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Texas Capital BancShares Q3 2007 Earnings Call Transcript

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2007-10-17 18:21:19.0

Tags: Texas Capital Bancshares Inc.

Question-and-Answer Session

Operator

Thank you very much sir. (Operator Instructions). Our first question comes from the line John Pancari of J.P. Morgan. Please proceed.

John Pancari - J.P. Morgan

Good evening

Jody Grant

Hi.

John Pancari - J.P. Morgan

I want to just see if you can give us some color on the increase in the loans in 90 days and more past due. Just give us some color on the types of loans we do on and any outlook on to what's happening there?

Jody Grant

George is going to comment on that, John.

George Jones

Yeah. Hi John. We had a slight increase. Some of that was our mortgage warehouse portfolio that moved into the 90-day plus past due area and the other area that was increased was our premium finance group. As you know we've said before, we continually have a portion of that portfolio that's in the 90 day plus past due.

We don’t believe there is much of any loss in that past due category, but the nature of the business actually promotes that amount of past dues. The balance primarily is the normal course of business as far as we are concerned we haven't seen a lot of change in that. We have a real estate loan or two, that is in non-accrual category but we think we're properly reserved for those and done what we needed to do to protect ourselves.

John Pancari - J.P. Morgan

Okay. So with the bulk of the increased clients from the mortgage warehouse, what's your expectations around loss of content. Are there any risk, given that increase because it's just a pretty sizeable jump.

George Jones

Sure. Well again, we properly reserve. We believe every category within that 90 day category passed due and we have what we believe proper reserves today. Behind that portfolio that in effect are held for investment portfolio. We would never say that there would never be any additional loss in that portfolio, but we do believe to date based on our visibility that we have it properly reserved.

John Pancari - J.P. Morgan

Okay.

George Jones

Along with the mark-to-market.

John Pancari - J.P. Morgan

Okay. All right and then secondly, if I could just touch on loan growth. You indicated that C&I loan growths accounted for about 75% of the growth was that on a linked quarter basis?

George Jones

Yes.

John Pancari - J.P. Morgan

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