NASDAQ$TCBI

Texas Capital Bancshares Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to a significant provision for credit losses driven by CECL adoption and the COVID-19 pandemic.

Texas Capital Bancshares, Inc. reported a net loss of $16.7 million for Q1 2020, primarily due to a $96.0 million provision for credit losses related to CECL adoption and the COVID-19 pandemic. The company focused on maintaining a strong balance sheet with increased liquidity and reserves.

  • Strong balance sheet positioning with deliberate increases in liquidity and funding sources.
  • Over 90% of employees working virtually since early March with little to no impact on client experience.
  • Net loss of $16.7 million or $0.38 per share was reported.
  • The results reflected increases in charge-offs and criticized loans related to the COVID-19 pandemic, MSR impairment, and merger-related expenses.

Headline financials

Total Revenue

$240M

Previous: $266M-9.6%
EPS (adj)

$1.39

Previous: $1.60-13.1%
Net Interest Margin

2.8%

No prior period
Return on Avg. Assets

-0.2%

No prior period
Return on Avg. Common Equity

-2.9%

No prior period
Efficiency Ratio

68.9%

No prior period
Tangible Common Equity Ratio

7.3%

No prior period
Common Equity Tier 1

9.3%

No prior period
Tier 1 Capital

10.2%

No prior period
Total Capital

12.0%

No prior period
Leverage Ratio

8.5%

No prior period
Capital Expenditures

-$1.01M

Previous: -$2.64M+61.9%
Free Cash Flow

-$17.7M

Previous: $80.2M-122.1%
Net Income

-$16.7M

Previous: $82.8M-120.1%
Operating Income

$20.5M

Previous: $113M-81.8%
Gross Profit

$144M

Previous: $246M-41.3%
Cash & Equivalents

$9.66B

Previous: $2.33B+314.4%
Total Assets

$35.9B

Previous: $28.4B+26.4%
Stock-Based Comp

$3.37M

Previous: $4.49M-24.9%

Revenue & EPS history

Texas Capital Bancshares · Revenue · Quarterly

$240M

Q1 2020-9.6%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Texas Capital Bancshares · $215M total across 2 segments · Q3 2021

  • Net Interest Income
    $194M
  • Non-Interest Income
    $21.2M

Forward guidance

This communication may be deemed to include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of TCBI.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.7%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+11.3%

Q3 2013

Best reaction

-13.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%-1.7%-3.1%
Q4 2025-0.1%-4.5%+2.7%
Q3 2025+3.1%+2.3%+7.2%
Q2 2025+0.4%-0.8%+3.2%
Q1 2025+1.4%+1.1%+16.4%
Q4 2024-4.5%-3.4%-1.2%
Q3 2024+0.7%-1.3%+10.9%
Q2 2024-6.6%-4.8%-12.9%
Q1 2024+4.9%+7.6%+11.5%
Q4 2023+3.5%+1.5%-3.4%
Q3 2023-7.9%-7.3%-5.5%
Q2 2023+3.3%+1.4%-2.9%
Q1 2023+1.7%-3.6%-3.8%
Q4 2022+1.3%+3.0%+6.3%
Q3 2022-13.4%-11.9%-13.1%
Q2 2022+1.4%+0.9%+13.0%
Q1 2022-6.5%-8.7%-12.0%
Q4 2021-0.3%+1.1%+4.2%
Q3 2021-2.7%-3.1%-5.4%
Q2 2021+2.1%+4.0%+7.3%
Q1 2021-1.1%+4.0%+7.5%
Q4 2020-3.8%-7.9%+8.7%
Q3 2020+9.6%+15.6%+45.3%
Q2 2020+9.2%+10.5%+12.9%
Q1 2020+6.1%+23.6%+30.3%
Q4 2019-0.2%-1.6%+4.5%
Q3 2019+2.4%+1.1%+6.7%
Q2 2019-4.6%-0.9%-6.7%
Q1 2019+6.7%+6.7%+3.3%
Q4 2018-0.5%+5.3%+6.1%
Q3 2018-11.7%-16.0%-21.0%
Q2 2018+4.7%+3.9%+1.0%
Q1 2018+7.4%+7.8%+10.0%
Q4 2017-0.3%-2.0%-6.8%
Q3 2017+3.7%+3.6%-2.6%
Q2 2017+4.5%+3.9%-6.9%
Q1 2017-6.3%-2.9%-4.4%
Q4 2016+8.4%+5.8%+14.2%
Q3 2016+3.7%+2.7%+26.5%
Q2 2016-2.3%-2.2%+1.3%
Q1 2016+5.9%
Q4 2015-12.9%
Q3 2015-0.8%
Q2 2015+0.2%
Q1 2015+2.9%
Q4 2014-6.0%
Q3 2014+0.6%
Q2 2014+3.5%
Q1 2014-11.8%
Q4 2013-4.3%
Q3 2013+11.3%
Q2 2013-3.1%
Q1 2013-3.5%
Q4 2012-10.6%
Q3 2012-0.2%
Q2 2012+1.6%
Q1 2011+10.0%
Q1 2012+10.0%
Q4 2010+1.6%
Q1 2010+1.6%
Q4 2011+1.6%
Q4 2009+1.6%
Q3 2010-1.5%
Q3 2011-1.5%
Q2 2011+7.3%
Q2 2010+7.3%

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