Texas Capital Bancshares Announces Operating Results for Q1 2005

    Business Editors/Banking Writers

    DALLAS--(BUSINESS WIRE)--April 20, 2005--Texas Capital Bancshares (Nasdaq:TCBI), the parent company of Texas Capital Bank, announced earnings for the first quarter of 2005.

FINANCIAL SUMMARY (dollars and shares in thousands)

Q1 2005 Q1 2004 % Change ----------- ----------- --------- OPERATING RESULTS Net Income 5,276 3,937 34% Diluted EPS $.20 $.15 33% ROA .82% .71% ROE 10.89% 8.96% Diluted Shares 26,623 26,076 2%

BALANCE SHEET Total Assets $2,636,920 $2,233,135 18% Demand Deposits 405,162 309,927 31% Total Deposits 1,981,701 1,495,891 32% Loans Held for Investment 1,676,799 1,311,511 28% Total Loans 1,747,471 1,384,300 26% Stockholders' Equity 194,511 182,587 7%

Loans Held for Investment are stated net of unearned income.

    DETAILED FINANCIALS

    Texas Capital Bancshares, Inc. reported net income of $5.3 million for the first quarter of 2005 compared to $3.9 million for the first quarter of 2004. On a fully diluted basis, earnings per share were $.20 for the three months ended March 31, 2005, compared to $.15 for the same quarter last year, representing an increase of 33 percent.
    The first quarter of each year is uniquely impacted by certain events, such as the timing of FICA and other employment taxes generated by our incentive and compensation structure. The first quarter of 2005 was additionally influenced by a vesting of restricted stock triggered by the attainment of certain price targets of the company's common stock. In aggregate, these events, plus the quarter being the shortest of the year, negatively impacted earnings by 3.5 cents per share on a linked quarter basis.
    Return on average equity was 10.89 percent and return on average assets was .82 percent for the first quarter of 2005 compared to 8.96 percent and .71 percent, respectively, for the first quarter of 2004. The increase in net income and improvement in return on assets in 2005 are attributed to growth in net interest income which came from continued earning asset growth, as well as an improvement in net interest margin.
    Net interest income was $21.7 million for the first quarter of 2005, compared to $16.6 million for the first quarter of 2004. The increase was due to an increase in average earning assets of $386.9 million over levels reported in the first quarter of 2004 and an improvement in the net interest margin. The increase in average earning assets included a $324.4 million increase in average loans held for investment (core loans) and an increase of $19.7 million in average securities. The average balance of loans held for sale increased to $82.0 million in the first quarter of 2005 from $61.2 million in the first quarter of 2004. The net interest margin in the first quarter of 2005 was 3.61 percent, a 37 basis point increase from the first quarter of 2004 and a 3 basis point increase from the fourth quarter of 2004. The improvement in the net interest margin resulted primarily from a 95 basis point increase in the yield on earning assets offset by a 76 basis point increase in the cost of interest bearing liabilities from the prior year.
    Average interest bearing liabilities increased $271.7 million from the first quarter of 2004, which included a $357.9 million increase in interest bearing deposits offset by an $86.2 million decrease in other borrowings. For the same periods, the average balance of demand deposits increased to $363.4 million from $265.0 million.
    Key measures of credit quality showed improvement during the first quarter. In the first quarter of 2005, net recoveries were $17,000, compared to net charge-offs of $466,000, or .15 percent of average loans, in the first quarter of 2004 and $233,000, or .06 percent of average loans, in the fourth quarter of 2004. The Company also reported that the ratio of non-performing loans to total loans decreased to .36 percent. Due to continued improvement in key measures of credit quality, the Company did not record a provision for possible loan losses during the first quarter of 2005, down from $200,000 in the fourth quarter of 2004 and $750,000 in the first quarter of 2004. Reserve coverage of losses, non-performing assets and classified loans remained at especially high levels. In management's opinion, the reserve, which represents an allocation of total capital, is sufficient to cover all reasonably expected losses in the portfolio 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 2005 increased $864,000, or 26%, to $4.2 million from $3.3 million in the first quarter of 2004. The increase is primarily related to a $1.3 million increase in gains on sale of mortgage loans to $1.8 million from $463,000. Trust fee income increased $149,000 due to continued growth of trust assets. Offsetting these increases was a decrease in cash processing fees, which were $587,000 lower in the first quarter of 2005 compared to the same period in 2004. These fees were related to a special project that occurred in the first quarters of 2002, 2003, and 2004.
    Non-interest expense for the first quarter of 2005 increased $4.5 million, or 34 percent, to $17.9 million in the first quarter of 2005 from $13.3 million in the first quarter of 2004. The increase is primarily related to a $3.4 million increase in salaries and employee benefits to $11.5 million from $8.1 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, substantial additions to staffing for the Houston office, expansion of the residential mortgage lending division, and increased incentive compensation reflective of the Company's performance.

    ABOUT TEXAS CAPITAL BANCSHARES

    Texas Capital Bancshares (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, Plano, 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 (Dollars in thousands except per share data)

1st Quarter 4th Quarter 3rd Quarter 2005 2004 2004 ----------- ----------- ----------- CONSOLIDATED STATEMENT OF OPERATIONS Interest income $34,187 $32,529 $29,019 Interest expense 12,519 11,069 9,633 ----------- ----------- ----------- Net interest income 21,668 21,460 19,386 Provision for loan losses - 200 375 ----------- ----------- ----------- Net interest income after provision for loan losses 21,668 21,260 19,011 Non-interest income 4,179 3,738 3,463 Non-interest expense 17,854 15,917 14,595 ----------- ----------- ----------- Income before income taxes 7,993 9,081 7,879 Income tax expense 2,717 3,054 2,643 ----------- ----------- ----------- Net income $5,276 $6,027 $5,236 =========== =========== =========== Diluted EPS $.20 $.23 $.20

Diluted shares 26,622,813 26,457,466 26,263,714

CONSOLIDATED BALANCE SHEET DATA Total assets $2,636,920 $2,611,163 $2,487,371 Loans held for investment 1,676,799 1,564,578 1,485,156 Loans held for sale 70,672 119,537 79,010 Securities 754,154 804,544 820,661 Demand deposits 405,162 397,629 324,292 Total deposits 1,981,701 1,789,887 1,612,762 Other borrowings 431,682 594,991 653,168 Long-term debt 20,620 20,620 20,620 Stockholders' equity 194,511 195,275 190,314

End of period shares 25,557,896 25,461,602 25,292,206 Book value (excluding securities gains/losses) 7.79 7.57 7.31

SELECTED FINANCIAL RATIOS Net interest margin 3.61% 3.58% 3.38% Return on average assets .82% .94% .85% Return on average equity 10.89% 12.50% 11.25% Non-interest expense to earning assets 2.94% 2.63% 2.53% Efficiency ratio 69.1% 63.2% 63.9% Tier 1 capital ratio 10.4% 10.7% 11.0% Total capital ratio 11.3% 11.7% 12.0% Tier 1 leverage ratio 8.3% 8.3% 8.3%

ASSET QUALITY SUMMARY Non-performing loans $6,065 $6,059 $7,016 Net charge-offs (recoveries) (17) 233 (78) Net charge-offs (recoveries) to average loans (1) (.00)% .06% (.02)% Allowance to loans (1) 1.12% 1.20% 1.26% Non-performing loans to total loans (1) .36% .39% .47% Allowance to non-performing loans (1) 3.1x 3.1x 2.7x

2nd Quarter 1st Quarter 2004 2004 ----------- ----------- CONSOLIDATED STATEMENT OF OPERATIONS Interest income $25,056 $24,274 Interest expense 7,804 7,630 ----------- ----------- Net interest income 17,252 16,644 Provision for loan losses 363 750 ----------- ----------- Net interest income after provision for loan losses 16,889 15,894 Non-interest income 3,116 3,315 Non-interest expense 13,496 13,332 ----------- ----------- Income before income taxes 6,509 5,877 Income tax expense 2,149 1,940 ----------- ----------- Net income $4,360 $3,937 =========== =========== Diluted EPS $.17 $.15

Diluted shares 26,140,080 26,075,754

CONSOLIDATED BALANCE SHEET DATA Total assets $2,399,603 $2,233,135 Loans held for investment 1,364,106 1,311,511 Loans held for sale 58,058 72,789 Securities 783,234 752,861 Demand deposits 359,628 309,927 Total deposits 1,628,397 1,495,891 Other borrowings 569,404 524,502 Long-term debt 20,620 20,620 Stockholders' equity 174,327 182,587

End of period shares 25,259,574 25,145,617 Book value (excluding securities gains/losses) 7.09 6.91

SELECTED FINANCIAL RATIOS Net interest margin 3.24% 3.24% Return on average assets .77% .71% Return on average equity 10.04% 8.96% Non-interest expense to earning assets 2.52% 2.58% Efficiency ratio 66.3% 66.8% Tier 1 capital ratio 11.4% 11.7% Total capital ratio 12.5% 12.8% Tier 1 leverage ratio 8.6% 8.7%

ASSET QUALITY SUMMARY Non-performing loans $10,816 $13,203 Net charge-offs (recoveries) 96 466 Net charge-offs (recoveries) to average loans (1) .03% .15% Allowance to loans (1) 1.34% 1.37% Non-performing loans to total loans (1) .79% 1.01% Allowance to non-performing loans (1) 1.7x 1.4x

(1) Excludes loans held for sale.

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (Dollars in thousands)

March 31, March 31, % 2005 2004 Change ----------- ----------- -------- Assets Cash and due from banks $86,846 $55,203 57% Federal funds sold - 4,620 (100)% Securities, available-for-sale 754,154 752,861 - Loans held for sale 70,672 72,789 (3)% Loans held for investment (net of unearned income) 1,676,799 1,311,511 28% Less: Allowance for loan losses 18,715 18,011 4% ----------- ----------- -------- Loans held for investment, net 1,658,084 1,293,500 28% Premises and equipment, net 4,581 4,635 (1)% Accrued interest receivable and other assets 61,087 48,031 27% Goodwill, net 1,496 1,496 - ----------- ----------- -------- Total assets $2,636,920 $2,233,135 18% =========== =========== ========

Liabilities and Stockholders' Equity Liabilities: Deposits: Non-interest bearing $405,162 $309,927 31% Interest bearing 1,276,529 1,131,598 13% Interest bearing in foreign branches 300,010 54,366 452% ----------- ----------- -------- Total deposits 1,981,701 1,495,891 32%

Accrued interest payable 3,125 2,226 40% Other liabilities 5,281 7,309 (28)% Federal funds purchased 147,684 90,203 64% Repurchase agreements 282,964 432,291 (35)% Other borrowings 1,034 2,008 (49)% Long-term debt 20,620 20,620 - ----------- ----------- -------- Total liabilities 2,442,409 2,050,548 19%

Stockholders' equity: Common stock, $.01 par value: Authorized shares - 100,000,000 Issued shares - 25,557,896 and 24,858,683 at March 31, 2005 and 2004, respectively 256 248 Series A-1 non-voting common stock, $.01 par value: Issued shares - 286,934 at March 31, 2004 - 3 Additional paid-in capital 173,397 169,074 Retained earnings 25,323 4,424 Treasury stock (shares at cost: 84,274 at March 31, 2005 and 2004, respectively) (573) (573) Deferred compensation 573 573 Accumulated other comprehensive income (loss) (4,465) 8,838 ----------- ----------- -------- Total stockholders' equity 194,511 182,587 7% ----------- ----------- -------- Total liabilities and stockholders' equity $2,636,920 $2,233,135 18% =========== =========== ========

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except per share data)

Three Months Ended March 31 2005 2004 -------- -------- Interest income Interest and fees on loans $25,692 $16,706 Securities 8,296 7,551 Federal funds sold 80 15 Deposits in other banks 119 2 -------- -------- Total interest income 34,187 24,274 Interest expense Deposits 8,933 4,743 Federal funds purchased 861 320 Repurchase agreements 2,394 2,085 Other borrowings 4 226 Long-term debt 327 256 -------- -------- Total interest expense 12,519 7,630 -------- -------- Net interest income 21,668 16,644 Provision for loan losses - 750 -------- -------- Net interest income after provision for loan losses 21,668 15,894 Non-interest income Service charges on deposit accounts 781 857 Trust fee income 586 437 Cash processing fees - 587 Bank owned life insurance (BOLI) income 288 321 Mortgage warehouse fees 219 238 Gain on sale of mortgage loans 1,765 463 Other 540 412 -------- -------- Total non-interest income 4,179 3,315 Non-interest expense Salaries and employee benefits 11,529 8,130 Net occupancy expense 1,683 1,334 Marketing 699 534 Legal and professional 1,097 793 Communications and data processing 655 859 Franchise taxes 45 97 Other 2,146 1,585 -------- -------- Total non-interest expense 17,854 13,332 -------- -------- Income before income taxes 7,993 5,877 Income tax expense 2,717 1,940 -------- -------- Net income $5,276 $3,937 ======== ========

Earnings per share: Basic $.21 $.16 Diluted $.20 $.15

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE (Dollars in thousands)

1st 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter Quarter 2005 2004 2004 2004 2004 -------- -------- -------- -------- --------

Beginning balance $18,698 $18,731 $18,278 $18,011 $17,727 Loans charged-off: Commercial 266 258 - - - Real estate - - - - - Consumer 1 16 135 6 - Leases 58 115 65 266 493 -------- -------- -------- -------- -------- Total 325 389 200 272 493 Recoveries: Commercial 282 6 142 - - Leases 60 150 136 176 27 -------- -------- -------- -------- -------- Total recoveries 342 156 278 176 27 -------- -------- -------- -------- -------- Net charge-offs (recoveries) (17) 233 (78) 96 466 Provision for loan losses - 200 375 363 750 -------- -------- -------- -------- -------- Ending balance $18,715 $18,698 $18,731 $18,278 $18,011 ======== ======== ======== ======== ========

Reserve to loans held for investment (2) 1.12% 1.20% 1.26% 1.34% 1.37% Reserve to average loans held for investment (2) 1.18% 1.23% 1.31% 1.38% 1.42% Net charge-offs (recoveries) to average loans (1) (2) (.00)% .06% (.02)% .03% .15% Provision for loan losses to average loans (1) (2) - .05% .10% .11% .24% Recoveries to total charge-offs 105.2% 40.1% 139.0% 64.7% 5.5% Reserve as a multiple of net charge-offs N/M 80.2x N/M 190.4x 38.7x

Non-performing loans: Loans past due (90 days) (2) $18 $209 $117 $4,423 $6,250 Non-accrual 6,047 5,850 6,899 6,393 6,953 -------- -------- -------- -------- -------- Total $6,065 $6,059 $7,016 $10,816 $13,203 ======== ======== ======== ======== ========

Reserve as a percent of non-performing loans (2) 3.1x 3.1x 2.7x 1.7x 1.4x

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands)

1st 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter Quarter 2005 2004 2004 2004 2004 -------- -------- -------- -------- -------- Interest income Interest and fees on loans $25,692 $23,941 $20,455 $17,498 $16,706 Securities 8,296 8,567 8,546 7,536 7,551 Federal funds sold 80 17 15 18 15 Deposits in other banks 119 4 3 4 2 -------- -------- -------- -------- -------- Total interest income 34,187 32,529 29,019 25,056 24,274 Interest expense Deposits 8,933 7,315 6,231 4,948 4,743 Federal funds purchased 861 740 437 294 320 Repurchase agreements 2,394 2,631 2,572 2,250 2,085 Other borrowings 4 80 112 56 226 Long-term debt 327 303 281 256 256 -------- -------- -------- -------- -------- Total interest expense 12,519 11,069 9,633 7,804 7,630 -------- -------- -------- -------- -------- Net interest income 21,668 21,460 19,386 17,252 16,644 Provision for loan losses - 200 375 363 750 -------- -------- -------- -------- -------- Net interest income after provision for loan losses 21,668 21,260 19,011 16,889 15,894 Non-interest income Service charges on deposit accounts 781 797 825 891 857 Trust fee income 586 559 482 454 437 Cash processing fees - - - - 587 Bank owned life insurance (BOLI) income 288 292 346 329 321 Mortgage warehouse fees 219 243 241 274 238 Gain on sale of mortgage loans 1,765 1,145 1,083 729 463 Other 540 702 486 439 412 -------- -------- -------- -------- -------- Total non-interest income 4,179 3,738 3,463 3,116 3,315 Non-interest expense Salaries and employee benefits 11,529 9,786 8,914 7,964 8,130 Net occupancy expense 1,683 1,577 1,443 1,341 1,334 Marketing 699 837 669 569 534 Legal and professional 1,097 814 755 779 793 Communications and data processing 655 540 764 995 859 Franchise taxes 45 41 52 56 97 Other 2,146 2,322 1,998 1,792 1,585 -------- -------- -------- -------- -------- Total non-interest expense 17,854 15,917 14,595 13,496 13,332 -------- -------- -------- -------- -------- Income before income taxes 7,993 9,081 7,879 6,509 5,877 Income tax expense 2,717 3,054 2,643 2,149 1,940 -------- -------- -------- -------- -------- Net income $5,276 $6,027 $5,236 $4,360 $3,937 ======== ======== ======== ======== ========

QUARTERLY FINANCIAL SUMMARY - UNAUDITED Consolidated Daily Average Balances, Average Yields and Rates (Dollars in thousands)

1st Quarter 2005 ---------------------------------- Average Revenue/ Yield/ Balance Expense(1)(2) Rate ----------- ------------- -------- Assets Securities - Taxable $729,907 $7,861 4.37% Securities - Non-taxable 48,715 669 5.57% Federal funds sold 12,377 80 2.62% Deposits in other banks 17,858 119 2.70% Loans held for sale 81,956 2,281 11.29% Loans 1,590,207 23,411 5.97% Less reserve for loan losses 18,930 - - ----------- ------------- -------- Loans, net of reserve 1,653,233 25,692 6.30% ----------- ------------- -------- Total earning assets 2,462,090 34,421 5.67% Cash and other assets 148,557 ----------- Total assets $2,610,647 ===========

Liabilities and Stockholders' Equity Transaction deposits $107,162 $255 0.97% Savings deposits 613,391 3,147 2.08% Time deposits 765,497 5,531 2.93% ----------- ------------- -------- Total interest bearing deposits 1,486,050 8,933 2.44% Other borrowings 534,773 3,259 2.47% Long-term debt 20,620 327 6.43% ----------- ------------- -------- Total interest bearing liabilities 2,041,443 12,519 2.49% Demand deposits 363,398 Other liabilities 9,241 Stockholders' equity 196,565 ----------- Total liabilities and stockholders' equity $2,610,647 ===========

Net interest income $21,902 Net interest income to earning assets 3.61%

4th Quarter 2004 ---------------------------------- Average Revenue/ Yield/ Balance Expense(1)(2) Rate ----------- ------------- -------- Assets Securities - Taxable $765,943 $8,168 4.24% Securities - Non-taxable 44,907 614 5.44% Federal funds sold 3,159 17 2.14% Deposits in other banks 773 4 2.06% Loans held for sale 94,510 2,191 9.22% Loans 1,516,672 21,750 5.71% Less reserve for loan losses 18,870 - - ----------- ------------- -------- Loans, net of reserve 1,592,312 23,941 5.98% ----------- ------------- -------- Total earning assets 2,407,094 32,744 5.41% Cash and other assets 137,702 ----------- Total assets $2,544,796 ===========

Liabilities and Stockholders' Equity Transaction deposits $104,621 $230 0.87% Savings deposits 587,020 2,548 1.73% Time deposits 658,447 4,537 2.74% ----------- ------------- -------- Total interest bearing deposits 1,350,088 7,315 2.16% Other borrowings 635,552 3,451 2.16% Long-term debt 20,620 303 5.85% ----------- ------------- -------- Total interest bearing liabilities 2,006,260 11,069 2.19% Demand deposits 335,914 Other liabilities 10,732 Stockholders' equity 191,890 ----------- Total liabilities and stockholders' equity $2,544,796 ===========

Net interest income $21,675 Net interest income to earning assets 3.58%

3rd Quarter 2004 ---------------------------------- Average Revenue/ Yield/ Balance Expense(1)(2) Rate ----------- ------------- -------- Assets Securities - Taxable $776,302 $8,337 4.27% Securities - Non-taxable 24,925 322 5.14% Federal funds sold 4,192 15 1.42% Deposits in other banks 1,128 3 1.06% Loans held for sale 70,730 1,765 9.93% Loans 1,432,860 18,690 5.19% Less reserve for loan losses 18,440 - - ----------- ------------- -------- Loans, net of reserve 1,485,150 20,455 5.48% ----------- ------------- -------- Total earning assets 2,291,697 29,132 5.06% Cash and other assets 157,255 ----------- Total assets $2,448,952 ===========

Liabilities and Stockholders' Equity Transaction deposits $99,245 $150 0.60% Savings deposits 581,616 2,005 1.37% Time deposits 631,115 4,076 2.57% ----------- ------------- -------- Total interest bearing deposits 1,311,976 6,231 1.89% Other borrowings 617,394 3,121 2.01% Long-term debt 20,620 281 5.42% ----------- ------------- -------- Total interest bearing liabilities 1,949,990 9,633 1.97% Demand deposits 302,338 Other liabilities 11,395 Stockholders' equity 185,229 ----------- Total liabilities and stockholders' equity $2,448,952 ===========

Net interest income $19,499 Net interest income to earning assets 3.38%

2nd Quarter 2004 ---------------------------------- Average Revenue/ Yield/ Balance Expense(1)(2) Rate ----------- ------------- -------- Assets Securities - Taxable $748,343 $7,396 3.97% Securities - Non-taxable 17,664 215 4.90% Federal funds sold 7,686 18 0.94% Deposits in other banks 995 4 1.62% Loans held for sale 68,922 1,456 8.50% Loans 1,326,066 16,042 4.87% Less reserve for loan losses 18,205 - - ----------- ------------- -------- Loans, net of reserve 1,376,783 17,498 5.11% ----------- ------------- -------- Total earning assets 2,151,471 25,131 4.70% Cash and other assets 138,399 ----------- Total assets $2,289,870 ===========

Liabilities and Stockholders' Equity Transaction deposits $95,031 $140 0.59% Savings deposits 560,182 1,639 1.18% Time deposits 566,369 3,169 2.25% ----------- ------------- -------- Total interest bearing deposits 1,221,582 4,948 1.63% Other borrowings 574,942 2,600 1.82% Long-term debt 20,620 256 4.99% ----------- ------------- -------- Total interest bearing liabilities 1,817,144 7,804 1.73% Demand deposits 289,973 Other liabilities 8,047 Stockholders' equity 174,706 ----------- Total liabilities and stockholders' equity $2,289,870 ===========

Net interest income $17,327 Net interest income to earning assets 3.24%

1st Quarter 2004 ---------------------------------- Average Revenue/ Yield/ Balance Expense(1)(2) Rate ----------- ------------- -------- Assets Securities - Taxable $745,042 $7,442 4.02% Securities - Non-taxable 13,924 168 4.85% Federal funds sold 6,058 15 1.00% Deposits in other banks 829 2 0.97% Loans held for sale 61,177 1,157 7.61% Loans 1,265,840 15,549 4.94% Less reserve for loan losses 17,720 - - ----------- ------------- -------- Loans, net of reserve 1,309,297 16,706 5.13% ----------- ------------- -------- Total earning assets 2,075,150 24,333 4.72% Cash and other assets 146,414 ----------- Total assets $2,221,564 ===========

Liabilities and Stockholders' Equity Transaction deposits $88,635 $132 .60% Savings deposits 504,530 1,499 1.19% Time deposits 534,981 3,112 2.34% ----------- ------------- -------- Total interest bearing deposits 1,128,146 4,743 1.69% Other borrowings 620,982 2,631 1.70% Long-term debt 20,620 256 4.99% ----------- ------------- -------- Total interest bearing liabilities 1,769,748 7,630 1.73% Demand deposits 265,039 Other liabilities 10,013 Stockholders' equity 176,764 ----------- Total liabilities and stockholders' equity $2,221,564 ===========

Net interest income $16,703 Net interest income to earning assets 3.24%

(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.

--30--MJR/da*

CONTACT: Texas Capital Bancshares, Dallas Media Contact Tricia Linderman, 214-932-6798 tricia.linderman@texascapitalbank.com or Investor Contact Myrna Vance, 214-932-6646 myrna.vance@texascapitalbank.com

KEYWORD: TEXAS INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: Texas Capital Bancshares

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