TEXAS CAPITAL BANCSHARES INC/TX - FORM 8-K - EX-99.3 - January 23, 2014

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8-K - 8-K - TEXAS CAPITAL BANCSHARES INC/TXd659976d8k.htm
EX-99.1 - EX-99.1 - TEXAS CAPITAL BANCSHARES INC/TXd659976dex991.htm
EX-99.2 - EX-99.2 - TEXAS CAPITAL BANCSHARES INC/TXd659976dex992.htm
EX-99.4 - EX-99.4 - TEXAS CAPITAL BANCSHARES INC/TXd659976dex994.htm

Exhibit 99.3

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands) (2010, 2011, 2012 corrected)

 

     Year ended December 31  
     2013     2012     2011     2010  

Operating activities

         

Net income from continuing operations

    $ 121,046      $ 120,709      $ 76,102      $ 37,323   

Adjustments to reconcile net income from continuing operations to net cash used in operating activities:

         

Provision for credit losses

      19,000        11,500        28,500        53,500   

Deferred tax benefit/(expense)

      (11,599 )      (3,131 )      (6,682 )      (5,613 ) 

Depreciation and amortization

      5,382        4,782        5,364        6,821   

Amortization and accretion on securities

      22        38        78        139   

Bank owned life insurance (BOLI) income

      (1,917 )      (2,168 )      (2,095 )      (1,889 ) 

Stock-based compensation expense

      20,953        12,018        7,340        6,770   

Tax benefit from stock option exercises

      1,200        7,769        3,139        621   

Excess tax benefits from stock-based compensation arrangements

      (3,427 )      (22,197 )      (8,970 )      (1,774 ) 

(Gain) loss on sale of assets

      (931 )      (917 )      (80 )      93   

Changes in operating assets and liabilities:

         

Accrued interest receivable and other assets

      37,100        (56,679 )      (59,508 )      (24,287 ) 

Accrued interest payable and other liabilities

      2,308        3,066        32,694        25,207   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in operating activities of continuing operations

      189,137        74,790        75,882        96,911   

Net cash provided by/(used in) operating activities of discontinued operations

      13        54        (29 )      (128 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in operating activities

      189,150        74,844        75,853        96,783   

Investing activities

         

Purchases of available-for-sale securities

      (2 )      (13 )      (10,000 )      —     

Maturities and calls of available-for-sale securities

      15,890        14,260        8,240        4,425   

Principal payments received on available-for-sale securities

      18,542        27,000        42,421        74,895   

Originations of mortgage finance loans

      (51,087,328 )      (51,110,692 )      (27,234,509 )      (22,859,900 ) 

Proceeds from pay-offs of mortgage finance loans

      51,478,335        50,015,503        26,348,634        22,359,195   

Net increase in loans held for investment, excluding mortgage finance loans

      (1,706,505 )      (1,220,626 )      (890,753 )      (303,618 ) 

Purchase of premises and equipment, net

      (4,029 )      (3,538 )      (3,286 )      (3,832 ) 

Proceeds from sale of foreclosed assets

      11,667        14,921        23,329        5,980   

Cash paid for acquisition

      (2,445 )      —          (11,482 )      (10,152 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in investing activities of continuing operations

      (1,275,875 )      (2,263,185 )      (1,727,406 )      (733,007 ) 

Financing activities

         

Net increase in deposits

      1,816,575        1,884,547        100,856        1,334,676   

Proceeds from issuance of stock related to stock-based awards and warrants

      (2,210 )      355        2,190        866   

Proceeds from issuance of common stock

      —          86,987        —          12,477   

Proceeds from issuance of preferred stock

      144,987        —          —          —     

Preferred dividends paid

      (6,960 )      —          —          —     

Net increase (decrease) in other borrowings

      (797,002 )      318,115        1,341,761        (362,404 ) 

Excess tax benefits from stock-based compensation arrangements

      3,427        22,197        8,970        1,774   

Net increase (decrease) in federal funds purchased

      (124,529 )      (139,070 )      128,468        (296,738 ) 

Issuance of subordinated notes

      —          111,000        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by financing activities of continuing operations

      1,034,288        2,284,131        1,582,245        690,651   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      (52,437 )      95,790        (69,308 )      54,427   

Cash and cash equivalents at beginning of period

      206,348        110,558        179,866        125,439   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 153,911      $ 206,348      $ 110,558      $ 179,866   
  

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental disclosures of cash flow information:

         

Cash paid during the period for interest

    $ 24,962      $ 21,527      $ 20,643      $ 38,025   

Cash paid during the period for income taxes

      77,635        69,095        32,127        27,134   

Transfers from loans/leases to OREO and other repossessed assets

      1,331        3,489        24,327        29,559   

See accompanying notes to consolidated financial statements.

EXHIBIT 99.3 – SUPPLEMENTAL DATA (unaudited)

SELECTED CONSOLIDATED FINANCIAL DATA (corrected)(unaudited)

 

     2012     2011     2010     2009     2008  
     (In thousands, except per share, average share and percentage data)  

Consolidated Balance Sheet Data (1)

           

Total assets (2)

    $ 10,540,542     $ 8,137,225     $ 6,445,679     $ 5,698,318     $ 5,141,034   

Loans held for investment, mortgage finance loans

      3,175,272        2,080,081        1,194,209        693,504        496,351   

Loans held for investment

      6,785,535        5,572,371        4,711,130        4,457,293        4,027,871   

Loans held for sale from discontinued operations

      302       393       490       586       648   

Securities available-for-sale

      100,195       143,710       185,424       266,128       378,752   

Demand deposits

      2,535,375       1,751,944       1,451,307       899,492       587,161   

Total deposits

      7,440,804       5,556,257       5,455,401       4,120,725       3,333,187   

Federal funds purchased

      273,179       412,249       283,781       580,519       350,155   

Other borrowings

      1,673,982       1,355,867       14,106       376,510       930,452   

Subordinated notes

      111,000       —         —         —         —     

Trust preferred subordinated debentures

      113,406       113,406       113,406       113,406       113,406   

Stockholders’ equity

      836,242       616,331       528,319       481,360       387,073   

Selected Financial Ratios (3)

           

Asset Quality Ratios

           

Net charge-offs (recoveries) to average loans

      0.07 %      0.47 %      0.95 %      0.41 %      0.35 % 

Net charge-offs (recoveries) to average loans excluding mortgage finance loans

      0.10 %      0.58 %      1.14 %      0.46 %      0.35 % 

Reserve for loan losses to loans held for investment

      0.75 %      0.92 %      1.21 %      1.32 %      1.00 % 

Reserve for loan losses to loans held for investment excluding mortgage finance loans

      1.10 %      1.26 %      1.52 %      1.52 %      1.13 % 

Reserve for loan losses to non-accrual loans

      1.3x        1.3x        .6x        .7x        1.0x   

Non-accrual loans to loans

      0.56 %      0.71 %      1.90 %      1.86 %      1.05 % 

Non-accrual loans to loans excluding mortgage finance loans

      0.82 %      0.98 %      2.38 %      2.15 %      1.18 % 

Total NPAs to loans plus OREO

      0.72 %      1.17 %      2.60 %      2.38 %      1.61 % 

Total NPAs to loans excluding mortgage finance loans plus OREO

      1.06 %      1.61 %      3.26 %      2.74 %      1.81 % 

 

(1)  The consolidated statement of operating data and consolidated balance sheet data presented above for the five most recent fiscal years ended December 31, have been derived from our audited consolidated financial statements. The historical results are not necessarily indicative of the results to be expected in any future period.
(2)  From continuing operations.
(3)  Mortgage finance loans were previously classified as loans held for sale but have been reclassified as loans held for investment. 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.

Consolidated Daily Average Balances, Average Yields and Rates (corrected)

 

     2012     2011     2010  
     Average
Balance		      Revenue /
Expense(1)		      Yield /
Rate		     Average
Balance		      Revenue /
Expense(1)		      Yield /
Rate		     Average
Balance		      Revenue /
Expense(1)		      Yield /
Rate		  

Assets

                         

Securities—Taxable

    $ 90,796      $ 3,681        4.05 %    $ 123,124      $ 5,186        4.21 %    $ 183,363       $ 8,023         4.38 % 

Securities—Non-taxable(2)

      26,579        1,550        5.83 %      33,996        1,957        5.76 %      39,360         2,243         5.70 % 

Federal funds sold

      11,497        13        0.11 %      21,897        37        0.17 %      112,716         210         0.19 % 

Deposits in other banks

      61,192        208        0.34 %      107,734        352        0.33 %      47,365         116         0.24 % 

Loans held for investment, mortgage finance loans

      2,298,651         93,275         4.06 %      1,210,954         53,940         4.45 %      883,033         41,808         4.73 % 

Loans held for investment

      6,148,860         300,273         4.88 %      5,059,134         260,813         5.16 %      4,475,668         228,195         5.10 % 

Less reserve for loan losses

      72,087        —          —         67,888        —          —         71,942         —           —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Loans, net

      8,375,424        393,548        4.70 %      6,202,200        314,753        5.07 %      5,286,759         270,003         5.11 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total earning assets

      8,565,488        399,000        4.66 %      6,488,951        322,285        4.97 %      5,669,563         280,595         4.95 % 

Cash and other assets

      400,472             330,137             281,448         
  

 

 

          

 

 

          

 

 

        

Total assets

    $ 8,965,960           $ 6,819,088           $ 5,951,011         
  

 

 

          

 

 

          

 

 

        

Liabilities and stockholders’ equity

                         

Transaction deposits

    $ 752,040      $ 829        0.11 %    $ 391,100      $ 195        0.05 %    $ 437,674       $ 974         0.22 % 

Savings deposits

      2,765,089        8,674        0.31 %      2,401,997        7,797        0.32 %      2,142,541         15,777         0.74 % 

Time deposits

      530,816        2,775        0.52 %      562,654        5,231        0.93 %      913,616         11,707         1.28 % 

Deposits in foreign branches

      411,891        1,366        0.33 %      490,703        1,727        0.35 %      401,155         4,851         1.21 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest bearing deposits

      4,459,836        13,644        0.31 %      3,846,454        14,950        0.39 %      3,894,986         33,309         0.86 % 

Other borrowings

      1,585,723        3,141        0.20 %      723,172        1,140        0.16 %      280,899         1,155         0.41 % 

Subordinated notes

      30,934        2,037        6.58 %      —          —          —         —           —           —     

Trust preferred subordinated debentures

      113,406        2,756        2.43 %      113,406        2,573        2.27 %      113,406         3,672         3.24 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest bearing liabilities

      6,189,899        21,578        0.35 %      4,683,032        18,663        0.40 %      4,289,291         38,136         0.89 % 

Demand deposits

      1,984,171             1,515,021             1,116,260         

Other liabilities

      78,700             52,888             29,492         

Stockholders’ equity

      713,190             568,147             515,968         
  

 

 

          

 

 

          

 

 

        

Total liabilities and stockholders’ equity

    $ 8,965,960           $ 6,819,088           $ 5,951,011         
  

 

 

          

 

 

          

 

 

        

TEXAS CAPITAL BANCSHARES INC/TX Reports