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Texas Capital Bancshares, Inc. Announces Operating Results for Q2 2013

Texas Capital Bancshares, Inc. Announces Operating Results for Q2 2013

DALLAS, July 24, 2013 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc.
(Nasdaq:TCBI), the parent company of Texas Capital Bank, announced earnings
and operating results for the second quarter of 2013.

  *Net income decreased 27% on a linked quarter basis and decreased 19% from
    the second quarter of 2012 (12% decrease on a linked quarter basis and 2%
    decrease from the second quarter of 2012 excluding charge related to
    organizational change)
  *EPS decreased 35% on a linked quarter basis and 32% from the second
    quarter of 2012 (20% decrease on a linked quarter basis and 16% decrease
    from the second quarter of 2012 excluding charge related to organizational
    change)
  *Demand deposits increased 11% and total deposits increased 3% on a linked
    quarter basis; grew 45% and 20%, respectively, from the second quarter of
    2012
  *Loans held for investment increased 9% and total loans increased 9% on a
    linked quarter basis; both grew 20% from the second quarter of 2012,
    resulting in a significant increase in the provision

"We are very pleased with the extraordinary growth in loans held for
investment, the substantial growth in demand deposits and continued strong
core earnings," said George Jones, CEO. "They are the basis on which we are
building the potential for a very positive future in earnings and shareholder
returns."

FINANCIAL SUMMARY
(dollars and shares in thousands)
                                           Q2 2013      Q2 2012     % Change
QUARTERLY OPERATING RESULTS^(1)                                    
Net Income                                  $24,072      $29,623     (19)%
Net Income Available to Common Shareholders $21,634      $29,623     (27)%
Diluted EPS                                 $.52         $.76        (32)%
ROA                                         .95%         1.40%       
ROE                                         9.94%        18.08%      
Diluted Shares                              41,724       39,142      
                                                                  
BALANCE SHEET^(1)                                                  
Total Assets                                $10,977,990  $9,144,360  20%
Demand Deposits                             2,928,735    2,019,473   45%
Total Deposits                              7,980,598    6,660,290   20%
Loans Held for Investment                   7,510,662    6,234,692   20%
Total Loans                                 10,348,896   8,642,724   20%
Stockholders' Equity                        1,034,955    680,705     52%
                                                                  
(1) Operating results, assets and loans are reporting from continuing
operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations
of $24.1 million and net income available to common shareholders of $21.6
million for the quarter ended June 30, 2013, compared to $29.6 million for
both net income from continuing operations and net income available to common
shareholders for the second quarter of 2012. On a fully diluted basis,
earnings per common share from continuing operations were $.52 for the three
months ended June 30, 2013, compared to $.76 for the same period last year.
The three months ended June 30, 2013, includes the first full quarter of
preferred stock dividends which is approximately $.06 per share.The
discussion below relates only to continuing operations.

Return on average common equity was 9.94 percent and return on average assets
was .95 percent for the second quarter of 2013, compared to 18.08 percent and
1.40 percent, respectively, for the second quarter of 2012.

Net interest income was $101.2 million for the second quarter of 2013,
compared to $98.0 million in the first quarter of 2013 and $90.6 million for
the second quarter of 2012. The net interest margin in the second quarter of
2013 was 4.19 percent, a 30 basis point decrease from the second quarter of
2012 and an 8 basis point decrease from the first quarter of 2013. The year
over year decrease in net interest margin is due to the growth in loans with
lower yields offset with a reduction in the total cost of deposits and
borrowed funds. Compared to the second quarter of 2012, the issuance in
subordinated capital notes during September 2012 had a 7 basis point impact on
the net interest margin. The year over year growth in loans more than
compensated for the reduction in yields and produced strong growth in net
interest income.

Average loans held for investment for the second quarter of 2013 were $7.1
billion, an increase of $1.2 billion from the second quarter of 2012 and
$309.6 million from the first quarter of 2013. Average loans held for sale for
the second quarter of 2013 increased $343.8 million compared to the second
quarter of 2012 and increased $43.6 million from the first quarter of 2013.

Average total deposits for the second quarter of 2013 increased by $1.8
billion from the second quarter of 2012 and increased by $525.8 million from
the first quarter of 2013. For the same periods, the average balance of demand
deposits increased by $1.0 billion, or 56 percent, to $2.9 billion from $1.9
billion during the second quarter of 2012 and increased $384.4 million from
the first quarter of 2013.

In the second quarter of 2013, we experienced continued decreases in levels of
non-performing assets. Credit costs, including the provision for credit losses
and valuation charges related to other real estate owned ("OREO") totaled $7.4
million in the second quarter of 2013 compared to $4.1 million in the second
quarter of 2012 and $2.1 million in the first quarter of 2013. We recorded a
$7.0 million provision for credit losses in the second quarter of 2013
compared to $1.0 million in the second quarter of 2012 and $2.0 million in the
first quarter of 2013. The substantial majority of the provision in the second
quarter of 2013 was directly related to the significant growth in loans held
for investment during the quarter.Due to growth and improving credit quality,
at June 30, 2013, the combined reserve decreased to 1.11 percent of loans held
for investment as compared to 1.21 percent at June 30, 2012 and 1.14 percent
at March 31, 2013. In management's opinion, the reserve is appropriate and is
derived from consistent application of the methodology for establishing the
adequacy of reserves for Texas Capital Bank's loan portfolio. In the second
quarter of 2013, net charge-offs were $2.4 million, compared to net
charge-offs of $533,000 in the second quarter of 2012 and net charge-offs of
$1.2 million in the first quarter of 2013. For the first half of 2013, the net
charge-off ratio was 10 basis points compared to 5 basis points for the same
period in 2012. Non-accrual loans were $38.5 million, or .51 percent of loans
held for investment at the end of the second quarter of 2013, $56.4 million,
or .91 percent, at the end of the second quarter of 2012 and $43.4 million, or
.63 percent, at the end of the first quarter 2013. At June 30, 2013, total
OREO was $13.1 million compared to $27.9 million at the end of the second
quarter of 2012, and $14.4 million at the end of the first quarter of 2013.
The OREO balance of $13.1 million at June 30, 2013, is stated net of a $4.6
million valuation allowance. The valuation charge for OREO reflected in
non-interest expense was $383,000 in the second quarter of 2013 compared to
$3.1 million in the second quarter of 2012 and $71,000 in the first quarter of
2013.

Non-interest income increased $666,000 during the second quarter of 2013, or 6
percent, compared to the same period of 2012 primarily related to a $650,000
increase in brokered loan fees earned in the mortgage finance division. Swap
fee income increased $359,000 during the second quarter of 2013 due to an
increase in swap transactions as compared to the same period in 2012.
Offsetting these increases was a $380,000 decrease in other non-interest
income during the second quarter of 2013 as compared to the same period in
2012.

Non-interest expense for the second quarter of 2013 increased $14.7 million,
or 27 percent, to $68.7 million from $54.0 million in the second quarter of
2012. The increase is primarily related to a $15.0 million increase in
salaries and employee benefits to $45.2 million from $30.2 million. Of the
$15.0 million increase, approximately $7.7 million related to a charge taken
to reflect the financial effect of the organizational change announced during
the second quarter of 2013 and includes assumptions about future payouts that
may or may not happen, but are required to be estimated at the time of the
event. Additionally, there was another $2.2 million of charges related to the
increased probability that certain company financial performance targets for
executive cash-based incentives will be met. These incentives are expensed
based on current stock prices. The remaining $5.1 million increase from the
second quarter of 2012 was primarily due to general business growth and costs
of cash-based incentives resulting from the increase in stock price. Marketing
expense increased $900,000 from the second quarter of 2012 due to expansion of
customer bases in both loans and deposits. Legal and professional expense
increased $1.4 million from the second quarter of 2012 due to general business
growth. Allowance and other carrying costs for OREO expense decreased $3.3
million to $482,000, which included a $383,000 valuation expense. The $383,000
valuation expense in the second quarter of 2013 includes $219,000 related to
direct write-downs of the OREO balance and $164,000 related to increasing the
valuation allowance for the second quarter of 2013, compared to $423,000
related to direct write-downs and $2.7 million related to increasing the
valuation allowance for the second quarter of 2012.

Stockholders' equity increased 52 percent from $680.7 million at June 30, 2012
to $1.0 billion at June 30, 2013, primarily related to the offering of 2.3
million common shares for net proceeds of $87 million in the third quarter of
2012, the offering of 6.0 million shares of preferred shares for proceeds of
$145.1 million in the first quarter of 2013 and retained net income. The Bank
is well capitalized under regulatory guidelines and at June 30, 2013, the
Company's ratio of tangible common equity to total tangible assets was 7.9
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 individuals. 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)
                      2^nd        1^st        4^th        3^rd       2^nd
                     Quarter     Quarter     Quarter     Quarter    Quarter
                      2013        2013        2012        2012       2012
CONSOLIDATED                                                     
STATEMENT OF INCOME
Interest income       $107,264    $104,179    $107,769    $102,011   $95,546
Interest expense      6,044       6,137       6,614       5,156      4,906
Net interest income   101,220     98,042      101,155     96,855     90,640
Provision for credit  7,000       2,000       4,500       3,000      1,000
losses
Net interest income
after provision for   94,220      96,042      96,655      93,855     89,640
credit losses
Non-interest income   11,128      11,281      12,836      10,552     10,462
Non-interest expense  68,734      55,700      60,074      53,521     53,973
Income from
continuing operations 36,614      51,623      49,417      50,886     46,129
before income taxes
Income tax expense   12,542      18,479      17,982      18,316     16,506
Income from           24,072      33,144      31,435      32,570     29,623
continuing operations
Income (loss) from
discontinued          1           (1)         (6)         (34)       (1)
operations
(after-tax)
Net income            24,073      33,143      31,429      32,536     29,622
Preferred stock       2,438       81          –           –          –
dividends
Net income available
to common             $21,635     $33,062     $31,429     $32,536    $29,622
shareholders
Diluted EPS from      $.52        $.80        $.76        $.80       $.76
continuing operations
Diluted EPS           $.52        $.80        $.76        $.80       $.76
                                                                
Diluted shares        41,723,525  41,429,244  41,505,026  40,755,733 39,141,544
                                                                
CONSOLIDATED BALANCE SHEET DATA
Total assets          $10,977,990 $10,020,565 $10,540,542 $9,881,362 $9,144,360
Loans held for        7,510,662   6,920,011   6,785,535   6,549,089  6,234,692
investment
Loans held for sale   2,838,234   2,577,830   3,175,272   2,818,622  2,408,032
Securities            75,861      87,527      100,195     107,288    114,964
Demand deposits       2,928,735   2,628,446   2,535,375   2,114,279  2,019,473
Total deposits        7,980,598   7,745,831   7,440,804   6,717,579  6,660,290
Other borrowings      1,634,630   938,134     1,947,161   2,046,169  1,609,039
Subordinated notes    111,000     111,000     111,000     111,000    –
Long-term debt        113,406     113,406     113,406     113,406    113,406
Stockholders' equity  1,034,955   1,013,195   836,242     802,406    680,705
                                                                
End of period shares  40,862,481  40,771,414  40,727,579  40,580,283 38,114,012
outstanding
Book value (excluding
securities            $21.60      $21.10      $20.45      $19.68     $17.75
gains/losses)
Tangible book value
(excluding securities $21.08      $20.62      $19.96      $19.18     $17.22
gains/losses)
                                                                
SELECTED FINANCIAL RATIOS
Net interest margin   4.19%       4.27%       4.27%       4.36%      4.49%
Return on average     0.95%       1.38%       1.27%       1.40%      1.40%
assets
Return on average     9.94%       15.82%      15.35%      17.27%     18.08%
common equity
Non-interest income   .46%        .49%        .54%        .47%       .52%
to earning assets
Efficiency ratio      61.2%       50.9%       52.7%       49.8%      53.4%
Efficiency ratio
(excluding OREO       60.8%       50.9%       51.9%       49.8%      50.3%
valuation/write-down)
Non-interest expense  2.84%       2.42%       2.53%       2.40%      2.67%
to earning assets
Non-interest expense
to earning assets     2.83%       2.42%       2.49%       2.40%      2.52%
(excluding OREO
valuation charge)
Tangible common
equity to total       7.9%        8.4%        7.7%        7.9%       7.2%
tangible assets


TEXAS CAPITAL BANCSHARES, INC.
                                                                     
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
                                                June 30,    June 30,   %
                                                 2013        2012       Change
Assets                                                                
Cash and due from banks                          $90,992     $93,377    (3)%
Interest-bearing deposits                        142,928     49,254     190%
Federal funds sold                               85,120      20         N/M
Securities, available-for-sale                   75,861      114,964    (34)%
Loans held for sale                              2,838,234   2,408,032  18%
Loans held for sale from discontinued operations 298         388        (23)%
Loans held for investment (net of unearned       7,510,662   6,234,692  20%
income)
Less:Allowance for loan losses                  79,428      72,404     10%
Loans held for investment, net                   7,431,234   6,162,288  21%
Premises and equipment, net                      11,915      12,037     (1)%
Accrued interest receivable and other assets     280,067     284,207    (1)%
Goodwill and intangibles, net                    21,639      20,181     7%
Total assets                                     $10,978,288 $9,144,748 20%
                                                                     
Liabilities and Stockholders' Equity                                  
Liabilities:                                                          
Deposits:                                                             
Non-interest bearing                             $2,928,735  $2,019,473 45%
Interest bearing                                 4,702,902   4,230,806  11%
Interest bearing in foreign branches             348,961     410,011    (15)%
Total deposits                                   7,980,598   6,660,290  20%
                                                                     
Accrued interest payable                         1,023       887        15%
Other liabilities                                102,676     80,421     27%
Federal funds purchased                          307,515     271,835    13%
Repurchase agreements                            27,079      22,148     22%
Other borrowings                                 1,300,036   1,315,056  (1)%
Subordinated notes                               111,000     –          100%
Trust preferred subordinated debentures          113,406     113,406    –
Total liabilities                                9,943,333   8,464,043  17%
                                                                     
Stockholders' equity:                                                 
Preferred stock, $.01 par value, $1,000          150,000     –          100%
liquidation value:
Common stock, $.01 par value:                                         
Authorized shares – 100,000,000                                       
Issued shares – 40,862,898 and 38,114,429 at     408         381        7%
June 30, 2013 and 2012, respectively
Additional paid-in capital                       445,270     357,713    24%
Retained earnings                                437,152     318,490    37%
Treasury stock (shares at cost: 417 at June      (8)         (8)        –
30,2013 and 2012, respectively)
Accumulated other comprehensive income, net of   2,133       4,129      (48)%
taxes
Total stockholders' equity                       1,034,955   680,705    52%
Total liabilities and stockholders' equity       $10,978,288 $9,144,748 20%


TEXAS CAPITAL BANCSHARES, INC.
                                                                  
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
                                                                  
                                         Three Months Ended Six Months Ended
                                          June 30            June 30
                                         2013      2012     2013     2012
Interest income                                                    
Interest and fees on loans                $106,418  $94,291  $209,600 $186,065
Securities                                773       1,203    1,712    2,510
Federal funds sold                        13        4        19       5
Deposits in other banks                   60        48       112      97
Total interest income                     107,264   95,546   211,443  188,677
Interest expense                                                   
Deposits                                  3,228     3,482    6,473    6,954
Federal funds purchased                   206       240      418      521
Repurchase agreements                     5         4        9        7
Other borrowings                          143       492      356      927
Subordinated notes                        1,829     –        3,658    –
Trust preferred subordinated debentures   633       688      1,267    1,399
Total interest expense                    6,044     4,906    12,181   9,808
Net interest income                       101,220   90,640   199,262  178,869
Provision for credit losses               7,000     1,000    9,000    4,000
Net interest income after provision for   94,220    89,640   190,262  174,869
credit losses
Non-interest income                                                
Service charges on deposit accounts       1,749     1,624    3,450    3,228
Trust fee income                          1,269     1,232    2,510    2,346
Bank owned life insurance (BOLI) income   463       588      961      1,109
Brokered loan fees                        4,778     4,128    9,522    7,779
Swap fees                                 981       622      2,633    1,419
Other                                     1,888     2,268    3,333    3,771
Total non-interest income                 11,128    10,462   22,409   19,652
Non-interest expense                                               
Salaries and employee benefits            45,191    30,230   78,732   59,249
Net occupancy expense                     4,135     3,679    7,992    7,283
Marketing                                 4,074     3,174    8,046    5,997
Legal and professional                    4,707     3,330    8,647    7,321
Communications and technology             3,347     2,720    6,469    5,203
Allowance and other carrying costs for    482       3,812    912      7,154
OREO
Other                                    6,798     7,028    13,636   14,042
Total non-interest expense                68,734    53,973   124,434  106,249
Income from continuing operations before  36,614    46,129   88,237   88,272
income taxes
Income tax expense                        12,542    16,506   31,021   31,568
Income from continuing operations         24,072    29,623   57,216   56,704
Income (loss) from discontinued           1         (1)      –        3
operations (after-tax)
Net income                                24,073    29,622   57,216   56,707
Preferred stock dividends                 2,438     –        2,519    –
Net income available to common            $21,635   $29,622  $54,697  $56,707
shareholders
                                                                  
Basic earnings per common share:                                   
Income from continuing operations         $.53      $.78     $1.34    $1.50
Net income                                $.53      $.78     $1.34    $1.50
                                                                  
Diluted earnings per common share:                                 
Income from continuing operations         $.52      $.76     $1.31    $1.45
Net income                                $.52      $.76     $1.31    $1.45


TEXAS CAPITAL BANCSHARES, INC.
                                                               
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
                        2^nd       1^st       4^th       3^rd       2^nd
                       Quarter    Quarter    Quarter    Quarter    Quarter
                        2013       2013       2012       2012       2012
Reserve for loan                                                
losses:
Beginning balance       $75,000    $74,337    $73,722    $72,404    $71,992
Loans charged-off:                                              
Commercial              2,826      1,648      4,044      1,154      1,048
Real estate – term      26         105        –          284        56
Consumer                26         19         –          49         –
Leases                  –          –          34         49         26
Total loans charged-off 2,878      1,772      4,078      1,536      1,130
Recoveries:                                                     
Commercial              348        397        350        132        191
Real estate –           –          –          –          10         –
construction
Real estate – term      7          8          226        130        348
Consumer                15         30         7          18         3
Leases                  140        121        21         16         55
Total recoveries        510        556        604        306        597
Net charge-offs         2,368      1,216      3,474      1,230      533
Provision for loan      6,796      1,879      4,089      2,548      945
losses
Ending balance          $79,428    $75,000    $74,337    $73,722    $72,404
                                                               
Reserve for off-balance                                         
sheet credit losses:
Beginning balance       $3,976     $3,855     $3,444     $2,992     $2,937
Provision for
off-balance sheet       204        121        411        452        55
credit losses
Ending balance          $4,180     $3,976     $3,855     $3,444     $2,992
                                                               
Total reserves for      $83,608    $78,976    $78,192    $77,166    $75,396
credit losses
                                                               
Total provision for     $7,000     $2,000     $4,500     $3,000     $1,000
credit losses
                                                               
Reserve to loans held   1.06%      1.08%      1.10%      1.13%      1.16%
for investment^(2)
Reserve to average
loans held for          1.11%      1.10%      1.12%      1.16%      1.22%
investment^(2)
Net charge-offs to      .13%       .07%       .21%       .08%       .04%
average loans^(1)(2)
Net charge-offs to
average loans for last  .12%       .10%       .10%       .10%       .20%
twelve months^(1)(2)
Total provision for
credit losses to        .39%       .12%       .27%       .19%       .07%
average loans^(1)(2)
Combined reserves for
credit losses to loans  1.11%      1.14%      1.15%      1.18%      1.21%
held for investment^(2)
                                                               
Non-performing assets                                           
(NPAs):
Non-accrual loans       $38,450    $43,424    $55,833    $57,275    $56,433
Other real estate owned 13,053     14,426     15,991     19,079     27,882
(OREO) ^ (4)
Total                   $51,503    $57,850    $71,824    $76,354    $84,315
                                                               
Non-accrual loans to    .51%       .63%       .82%       .87%       .91%
loans^(2)
Total NPAs to loans     .68%       .83%       1.06%      1.16%      1.35%
plus OREO^(2)
Total NPAs to earning   .49%       .60%       .71%       .81%       .97%
assets
Reserve for loan losses 2.1x       1.7x       1.3x       1.3x       1.3x
to non-accrual loans
                                                               
Restructured loans      $4,765     $11,755    $10,407    $9,145     $13,943
Loans past due 90 days  $7,633     $12,614    $3,674     $3,622     $4,421
and still accruing^(3)
                                                               
Loans past due 90 days  .10%       .18%       .05%       .06%       .07%
to loans^(2)
                                                               
(1) Interim period ratios are annualized.
(2) Excludes loans held for sale.
(3) At June 30, 2013, loans past due 90 days and still accruing includes
premium finance loans of $4.2 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 June 30, 2013, OREO balance is net of $4.6 million valuation
allowance.


TEXAS CAPITAL BANCSHARES, INC.
                                                                 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
                                                                 
                                  2^nd     1^st     4^th     3^rd     2^nd
                                 Quarter  Quarter  Quarter  Quarter  Quarter
                                  2013     2013     2012     2012     2012
Interest income                                                   
Interest and fees on loans        $106,418 $103,182 $106,653 $100,830 $94,291
Securities                        773      939      1,053    1,125    1,203
Federal funds sold                13       6        6        2        4
Deposits in other banks           60       52       57       54       48
Total interest income             107,264  104,179  107,769  102,011  95,546
Interest expense                                                  
Deposits                          3,228    3,245    3,312    3,378    3,482
Federal funds purchased           206      212      190      268      240
Repurchase agreements             5        4        3        3        4
Other borrowings                  143      213      615      607      492
Subordinated notes                1,829    1,829    1,829    208      –
Trust preferred subordinated      633      634      665      692      688
debentures
Total interest expense            6,044    6,137    6,614    5,156    4,906
Net interest income               101,220  98,042   101,155  96,855   90,640
Provision for credit losses       7,000    2,000    4,500    3,000    1,000
Net interest income after         94,220   96,042   96,655   93,855   89,640
provision for credit losses
Non-interest income                                               
Service charges on deposit        1,749    1,701    1,693    1,684    1,624
accounts
Trust fee income                  1,269    1,241    1,260    1,216    1,232
Bank owned life insurance (BOLI)  463      498      510      549      588
income
Brokered loan fees                4,778    4,744    4,978    4,839    4,128
Swap fees                         981      1,652    2,093    1,397    622
Other                             1,888    1,445    2,302    867      2,268
Total non-interest income         11,128   11,281   12,836   10,552   10,462
Non-interest expense                                              
Salaries and employee benefits    45,191   33,541   31,198   31,009   30,230
Net occupancy expense             4,135    3,857    3,916    3,653    3,679
Marketing                         4,074    3,972    3,980    3,472    3,174
Legal and professional            4,707    3,940    5,320    4,916    3,330
Communications and technology     3,347    3,122    3,070    2,885    2,720
Allowance and other carrying      482      430      1,369    552      3,812
costs for OREO
Litigation settlement expense     –        –        4,000    –        –
Other                            6,798    6,838    7,221    7,034    7,028
Total non-interest expense        68,734   55,700   60,074   53,521   53,973
Income from continuing operations 36,614   51,623   49,417   50,886   46,129
before income taxes
Income tax expense               12,542   18,479   17,982   18,316   16,506
Income from continuing operations 24,072   33,144   31,435   32,570   29,623
Income (loss) from discontinued   1        (1)      (6)      (34)     (1)
operations (after-tax)
Net income                        24,073   33,143   31,429   32,536   29,622
Preferred stock dividends         2,438    81       –        –        –
Net income available to common    $21,635  $33,062  $31,429  $32,536  $29,622
shareholders


TEXAS CAPITAL BANCSHARES, INC.
                                                                                                                                  
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
                                                                                                                                  
               2^nd Quarter 2013           1^st Quarter 2013          4^th Quarter 2012          3^rd Quarter 2012          2^nd Quarter 2012
                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 –    $60,063     $594     3.97%  $71,220    $729     4.15%  $78,182    $811     4.13%  $84,583    $881     4.14%  $91,623    $948     4.16%
Taxable
Securities –    18,843      275      5.85%  22,174     323      5.91%  25,301     372      5.85%  25,717     376      5.82%  26,817     393      5.89%
Non-taxable^(2)
Federal funds
sold and
securities      54,448      13       0.10%  24,785     6        0.10%  21,617     6        0.11%  9,360      2        0.09%  8,077      4        0.20%
purchased under
resale
agreements
Deposits in     91,177      60       0.26%  78,718     52       0.27%  69,886     57       0.32%  64,859     54       0.33%  60,416     48       0.32%
other banks
Loans held for  2,406,246   22,440   3.74%  2,362,646  22,641   3.89%  2,658,092  26,440   3.96%  2,432,027  24,433   4.00%  2,062,449  21,087   4.11%
sale
Loans held for  7,152,323   83,978   4.71%  6,842,766  80,541   4.77%  6,662,817  80,213   4.79%  6,313,263  76,397   4.81%  5,950,913  73,204   4.95%
investment
Less reserve    75,006      –       –      74,442     –       –      73,912     –       –      72,373     –       –      71,779     –       –
for loan losses
Loans, net of   9,483,563   106,418  4.50%  9,130,970  103,182  4.58%  9,246,997  106,653  4.59%  8,672,917  100,830  4.63%  7,941,583  94,291   4.78%
reserve
Total earning   9,708,094   107,360  4.44%  9,327,867  104,292  4.53%  9,441,983  107,899  4.55%  8,857,436  102,143  4.59%  8,128,516  95,684   4.73%
assets
Cash and other  402,898                   401,692                  427,299                  399,428                  394,086            
assets
Total assets    $10,110,992               $9,729,559               $9,869,282               $9,256,864               $8,522,602         
                                                                                                                                  
Liabilities and
Stockholders'                                                                                                                      
Equity
Transaction     $1,051,199  $233     0.09%  $1,003,735 $253     0.10%  $941,947   $244     0.10%  $803,776   $247     0.12%  $694,463   $198     0.11%
deposits
Savings         3,340,420   2,292    0.28%  3,246,675  2,297    0.29%  2,933,904  2,299    0.31%  2,922,852  2,185    0.30%  2,664,598  2,107    0.32%
deposits
Time deposits   397,868     407      0.41%  403,113    414      0.42%  423,685    448      0.42%  491,783    576      0.47%  584,581    831      0.57%
Deposits in
foreign         340,713     296      0.35%  335,265    281      0.34%  362,580    321      0.35%  431,412    370      0.34%  444,478    346      0.31%
branches
Total interest
bearing         5,130,200   3,228    0.25%  4,988,788  3,245    0.26%  4,662,116  3,312    0.28%  4,649,823  3,378    0.29%  4,388,120  3,482    0.32%
deposits
Other           727,158     354      0.20%  1,041,573  429      0.17%  1,725,129  808      0.19%  1,639,953  878      0.21%  1,428,575  736      0.21%
borrowings
Subordinated    111,000     1,829    6.61%  111,000    1,829    6.68%  111,000    1,829    6.56%  12,065     208      6.86%  –          –       –
notes
Trust preferred
subordinated    113,406     633      2.24%  113,406    634      2.27%  113,406    665      2.33%  113,406    692      2.43%  113,406    688      2.44%
debentures
Total interest
bearing         6,081,764   6,044    0.40%  6,254,767  6,137    0.40%  6,611,651  6,614    0.40%  6,415,247  5,156    0.32%  5,930,101  4,906    0.33%
liabilities
Demand deposits 2,914,341                 2,529,927                2,356,758                2,010,694                1,864,456          
Other           91,608                    90,538                   86,308                   80,810                   69,076             
liabilities
Stockholders'   1,023,279                 854,327                  814,565                  750,113                  658,969            
equity
Total
liabilities and $10,110,992               $9,729,559               $9,869,282               $9,256,864               $8,522,602         
stockholders'
equity
Net interest               $101,316                 $98,155                  $101,285                 $96,987                  $90,778  
income
Net interest                       4.19%                    4.27%                    4.27%                    4.36%                    4.49%
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.

CONTACT: MEDIA CONTACT
         Heather Worley, 214.932.6827
         heather.worley@texascapitalbank.com
        
         INVESTOR CONTACT
         Myrna Vance, 214.932.6646
         myrna.vance@texascapitalbank.com

Texas Capital Bancshares, Inc.