Texas Capital Bancshares Announces Results for 2004

    Business Editors

    DALLAS--(BUSINESS WIRE)--Jan. 19, 2005--Texas Capital Bancshares, Inc. (Nasdaq:TCBI), the parent company of Texas Capital Bank announced earnings and operating results for 2004.

    On a comparative basis:

FINANCIAL SUMMARY (dollars and shares in thousands)

Q4 2004 Q4 2003 % Change ----------- ----------- --------- QUARTERLY OPERATING RESULTS Net Income $6,027 $3,614 67% Diluted EPS $.23 $.14 64% ROA .94% .68% ROE 12.50% 8.55% Diluted Shares 26,457 25,808 3%

2004 2003 % Change ----------- ----------- --------- ANNUAL OPERATING RESULTS Net Income $19,560 $13,834 41% Diluted EPS $.75 $.60 25% ROA .82% .70% ROE 10.74% 9.71% Diluted Shares 26,235 23,119 13%

2004 2003 % Change ----------- ----------- --------- BALANCE SHEET Total Assets $2,611,163 $2,192,875 19% Demand Deposits 397,629 301,886 32% Total Deposits 1,789,887 1,445,030 24% Loans Held for Investment 1,564,578 1,229,773 27% Total Loans 1,684,115 1,310,553 29% Stockholders' Equity 195,275 171,756 14%

    Loans Held for Investment are stated net of unearned income.

    Detailed Financials

    Texas Capital Bancshares, Inc. reported net income of $6.0 million for the fourth quarter of 2004 compared to $3.6 million for the fourth quarter of 2003. On a fully diluted basis, earnings per share were $.23 for the three months ended Dec. 31, 2004, compared to $.14 for the same period last year, representing an increase of 64 percent. Net income for the year ended Dec. 31, 2004, was $19.6 million compared to $12.3 million on an as adjusted basis for the same period in 2003, an increase of 59 percent. On an as reported basis, net income for the year ended Dec. 31, 2003, was $13.8 million. Earnings per share on a fully diluted basis for the year ended Dec. 31, 2004, were $.75 versus $.53 on an as adjusted basis for the same period in 2003, an increase of 42 percent. On an as reported basis, EPS for the year ended Dec. 31, 2003, was $.60. See page 13 of the second quarter 10Q for detailed discussion of the adjusted numbers for June 2003.
    Return on average equity was 12.50 percent and return on average assets was .94 percent for the fourth quarter of 2004 compared to 8.55 percent and .68 percent, respectively, for the fourth quarter of 2003. Return on average equity was 10.74 percent and return on average assets was .82 percent for 2004 compared to 8.63 percent and .62 percent, respectively, on an as adjusted basis for 2003. Return on average equity and return on average assets for 2003 as reported was 9.71 percent and .70 percent. The increase in net income and improvement in return on assets in 2004 as compared to 2003 results 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 $21.5 million for the fourth quarter of 2004, compared to $15.4 million for the fourth quarter of 2003. The increase was due to an increase in average earning assets of $415.2 million over levels reported in the fourth quarter of 2003 and an improvement in the net interest margin. The increase in average earning assets included a $345.3 million increase in average loans held for investment (core loans), an increase of $23.1 million in loans held for sale and an increase of $52.2 million in average securities. The net interest margin in the fourth quarter of 2004 was 3.58 percent (on a fully tax equivalent basis), a 51 basis point increase from the fourth quarter of 2003 and a 20 basis point increase from the third quarter of 2004. The improvement in the net interest margin resulted primarily from an 83 basis point increase in the yield on earning assets offset by a 39 basis point increase in the cost of interest-bearing liabilities from the prior year.
    Average interest bearing liabilities increased $329.5 million from the fourth quarter of 2003, which included a $225.3 million increase in interest bearing deposits and a $104.2 million increase in other borrowings. The increase in average borrowings was primarily related to an increase in securities sold under repurchase agreements and was used to supplement deposits in funding the purchase of securities and the growth in loans. For the same periods, the average balance of demand deposits increased to $335.9 million from $267.6 million, an increase of 26 percent.
    Key measures of credit quality showed improvement during the fourth quarter. In the fourth quarter of 2004, net charge-offs of $233,000 represented .06 percent of average core loans, compared to net charge-offs of $249,000, or .08 percent of average loans, in the fourth quarter of 2003. Net charge-offs of $717,000 for all of 2004 represented .05 percent of average core loans compared to NCO's of $836,000, .08 percent of average core loans for 2003. The Company also reported a $957,000 improvement in the level of non-performing loans from third quarter 2004 levels, bringing the ratio to .39 percent of total loans. NPL's decreased by 41 percent from $10.2 million at December 2003 to $6.1 million at December 2004. The provision for possible loan losses decreased to $200,000 from $375,000 in the third quarter of 2004 and resulted in a reduction from the $700,000 provision in the fourth quarter of 2003. Based on the improvement in indicators of credit quality in 2004, the provision for losses necessary to maintain reserve adequacy decreased to $1.7 million in 2004 from $4.0 million in 2003. In management's opinion, the reserve is sufficient to cover all reasonably expected losses in the portfolio and is derived from consistent application of the methodology for determining the amount of the provision for loan losses and establishing the adequacy of reserves for Texas Capital Bank's loan portfolio.
    Non-interest expense for the fourth quarter of 2004 increased $4.3 million or 37 percent, to $15.9 million from $11.6 million in the fourth quarter of 2003. The increase is primarily related to a $3.2 million increase in salaries and employee benefits to $9.8 million from $6.6 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, additional staffing for the new Houston office, the significant expansion of the residential mortgage lending division, and increased incentive compensation reflective of the Company's performance.

    About Texas Capital Bank

    Texas Capital Bancshares 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, Texas Capital 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)

4th Quarter 3rd Quarter 2nd Quarter 2004 2004 2004 ----------- ----------- ----------- CONSOLIDATED STATEMENT OF OPERATIONS Interest income $32,529 $29,019 $25,056 Interest expense 11,069 9,633 7,804 ----------- ----------- ----------- Net interest income 21,460 19,386 17,252 Provision for loan losses 200 375 363 ----------- ----------- ----------- Net interest income after provision for loan losses 21,260 19,011 16,889 Non-interest income 3,738 3,463 3,116 Gain (loss) on sale of securities -- -- -- Non-interest expense 15,917 14,595 13,496 ----------- ----------- ----------- Income before income taxes 9,081 7,879 6,509 Income tax expense 3,054 2,643 2,149 ----------- ----------- ----------- Net income $6,027 $5,236 $4,360 =========== =========== =========== Diluted EPS $.23 $.20 $.17

Diluted shares 26,457,466 26,263,714 26,140,080

CONSOLIDATED BALANCE SHEET DATA Total assets $2,611,163 $2,487,371 $2,399,603 Loans held for investment 1,564,578 1,485,156 1,364,106 Loans held for sale 119,537 79,010 58,058 Securities 804,544 820,661 783,234 Demand deposits 397,629 324,292 359,628 Total deposits 1,789,887 1,612,762 1,628,397 Other borrowings 594,991 653,168 569,404 Long-term debt 20,620 20,620 20,620 Stockholders' equity 195,275 190,314 174,327

End of period shares 25,461,602 25,292,206 25,259,574 Book value 7.67 7.52 6.90

SELECTED FINANCIAL RATIOS Net interest margin 3.58% 3.38% 3.25% Return on average assets .94% .85% .77% Return on average equity 12.50% 11.25% 10.04% Non-interest expense to earning assets 2.63% 2.53% 2.52% Efficiency ratio (excludes securities gains) 63.2% 63.9% 66.3% Tier 1 capital ratio 10.7% 11.0% 11.4% Total capital ratio 11.7% 12.0% 12.5% Tier 1 leverage ratio 8.3% 8.3% 8.6%

ASSET QUALITY SUMMARY Non-performing loans $6,059 $7,016 $10,816 Net charge-offs (recoveries) 233 (78) 96 Net charge-offs (recoveries) to average loans (1) .06% (.02)% .03% Allowance to loans(1) 1.20% 1.26% 1.34% Non-performing loans to loans (1) .39% .47% .79% Allowance to non-performing loans (1) 3.1x 2.7x 1.7x

1st Quarter 4th Quarter 2004 2003 ----------- ----------- CONSOLIDATED STATEMENT OF OPERATIONS Interest income $24,274 $22,998 Interest expense 7,630 7,600 ----------- ----------- Net interest income 16,644 15,398 Provision for loan losses 750 700 ----------- ----------- Net interest income after provision for loan losses 15,894 14,698 Non-interest income 3,315 2,255 Gain (loss) on sale of securities -- (20) Non-interest expense 13,332 11,618 ----------- ----------- Income before income taxes 5,877 5,315 Income tax expense 1,940 1,701 ----------- ----------- Net income $3,937 $3,614 =========== =========== Diluted EPS $.15 $.14

Diluted shares 26,075,754 25,808,258

CONSOLIDATED BALANCE SHEET DATA Total assets $2,233,135 $2,192,875 Loans held for investment 1,311,511 1,229,773 Loans held for sale 72,789 80,780 Securities 752,861 775,338 Demand deposits 309,927 301,886 Total deposits 1,495,891 1,445,030 Other borrowings 524,502 545,754 Long-term debt 20,620 20,620 Stockholders' equity 182,587 171,756

End of period shares 25,145,617 25,009,525 Book value 7.26 6.87

SELECTED FINANCIAL RATIOS Net interest margin 3.23% 3.07% Return on average assets .71% .68% Return on average equity 8.96% 8.55% Non-interest expense to earning assets 2.58% 2.31% Efficiency ratio (excludes securities gains) 66.8% 65.9% Tier 1 capital ratio 11.7% 12.0% Total capital ratio 12.8% 13.2% Tier 1 leverage ratio 8.7% 8.8%

ASSET QUALITY SUMMARY Non-performing loans $13,203 $10,224 Net charge-offs (recoveries) 466 249 Net charge-offs (recoveries) to average loans (1) .15% .08% Allowance to loans(1) 1.37% 1.44% Non-performing loans to loans (1) 1.01% .83% Allowance to non-performing loans (1) 1.4x 1.7x

(1) Excludes loans held for sale.

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December December 31, 31, % 2004 2003 Change ----------- ----------- -------- Assets Cash and due from banks $78,490 $69,551 13% Securities, available-for-sale 804,544 775,338 4% Loans held for sale 119,537 80,780 48% Loans held for investment (net of unearned income) 1,564,578 1,229,773 27% Less: Allowance for loan losses 18,698 17,727 5% ----------- ----------- -------- Loans held for investment, net 1,545,880 1,212,046 28% Premises and equipment, net 4,518 4,672 (3)% Accrued interest receivable and other assets 56,698 48,992 16% Goodwill, net 1,496 1,496 -- ----------- ----------- -------- Total assets $2,611,163 $2,192,875 19% =========== =========== ========

Liabilities and Stockholders' Equity Liabilities: Deposits: Non-interest bearing $397,629 $301,886 32% Interest bearing 1,234,283 1,094,534 13% Interest bearing in foreign branches 157,975 48,610 225% ----------- ----------- -------- Total deposits 1,789,887 1,445,030 24%

Accrued interest payable 3,511 3,468 1% Other liabilities 6,879 6,247 10% Federal funds purchased 113,478 78,961 44% Repurchase agreements 478,204 432,255 11% Other borrowings 3,309 34,538 (90)% Long-term debt 20,620 20,620 -- ----------- ----------- -------- Total liabilities 2,415,888 2,021,119 20%

Stockholders' equity: Common stock, $.01 par value: Authorized shares - 100,000,000 Issued shares - 25,461,602 and 24,715,607 at December 31, 2004 and 2003, respectively 255 247 Series A-1 non-voting common stock, $.01 par value: Issued shares - 293,918 at December 31, 2003 -- 3 Additional paid-in capital 172,380 167,751 Retained earnings 20,047 487 Treasury stock (shares at cost: 84,274 at December 31, 2004 and 2003) (573) (573) Deferred compensation 573 573 Accumulated other comprehensive income, net 2,593 3,268 ----------- ----------- -------- Total stockholders' equity 195,275 171,756 14% ----------- ----------- -------- Total liabilities and stockholders' equity $2,611,163 $2,192,875 19% =========== =========== ========

CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)

Three Months Year Ended Ended December December 31 31 2004 2003 2004 2003 -------- ----------------- -------- Interest income Interest and fees on loans $23,941 $15,660 $78,600 $62,451 Securities 8,567 7,319 32,200 22,853 Federal funds sold 17 16 65 166 Deposits in other banks 4 3 13 14 -------- ----------------- -------- Total interest income 32,529 22,998 110,878 85,484 Interest expense Deposits 7,315 4,911 23,237 20,931 Federal funds purchased 740 293 1,791 1,550 Repurchase agreements 2,631 2,106 9,538 8,620 Other borrowings 80 32 474 323 Long-term debt 303 258 1,096 905 -------- ----------------- -------- Total interest expense 11,069 7,600 36,136 32,329 -------- ----------------- -------- Net interest income 21,460 15,398 74,742 53,155 Provision for loan losses 200 700 1,688 4,025 -------- ----------------- -------- Net interest income after provision for loan losses 21,260 14,698 73,054 49,130 Non-interest income Service charges on deposit accounts 797 850 3,370 3,446 Trust fee income 559 376 1,932 1,313 Gain on sale of securities -- (20) -- 666 Cash processing fees -- -- 587 973 Bank owned life insurance (BOLI) income 292 326 1,288 1,619 Mortgage warehouse fees 243 276 996 1,524 Gain on sale of mortgage loans 1,145 120 3,420 134 Other 702 307 2,039 1,217 -------- ----------------- -------- Total non-interest income 3,738 2,235 13,632 10,892 Non-interest expense Salaries and employee benefits 9,786 6,614 34,794 23,604 Net occupancy expense 1,577 1,336 5,695 4,987 Advertising 444 214 1,327 819 Legal and professional 814 614 3,141 2,867 Communications and data processing 540 819 3,158 3,042 Franchise taxes 41 13 246 124 Repurchase agreement penalties -- -- -- 6,262 Other 2,715 2,008 8,979 6,675 -------- ----------------- -------- Total non-interest expense 15,917 11,618 57,340 48,380 -------- ----------------- -------- Income before income taxes 9,081 5,315 29,346 11,642 Income tax expense (benefit) 3,054 1,701 9,786 (2,192) -------- ----------------- -------- Net income 6,027 3,614 19,560 13,834

Preferred stock dividends -- -- -- (699) -------- ----------------- -------- Income available to common stockholders $6,027 $3,614 $19,560 $13,135 ======== ================= ========

Earnings per share: Basic $.24 $.14 $.77 $.62 Diluted $.23 $.14 $.75 $.60

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE (Dollars in thousands) 4th 3rd 2nd 1st 4th Quarter Quarter Quarter Quarter Quarter 2004 2004 2004 2004 2003 -------- -------- -------- -------- --------

Beginning balance $18,731 $18,278 $18,011 $17,727 $17,276 Loans charged-off: Commercial 258 -- -- -- -- Real estate -- -- -- -- 200 Consumer 16 135 6 -- 5 Leases 115 65 266 493 107 -------- -------- -------- -------- -------- Total 389 200 272 493 312 Recoveries: Commercial 6 142 -- -- -- Leases 150 136 176 27 63 -------- -------- -------- -------- -------- Total recoveries 156 278 176 27 63 -------- -------- -------- -------- -------- Net charge-offs (recoveries) 233 (78) 96 466 249 Provision for loan losses 200 375 363 750 700 -------- -------- -------- -------- -------- Ending balance $18,698 $18,731 $18,278 $18,011 $17,727 ======== ======== ======== ======== ========

Reserve to loans held for investment(2) 1.20% 1.26% 1.34% 1.37% 1.44% Net charge-offs (recoveries) to average loans (1) (2) .06% (.02)% .03% .15% .08% Provision for loan losses to average loans (1) (2) .05% .10% .11% .24% .24% Recoveries to gross charge-offs 40.1% 139.0% 64.7% 5.5% 20.2% Reserve as a multiple of net charge-offs 80.2x N/A 190.4x 38.7x 71.2x

Non-performing loans: Loans past due (90 days) $209 $117 $4,423 $6,250 $7 Non-accrual 5,850 6,899 6,393 6,953 10,217 -------- -------- -------- -------- -------- Total $6,059 $7,016 $10,816 $13,203 $10,224 ======== ======== ======== ======== ========

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

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands)

4th 3rd 2nd 1st 4th Quarter Quarter Quarter Quarter Quarter 2004 2004 2004 2004 2003 -------- -------- -------- -------- -------- Interest income Interest and fees on loans $23,941 $20,455 $17,498 $16,706 $15,660 Securities 8,567 8,546 7,536 7,551 7,319 Federal funds sold 17 15 18 15 16 Deposits in other banks 4 3 4 2 3 -------- -------- -------- -------- -------- Total interest income 32,529 29,019 25,056 24,274 22,998 Interest expense Deposits 7,315 6,231 4,948 4,743 4,911 Federal funds purchased 740 437 294 320 293 Repurchase agreements 2,631 2,572 2,250 2,085 2,106 Other borrowings 80 112 56 226 32 Long-term debt 303 281 256 256 258 -------- -------- -------- -------- -------- Total interest expense 11,069 9,633 7,804 7,630 7,600 -------- -------- -------- -------- -------- Net interest income 21,460 19,386 17,252 16,644 15,398 Provision for loan losses 200 375 363 750 700 -------- -------- -------- -------- -------- Net interest income after provision for loan losses 21,260 19,011 16,889 15,894 14,698 Non-interest income Service charges on deposit accounts 797 825 891 857 850 Trust fee income 559 482 454 437 376 Gain (loss) on sale of securities -- -- -- -- (20) Cash processing fees -- -- -- 587 -- Bank owned life insurance (BOLI) income 292 346 329 321 326 Mortgage warehouse fees 243 241 274 238 276 Gain on sale of mortgage loans 1,145 1,083 729 463 120 Other 702 486 439 412 307 -------- -------- -------- -------- -------- Total non-interest income 3,738 3,463 3,116 3,315 2,235 Non-interest expense Salaries and employee benefits 9,786 8,914 7,964 8,130 6,614 Net occupancy expense 1,577 1,443 1,341 1,334 1,336 Advertising and affinity payments 444 302 296 285 214 Legal and professional 814 755 779 793 614 Communications and data processing 540 764 995 859 819 Franchise taxes 41 52 56 97 13 Other 2,715 2,365 2,065 1,834 2,008 -------- -------- -------- -------- -------- Total non-interest expense 15,917 14,595 13,496 13,332 11,618 -------- -------- -------- -------- -------- Income before income taxes 9,081 7,879 6,509 5,877 5,315 Income tax expense 3,054 2,643 2,149 1,940 1,701 -------- -------- -------- -------- -------- Net income $6,027 $5,236 $4,360 $3,937 $3,614 ======== ======== ======== ======== ========

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

4th Quarter 2004 3rd Quarter 2004 --------------------------- --------------------------- Average Revenue/ Yield/ Average Revenue/ Yield/ Balance Expense Rate Balance Expense Rate (1) (2) (1) (2) ----------- -------- ------------------ -------- ------ Assets Securities $810,850 $8,782 4.31% $801,227 $8,659 4.30% Federal funds sold 3,159 17 2.14% 4,192 15 1.42% Deposits in other banks 773 4 2.06% 1,128 3 1.06% Loans held for sale 94,510 2,191 9.22% 70,730 1,765 9.93% Loans held for investment 1,516,672 21,750 5.71% 1,432,860 18,690 5.19% Less reserve for loan losses 18,870 -- -- 18,440 -- -- ----------- -------- ------ ----------- -------- ------ Loans, net of reserve 1,592,312 23,941 5.98% 1,485,150 20,455 5.48% ----------- -------- ------ ----------- -------- ------ Total earning assets 2,407,094 32,744 5.41% 2,291,697 29,132 5.06% Cash and other assets 137,702 157,255 ----------- ----------- Total assets $2,544,796 $2,448,952 =========== ===========

Liabilities and Stockholders' Equity Transaction deposits $104,621 $230 .87% $99,245 $150 .60% Savings deposits 587,020 2,548 1.73% 581,616 2,005 1.37% Time deposits 658,447 4,537 2.74% 631,115 4,076 2.57% ----------- -------- ------ ----------- -------- ------ Total interest bearing deposits 1,350,088 7,315 2.16% 1,311,976 6,231 1.89% Other borrowings 635,552 3,451 2.16% 617,394 3,121 2.01% Long-term debt 20,620 303 5.85% 20,620 281 5.42% ----------- -------- ------ ----------- -------- ------ Total interest bearing liabilities 2,006,260 11,069 2.19% 1,949,990 9,633 1.97% Demand deposits 335,914 302,338 Other liabilities 10,732 11,527 Stockholders' equity 191,890 185,097 Total liabilities and stockholders' equity $2,544,796 $2,448,952

Net interest income $21,675 $19,499 Net interest income to earning assets 3.58% 3.38%

2nd Quarter 2004 1st Quarter 2004 --------------------------- --------------------------- Average Revenue/ Yield/ Average Revenue/ Yield/ Balance Expense Rate Balance Expense Rate (1) (2) (1) (2) ----------- -------- ------ ----------- -------- ------ Assets Securities $766,007 $7,647 4.02% $758,966 $7,574 4.01% Federal funds sold 7,686 18 0.94% 6,058 15 1.00% Deposits in other banks 995 4 1.62% 829 2 0.97% Loans held for sale 68,922 1,456 8.50% 61,177 1,157 7.61% Loans held for investment 1,326,066 16,042 4.87% 1,265,840 15,549 4.94% Less reserve for loan losses 18,205 -- -- 17,720 -- -- ----------- -------- ------ ----------- -------- ------ Loans, net of reserve 1,376,783 17,498 5.11% 1,309,297 16,706 5.13% ----------- -------- ------ ----------- -------- ------ Total earning assets 2,151,471 25,167 4.70% 2,075,150 24,297 4.71% Cash and other assets 138,399 146,414 ----------- ----------- Total assets $2,289,870 $2,221,564 =========== ===========

Liabilities and Stockholders' Equity Transaction deposits $95,031 $140 0.59% $88,635 $132 0.60% Savings deposits 560,182 1,639 1.18% 504,530 1,499 1.19% Time deposits 566,369 3,169 2.25% 534,981 3,112 2.34% ----------- -------- ------ ----------- -------- ------ Total interest bearing deposits 1,221,582 4,948 1.63% 1,128,146 4,743 1.69% Other borrowings 574,942 2,600 1.82% 620,982 2,631 1.70% Long-term debt 20,620 256 4.99% 20,620 256 4.99% ----------- -------- ------ ----------- -------- ------ Total interest bearing liabilities 1,817,144 7,804 1.73% 1,769,748 7,630 1.73% Demand deposits 289,973 265,039 Other liabilities 8,047 10,013 Stockholders' equity 174,706 176,764 Total liabilities and stockholders' equity $2,289,870 $2,221,564

Net interest income $17,363 $16,667 Net interest income to earning assets 3.25% 3.23%

4th Quarter 2003 --------------------------- Average Revenue/ Yield/ Balance Expense Rate (1) (2) ----------- -------- ------ Assets Securities $758,629 $7,319 3.83% Federal funds sold 6,746 16 0.94% Deposits in other banks 1,081 3 1.10% Loans held for sale 71,413 1,159 6.44% Loans held for investment 1,171,395 14,501 4.91% Less reserve for loan losses 17,394 -- -- ----------- -------- ------ Loans, net of reserve 1,225,414 15,660 5.07% ----------- -------- ------ Total earning assets 1,991,870 22,998 4.58% Cash and other assets 129,068 ----------- Total assets $2,120,938 ===========

Liabilities and Stockholders' Equity Transaction deposits $75,723 $116 0.61% Savings deposits 504,839 1,505 1.18% Time deposits 544,190 3,290 2.40% ----------- -------- ------ Total interest bearing deposits 1,124,752 4,911 1.73% Other borrowings 531,402 2,431 1.81% Long-term debt 20,620 258 4.96% ----------- -------- ------ Total interest bearing liabilities 1,676,774 7,600 1.80% Demand deposits 267,614 Other liabilities 8,914 Stockholders' equity 167,636 Total liabilities and stockholders' equity $2,120,938

Net interest income $15,398 Net interest income to earning assets 3.07%

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

Taxable equivalent rates used where applicable.

--30--BD/da*

CONTACT: Texas Capital Bancshares, Inc., Dallas Tricia Linderman, 214-932-6798 tricia.linderman@texascapitalbank.com

KEYWORD: TEXAS INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: Texas Capital Bancshares, Inc.

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