-49 · File #: 1-34657

  As Of               Filer                 Filing    For·On·As Docs:Size

 4/21/21  Texas Capital Bancshares Inc./TX  8-K:2,5,9   4/20/21   14:3.7M

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     44K 
 2: EX-99.1     EX-99.1 Earnings Release                            HTML    180K 
 3: EX-99.2     EX-99.2 Earnings Presentation                       HTML     28K 
10: R1          Document And Entity Information Document            HTML     55K 
12: XML         IDEA XML File -- Filing Summary                      XML     13K 
 9: XML         XBRL Instance -- tcbi-20210420_htm                   XML     31K 
11: EXCEL       IDEA Workbook of Financial Reports                  XLSX      6K 
 5: EX-101.CAL  XBRL Calculations -- tcbi-20210420_cal               XML      7K 
 6: EX-101.DEF  XBRL Definitions -- tcbi-20210420_def                XML     43K 
 7: EX-101.LAB  XBRL Labels -- tcbi-20210420_lab                     XML     89K 
 8: EX-101.PRE  XBRL Presentations -- tcbi-20210420_pre              XML     44K 
 4: EX-101.SCH  XBRL Schema -- tcbi-20210420                         XSD     12K 
13: JSON        XBRL Instance as JSON Data -- MetaLinks               15±    22K 
14: ZIP         XBRL Zipped Folder -- 0001077428-21-000049-xbrl      Zip     49K

‘EX-99.1’ — EX-99.1 Earnings Release

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

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Document

Exhibit 99.1


INVESTOR CONTACT						MEDIA CONTACT
Jamie Britton, 214.932.6721						Shannon Wherry, 469.399.8527
jamie.britton@texascapitalbank.com						shannon.wherry@texascapitalbank.com

TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES OPERATING RESULTS FOR Q1 2021

DALLAS - April 21, 2021 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2021.

"In my first 90 days as CEO, we have achieved momentum in establishing the foundation from which we can move forward," said Rob C. Holmes, President and CEO. "In the first quarter alone, we were able to execute the largest capital raise in our history and close on our first warehouse lending credit risk transfer transaction, both of which position TCBI for future growth. Looking ahead, we will continue to supplement our workforce with new talent, take steps to drive shareholder value and develop our fulsome long-term strategy. As promised, I look forward to sharing it with you in the third quarter."

•Net income of $71.9 million ($1.33 per diluted share) reported for the first quarter of 2021, an increase of $11.8 million on a linked quarter basis and an increase of $88.6 million from the first quarter of 2020.

•Total mortgage finance loans, including mortgage correspondent aggregation ("MCA") loans held for sale ("LHS"), decreased 2% on a linked quarter basis (decreasing 15% on an average basis) and increased 10% from the first quarter of 2020 (decreasing 17% on an average basis).

•Demand deposits increased 19% and total deposits increased 8% on a linked quarter basis (increasing 9% and 2%, respectively, on an average basis), and increased 61% and 23%, respectively, from the first quarter of 2020 (increasing 44% and 21%, respectively, on an average basis).

•Loans held for investment ("LHI"), excluding mortgage finance loans, were flat on a linked quarter basis (decreasing 1% on an average basis) and decreased 9% from the first quarter of 2020 (decreasing 7% on an average basis).

•Issuance of $300.0 million in 5.75% fixed rate non-cumulative perpetual preferred stock, completed in the first quarter of 2021, providing additional equity to be used for general corporate purchases, including funding regulatory capital infusions into the Bank. We also intend to use a portion of the net proceeds to redeem, subject to all applicable regulatory approvals, our existing 6.5% fixed rate non-cumulative perpetual preferred stock.

•Issuance of $275.0 million senior unsecured credit-linked notes in the first quarter of 2021. The net proceeds of this offering will be used to expand the Bank's warehouse lending program and better serve our clients in all market environments.

FINANCIAL SUMMARY


(dollars and shares in thousands)	Q1 2021			Q1 2020			% Change







QUARTERLY OPERATING RESULTS
Net income	$	71,938		$	(16,687)		(531)	%
Net income available to common stockholders	$	68,159		$	(19,125)		(456)	%
Diluted earnings per common share	$	1.33		$	(0.38)		(450)	%
Diluted common shares	51,070			50,475			1	%
ROA	0.73		%	(0.20)		%
ROE	10.08		%	(2.85)		%
BALANCE SHEET
LHS	$	176,286		$	774,064		(77)	%
LHI, mortgage finance	9,009,081			7,588,803			19	%
LHI	15,399,174			16,857,579			(9)	%
Total LHI	24,408,255			24,446,382			—	%

Total assets	40,054,433			35,879,416			12	%
Demand deposits	15,174,642			9,420,303			61	%
Total deposits	33,391,970			27,134,263			23	%
Stockholders’ equity	3,159,482			2,772,596			14	%

DETAILED FINANCIALS

For the first quarter of 2021, net income was $71.9 million, compared to net income of $60.2 million for the fourth quarter of 2020, and net loss of $16.7 million for the first quarter of 2020. On a fully diluted basis, earnings per common share were $1.33 for the quarter ended March 31, 2021, compared to earnings per common share of $1.14 for the quarter ended December 31, 2020 and loss per common share of $0.38 for the quarter ended March 31, 2020. The increase in net income for the first quarter of 2021 as compared to the fourth quarter of 2020 resulted primarily from a $38.0 million decrease in the provision for credit losses, offset by a decrease in net interest income.

We recorded a $6.0 million negative provision for credit losses for the first quarter of 2021, compared to a $32.0 million provision for credit losses for the fourth quarter of 2020 and a $96.0 million provision for credit losses for the first quarter of 2020. The linked quarter decrease in provision for credit losses resulted primarily from a decrease in charge-offs and improvement in the economic outlook as the economy begins to recover from the impacts of the COVID-19 pandemic. We recorded $6.4 million in net charge-offs during the first quarter of 2021, including $5.0 million in energy net charge-offs on loans that had been previously identified as problem loans, compared to $65.4 million during the fourth quarter of 2020 and $57.7 million during the first quarter of 2020. Criticized loans totaled $945.1 million at March 31, 2021, compared to $918.4 million at December 31, 2020 and $675.9 million at March 31, 2020. Criticized loan levels remain elevated when compared to pre-pandemic levels due to the downgrade of loans to borrowers that have been impacted by the COVID-19 pandemic.

Non-performing assets ("NPAs") totaled $97.7 million at March 31, 2021, a decrease of $24.3 million compared to the fourth quarter of 2020 and a decrease of $121.4 million compared to the first quarter of 2020. The linked quarter change in NPAs was primarily due to a decline in non-accrual energy loans. The ratio of total LHI NPAs to total LHI plus other real estate owned ("OREO") for the first quarter of 2021 was 0.40%, compared to 0.50% for the fourth quarter of 2020 and 0.90% for the first quarter of 2020.

Net interest income was $200.1 million for the first quarter of 2021, compared to $223.0 million for the fourth quarter of 2020 and $228.3 million for the first quarter of 2020. Net interest margin for the first quarter of 2021 was 2.09%, a decrease of 23 basis points from the fourth quarter of 2020 and a decrease of 69 basis points from the first quarter of 2020. The shift in earning assets, primarily the increases in liquidity assets and investment securities coupled with a decrease in total average loans, contributed to the linked-quarter and year-over-year decreases in net interest margin. LHI yields, excluding mortgage finance loans, decreased 21 basis points from the fourth quarter of 2020, and decreased 98 basis points compared to the first quarter of 2020. LHI, mortgage finance yields for the first quarter of 2021 decreased 7 basis points compared to the fourth quarter of 2020, and increased 7 basis points compared to the first quarter of 2020. Additionally, total cost of deposits for the first quarter of 2021 decreased 5 basis points to 0.24% compared to 0.29% for the fourth quarter of 2020, and decreased 66 basis points from .90% for the first quarter of 2020.

Non-interest income for the first quarter of 2021 decreased $3.8 million, or 9%, compared to the fourth quarter of 2020, and increased $27.3 million, or 232%, compared to the first quarter of 2020. The linked quarter decrease was primarily related to decreases in brokered loans fees, net gain/(loss) on sale of LHS and other non-interest income, partially offset by an increase in service charges on deposit accounts. The year-over-year increase was primarily related to increases in net gain/(loss) on sale of LHS, servicing income and other non-interest income. The linked quarter decreases in brokered loan fees and net gain/(loss) on sale of LHS were primarily due to a decrease in total mortgage finance volumes in the first quarter of 2021. The year-over-year increase in net gain/(loss) on sale of LHS was due to lower hedge costs in the first quarter of 2021 as a result of holding purchased loans for shorter durations than in prior periods, and is offset by the year-over-year decline in net interest income on LHS.

Non-interest expense for the first quarter of 2021 decreased $570,000, or less than 1 percent, compared to the fourth quarter of 2020, and decreased $15.1 million, or 9%, compared to the first quarter of 2020. The linked quarter decrease was primarily related to decreases in marketing expense, legal and professional expense and servicing-related expenses, offset by an increase in salaries and employee benefits, which is typically higher in the first quarter due to FICA and other seasonal payroll expenses that peak in the first quarter. The year-over-year decrease was primarily due to decreases in marketing expense, legal and professional expense, servicing-related expenses and merger-related expenses, offset by increases in salaries and employee benefits and communications and technology expenses.

All regulatory ratios continue to be in excess of "well-capitalized" requirements as of March 31, 2021. Our CET 1, tier 1 capital, total capital and leverage ratios were 10.2%, 12.3%, 14.0% and 8.3%, respectively, at March 31, 2021, compared to 9.4%, 10.3%, 12.1% and 7.5%, respectively, at December 31, 2020. At March 31, 2021, our ratio of tangible common equity to total tangible assets was 6.7% compared to 7.2% at December 31, 2020.

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 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.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our financial condition, results of operations, business plans and future performance. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “forecast,” “could,” “should”, “projects,” “targeted,” “continue,” “intend” and similar expressions.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. 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 factors include, but are not limited to, (1) the credit quality of our loan portfolio, (2) general economic conditions in the United States, globally and in our markets and the impact they may have on us and our customers, including the continued impact on our customers from volatility in oil and gas prices, (3) the material risks and uncertainties for the U.S. and world economies, and for our business, resulting from the COVID-19 pandemic and any other pandemic, epidemic or health related crisis, (4) expectations regarding rates of default and credit losses, (5) volatility in the mortgage industry, (6) our business strategies, (7) our expectations about future financial performance, future growth and earnings, (8) the appropriateness of our allowance for credit losses and provision for credit losses, (9) our ability to identify, employ and retain qualified employees, (10) the impact of changing regulatory requirements and legislative changes on our business, (11) increased competition, (12) interest rate risk, (13)greater than expected costs or difficulties related to the integration and development of new lines of business, new products or service offerings and new technologies, (14) technological changes, (15) the cost and effects of cyber incidents or other failures, interruptions or security breaches of our systems or those of third party providers and (16) our success at managing the risk and uncertainties involved in the foregoing factors. In addition, statements about the effects of the COVID-19 pandemic on the firm’s business, results, financial position and liquidity are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.

These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. 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)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2021			2020			2020			2020			2020
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	228,412		$	255,163		$	243,731		$	252,010		$	306,008
Interest expense	28,339			32,153			36,162			42,082			77,689
Net interest income	200,073			223,010			207,569			209,928			228,319
Provision for credit losses	(6,000)			32,000			30,000			100,000			96,000
Net interest income after provision for credit losses	206,073			191,010			177,569			109,928			132,319
Non-interest income	39,092			42,886			60,348			70,502			11,780
Non-interest expense	150,316			150,886			165,741			222,352			165,417
Income/(loss) before income taxes	94,849			83,010			72,176			(41,922)			(21,318)
Income tax expense/(benefit)	22,911			22,834			15,060			(7,606)			(4,631)
Net income/(loss)	71,938			60,176			57,116			(34,316)			(16,687)
Preferred stock dividends	3,779			2,437			2,438			2,437			2,438
Net income/(loss) available to common stockholders	$	68,159		$	57,739		$	54,678		$	(36,753)		$	(19,125)
Diluted earnings/(loss) per common share	$	1.33		$	1.14		$	1.08		$	(0.73)		$	(0.38)
Diluted common shares	51,069,511			50,794,421			50,573,073			50,416,331			50,474,802
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	40,054,433		$	37,726,096		$	38,432,872		$	36,613,127		$	35,879,416
LHI	15,399,174			15,351,451			15,789,958			16,552,203			16,857,579
LHI, mortgage finance	9,009,081			9,079,409			9,378,104			8,972,626			7,588,803
LHS	176,286			283,165			648,009			454,581			774,064
Liquidity assets(1)	11,212,276			9,032,807			10,461,544			9,540,044			9,498,189
Investment securities	3,443,058			3,196,970			1,367,313			234,969			228,784
Demand deposits	15,174,642			12,740,947			12,339,212			10,835,911			9,420,303
Total deposits	33,391,970			30,996,589			31,959,487			30,187,695			27,134,263
Other borrowings	2,515,587			3,111,751			2,908,183			2,895,790			5,195,267
Long-term debt	664,968			395,896			395,806			395,715			395,625


Stockholders’ equity	3,159,482			2,871,224			2,800,404			2,734,755			2,772,596

End of period shares outstanding	50,557,767			50,470,450			50,455,552			50,435,672			50,407,778
Book value	$	53.59		$	53.92		$	52.53		$	51.25		$	52.03
Tangible book value(2)	$	53.24		$	53.57		$	52.18		$	50.89		$	51.67
SELECTED FINANCIAL RATIOS
Net interest margin	2.09		%	2.32		%	2.22		%	2.30		%	2.78		%
Return on average assets	0.73		%	0.61		%	0.59		%	(0.36)		%	(0.20)		%
Return on average common equity	10.08		%	8.50		%	8.24		%	(5.48)		%	(2.85)		%
Non-interest income to average earning assets	0.41		%	0.44		%	0.64		%	0.77		%	0.14		%
Efficiency ratio(3)	62.9		%	56.7		%	61.9		%	79.3		%	68.9		%

Non-interest expense to average earning assets	1.57		%	1.56		%	1.76		%	2.43		%	2.00		%
Tangible common equity to total tangible assets(4)	6.7		%	7.2		%	6.9		%	7.0		%	7.3		%
Common Equity Tier 1	10.2		%	9.4		%	9.1		%	8.8		%	9.3		%
Tier 1 capital	12.3		%	10.3		%	9.9		%	9.7		%	10.2		%
Total capital	14.0		%	12.1		%	11.8		%	11.6		%	12.0		%
Leverage	8.3		%	7.5		%	7.6		%	7.5		%	8.5		%

(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, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	March 31, 2021		March 31, 2020		% Change
Assets
Cash and due from banks	$	215,835	$	162,386	33	%
Interest-bearing deposits	11,212,276		9,468,189		18	%
Federal funds sold and securities purchased under resale agreements	—		30,000		(100)	%
Securities, available-for-sale	3,443,058		228,784		N/M
LHS, at fair value	176,286		774,064		(77)	%
LHI, mortgage finance	9,009,081		7,588,803		19	%
LHI (net of unearned income)	15,399,174		16,857,579		(9)	%
Less: Allowance for credit losses on loans	242,484		240,958		1	%
LHI, net	24,165,771		24,205,424		—	%
Mortgage servicing rights, net	121,096		70,619		71	%
Premises and equipment, net	23,346		29,663		(21)	%
Accrued interest receivable and other assets	679,199		892,305		(24)	%
Goodwill and intangibles, net	17,566		17,982		(2)	%
Total assets	$	40,054,433	$	35,879,416	12	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	15,174,642	$	9,420,303	61	%
Interest bearing	18,217,328		17,713,960		3	%

Total deposits	33,391,970		27,134,263		23	%

Accrued interest payable	5,629		16,969		(67)	%
Other liabilities	316,797		364,696		(13)	%
Federal funds purchased and repurchase agreements	115,587		295,267		(61)	%
Other borrowings	2,400,000		4,900,000		(51)	%
Long-term debt	664,968		395,625		68	%


Total liabilities	36,894,951		33,106,820		11	%



Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares - 10,000,000
Issued shares - 6,300,000 and 6,000,000 shares issued at March 31, 2021 and 2020, respectively	450,000		150,000		200	%
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued shares - 50,558,184 and 50,408,195 at March 31, 2021 and 2020, respectively	505		504		—	%
Additional paid-in capital	984,207		979,939		—	%
Retained earnings	1,781,215		1,637,392		9	%
Treasury stock (shares at cost: 417 at March 31, 2021 and 2020)	(8)		(8)		—	%
Accumulated other comprehensive income/(loss), net of taxes	(56,437)		4,769		N/M
Total stockholders’ equity	3,159,482		2,772,596		14	%
Total liabilities and stockholders’ equity	$	40,054,433	$	35,879,416	12	%


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended March 31,
		2021		2020
Interest income
Interest and fees on loans		$	215,592	$	283,625
Investment securities		9,887		2,183
Federal funds sold and securities purchased under resale agreements		1		614
Interest-bearing deposits in other banks		2,932		19,586
Total interest income		228,412		306,008
Interest expense
Deposits		20,004		62,174
Federal funds purchased		75		669

Other borrowings		2,517		9,582
Long-term debt		5,743		5,264


Total interest expense		28,339		77,689
Net interest income		200,073		228,319
Provision for credit losses		(6,000)		96,000
Net interest income after provision for credit losses		206,073		132,319
Non-interest income
Service charges on deposit accounts		4,716		3,293
Wealth management and trust fee income		2,855		2,467

Brokered loan fees		9,311		8,015
Servicing income		9,009		4,746
Swap fees		526		2,757
Net gain/(loss) on sale of LHS		5,572		(13,000)
Other		7,103		3,502
Total non-interest income		39,092		11,780
Non-interest expense
Salaries and employee benefits		87,522		77,193
Net occupancy expense		8,274		8,712
Marketing		1,697		8,522
Legal and professional		8,277		17,466
Communications and technology		15,969		13,791
FDIC insurance assessment		6,613		5,849
Servicing-related expenses		12,989		16,354

Merger-related expenses		—		7,270
Other		8,975		10,260
Total non-interest expense		150,316		165,417
Income/(loss) before income taxes		94,849		(21,318)
Income tax expense/(benefit)		22,911		(4,631)
Net income/(loss)		71,938		(16,687)
Preferred stock dividends		3,779		2,438
Net income/(loss) available to common stockholders		$	68,159	$	(19,125)

Basic earnings/(loss) per common share		$	1.35	$	(0.38)
Diluted earnings/(loss) per common share		$	1.33	$	(0.38)


TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2021			2020			2020			2020			2020
Allowance for credit losses on loans:
Beginning balance	$	254,615		$	290,165		$	264,722		$	240,958		$	195,047
Impact of CECL adoption	—			—			—			—			8,585
Loans charged-off:
Commercial	2,451			37,984			2,436			12,287			20,653
Energy	5,732			33,283			141			62,368			37,730
Real estate	—			180			—			—			—


Total charge-offs	8,183			71,447			2,577			74,655			58,383
Recoveries:
Commercial	1,050			394			113			513			257
Energy	715			5,696			880			—			423



Total recoveries	1,765			6,090			993			513			680
Net charge-offs	6,418			65,357			1,584			74,142			57,703
Provision for credit losses on loans	(5,713)			29,807			27,027			97,906			95,029
Ending balance	$	242,484		$	254,615		$	290,165		$	264,722		$	240,958

Allowance for off-balance sheet credit losses:
Beginning balance	$	17,434		$	15,241		$	12,268		$	10,174		$	8,640
Impact of CECL adoption	—			—			—			—			563
Provision for off-balance sheet credit losses	(287)			2,193			2,973			2,094			971
Ending balance	$	17,147		$	17,434		$	15,241		$	12,268		$	10,174

Total allowance for credit losses	$	259,631		$	272,049		$	305,406		$	276,990		$	251,132

Total provision for credit losses	$	(6,000)		$	32,000		$	30,000		$	100,000		$	96,000

Allowance for credit losses on loans to LHI	0.99		%	1.04		%	1.15		%	1.04		%	0.99		%

Allowance for credit losses on loans to average LHI	1.03		%	1.01		%	1.14		%	1.03		%	1.02		%

Net charge-offs to average LHI(1)	0.11		%	1.03		%	0.02		%	1.16		%	0.98		%

Net charge-offs to average LHI for last twelve months(1)	0.59		%	0.80		%	0.59		%	0.73		%	0.53		%

Total provision for credit losses to average LHI(1)	(0.10)		%	0.51		%	0.47		%	1.57		%	1.63		%

Total allowance for credit losses to LHI	1.06		%	1.11		%	1.21		%	1.09		%	1.03		%

(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
	2021			2020			2020			2020			2020

Non-performing assets (NPAs):
Non-accrual loans	$	97,730		$	121,989		$	161,946		$	174,031		$	219,165
Other real estate owned (OREO)	—			—			—			—			—
Total LHI NPAs	$	97,730		$	121,989		$	161,946		$	174,031		$	219,165

Non-accrual loans to LHI	0.40		%	0.50		%	0.64		%	0.68		%	0.90		%

Total LHI NPAs to LHI plus OREO	0.40		%	0.50		%	0.64		%	0.68		%	0.90		%

Total LHI NPAs to earning assets	0.25		%	0.33		%	0.43		%	0.49		%	0.63		%
Allowance for credit losses on loans to non-accrual loans	2.5x			2.1x			1.8x			1.5x			1.1x


LHI past due 90 days and still accruing(1)	$	6,187		$	12,541		$	15,896		$	21,079		$	21,274
LHI past due 90 days to LHI	0.03		%	0.05		%	0.06		%	0.08		%	0.09		%

LHS non-accrual(2)	$	—		$	6,966		$	—		$	—		$	—
LHS past due 90 days and still accruing(3)	$	16,359		$	16,667		$	15,631		$	10,152		$	9,014

(1)At March 31, 2021, loans past due 90 days and still accruing includes premium finance loans of $3.1 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.

(2)Includes one non-accrual loan previously reported in loans HFI that was transferred to loans HFS as of December 31, 2020 and subsequently sold at carrying value.

(3)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
	2021		2020		2020		2020		2020
Interest income
Interest and fees on loans	$	215,592	$	242,776	$	237,179	$	247,595	$	283,625
Investment securities	9,887		9,594		3,674		2,024		2,183
Federal funds sold and securities purchased under resale agreements	1		1		1		77		614
Interest-bearing deposits in other banks	2,932		2,792		2,877		2,314		19,586
Total interest income	228,412		255,163		243,731		252,010		306,008
Interest expense
Deposits	20,004		23,819		27,830		32,294		62,174
Federal funds purchased	75		110		128		176		669

Other borrowings	2,517		3,407		3,365		4,569		9,582
Long-term debt	5,743		4,817		4,839		5,043		5,264


Total interest expense	28,339		32,153		36,162		42,082		77,689
Net interest income	200,073		223,010		207,569		209,928		228,319
Provision for credit losses	(6,000)		32,000		30,000		100,000		96,000
Net interest income after provision for credit losses	206,073		191,010		177,569		109,928		132,319
Non-interest income
Service charges on deposit accounts	4,716		3,004		2,864		2,459		3,293
Wealth management and trust fee income	2,855		2,681		2,502		2,348		2,467

Brokered loan fees	9,311		12,610		15,034		10,764		8,015
Servicing income	9,009		8,834		7,329		6,120		4,746
Swap fees	526		473		484		1,468		2,757
Net gain/(loss) on sale of LHS	5,572		6,761		25,242		39,023		(13,000)
Other	7,103		8,523		6,893		8,320		3,502
Total non-interest income	39,092		42,886		60,348		70,502		11,780
Non-interest expense
Salaries and employee benefits	87,522		78,449		84,096		100,791		77,193
Net occupancy expense	8,274		8,373		8,736		9,134		8,712
Marketing	1,697		3,435		3,636		7,988		8,522
Legal and professional	8,277		12,129		11,207		11,330		17,466
Communications and technology	15,969		15,405		31,098		42,760		13,791
FDIC insurance assessment	6,613		6,592		6,374		7,140		5,849
Servicing-related expenses	12,989		15,867		12,287		20,117		16,354

Merger-related expenses	—		—		—		10,486		7,270
Other	8,975		10,636		8,307		12,606		10,260
Total non-interest expense	150,316		150,886		165,741		222,352		165,417
Income/(loss) before income taxes	94,849		83,010		72,176		(41,922)		(21,318)
Income tax expense/(benefit)	22,911		22,834		15,060		(7,606)		(4,631)
Net income/(loss)	71,938		60,176		57,116		(34,316)		(16,687)
Preferred stock dividends	3,779		2,437		2,438		2,437		2,438
Net income/(loss) available to common shareholders	$	68,159	$	57,739	$	54,678	$	(36,753)	$	(19,125)


TEXAS CAPITAL BANCSHARES, INC.
QUARTERLY FINANCIAL SUMMARY - UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
(dollars in thousands)
	1st Quarter 2021						4th Quarter 2020						3rd Quarter 2020						2nd Quarter 2020						1st Quarter 2020
	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	$	3,225,786	$	8,112	1.02	%	$	2,137,481	$	7,748	1.44	%	$	525,149	$	1,905	1.44	%	$	38,829	$	185	1.92	%	$	42,799	$	274	2.57	%
Investment securities - Non-taxable(2)	196,785		2,247		4.63	%	200,781		2,337		4.63	%	190,797		2,239		4.67	%	195,806		2,327		4.78	%	195,578		2,417		4.97	%
Federal funds sold and securities purchased under resale agreements	4,605		1		0.07	%	1,709		1		0.13	%	12,051		1		0.04	%	245,434		77		0.13	%	199,727		614		1.24	%
Interest-bearing deposits in other banks	11,840,942		2,932		0.10	%	10,808,548		2,792		0.10	%	11,028,962		2,877		0.10	%	10,521,240		2,314		0.09	%	6,225,948		19,586		1.27	%
LHS, at fair value	243,326		1,595		2.66	%	410,637		2,475		2.40	%	543,606		3,867		2.83	%	380,624		2,547		2.69	%	3,136,381		27,480		3.52	%
LHI, mortgage finance loans	8,177,759		64,942		3.22	%	9,550,119		78,906		3.29	%	9,061,984		76,464		3.36	%	8,676,521		74,518		3.45	%	7,054,682		55,324		3.15	%
LHI(1)(2)	15,457,888		149,196		3.91	%	15,620,410		161,750		4.12	%	16,286,036		157,230		3.84	%	17,015,041		170,970		4.04	%	16,598,775		201,781		4.89	%
Less allowance for credit losses on loans	254,697		—		—		290,189		—		—		264,769		—		—		236,823		—		—		201,837		—		—
LHI, net of allowance	23,380,950		214,138		3.71	%	24,880,340		240,656		3.85	%	25,083,251		233,694		3.71	%	25,454,739		245,488		3.88	%	23,451,620		257,105		4.41	%
Total earning assets	38,892,394		229,025		2.39	%	38,439,496		256,009		2.65	%	37,383,816		244,583		2.60	%	36,836,672		252,938		2.76	%	33,252,053		307,476		3.72	%
Cash and other assets	1,064,679						1,031,195						1,037,760						1,075,864						976,520
Total assets	$	39,957,073					$	39,470,691					$	38,421,576					$	37,912,536					$	34,228,573
Liabilities and Stockholders’ Equity
Transaction deposits	$	3,991,966	$	5,861	0.60	%	$	4,384,493	$	6,604	0.60	%	$	4,275,574	$	6,652	0.62	%	$	3,923,966	$	5,998	0.61	%	$	3,773,067	$	13,582	1.45	%
Savings deposits	12,889,974		10,788		0.34	%	12,982,189		12,671		0.39	%	12,786,719		12,808		0.40	%	12,537,467		13,510		0.43	%	11,069,429		35,961		1.31	%
Time deposits	2,204,242		3,355		0.62	%	2,355,199		4,544		0.77	%	2,844,083		8,370		1.17	%	3,434,388		12,786		1.50	%	2,842,535		12,631		1.79	%

Total interest bearing deposits	19,086,182		20,004		0.43	%	19,721,881		23,819		0.48	%	19,906,376		27,830		0.56	%	19,895,821		32,294		0.65	%	17,685,031		62,174		1.41	%
Other borrowings	2,686,398		2,592		0.39	%	3,022,077		3,517		0.46	%	2,811,435		3,493		0.49	%	3,612,263		4,745		0.53	%	3,020,255		10,251		1.37	%
Long-term debt	464,731		5,743		5.01	%	395,841		4,817		4.84	%	395,749		4,839		4.87	%	395,658		5,043		5.13	%	395,571		5,264		5.35	%


Total interest bearing liabilities	22,237,311		28,339		0.52	%	23,139,799		32,153		0.55	%	23,113,560		36,162		0.62	%	23,903,742		42,082		0.71	%	21,100,857		77,689		1.48	%
Demand deposits	14,421,505						13,174,114						12,202,065						10,865,896						10,003,495
Other liabilities	309,644						303,480						314,500						293,698						270,868
Stockholders’ equity	2,988,613						2,853,298						2,791,451						2,849,200						2,853,353
Total liabilities and stockholders’ equity	$	39,957,073					$	39,470,691					$	38,421,576					$	37,912,536					$	34,228,573
Net interest income(2)			$	200,686					$	223,856					$	208,421					$	210,856					$	229,787
Net interest margin					2.09	%					2.32	%					2.22	%					2.30	%					2.78	%

(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.

Dates Referenced Herein and Documents Incorporated by Reference

This ‘8-K’ Filing	Date	Other Filings

Filed on:	4/21/21
For Period end:	4/20/21	4, DEF 14A
	3/31/21	10-Q, 13F-HR
	12/31/20	10-K, 13F-HR
	3/31/20	10-Q, 13F-HR
		List all Filings

2 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/03/21  Texas Capital Bancshares Inc./TX  424B2                  1:485K                                   Donnelley … Solutions/FA
 4/29/21  Texas Capital Bancshares Inc./TX  424B5                  1:482K                                   Donnelley … Solutions/FA

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Filing Submission 0001077428-21-000049 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)