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EX - 99.1 2 a7212021 exhibit991.htm EX - 99.1 EARNINGS RELEASE Texas Capital Bancshares , Inc. Exhibit 99.1 INVESTOR CONTACT Jamie Britton , 214.932.6721 jamie.britton@texascapitalbank.com MEDIA CONTACT Shannon Wherry , 469.399.8527 shannon.wherry@texascapitalbank.com TEXAS CAPITAL BANCSHARES , INC . ANNOUNCES OPERATING RESULTS FOR Q2 2021 DALLAS - July 21 , 2021 - Texas Capital Bancshares , Inc. ( NASDAQ : TCBI ) , the parent company of Texas Capital Bank , announced operating results for the second quarter of 2021 . " I continue to be pleased with the progress we're making in these first six months of 2021 , " said Rob C. Holmes , President and CEO . “ Building on an incredibly productive first quarter , second quarter successes included executing our largest capital markets transaction to - date with a $ 375.0 million subordinated note issuance , making the strategic decision to sell our portfolio of mortgage servicing rights to better align resources for the future and continuing to add new talent in key strategic areas at a record - setting pace . All of these actions , combined with the necessary and much appreciated hard work being done by our team internally every day , are laying a lasting foundation to support our long- term strategy , which we are looking forward to sharing with you during the third quarter . ” ララ • Net income of $ 73.5 million ( $ 1.31 per diluted share ) reported for the second quarter of 2021 , an increase of $ 1.5 million on a linked quarter basis and an increase of $ 107.8 million from the second quarter of 2020 . • Loans held for investment ( “ LHI " ) , excluding mortgage finance loans , decreased 1 % on a linked quarter basis and decreased 8 % from the second quarter of 2020. PPP loans continue to pay off , as expected , and contributed $ 363.7 million to the linked quarter decrease in LHI , excluding mortgage finance loans . • Total mortgage finance loans , including mortgage correspondent aggregation ( " MCA " ) loans held for sale ( " LHS " ) , decreased 4 % on a linked quarter basis and decreased 6 % from the second quarter of 2020. The decrease in MCA LHS is consistent with the previously announced transition of the MCA program . • Demand deposits decreased 6 % and total deposits decreased 14 % on a linked quarter basis , and increased 31 % and decreased 4 % , respectively , from the second quarter of 2020. The linked - quarter declines were the result of targeted actions to reduce high - cost indexed deposits . • Issuance of $ 375.0 million in 4.00 % fixed rate subordinated notes , completed in the second quarter of 2021 , providing additional capital to be used for general corporate purposes . A portion of the proceeds were used for the redemption of our existing 6.50 % fixed rate subordinated notes . FINANCIAL SUMMARY ( dollars and shares in thousands ) Q2 2021 Q2 2020 % Change QUARTERLY OPERATING RESULTS Net income $ 73,481 $ ( 34,316 ) 314 % Net income available to common stockholders $ 67,164 $ ( 36,753 ) Diluted earnings per common share $ 1.31 $ ( 0.73 ) 283 % 279 % Diluted common shares 51,094 50,416 1 % Return on average assets 0.76 % ( 0.36 ) % Return on average common equity 9.74 % ( 5.48 ) % BALANCE SHEET LHS LHI , mortgage finance LHI Total LHI Total assets Demand deposits Total deposits Stockholders ' equity $ 63,747 $ 454,581 ( 86 ) % 8,772,799 8,972,626 ( 2 ) % 15,168,565 16,552,203 ( 8 ) % 23,941,364 25,524,829 ( 6 ) % 35,228,542 36,613,127 ( 4 ) % 14,228,038 10,835,911 31 % 28,839,563 30,187,695 ( 4 ) % 3,114,957 2,734,755 14 %