Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on The Nasdaq Global Select Market under the symbol “TCBI”. On February 8, 2021, there were approximately 175 holders of record of our common stock.
Stock Performance Graph
The following table and graph sets forth the cumulative total stockholder return for the Company’s common stock for the five-year period ending on December 31, 2020, compared to an overall stock market index (Russell 2000 Index) and the Company’s peer group index (Nasdaq Bank Index). The Russell 2000 Index and Nasdaq Bank Index are based on total returns assuming reinvestment of dividends. The graph assumes an investment of $100 on December 31, 2015. The performance graph represents past performance and should not be considered to be an indication of future performance.
12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020
Texas Capital Bancshares, Inc. $ 100.00 $ 158.64 $ 179.89 $ 103.38 $ 114.87 $ 120.40
Russell 2000 Index (RTY) 100.00 119.30 134.87 118.81 146.70 173.09
Nasdaq Bank Index (CBNK) 100.00 134.52 139.44 115.35 139.62 125.29
Source: Bloomberg
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ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
You should read the selected financial data presented below in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes appearing elsewhere in this Form 10-K.
At or For the Year Ended December 31,
(in thousands) 2020 2019 2018 2017 2016
Consolidated Operating Data
Interest income $ 1,056,912 $ 1,365,312 $ 1,164,193 $ 879,299 $ 703,408
Interest expense 188,086 385,592 249,333 117,971 63,594
Net interest income 868,826 979,720 914,860 761,328 639,814
Provision for credit losses 258,000 75,000 87,000 44,000 77,000
Net interest income after provision for credit losses 610,826 904,720 827,860 717,328 562,814
Non-interest income 185,516 92,440 78,024 74,256 60,780
Non-interest expense 704,396 600,850 532,533 466,858 384,097
Income before income taxes 91,946 396,310 373,351 324,726 239,497
Income tax expense 25,657 84,295 79,964 128,645 86,078
Net income 66,289 312,015 293,387 196,081 153,419
Preferred stock dividends 9,750 9,750 9,750 9,750 9,750
Net income available to common stockholders $ 56,539 $ 302,265 $ 283,637 $ 186,331 $ 143,669
Consolidated Balance Sheet Data
Total assets $ 37,726,096 $ 32,548,069 $ 28,257,767 $ 25,075,645 $ 21,697,134
Loans held for sale 283,165 2,577,134 1,969,474 1,011,004 968,929
Loans held for investment (LHI) 15,351,451 16,476,413 16,690,550 15,366,252 13,001,011
Loans held for investment, mortgage finance 9,079,409 8,169,849 5,877,524 5,308,160 4,497,338
Liquidity assets(1) 9,032,807 4,263,766 2,865,874 2,727,581 2,725,645
Investment securities 3,196,970 239,871 120,216 23,511 24,874
Demand deposits 12,740,947 9,438,459 7,317,161 7,812,660 7,994,201
Total deposits 30,996,589 26,478,593 20,606,113 19,123,180 17,016,831
Federal funds purchased and repurchase agreements 111,751 141,766 641,174 365,040 109,575
Other borrowings 3,000,000 2,400,000 3,900,000 2,800,000 2,000,000
Subordinated notes 282,490 282,129 281,767 281,406 281,044
Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 113,406
Stockholders’ equity 2,871,224 2,801,321 2,480,308 2,190,072 1,997,890
(1) Liquidity assets include federal funds sold and interest-bearing deposits in other banks.
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At or For the Year Ended December 31,
2020 2019 2018 2017 2016
Other Financial Data
Income per share
Basic $ 1.12 $ 6.01 $ 5.68 $ 3.76 $ 3.10
Diluted 1.12 5.99 5.64 3.71 3.07
Book value per common share 53.92 52.67 46.42 41.09 37.33
Tangible book value per common share(1) 53.57 52.31 46.05 40.71 36.93
Weighted average shares
Basic 50,430,326 50,286,300 49,936,702 49,587,169 46,239,210
Diluted 50,582,979 50,419,204 50,272,872 50,259,834 46,765,902
Selected Financial Ratios
Performance Ratios
Net interest margin 2.39 % 3.28 % 3.78 % 3.49 % 3.14 %
Return on average assets 0.18 % 1.01 % 1.16 % 0.86 % 0.73 %
Return on average common equity 2.10 % 11.95 % 12.80 % 9.46 % 9.16 %
Efficiency ratio(2) 66.81 % 56.04 % 53.63 % 55.87 % 54.82 %
Non-interest expense to average earning assets 1.93 % 2.00 % 2.19 % 2.12 % 1.88 %
Asset Quality Ratios
Allowance for credit losses on loans to LHI 1.04 % 0.79 % 0.85 % 0.89 % 0.96 %
Net charge-offs (recoveries) to average LHI 0.80 % 0.31 % 0.37 % 0.16 % 0.29 %
Allowance for credit losses on loans to non-accrual loans 2.1x .9x 2.4x 1.8x 1.0x
Non-accrual loans to LHI 0.50 % 0.91 % 0.36 % 0.49 % 0.96 %
Total NPAs to LHI plus OREO 0.50 % 0.91 % 0.36 % 0.55 % 1.07 %
Capital and Liquidity Ratios
CET1 9.35 % 8.88 % 8.58 % 8.45 % 8.97 %
Total capital ratio 12.09 % 11.37 % 11.31 % 11.50 % 12.48 %
Tier 1 capital ratio 10.25 % 9.75 % 9.53 % 9.52 % 10.23 %
Tier 1 leverage ratio 7.52 % 8.42 % 9.87 % 9.15 % 9.34 %
Total common equity to total assets 7.21 % 8.15 % 8.25 % 8.14 % 8.52 %
Tangible common equity to total tangible assets(3) 7.13 % 8.07 % 8.18 % 8.06 % 8.43 %
Average LHI, net to average total deposits 80.07 % 95.73 % 102.74 % 97.56 % 95.82 %
(1) Stockholders' equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) Non-interest expense divided by the sum of net interest income and non-interest income.
(3) Stockholders' equity excluding preferred stock, less accumulated other comprehensive income and goodwill and intangibles, divided by total assets, less accumulated other comprehensive income and goodwill and intangibles.
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