Press Release

Texas Capital Bancshares Announces Operating Results for Q1 2009

Company Release - 4/22/2009 4:02 PM ET

DALLAS--(BUSINESS WIRE)-- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2009.

    --  Loans held for investment were flat and total loans decreased 2% on a
        linked quarter basis and grew 15% and 19%, respectively, from Q1 2008
    --  Demand deposits grew 4% and total deposits declined 10% on a linked
        quarter basis and grew 21% and declined 5%, respectively, from Q1 2008
    --  Net income increased 76% on a linked quarter basis and decreased 24%
        from Q1 2008
    --  Net income available to common shareholders increased 49% on a linked
        quarter basis and decreased 35% from Q1 2008
    --  EPS increased 55% on a linked quarter basis and decreased 43% from Q1
        2008

"We are pleased with the results for this quarter, especially in light of the challenging economic environment," said George Jones, CEO. "We are taking advantage of some unique opportunities presented by these circumstances. We are glad we are in Texas, as economists believe Texas will emerge from this downturn faster and better positioned than the rest of the country."


FINANCIAL SUMMARY

(dollars and shares in thousands)

                                   Q1 2009        Q1 2008        % Change

QUARTERLY OPERATING RESULTS

Net Income(1)                      $ 6,125        $ 8,030        (24 %)

Net Income Available to Common     $ 5,195        $ 8,030        (35 %)
Shareholders(1)

Diluted EPS(1)                     $ .17          $ .30          (43 %)

ROA(1)                               .48       %    .76       %

ROE(1)                               5.44      %    10.64     %

Diluted Shares                       31,072         26,528

                                   2009           2008           % Change

BALANCE SHEET

Total Assets(1)                    $ 5,009,931    $ 4,351,514    15  %

Demand Deposits                      608,939        503,554      21  %

Total Deposits                       3,010,960      3,155,313    (5  )%

Loans Held for Investment            4,019,247      3,493,631    15  %

Total Loans(1)                       4,446,229      3,733,491    19  %

Stockholders' Equity                 471,990        312,016      51  %



(1) From continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income available to common shareholders from continuing operations of $5.2 million for the quarter ended March 31, 2009 compared to $8.0 million for the first quarter of 2008. On a fully diluted basis, earnings per common share from continuing operations were $.17 for the three months ended March 31, 2009, compared to $.30 for the same quarter last year. The effect of the TARP preferred stock dividends net of income earned on the TARP proceeds reduced earnings per share by $.03 for the three months ended March 31, 2009. Shares for the first quarter of 2009 were affected by the issuance of 4 million shares in September 2008. Results of discontinued operations were net losses of $95,000 and $148,000 for the first quarter 2009 and 2008, respectively. The discussion below relates only to continuing operations.

Return on average equity was 5.44 percent and return on average assets was .48 percent for the first quarter of 2009, compared to 10.64 percent and .76 percent, respectively for the first quarter of 2008. The reduction in the ROE resulted primarily from the 51 percent increase in stockholders' equity since March 31, 2008.

Net interest income was $41.2 million for the first quarter of 2009, compared to $36.6 million for the first quarter of 2008. The increase was due to an increase in average earning assets of $900.5 million over levels reported in the first quarter of 2008. The increase in average earning assets included a $538.3 million increase in average loans held for investment and an increase of $415.7 million in average loans held for sale, offset by a decrease of $60.5 million in average securities. The net interest margin in the first quarter of 2009 was 3.39 percent, a 26 basis point decrease from the first quarter of 2008 and a 2 basis point decrease from the fourth quarter of 2008 due to asset sensitivity, funding costs associated with growth and the impact of the increase in non-accrual loans.

Average total deposits increased by $182.4 million from the first quarter of 2008 and decreased by $125.7 million from the fourth quarter of 2008. For the same periods, the average balance of demand deposits increased by $167.4 million or 36 percent to $636.7 million from $469.3 million during the first quarter of 2008 and increased $70.2 million, or 12 percent, from the fourth quarter of 2008.

As a result of the overall economic downturn, we have experienced increases in levels of non-performing assets. In the first quarter of 2009, net charge-offs were $2.6 million, compared to net charge-offs of $2.6 million in the first quarter of 2008 and net charge-offs of $5.2 million in the fourth quarter of 2008. Non-accrual loans were $50.7 million or 1.26 percent of loans at the end of the first quarter of 2009, compared to $13.6 million, or .39 percent of loans at the end of the first quarter of 2008, and $47.5 million, or 1.18 percent of loans at the end of the fourth quarter of 2008. Loans 90 days past due and still accruing were $4.6 million at the end of the first quarter of 2009 compared to $5.2 million at the end of the first quarter of 2008, and $4.1 million at the end of the fourth quarter of 2008. At March 31, 2009, the $4.6 million of past due loans included $1.7 million in premium finance loans. At March 31, 2009, total other real estate owned was $27.5 million compared to $3.1 million at the end of the first quarter of 2008, and $25.9 million at the end of the fourth quarter of 2008. The Company recorded an $8.5 million provision for loan losses in the first quarter of 2009, compared to $3.8 million in the first quarter of 2008 and $11.0 million in the fourth quarter of 2008. The first quarter provision resulted in an increase in the reserve to 1.31 percent of loans held for investment as compared to .97 percent at March 31, 2008, and 1.16 percent at the end of the fourth quarter of 2008. In management's opinion, the reserve is adequate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank's loan portfolio.

Non-interest income for the first quarter of 2009 increased $1.2 million, or 21 percent, to $6.9 million from $5.7 million in the first quarter of 2008. The increase is primarily related to a $1.4 million increase in brokered loan fees, a $408,000 increase in service charge income, and offset by a $332,000 decrease in trust fee income.

Non-interest expense for the first quarter of 2009 increased $4.0 million, or 15 percent, to $30.3 million from $26.3 million in the first quarter of 2008. The increase is primarily related to an $877,000 increase in salaries and employee benefits to $16.2 million from $15.3 million, which was primarily due to general business growth. Additionally, other non-interest expense increased $2.7 million to $6.7 million and included an increase in OREO-related expenses of approximately $1.1 million and an increase in FDIC assessment expense of $1.2 million.

Stockholders equity increased by 51 percent from $312.0 million in March 2008 to $472.0 million at the end of the first quarter of 2009. Contributing to the increase was retained net income of $23.0 million and proceeds of sales of common and preferred stock totaling $130.0 million. In September 2008, we raised $55.0 million in common equity from institutional investors. On January 16, 2009, we completed the issuance of $75.0 million of perpetual preferred stock and related warrants under the U.S. Department of Treasury's voluntary Capital Purchase Program ("the Program"). In November 2008, we applied for up to $130.0 million of additional capital under the Program. After receiving approval for the $130.0 million, we determined that we would accept $75.0 million under the Program, strengthening our position in a difficult economic environment. We were well capitalized under regulatory guidelines prior to the capital additions, but the $130 million from the two transactions strengthened our already well-capitalized position. At March 31, 2009, our ratio of tangible common equity to total tangible assets was 7.8%.

On April 15, 2009, we filed a universal shelf registration on Form S-3 which allows us to issue from time to time up to $150 million of various debt and equity securities such as senior debt securities, subordinated debt securities, convertible debt, preferred stock, common stock, warrants, and units.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares' control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.


TEXAS CAPITAL BANCSHARES, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(Dollars in thousands except per share data)

               1st Quarter     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter

               2009            2008            2008            2008            2008

CONSOLIDATED
STATEMENT OF
INCOME

Interest       $ 55,806        $ 58,873        $ 62,240        $ 61,008        $ 66,809
income

Interest         14,589          20,161          23,974          22,848          30,210
expense

Net interest     41,217          38,712          38,266          38,160          36,599
income

Provision for    8,500           11,000          4,000           8,000           3,750
loan losses

Net interest
income after     32,717          27,712          34,266          30,160          32,849
provision for
loan losses

Non-interest     6,900           5,950           4,885           5,952           5,683
income

Non-interest     30,306          28,443          27,675          27,256          26,277
expense

Income from
continuing
operations       9,311           5,219           11,476          8,856           12,255
before income
taxes

Income tax       3,186           1,732           3,911           3,056           4,225
expense

Income from
continuing       6,125           3,487           7,565           5,800           8,030
operations

Loss from
discontinued     (95        )    (100       )    (252       )    (116       )    (148       )
operations
(after-tax)

Net income       6,030           3,387           7,313           5,684           7,882

Preferred
stock            930             -               -               -               -
dividends

Net income
available to   $ 5,100         $ 3,387         $ 7,313         $ 5,684         $ 7,882
common
shareholders

Diluted EPS
from           $ .17           $ .11           $ .27           $ .22           $ .30
continuing
operations

Diluted EPS    $ .16           $ .11           $ .26           $ .21           $ .30

Diluted          31,072,444      31,037,610      27,792,938      26,805,358      26,527,904
shares

CONSOLIDATED
BALANCE SHEET
DATA

Total assets   $ 5,009,931     $ 5,139,564     $ 4,742,043     $ 4,662,507     $ 4,351,514

Loans held
for              4,019,247       4,027,871       3,840,172       3,704,262       3,493,631
investment

Loans held       426,982         496,351         343,002         328,838         239,860
for sale

Securities       361,898         378,752         365,145         390,223         425,513

Demand           608,939         587,161         561,227         610,629         503,554
deposits

Total            3,010,960       3,333,187       3,388,963       3,593,077       3,155,313
deposits

Other            1,386,783       1,280,607       835,025         621,127         751,482
borrowings

Long-term        113,406         113,406         113,406         113,406         113,406
debt

Stockholders'    471,990         387,073         380,858         314,917         312,016
equity

End of period    31,014,575      30,971,189      30,844,202      26,780,386      26,631,763
shares

Book value
(excluding     $ 12.64         $ 12.44         $ 12.33         $ 11.80         $ 11.55
securities
gains/losses)

Tangible book
value
(excluding     $ 12.39         $ 12.19         $ 12.08         $ 11.51         $ 11.26
securities
gains/losses)

SELECTED
FINANCIAL
RATIOS

From
continuing
operations

Net interest     3.39       %    3.41       %    3.47       %    3.65       %    3.65       %
margin

Return on
average          .48        %    .29        %    .65        %    .53        %    .76        %
assets

Return on
average          5.44       %    3.61       %    9.12       %    7.40       %    10.64      %
equity

Non-interest
income to        .56        %    .52        %    .44        %    .57        %    .56        %
earning
assets

Efficiency       63.0       %    63.7       %    64.1       %    61.8       %    62.1       %
ratio

Non-interest
expense to       2.48       %    2.49       %    2.49       %    2.59       %    2.61       %
earning
assets

From
consolidated

Net interest     3.39       %    3.41       %    3.47       %    3.65       %    3.65       %
margin

Return on
average          .47        %    .28        %    .63        %    .52        %    .74        %
assets

Return on
average          5.36       %    3.50       %    8.81       %    7.25       %    10.45      %
equity

Tier 1           11.9       %    10.0       %    10.5       %    9.3        %    9.7        %
capital ratio

Total capital    13.0       %    10.9       %    11.4       %    10.3       %    10.8       %
ratio

Tier 1
leverage         11.0       %    10.2       %    10.5       %    9.3        %    9.4        %
ratio




TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

                                           March 31,      March 31,      %

                                           2009           2008           Change

Assets

Cash and due from banks                    $ 60,631       $ 78,975       (23  )%

Federal funds sold                           10,000         -            100  %

Securities, available-for-sale               361,898        425,513      (15  )%

Loans held for sale                          426,982        239,860      78   %

Loans held for sale from discontinued        591            730          (19  )%
operations

Loans held for investment (net of            4,019,247      3,493,631    15   %
unearned income)

Less: Allowance for loan losses              52,727         34,021       55   %

Loans held for investment, net               3,966,520      3,459,610    15   %

Premises and equipment, net                  8,457          6,092        39   %

Accrued interest receivable and other        167,795        133,654      26   %
assets

Goodwill and intangibles, net                7,648          7,810        (2   )%

Total assets                               $ 5,010,522    $ 4,352,244    15   %

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Non-interest bearing                       $ 608,939      $ 503,554      21   %

Interest bearing                             1,984,946      1,718,339    16   %

Interest bearing in foreign branches         417,075        933,420      (55  )%

Total deposits                               3,010,960      3,155,313    (5   )%

Accrued interest payable                     5,181          5,742        (10  )%

Other liabilities                            22,202         14,285       55   %

Federal funds purchased                      514,270        312,212      65   %

Repurchase agreements                        62,892         8,964        602  %

Other short-term borrowings                  809,621        430,306      88   %

Trust preferred subordinated debentures      113,406        113,406      -

Total liabilities                            4,538,532      4,040,228    12   %

Stockholders' equity:

Preferred stock, $.01 par value, $1,000
liquidation value

Authorized shares - 10,000,000

Issued shares - 75,000 at March 31, 2009     70,984         -            100  %

Common stock, $.01 par value:

Authorized shares - 100,000,000

Issued shares - 31,014,575 and 26,631,763
at March 31, 2009 and March 31, 2008,        310            266          17   %
respectively

Additional paid-in capital                   260,647        193,917      34   %

Retained earnings                            134,951        113,467      19   %

Treasury stock (shares at cost: 417 at
March 31, 2009 and 84,691 at March 31,       (8        )    (581      )  (99  )%
2008)

Deferred compensation                        -              573          (100 )%

Accumulated other comprehensive income,      5,106          4,374        17   %
net of taxes

Total stockholders' equity                   471,990        312,016      51   %

Total liabilities and stockholders'        $ 5,010,522    $ 4,352,244    15   %
equity




TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share data)

                                                       Three Months Ended

                                                       March 31

                                                       2009        2008

Interest income

Interest and fees on loans                             $ 51,912    $ 61,897

Securities                                               3,851       4,860

Federal funds sold                                       15          40

Deposits in other banks                                  28          12

Total interest income                                    55,806      66,809

Interest expense

Deposits                                                 11,579      21,724

Federal funds purchased                                  618         2,950

Repurchase agreements                                    14          322

Other borrowings                                         1,178       3,327

Trust preferred subordinated debentures                  1,200       1,887

Total interest expense                                   14,589      30,210

Net interest income                                      41,217      36,599

Provision for loan losses                                8,500       3,750

Net interest income after provision for loan losses      32,717      32,849

Non-interest income

Service charges on deposit accounts                      1,525       1,117

Trust fee income                                         884         1,216

Bank owned life insurance (BOLI) income                  274         311

Brokered loan fees                                       1,906       473

Equipment rental income                                  1,456       1,516

Other                                                    855         1,050

Total non-interest income                                6,900       5,683

Non-interest expense

Salaries and employee benefits                           16,219      15,342

Net occupancy expense                                    2,754       2,365

Leased equipment depreciation                            1,123       1,193

Marketing                                                555         677

Legal and professional                                   2,071       1,826

Communications and data processing                       836         854

Other                                                    6,748       4,020

Total non-interest expense                               30,306      26,277

Income from continuing operations before income taxes    9,311       12,255

Income tax expense                                       3,186       4,225

Income from continuing operations                        6,125       8,030

Loss from discontinued operations (after-tax)            (95    )    (148   )

Net income                                               6,030       7,882

Preferred stock dividends                                930         -

Net income available to common stockholders            $ 5,100     $ 7,882

Basic earnings per common share:

Income from continuing operations                      $ .17       $ .30

Net income                                             $ .16       $ .30

Diluted earnings per common share:

Income from continuing operations                      $ .17       $ .30

Net income                                             $ .16       $ .30




TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE

(Dollars in thousands)

                 1st Quarter  4th Quarter  3rd Quarter  2nd Quarter  1st Quarter

                 2009         2008         2008         2008         2008

Beginning        $ 46,835     $ 40,998     $ 38,460     $ 34,021     $ 32,821
balance

Loans
charged-off:

Commercial         1,695        535          592          3,165        3,086

Real estate -      60           1,195        553          118          -
construction

Real estate -      236          3,432        267          464          5
term

Consumer           419          64           129          -            -

Leases             226          -            -            -            29

Total              2,636        5,226        1,541        3,747        3,120

Recoveries:

Commercial         21           43           27           165          524

Consumer           -            -            13           -            -

Leases             7            -            12           21           46

Real estate -      -            20           27           -            -
term

Total              28           63           79           186          570
recoveries

Net charge-offs    2,608        5,163        1,462        3,561        2,550

Provision for      8,500        11,000       4,000        8,000        3,750
loan losses

Ending balance   $ 52,727     $ 46,835     $ 40,998     $ 38,460     $ 34,021

Reserve to
loans held for     1.31   %     1.16   %     1.07   %     1.04   %     .97    %
investment (2)

Reserve to
average loans      1.31   %     1.21   %     1.08   %     1.07   %     .98    %
held for
investment (2)

Net charge-offs
to average         .26    %     .53    %     .15    %     .40    %     .29    %
loans (1) (2)

Net charge-offs
to average
loans for last     .34    %     .35    %     .28    %     .25    %     .16    %
twelve months
(1) (2)

Provision for
loan losses to     .85    %     1.13   %     .42    %     .89    %     .43    %
average loans
(1) (2)

Non-performing
loans:

Loans past due
90 days and      $ 4,637      $ 4,115      $ 2,970      $ 22,763     $ 5,199
still accruing
(3) (4)

Non-accrual (4)    50,683       47,499       46,579       16,753       13,564

Total            $ 55,320     $ 51,614     $ 49,549     $ 39,516     $ 18,763

Other real       $ 27,501     $ 25,904     $ 5,792      $ 5,615      $ 3,126
estate owned

Reserve to
non-performing   1.0      x   .9       x   .8       x   1.0      x   1.8      x
loans

Reserve to
non-accrual      1.0      x   1.0      x   .9       x   2.3      x   2.5      x
loans

Reserve to
non-performing   .6       x   .6       x   .7       x   .9       x   1.6      x
assets

Non-accrual
loans to loans     1.26   %     1.18   %     1.21   %     .45    %     .39    %
(2)

Loans past due
90 days to         .12    %     .10    %     .08    %     .61    %     .15    %
loans (2)

Non-performing
loans to loans     1.38   %     1.28   %     1.29   %     1.07   %     .54    %
(2)



(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At March 31, 2009, loans past due 90 days and still accruing includes premium finance loans of $1.7 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.

(4) At March 31, 2009, non-performing assets include $4.0 million of mortgage warehouse loans which were transferred to the loans held for investment portfolio at lower of cost or market, and some were subsequently moved to other real estate owned.


TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

(Dollars in thousands)

                 1st Quarter  4th Quarter  3rd Quarter  2nd Quarter  1st Quarter

                 2009         2008         2008         2008         2008

Interest income

Interest and     $ 51,912     $ 54,814     $ 57,909     $ 56,389     $ 61,897
fees on loans

Securities         3,851        4,031        4,281        4,550        4,860

Federal funds      15           27           40           61           40
sold

Deposits in        28           1            10           8            12
other banks

Total interest     55,806       58,873       62,240       61,008       66,809
income

Interest
expense

Deposits           11,579       16,075       18,338       16,715       21,724

Federal funds      618          1,046        2,273        1,963        2,950
purchased

Repurchase         14           79           86           54           322
agreements

Other              1,178        1,353        1,791        2,652        3,327
borrowings

Trust preferred
subordinated       1,200        1,608        1,486        1,464        1,887
debentures

Total interest     14,589       20,161       23,974       22,848       30,210
expense

Net interest       41,217       38,712       38,266       38,160       36,599
income

Provision for      8,500        11,000       4,000        8,000        3,750
loan losses

Net interest
income after       32,717       27,712       34,266       30,160       32,849
provision for
loan losses

Non-interest
income

Service charges
on deposit         1,525        1,133        1,161        1,288        1,117
accounts

Trust fee          884          1,036        1,234        1,206        1,216
income

Bank owned life
insurance          274          315          299          315          311
(BOLI) income

Brokered loan      1,906        1,074        1,024        671          473
fees

Equipment          1,456        1,482        1,487        1,510        1,516
rental income

Other              855          910          (320   )     962          1,050

Total
non-interest       6,900        5,950        4,885        5,952        5,683
income

Non-interest
expense

Salaries and
employee           16,219       14,688       16,039       15,369       15,342
benefits

Net occupancy      2,754        2,534        2,300        2,432        2,365
expense

Leased
equipment          1,123        1,142        1,153        1,179        1,193
depreciation

Marketing          555          882          521          649          677

Legal and          2,071        2,793        2,358        2,645        1,826
professional

Communications
and data           836          832          858          770          854
processing

Other              6,748        5,572        4,446        4,212        4,020

Total
non-interest       30,306       28,443       27,675       27,256       26,277
expense

Income from
continuing
operations         9,311        5,219        11,476       8,856        12,255
before income
taxes

Income tax         3,186        1,732        3,911        3,056        4,225
expense

Income from
continuing         6,125        3,487        7,565        5,800        8,030
operations

Loss from
discontinued       (95    )     (100   )     (252   )     (116   )     (148   )
operations
(after-tax)

Net income         6,030        3,387        7,313        5,684        7,882

Preferred stock    930          -            -            -            -
dividends

Net income
available to     $ 5,100      $ 3,387      $ 7,313      $ 5,684      $ 7,882
common
stockholders




TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY - UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)

               1st Quarter 2009                4th Quarter 2008                3rd Quarter 2008                2nd Quarter 2008                1st Quarter 2008

               Average      Revenue/  Yield/   Average      Revenue/  Yield/   Average      Revenue/  Yield/   Average      Revenue/  Yield/   Average      Revenue/  Yield/

               Balance      Expense   Rate     Balance      Expense   Rate     Balance      Expense   Rate     Balance      Expense   Rate     Balance      Expense   Rate
                            (1)                             (1)                             (1)                             (1)                             (1)

Assets

Securities -   $ 321,802    $ 3,431   4.32 %   $ 313,992    $ 3,610   4.57 %   $ 325,317    $ 3,852   4.71 %   $ 356,445    $ 4,114   4.64 %   $ 380,257    $ 4,424   4.68 %
Taxable

Securities -
Non-taxable      46,055       646     5.69 %     46,272       648     5.57 %     47,271       660     5.55 %     48,129       671     5.61 %     48,144       671     5.61 %
(2)

Federal funds    14,923       15      0.41 %     23,050       27      0.47 %     8,001        40      1.99 %     11,127       61      2.20 %     4,714        40      3.41 %
sold

Deposits in      11,207       28      1.01 %     5,761        1       0.07 %     2,554        10      1.56 %     1,103        8       2.92 %     1,251        12      3.86 %
other banks

Loans held       587,401      6,487   4.48 %     316,409      4,441   5.58 %     288,103      4,137   5.78 %     246,026      3,654   5.97 %     171,672      2,610   6.11 %
for sale

Loans held
for              4,022,180    45,425  4.58 %     3,875,586    50,373  5.17 %     3,781,289    53,772  5.66 %     3,597,342    52,735  5.90 %     3,483,840    59,287  6.84 %
investment

Less reserve
for loan         46,686       -       -          38,145       -       -          38,180       -       -          33,181       -       -          33,519       -       -
losses

Loans, net of    4,562,895    51,912  4.61 %     4,153,850    54,814  5.25 %     4,031,212    57,909  5.71 %     3,810,187    56,389  5.95 %     3,621,993    61,897  6.87 %
reserve

Total earning    4,956,882    56,032  4.58 %     4,542,925    59,100  5.18 %     4,414,355    62,471  5.63 %     4,226,991    61,243  5.83 %     4,056,359    67,044  6.65 %
assets

Cash and         238,723                         218,335                         201,589                         198,946                         207,595
other assets

Total assets   $ 5,195,605                     $ 4,761,260                     $ 4,615,944                     $ 4,425,937                     $ 4,263,954

Liabilities
and
Stockholders'
Equity

Transaction    $ 129,850    $ 44      0.14 %   $ 103,111    $ 67      0.26 %   $ 103,905    $ 122     0.47 %   $ 111,587    $ 129     0.46 %   $ 108,349    $ 145     0.54 %
deposits

Savings          745,355      1,420   0.77 %     729,337      2,350   1.28 %     778,956      3,371   1.72 %     840,933      3,563   1.70 %     790,185      5,118   2.61 %
deposits

Time deposits    1,277,824    8,066   2.56 %     1,405,426    10,603  3.00 %     1,275,798    10,524  3.28 %     930,698      8,345   3.61 %     727,494      7,875   4.35 %

Deposits in
foreign          444,549      2,049   1.87 %     555,573      3,055   2.19 %     720,211      4,321   2.39 %     755,593      4,678   2.49 %     956,603      8,586   3.61 %
branches

Total
interest         2,597,578    11,579  1.81 %     2,793,447    16,075  2.29 %     2,878,870    18,338  2.53 %     2,638,811    16,715  2.55 %     2,582,631    21,724  3.38 %
bearing
deposits

Other            1,367,691    1,810   0.54 %     881,868      2,478   1.12 %     709,157      4,150   2.33 %     830,482      4,669   2.26 %     773,149      6,599   3.43 %
borrowings

Trust
preferred        113,406      1,200   4.29 %     113,406      1,608   5.64 %     113,406      1,486   5.21 %     113,406      1,464   5.19 %     113,406      1,887   6.69 %
subordinated
debentures

Total
interest         4,078,675    14,589  1.45 %     3,788,721    20,161  2.12 %     3,701,433    23,974  2.58 %     3,582,699    22,848  2.56 %     3,469,186    30,210  3.50 %
bearing
liabilities

Demand           636,704                         566,513                         567,914                         513,327                         469,299
deposits

Other            23,619                          21,323                          16,452                          14,613                          22,071
liabilities

Stockholders'    456,607                         384,703                         330,145                         315,298                         303,398
equity

Total
liabilities
and            $ 5,195,605                     $ 4,761,260                     $ 4,615,944                     $ 4,425,937                     $ 4,263,954
stockholders'
equity

Net interest                $ 41,443                        $ 38,939                        $ 38,497                        $ 38,395                        $ 36,834
income

Net interest                          3.39 %                          3.41 %                          3.47 %                          3.65 %                          3.65 %
margin



(1) The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.

(2) Taxable equivalent rates used where applicable.


    Source: Texas Capital Bancshares, Inc.
Contact: Texas Capital Bancshares, Inc. Myrna Vance, 214-932-6646 myrna.vance@texascapitalbank.com

Contact Information

Texas Capital Bancshares, Inc.,
2000 McKinney Avenue
Suite 700
Dallas, TX 75201
(214) 932-6600

Investor Relations Contact
Heather Worley
(214) 932-6646
heather.worley@
texascapitalbank.com

Transfer Agent
Computershare Investor Services LLC
Two North Lasalle Street
Third Floor
Chicago, IL 60602
(800) 568-3476
(312) 588-4990

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