Press Release

Texas Capital Bancshares Announces Operating Results for 2009

Company Release - 1/27/2010 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 fourth quarter and full year of 2009.

    --  Loans held for investment increased 4% and total loans increased 6% on a
        linked quarter basis and grew 11% and 14%, respectively, from Q4 2008
    --  Demand deposits grew 12% and total deposits increased 5% on a linked
        quarter basis and grew 53% and 24%, respectively, from Q4 2008
    --  Net income before preferred dividends decreased 2% for the year,
        increased 84% for the quarter and increased 20% on a linked quarter
        basis
    --  Higher average shares outstanding, the impact of the preferred dividend
        for 2009 and a 2% decrease in net income before preferred dividends
        contributed to a decrease of 38% in EPS for 2009 compared to 2008
    --  EPS increased 64% for the fourth quarter of 2009 as compared to the same
        quarter of 2008 and 20% on a linked quarter basis

"We are pleased to announce our 2009 results. Despite economic conditions and challenges experienced in the industry this year, we are pleased with the improvements in our core earnings," said George Jones, CEO. "In addition, because of that earnings power and our strong capital position, we have been able to take advantage of market opportunities, as evidenced by our very strong growth in loans and deposits."


FINANCIAL SUMMARY
(dollars and shares in thousands)

                                   2009            2008            % Change

ANNUAL OPERATING RESULTS

Net Income(1)                      $ 24,387        $ 24,882        (2  )%

Net Income Available to Common     $ 19,004        $ 24,882        (24 )%
Shareholders(1)

Diluted EPS(1)                     $ .55           $ .89           (38 )%

ROA(1)                               .46       %     .55       %

ROE(1)                               5.15      %     7.46      %

Diluted Shares                       34,410          28,049

                                   Q4 2009         Q4 2008         % Change

QUARTERLY OPERATING RESULTS

Net Income(1)                      $ 6,427         $ 3,487         84  %

Diluted EPS(1)                     $ .18           $ .11           64  %

ROA(1)                               .47       %     .29       %

ROE(1)                               5.26      %     3.61      %

Diluted Shares                       36,311          31,038

BALANCE SHEET

Total Assets(1)                    $ 5,698,318     $ 5,141,034     11  %

Demand Deposits                      899,492         587,161       53  %

Total Deposits                       4,120,725       3,333,187     24  %

Loans Held for Investment            4,457,293       4,027,871     11  %

Total Loans(1)                       5,150,797       4,524,222     14  %

Stockholders' Equity                 481,360         387,073       24  %



(1) From continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $24.4 million for the year ended December 31, 2009 and $6.4 million for the fourth quarter of 2009, compared to $24.9 million and $3.5 million for the year ended and fourth quarter of 2008. Net income available to common shareholders from continuing operations was $19.0 million for the year ended December 31, 2009 and $6.4 million for the fourth quarter of 2009 compared to $24.9 million and $3.5 million for the year ended and fourth quarter of 2008, respectively. On a fully diluted basis, earnings per common share from continuing operations were $.55 for the year ended December 31, 2009 and $.18 for the three months ended December 31, 2009, compared to $.89 for 2008 and $.11 for the same periods last year. Shares for 2009 were affected by the issuance of 4.6 million shares in May 2009. The dividend paid on preferred stock during the first half of 2009 had the effect of reducing EPS by $0.16 per share. The discussion below relates only to continuing operations.

Return on average equity was 5.15 percent and return on average assets was .46 percent for 2009, compared to 7.46 percent and .55 percent, respectively for 2008. Return on average equity was 5.26 percent and return on average assets was .47 percent for the fourth quarter of 2009, compared to 3.61 percent and .29 percent, respectively for the fourth quarter of 2008.

The net interest margin in the fourth quarter of 2009 was 4.21 percent, an 80 basis point increase from the fourth quarter of 2008 and a 15 basis point increase from the third quarter of 2009 due to low funding costs and our ability to maintain and improve spreads on our loans. Net interest income was $55.2 million for the fourth quarter of 2009, compared to $38.7 million for the fourth quarter of 2008. The increase was due to an increase in average earning assets of $667.5 million over levels reported in the fourth quarter of 2008. The increase in average earning assets included a $509.1 million increase in average loans held for investment and an increase of $285.4 million in average loans held for sale, offset by a decrease of $86.6 million in average securities.

Average total deposits increased by $869.3 million from the fourth quarter of 2008 and increased by $253.3 million from the third quarter of 2009. For the same periods, the average balance of demand deposits increased by $347.8 million, or 61 percent, to $914.3 million from $566.5 million during the fourth quarter of 2008 and increased $149.7 million, or 20 percent, from the third quarter of 2009.

As a result of the overall economic downturn, we have experienced increases in levels of non-performing assets and exposure to credit losses during 2009. Provision for loan losses, valuation allowance and direct write-downs related to other real estate owned ("OREO") totaled $16.1 million in fourth quarter of 2009 compared to $11.0 million in the fourth quarter of 2008 and $15.7 million in the third quarter of 2009. The Company recorded a $10.5 million provision for loan losses in the fourth quarter of 2009, compared to $11.0 million in the fourth quarter of 2008 and $13.5 million in the third quarter of 2009. The fourth quarter provision resulted in an increase in the reserve to 1.52 percent of loans held for investment as compared to 1.13 percent at December 31, 2008, and 1.53 percent at the end of the third quarter of 2009. 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. In the fourth quarter of 2009, net charge-offs were $8.0 million, compared to net charge-offs of $5.2 million in the fourth quarter of 2008 and net charge-offs of $2.0 million in the third quarter of 2009. Non-accrual loans were $95.6 million, or 2.15 percent, of loans at the end of the fourth quarter of 2009, compared to $47.5 million, or 1.18 percent of loans at the end of the fourth quarter of 2008, and $85.3 million, or 1.99 percent of loans at the end of the third quarter of 2009. At December 31, 2009, total OREO was $27.3 million compared to $25.9 million at the end of the fourth quarter of 2008, and $34.7 million at the end of the third quarter of 2009. The balance of $27.3 million at December 31, 2009 is stated net of a $6.6 million valuation allowance, for which we incurred a non-interest expense of $4.4 million during the fourth quarter of 2009. We also incurred an additional $1.2 million in direct OREO write-downs during the fourth quarter of 2009.

Non-interest income for the fourth quarter of 2009 increased $1.8 million, or 30 percent, to $7.8 million from $6.0 million in the fourth quarter of 2008. The increase is primarily related to a $1.1 million increase in brokered loan fees and a $357,000 increase in service charge income.

Non-interest expense for the fourth quarter of 2009 increased $14.4 million, or 51 percent, to $42.8 million from $28.4 million in the fourth quarter of 2008. The increase is primarily related to a $4.9 million increase in salaries and employee benefits to $19.6 million from $14.7 million, which was primarily due to general business growth. Allowance and other carrying costs for OREO expense increased $5.5 million to $6.4 million related to deteriorating values of assets held in OREO. Of the $6.4 million expense, $4.4 million was related to increasing the valuation allowance and $1.2 million related to direct write-downs of the OREO balance. The expense related to the valuation allowance increased our efficiency ratio from 59.1 percent to 68.0 percent for the fourth quarter. Additionally, FDIC assessment expense increased $1.3 million from the fourth quarter 2008.

Stockholders' equity increased by 24 percent from $387.1 million at December 2008 to $481.4 million at December 2009. Contributing to the increase was retained net income and proceeds of sales of common stock. The Bank is well capitalized under regulatory guidelines and at December 31, 2009, the Company's ratio of tangible common equity to total tangible assets was 8.2 percent.

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)

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

                       2009             2009             2009             2009             2008

CONSOLIDATED
STATEMENT OF INCOME

Interest income        $ 65,137         $ 62,197         $ 60,013         $ 55,806         $ 58,873

Interest expense         10,031           10,631           11,211           14,589           20,161

Net interest income      55,106           51,566           48,802           41,217           38,712

Provision for loan       10,500           13,500           11,000           8,500            11,000
losses

Net interest income
after provision for      44,606           38,066           37,802           32,717           27,712
loan losses

Non-interest income      7,811            7,133            7,416            6,900            5,950

Non-interest expense     42,796           37,067           35,373           30,306           28,443

Income from
continuing operations    9,621            8,132            9,845            9,311            5,219
before income taxes

Income tax expense       3,194            2,779            3,363            3,186            1,732

Income from              6,427            5,353            6,482            6,125            3,487
continuing operations

Loss from
discontinued             (55        )     (41        )     (44        )     (95        )     (100       )
operations
(after-tax)

Net income               6,372            5,312            6,438            6,030            3,387

Preferred stock          -                -                4,453            930              -
dividends

Net income available
to common              $ 6,372          $ 5,312          $ 1,985          $ 5,100          $ 3,387
shareholders

Diluted EPS from       $ .18            $ .15            $ .06            $ .17            $ .11
continuing operations

Diluted EPS            $ .18            $ .15            $ .06            $ .16            $ .11

Diluted shares           36,311,306       36,303,975       33,866,237       31,072,444       31,037,610

CONSOLIDATED BALANCE
SHEET DATA

Total assets           $ 5,698,318      $ 5,320,401      $ 5,306,407      $ 5,012,513      $ 5,141,034

Loans held for           4,457,293        4,290,453        4,211,304        4,019,247        4,027,871
investment

Loans held for sale      693,504          549,787          544,652          426,982          496,351

Securities               266,128          285,869          308,187          361,898          378,752

Demand deposits          899,492          802,692          730,034          608,939          587,161

Total deposits           4,120,725        3,916,568        3,643,582        3,010,960        3,333,187

Other borrowings         957,029          790,192          1,059,572        1,386,783        1,280,607

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

Stockholders' equity     481,360          474,044          464,026          471,990          387,073

End of period shares     35,919,941       35,802,485       35,688,661       31,014,575       30,971,189

Book value (excluding
securities             $ 13.23          $ 13.05          $ 12.87          $ 12.64          $ 12.44
gains/losses)

Tangible book value
(excluding securities  $ 12.96          $ 12.84          $ 12.66          $ 12.39          $ 12.19
gains/losses)

SELECTED FINANCIAL
RATIOS

From continuing
operations:

Net interest margin      4.21       %     4.06       %     3.88       %     3.39       %     3.41       %

Return on average        .47        %     .40        %     .49        %     .48        %     .29        %
assets

Return on average        5.26       %     4.46       %     5.45       %     5.44       %     3.61       %
equity

Non-interest income      .59        %     .56        %     .59        %     .56        %     .52        %
to earning assets

Efficiency ratio         68.0       %     63.1       %     62.9       %     63.0       %     63.7       %

Efficiency ratio
(excluding ORE           59.1       %     59.4       %     62.9       %     63.0       %     63.7       %
valuation/write-down)

Non-interest expense     3.26       %     2.91       %     2.80       %     2.48       %     2.49       %
to earning assets

From consolidated:

Net interest margin      4.21       %     4.06       %     3.88       %     3.39       %     3.41       %

Return on average        .46        %     .40        %     .48        %     .47        %     .28        %
assets

Return on average        5.21       %     4.43       %     5.41       %     5.36       %     3.50       %
equity

Tangible common
equity to total          8.2        %     8.7        %     8.6        %     7.8        %     7.4        %
tangible assets

Tier 1 capital ratio     10.7       %     11.2       %     11.2       %     11.9       %     10.0       %

Total capital ratio      12.0       %     12.5       %     12.3       %     13.0       %     10.9       %

Tier 1 leverage ratio    10.5       %     10.8       %     10.6       %     11.0       %     10.2       %




TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

                                         December 31,    December 31,    %

                                         2009            2008            Change

Assets

Cash and due from banks                  $ 80,459        $ 77,887        3    %

Federal funds sold                         44,980          4,140         N/M

Securities, available-for-sale             266,128         378,752       (30  )%

Loans held for sale                        693,504         496,351       40   %

Loans held for sale from discontinued      586             648           (10  )%
operations

Loans held for investment (net of          4,457,293       4,027,871     11   %
unearned income)

Less: Allowance for loan losses            67,931          45,365        50   %

Loans held for investment, net             4,389,362       3,982,506     10   %

Premises and equipment, net                11,189          9,467         18   %

Accrued interest receivable and other      202,890         184,242       10   %
assets

Goodwill and intangibles, net              9,806           7,689         28   %

Total assets                             $ 5,698,904     $ 5,141,682     11   %

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Non-interest bearing                     $ 899,492       $ 587,161       53   %

Interest bearing                           2,837,163       2,245,991     26   %

Interest bearing in foreign branches       384,070         500,035       (23  )%

Total deposits                             4,120,725       3,333,187     24   %

Accrued interest payable                   2,468           6,421         (62  )%

Other liabilities                          23,916          20,988        14   %

Federal funds purchased                    580,519         350,155       66   %

Repurchase agreements                      25,070          77,732        (68  )%

Other short-term borrowings                351,440         812,720       (57  )%

Long-term borrowings                       -               40,000        (100 )%

Trust preferred subordinated debentures    113,406         113,406       -

Total liabilities                          5,217,544       4,754,609     10   %

Stockholders' equity:

Common stock, $.01 par value:

Authorized shares - 100,000,000

Issued shares - 35,919,941 and
30,971,189 at December 31, 2009 and        359             310           16   %
2008, respectively

Additional paid-in capital                 326,224         255,051       28   %

Retained earnings                          148,620         129,851       14   %

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

Deferred compensation                      -               573           (100 )%

Accumulated other comprehensive income,    6,165           1,869         N/M
net of taxes

Total stockholders' equity                 481,360         387,073       24   %

Total liabilities and stockholders'      $ 5,698,904     $ 5,141,682     11   %
equity




TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share data)

                            Three Months Ended         Twelve Months Ended

                            December 31                December 31

                            2009         2008          2009          2008

Interest income

Interest and fees on loans  $ 62,174     $ 54,814      $ 229,500     $ 231,009

Securities                    2,957        4,031         13,578        17,722

Federal funds sold            2            27            31            168

Deposits in other banks       4            1             44            31

Total interest income         65,137       58,873        243,153       248,930

Interest expense

Deposits                      8,560        16,075        37,824        72,852

Federal funds purchased       460          1,046         2,404         8,232

Repurchase agreements         11           79            53            541

Other borrowings              76           1,353         1,949         9,123

Trust preferred               924          1,608         4,232         6,445
subordinated debentures

Total interest expense        10,031       20,161        46,462        97,193

Net interest income           55,106       38,712        196,691       151,737

Provision for loan losses     10,500       11,000        43,500        26,750

Net interest income after     44,606       27,712        153,191       124,987
provision for loan losses

Non-interest income

Service charges on deposit    1,490        1,133         6,287         4,699
accounts

Trust fee income              979          1,036         3,815         4,692

Bank owned life insurance     464          315           1,579         1,240
(BOLI) income

Brokered loan fees            2,221        1,074         9,043         3,242

Equipment rental income       1,357        1,482         5,557         5,995

Other                         1,300        910           2,979         2,602

Total non-interest income     7,811        5,950         29,260        22,470

Non-interest expense

Salaries and employee         19,631       14,688        73,419        61,438
benefits

Net occupancy expense         2,986        2,534         12,291        9,631

Leased equipment              1,031        1,142         4,319         4,667
depreciation

Marketing                     1,119        882           3,034         2,729

Legal and professional        3,030        2,793         11,846        9,622

Communications and data       993          832           3,743         3,314
processing

FDIC insurance assessment     1,972        643           8,464         1,797

Allowance and other           6,377        873           10,345        1,541
carrying costs for OREO

Other                         5,657        4,056         18,081        14,912

Total non-interest expense    42,796       28,443        145,542       109,651

Income from continuing
operations before income      9,621        5,219         36,909        37,806
taxes

Income tax expense            3,194        1,732         12,522        12,924

Income from continuing        6,427        3,487         24,387        24,882
operations

Loss from discontinued        (55    )     (100   )      (235    )     (616    )
operations (after-tax)

Net income                    6,372        3,387         24,152        24,266

Preferred stock dividends     -            -             5,383         -

Net income available to     $ 6,372      $ 3,387       $ 18,769      $ 24,266
common stockholders

Basic earnings per common
share:

Income from continuing      $ .18        $ .11         $ .56         $ .89
operations

Net income                  $ .18        $ .11         $ .55         $ .87

Diluted earnings per
common share:

Income from continuing      $ .18        $ .11         $ .55         $ .89
operations

Net income                  $ .18        $ .11         $ .55         $ .87




TEXAS CAPITAL BANCSHARES,
INC.

SUMMARY OF LOAN LOSS
EXPERIENCE

(Dollars in thousands)

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

                2009          2009          2009         2009         2008

Reserve for
loan losses:

Beginning       $ 65,818      $ 54,286      $ 50,145     $ 45,365     $ 39,511
balance

Loans
charged-off:

Commercial        2,098         115           92           1,695        535

Real estate -     4,051         576           1,821        60           1,195
construction

Real estate -     1,971         1,239         1,250        236          3,432
term

Consumer          3             80            -            419          64

Leases            -             72            3,724        226          -

Total             8,123         2,082         6,887        2,636        5,226

Recoveries:

Commercial        34            21            48           21           43

Real estate -     6             -             -            7            -
construction

Real estate -     53            -             -            -            20
term

Consumer          7             16            5            -            -

Leases            34            20            -            -            -

Total             134           57            53           28           63
recoveries

Net               7,989         2,025         6,834        2,608        5,163
charge-offs

Provision for     10,102        13,557        10,975       7,388        11,017
loan losses

Ending balance  $ 67,931      $ 65,818      $ 54,286     $ 50,145     $ 45,365

Reserve for
off-balance
sheet credit
losses:

Beginning       $ 2,550       $ 2,607       $ 2,582      $ 1,470      $ 1,487
balance

Provision for
off-balance       398           (57     )     25           1,112        (17    )
sheet credit
losses

Ending balance  $ 2,948       $ 2,550       $ 2,607      $ 2,582      $ 1,470

Total
provision for   $ 10,500      $ 13,500      $ 11,000     $ 8,500      $ 11,000
credit losses

Reserve to
loans held for    1.52    %     1.53    %     1.29   %     1.25   %     1.13   %
investment(2)

Reserve to
average loans     1.55    %     1.54    %     1.32   %     1.25   %     1.17   %
held for
investment(2)

Net
charge-offs to    .72     %     .19     %     .66    %     .26    %     .53    %
average loans
(1)(2)

Net
charge-offs to
average loans     .46     %     .41     %     .41    %     .34    %     .35    %
for last
twelve months
(1)(2)

Total
provision for
credit losses     .95     %     1.26    %     1.07   %     .76    %     1.13   %
to average
loans(1)(2)

Combined
reserves for
credit losses     1.59    %     1.59    %     1.35   %     1.31   %     1.16   %
to loans held
for investment
(2)

Non-performing
assets (NPAs):
(4)

Non-accrual     $ 95,625      $ 85,270      $ 49,592     $ 50,683     $ 47,499
loans

Other real
estate owned      27,264        34,671        31,404       27,501       25,904
(OREO)(5)

Total           $ 122,889     $ 119,941     $ 80,996     $ 78,184     $ 73,403

Non-accrual
loans to loans    2.15    %     1.99    %     1.18   %     1.26   %     1.18   %
(2)

Total NPAs to
loans plus        2.74    %     2.77    %     1.91   %     1.93   %     1.81   %
OREO(2)

Reserve for
loan losses to  .7        x   .8        x   1.1      x   1.0      x   1.0      x
non-accrual
loans

Loans past due
90 days and     $ 6,081       $ 7,569       $ 3,539      $ 4,637      $ 4,115
still accruing
(3)

Loans past due
90 days to        .14     %     .18     %     .08    %     .12    %     .10    %
loans(2)



(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At December 31, 2009, loans past due 90 days and still accruing includes premium finance loans of $2.4 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 December 31, 2009, non-performing assets include $2.6 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 OREO.

(5) At December 31, 2009, OREO balance is net of $6.6 million valuation allowance.


TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

(Dollars in thousands)

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

                2009         2009         2009         2009          2008

Interest
income

Interest and    $ 62,174     $ 58,959     $ 56,455     $ 51,912      $ 54,814
fees on loans

Securities        2,957        3,226        3,544        3,851         4,031

Federal funds     2            5            9            15            27
sold

Deposits in       4            7            5            28            1
other banks

Total interest    65,137       62,197       60,013       55,806        58,873
income

Interest
expense

Deposits          8,560        8,916        8,769        11,579        16,075

Federal funds     460          586          740          618           1,046
purchased

Repurchase        11           14           14           14            79
agreements

Other             76           125          570          1,178         1,353
borrowings

Trust
preferred         924          990          1,118        1,200         1,608
subordinated
debentures

Total interest    10,031       10,631       11,211       14,589        20,161
expense

Net interest      55,106       51,566       48,802       41,217        38,712
income

Provision for     10,500       13,500       11,000       8,500         11,000
loan losses

Net interest
income after      44,606       38,066       37,802       32,717        27,712
provision for
loan losses

Non-interest
income

Service
charges on        1,490        1,658        1,614        1,525         1,133
deposit
accounts

Trust fee         979          1,000        952          884           1,036
income

Bank owned
life insurance    464          418          423          274           315
(BOLI) income

Brokered loan     2,221        2,120        2,670        2,032         1,074
fees

Equipment         1,357        1,291        1,453        1,456         1,482
rental income

Other             1,300        646          304          729           910

Total
non-interest      7,811        7,133        7,416        6,900         5,950
income

Non-interest
expense

Salaries and
employee          19,631       19,569       18,000       16,219        14,688
benefits

Net occupancy     2,986        3,164        3,387        2,754         2,534
expense

Leased
equipment         1,031        1,050        1,115        1,123         1,142
depreciation

Marketing         1,119        705          655          555           882

Legal and         3,030        3,274        3,291        2,251         2,793
professional

Communications
and data          993          935          979          836           832
processing

FDIC insurance    1,972        1,452        3,493        1,547         643
assessment

Allowance and
other carrying    6,377        2,390        378          1,200         873
costs for OREO

Other             5,657        4,528        4,075        3,821         4,056

Total
non-interest      42,796       37,067       35,373       30,306        28,443
expense

Income from
continuing
operations        9,621        8,132        9,845        9,311         5,219
before income
taxes

Income tax        3,194        2,779        3,363        3,186         1,732
expense

Income from
continuing        6,427        5,353        6,482        6,125         3,487
operations

Loss from
discontinued      (55    )     (41    )     (44    )     (95    )      (100   )
operations
(after-tax)

Net income        6,372        5,312        6,438        6,030         3,387

Preferred
stock             -            -            4,453        930           -
dividends

Net income
available to    $ 6,372      $ 5,312      $ 1,985      $ 5,100       $ 3,387
common
stockholders




TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY - UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)

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

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

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

Assets

Securities -   $ 230,686    $ 2,560   4.40 %   $ 247,936    $ 2,813   4.50 %   $ 280,372    $ 3,124   4.47 %    $ 321,802    $ 3,431   4.32 %   $ 313,992    $ 3,610   4.57 %
Taxable

Securities -
Non-taxable      42,932       611     5.65 %     44,642       635     5.64 %     45,901       646     5.64 %      46,055       646     5.69 %     46,272       648     5.57 %
(2)

Federal funds    5,550        2       0.14 %     6,782        5       0.29 %     5,649        9       0.64 %      14,923       15      0.41 %     23,050       27      0.47 %
sold

Deposits in      12,916       4       0.12 %     12,649       7       0.22 %     12,268       5       0.16 %      11,207       28      1.01 %     5,761        1       0.07 %
other banks

Loans held       601,793      7,286   4.80 %     539,889      6,836   5.02 %     656,462      7,727   4.72 %      587,401      6,487   4.48 %     316,409      4,441   5.58 %
for sale

Loans held
for              4,384,692    54,888  4.97 %     4,264,202    52,123  4.85 %     4,124,937    48,728  4.74 %      4,022,180    45,425  4.58 %     3,875,586    50,373  5.17 %
investment

Less reserve
for loan         68,177       -       -          56,429       -       -          51,601       -       -           46,686       -       -          38,145       -       -
losses

Loans, net of    4,918,308    62,174  5.02 %     4,747,662    58,959  4.92 %     4,729,798    56,455  4.78 %      4,562,895    51,912  4.61 %     4,153,850    54,814  5.25 %
reserve

Total earning    5,210,392    65,351  4.98 %     5,059,671    62,419  4.89 %     5,073,988    60,239  4.76 %      4,956,882    56,032  4.58 %     4,542,925    59,100  5.18 %
assets

Cash and         243,823                         245,564                         251,960                          238,723                         218,335
other assets

Total assets   $ 5,454,215                     $ 5,305,235                     $ 5,325,948                      $ 5,195,605                     $ 4,761,260

Liabilities
and
Stockholders'
Equity

Transaction    $ 180,767    $ 85      0.19 %   $ 144,944    $ 58      0.16 %   $ 135,756    $ 55      0.16 %    $ 129,850    $ 44      0.14 %   $ 103,111    $ 67      0.26 %
deposits

Savings          1,620,659    3,569   0.87 %     1,377,712    3,090   0.89 %     974,275      2,003   0.82 %      745,355      1,420   0.77 %     729,337      2,350   1.28 %
deposits

Time deposits    1,111,899    3,454   1.23 %     1,284,220    4,245   1.31 %     1,082,691    5,105   1.89 %      1,277,824    8,066   2.56 %     1,405,426    10,603  3.00 %

Deposits in
foreign          401,661      1,452   1.43 %     404,545      1,523   1.49 %     394,251      1,606   1.63 %      444,549      2,049   1.87 %     555,573      3,055   2.19 %
branches

Total
interest         3,314,986    8,560   1.02 %     3,211,421    8,916   1.10 %     2,586,973    8,769   1.36 %      2,597,578    11,579  1.81 %     2,793,447    16,075  2.29 %
bearing
deposits

Other            607,731      547     0.36 %     724,127      725     0.40 %     1,404,881    1,324   0.38 %      1,367,691    1,810   0.54 %     881,868      2,478   1.12 %
borrowings

Trust
preferred        113,406      924     3.23 %     113,406      990     3.46 %     113,406      1,118   3.95 %      113,406      1,200   4.29 %     113,406      1,608   5.64 %
subordinated
debentures

Total
interest         4,036,123    10,031  0.99 %     4,048,954    10,631  1.04 %     4,105,260    11,211  1.10 %      4,078,675    14,589  1.45 %     3,788,721    20,161  2.12 %
bearing
liabilities

Demand           914,266                         764,557                         724,487                          636,704                         566,513
deposits

Other            18,787                          15,617                          18,899                           23,619                          21,323
liabilities

Stockholders'    485,039                         476,107                         477,302                          456,607                         384,703
equity

Total
liabilities
and            $ 5,454,215                     $ 5,305,235                     $ 5,325,948                      $ 5,195,605                     $ 4,761,260
stockholders'
equity

Net interest                $ 55,320                        $ 51,788                        $ 49,028                         $ 41,443                        $ 38,939
income

Net interest                          4.21 %                          4.06 %                          3.88 %                           3.39 %                          3.41 %
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

Copyright 2018, © S&P Global Market Intelligence  Terms of Use