Texas Capital Bancshares, Inc. Announces Operating Results for Q3 2013

Texas Capital Bancshares, Inc. Announces Operating Results for Q3 2013

DALLAS, Oct. 23, 2013 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc.
(Nasdaq:TCBI), the parent company of Texas Capital Bank, announced earnings
and operating results for the third quarter of 2013.

  *Net income increased 39% on a linked quarter basis and increased 3% from
    the third quarter of 2012 (47% increase on a linked quarter basis and 9%
    increase from the third quarter of 2012 excluding charge related to FDIC
    assessment)
  *EPS increased 42% on a linked quarter basis and decreased 8% from the
    third quarter of 2012 (52% increase on a linked quarter basis and 1%
    decrease from the third quarter of 2012 excluding charge related to FDIC
    assessment)
  *Demand deposits increased 11% and total deposits increased 12% on a linked
    quarter basis, growing 53% and 33%, respectively, from the third quarter
    of 2012
  *Loans held for investment increased 7% and total loans remained consistent
    on a linked quarter basis, growing 23% and 10% from the third quarter of
    2012

"Our quality growth, both in loans held for investment and in deposits,
continues," said George Jones, CEO. "We are taking advantage of the benefits
of our model in attracting great people who produce the results we reported
today. It is our commitment to our shareholders to stay focused on those
things that improve shareholder value."

FINANCIAL SUMMARY                                                  
(dollars and shares in thousands)                                  
                                                                  
                                           Q3 2013      Q3 2012     % Change
QUARTERLY OPERATING RESULTS^(1)                                    
Net Income                                  $33,474      $32,570     3%
Net Income Available to Common Shareholders $31,037      $32,570     (5)%
Diluted EPS                                 $.74         $.80        (8)%
ROA                                         1.25%        1.40%       
ROE                                         13.74%       17.27%      
Diluted Shares                              41,792       40,756      
                                                                  
BALANCE SHEET^(1)                                                  
Total Assets                                $10,797,448  $9,881,362  9%
Demand Deposits                             3,242,060    2,114,279   53%
Total Deposits                              8,957,081    6,717,579   33%
Loans Held for Investment                   8,051,328    6,549,089   23%
Total Loans                                 10,313,413   9,367,711   10%
Stockholders' Equity                        1,066,629    802,406     33%
                                                                  
(1) Operating results, assets and loans are reporting from continuing
operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations
of $33.5 million and net income available to common shareholders of $31.0
million for the quarter ended September 30, 2013, compared to $32.6 million
for both net income from continuing operations and net income available to
common shareholders for the third quarter of 2012. On a fully diluted basis,
earnings per common share from continuing operations were $.74 for the three
months ended September 30, 2013, compared to $.80 for the same period last
year. The preferred dividend is equal to $.06 per share for the third quarter
of 2013.The discussion below relates only to continuing operations.

Return on average common equity was 13.74 percent and return on average assets
was 1.25 percent for the third quarter of 2013, compared to 17.27 percent and
1.40 percent, respectively, for the third quarter of 2012.

Net interest income was $108.8 million for the third quarter of 2013, compared
to $101.2 million in the second quarter of 2013 and $96.9 million for the
third quarter of 2012. The net interest margin in the third quarter of 2013
was 4.21 percent, a 2 basis point increase from the second quarter of 2013 and
a 15 basis point decrease from the third quarter of 2012. 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. 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 third quarter of 2013 were $7.7
billion, an increase of $1.4 billion from the third quarter of 2012 and $579.6
million from the second quarter of 2013. Average loans held for sale for the
third quarter of 2013 decreased $69.9 million compared to the third quarter of
2012 and decreased $44.1 million from the second quarter of 2013.

Average total deposits for the third quarter of 2013 increased by $2.1 billion
from the third quarter of 2012 and increased by $692.9 million from the second
quarter of 2013. For the same periods, the average balance of demand deposits
increased by $1.1 billion, or 55 percent, to $3.1 billion from $2.0 billion
during the third quarter of 2012 and increased $210.3 million from the second
quarter of 2013.

In the third 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 $5.0
million in the third quarter of 2013 compared to $3.1 million in the third
quarter of 2012 and $7.4 million in the second quarter of 2013. We recorded a
$5.0 million provision for credit losses in the third quarter of 2013 compared
to $3.0 million in the third quarter of 2012 and $7.0 million in the second
quarter of 2013. The substantial majority of the provision in the third
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 September 30, 2013, the combined reserve decreased to 1.10 percent of loans
held for investment as compared to 1.11 percent at June 30, 2013 and 1.18
percent at September 30, 2012. 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 third quarter of 2013, net charge-offs were $46,000, compared to net
charge-offs of $2.4 million in the second quarter of 2013 and $1.2 million in
the third quarter of 2012. For the first nine months of 2013, the net
charge-off ratio was 7 basis points compared to 6 basis points for the same
period in 2012. Non-accrual loans were $35.7 million, or .44 percent of loans
held for investment at the end of the third quarter of 2013, $57.3 million, or
.87 percent, at the end of the third quarter of 2012 and $38.5 million, or .51
percent, at the end of the second quarter 2013. At September 30, 2013, total
OREO was $12.8 million compared to $19.1 million at the end of the third
quarter of 2012, and $13.1 million at the end of the second quarter of 2013.
The OREO balance of $12.8 million at September 30, 2013, is stated net of a
$4.6 million valuation allowance. We did not record a valuation charge for
OREO in the third quarter of 2013 compared to $64,000 in the third quarter of
2012 and $383,000 in the second quarter of 2013.

Non-interest income decreased $121,000 during the third quarter of 2013, or 1
percent, compared to the same period of 2012 primarily related to a $761,000
decrease in brokered loan fees earned in the mortgage finance division. Swap
fee income decreased $414,000 during the third quarter of 2013 due to a
decrease in swap transactions as compared to the same period in 2012.
Offsetting these decreases was a $1.2 million increase in other non-interest
income during the third quarter of 2013 as compared to the same period in
2012.

Non-interest expense for the third quarter of 2013 increased $8.5 million, or
16 percent, to $62.0 million from $53.5 million in the third quarter of 2012.
The increase is primarily related to a $5.0 million increase in salaries and
employee benefits to $36.0 million from $31.0 million due to general business
growth. Non-interest expense also includes a $3.0 million assessment by the
FDIC that was paid during the third quarter of 2013. The assessment related to
the year-end call reports for 2011 and 2012, which were amended for the change
in the risk weight applicable to our mortgage finance loan portfolio.As
previously disclosed, the amendment caused one capital ratio to fall below
"well-capitalized" for each quarter end. We do not believe this is an
assessment warranted under our circumstances, and we have disputed the charge.
Any recovery of the $3.0 million expense would be credited to non-interest
expense in a future quarter.

Stockholders' equity increased 33 percent from $802.4 million at September 30,
2012 to $1.1 billion at September 30, 2013, primarily related to 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 September 30, 2013, the
Company's ratio of tangible common equity to total tangible assets was 8.3
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)
                     3^rd        2^nd        1^st        4^th        3^rd
                      Quarter     Quarter     Quarter     Quarter     Quarter
                     2013        2013        2013        2012        2012
CONSOLIDATED                                                      
STATEMENT OF INCOME
Interest income       $115,217    $107,264    $104,179    $107,769    $102,011
Interest expense      6,441       6,044       6,137       6,614       5,156
Net interest income   108,776     101,220     98,042      101,155     96,855
Provision for credit  5,000       7,000       2,000       4,500       3,000
losses
Net interest income
after provision for   103,776     94,220      96,042      96,655      93,855
credit losses
Non-interest income   10,431      11,128      11,281      12,836      10,552
Non-interest expense  62,009      68,734      55,700      60,074      53,521
Income from
continuing operations 52,198      36,614      51,623      49,417      50,886
before income taxes
Income tax expense    18,724      12,542      18,479      17,982      18,316
Income from           33,474      24,072      33,144      31,435      32,570
continuing operations
Income (loss) from
discontinued          2           1           (1)         (6)         (34)
operations
(after-tax)
Net income            33,476      24,073      33,143      31,429      32,536
Preferred stock       2,437       2,438       81          –           –
dividends
Net income available
to common             $31,039     $21,635     $33,062     $31,429     $32,536
shareholders
Diluted EPS from      $.74        $.52        $.80        $.76        $.80
continuing operations
Diluted EPS           $.74        $.52        $.80        $.76        $.80
                                                                 
Diluted shares        41,791,674  41,723,525  41,429,244  41,505,026  40,755,733
                                                                 
CONSOLIDATED BALANCE                                              
SHEET DATA
Total assets          $10,797,448 $10,977,990 $10,020,565 $10,540,542 $9,881,362
Loans held for        8,051,328   7,510,662   6,920,011   6,785,535   6,549,089
investment
Loans held for sale   2,262,085   2,838,234   2,577,830   3,175,272   2,818,622
Securities            67,815      75,861      87,527      100,195     107,288
Demand deposits       3,242,060   2,928,735   2,628,446   2,535,375   2,114,279
Total deposits        8,957,081   7,980,598   7,745,831   7,440,804   6,717,579
Other borrowings      449,724     1,634,630   938,134     1,947,161   2,046,169
Subordinated notes    111,000     111,000     111,000     111,000     111,000
Long-term debt        113,406     113,406     113,406     113,406     113,406
Stockholders' equity  1,066,629   1,034,955   1,013,195   836,242     802,406
                                                                 
End of period shares  40,934,623  40,862,481  40,771,414  40,727,579  40,580,283
outstanding
Book value (excluding
securities            $22.35      $21.60      $21.10      $20.45      $19.68
gains/losses)
Tangible book value
(excluding securities $21.82      $21.08      $20.62      $19.96      $19.18
gains/losses)
                                                                 
SELECTED FINANCIAL                                                
RATIOS
Net interest margin   4.21%       4.19%       4.27%       4.27%       4.36%
Return on average     1.25%       0.95%       1.38%       1.27%       1.40%
assets
Return on average     13.74%      9.94%       15.82%      15.35%      17.27%
common equity
Non-interest income   .40%        .46%        .49%        .54%        .47%
to earning assets
Efficiency ratio      52.0%       61.2%       50.9%       52.7%       49.8%
Efficiency ratio
(excluding OREO       52.0%       60.8%       50.9%       51.9%       49.8%
valuation/write-down)
Non-interest expense  2.40%       2.84%       2.42%       2.53%       2.40%
to earning assets
Non-interest expense
to earning assets     2.40%       2.83%       2.42%       2.49%       2.40%
(excluding OREO
valuation charge)
Tangible common
equity to total       8.3%        7.9%        8.4%        7.7%        7.9%
tangible assets


TEXAS CAPITAL BANCSHARES, INC.
                                                                     
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
                                           September 30, September 30, %
                                           2013          2012          Change
Assets                                                                
Cash and due from banks                     $118,268      $88,220       34%
Interest-bearing deposits                   76,690        60,971        26%
Federal funds sold                          100           –             100%
Securities, available-for-sale              67,815        107,288       (37)%
Loans held for sale                         2,262,085     2,818,622     (20)%
Loans held for sale from discontinued       296           304           (3)%
operations
Loans held for investment (net of unearned  8,051,328     6,549,089     23%
income)
Less:Allowance for loan losses             84,006        73,722        14%
Loans held for investment, net              7,967,322     6,475,367     23%
Premises and equipment, net                 12,653        11,280        12%
Accrued interest receivable and other       271,052       299,582       (10)%
assets
Goodwill and intangibles, net               21,463        20,032        7%
Total assets                                $10,797,744   $9,881,666    9%
                                                                     
Liabilities and Stockholders' Equity                                  
Liabilities:                                                          
Deposits:                                                             
Non-interest bearing                        $3,242,060    $2,114,279    53%
Interest bearing                            5,344,152     4,171,405     28%
Interest bearing in foreign branches        370,869       431,895       (14)%
Total deposits                              8,957,081     6,717,579     33%
                                                                     
Accrued interest payable                    743           1,039         (28)%
Other liabilities                           99,161        90,067        10%
Federal funds purchased                     169,794       473,330       (64)%
Repurchase agreements                       29,899        22,788        31%
Other borrowings                            250,031       1,550,051     (84)%
Subordinated notes                          111,000       111,000       –
Trust preferred subordinated debentures     113,406       113,406       –
Total liabilities                           9,731,115     9,079,260     7%
                                                                     
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 – 40,935,040 and 38,114,429
at September 30, 2013 and 2012,             409           409           –
respectively
Additional paid-in capital                  446,249       447,104       N/M
Retained earnings                           468,191       351,026       33%
Treasury stock (shares at cost: 417 at      (8)           (8)           –
September 30,2013 and 2012, respectively)
Accumulated other comprehensive income, net 1,788         3,878         (54)%
of taxes
Total stockholders' equity                  1,066,629     802,406       33%
Total liabilities and stockholders' equity  $10,797,744   $9,881,666    9%


TEXAS CAPITAL BANCSHARES, INC.
                                                                  
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share data)
                                         Three Months Ended Nine Months Ended
                                         September 30       September 30
                                         2013      2012     2013     2012
Interest income                                                    
Interest and fees on loans                $114,453  $100,830 $324,053 $286,895
Securities                                682       1,125    2,394    3,635
Federal funds sold                        22        2        41       7
Deposits in other banks                   60        54       172      151
Total interest income                     115,217   102,011  326,660  290,688
Interest expense                                                   
Deposits                                  3,699     3,378    10,172   10,332
Federal funds purchased                   152       268      570      789
Repurchase agreements                     4         3        13       10
Other borrowings                          119       607      475      1,534
Subordinated notes                        1,829     208      5,487    208
Trust preferred subordinated debentures   638       692      1,905    2,091
Total interest expense                    6,441     5,156    18,622   14,964
Net interest income                       108,776   96,855   308,038  275,724
Provision for credit losses               5,000     3,000    14,000   7,000
Net interest income after provision for   103,776   93,855   294,038  268,724
credit losses
Non-interest income                                                
Service charges on deposit accounts       1,659     1,684    5,109    4,912
Trust fee income                          1,263     1,216    3,773    3,562
Bank owned life insurance (BOLI) income   423       549      1,384    1,658
Brokered loan fees                        4,078     4,839    13,600   12,618
Swap fees                                 983       1,397    3,616    2,815
Other                                     2,025     867      5,358    4,639
Total non-interest income                 10,431    10,552   32,840   30,204
Non-interest expense                                               
Salaries and employee benefits            36,012    31,009   114,744  90,258
Net occupancy expense                     4,342     3,653    12,334   10,936
Marketing                                 3,974     3,472    12,020   9,469
Legal and professional                    3,937     4,916    12,584   12,237
Communications and technology             3,696     2,885    10,165   8,088
Allowance and other carrying costs for    267       552      1,179    7,706
OREO
FDIC insurance assessment                 4,357     1,332    6,134    4,497
Other                                     5,424     5,702    17,283   16,579
Total non-interest expense                62,009    53,521   186,443  159,770
Income from continuing operations before  52,198    50,886   140,435  139,158
income taxes
Income tax expense                        18,724    18,316   49,745   49,884
Income from continuing operations         33,474    32,570   90,690   89,274
Income (loss) from discontinued           2         (34)     2        (31)
operations (after-tax)
Net income                                33,476    32,536   90,692   89,243
Preferred stock dividends                 2,437     –        4,956    –
Net income available to common            $31,039   $32,536  $85,736  $89,243
shareholders
                                                                  
Basic earnings per common share:                                   
Income from continuing operations         $.76      $.82     $2.10    $2.32
Net income                                $.76      $.82     $2.10    $2.32
                                                                  
Diluted earnings per common share:                                 
Income from continuing operations         $.74      $.80     $2.05    $2.25
Net income                                $.74      $.80     $2.05    $2.25


TEXAS CAPITAL BANCSHARES, INC.
                                                                
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
                        3^rd       2^nd       1^st       4^th       3^rd
                         Quarter    Quarter    Quarter    Quarter    Quarter
                        2013       2013       2013       2012       2012
Reserve for loan losses:                                         
Beginning balance        $79,428    $75,000    $74,337    $73,722    $72,404
Loans charged-off:                                               
Commercial               496        2,826      1,648      4,044      1,154
Real estate – term       13         26         105        –          284
Consumer                 –          26         19         –          49
Leases                   2          –          –          34         49
Total loans charged-off  511        2,878      1,772      4,078      1,536
Recoveries:                                                      
Commercial               233        348        397        350        132
Real estate –            –          –          –          –          10
construction
Real estate – term       195        7          8          226        130
Consumer                 19         15         30         7          18
Leases                   18         140        121        21         16
Total recoveries         465        510        556        604        306
Net charge-offs          46         2,368      1,216      3,474      1,230
Provision for loan       4,624      6,796      1,879      4,089      2,548
losses
Ending balance           $84,006    $79,428    $75,000    $74,337    $73,722
                                                                
Reserve for off-balance                                          
sheet credit losses:
Beginning balance        $4,180     $3,976     $3,855     $3,444     $2,992
Provision for
off-balance sheet credit 376        204        121        411        452
losses
Ending balance           $4,556     $4,180     $3,976     $3,855     $3,444
                                                                
Total reserves for       $88,562    $83,608    $78,976    $78,192    $77,166
credit losses
                                                                
Total provision for      $5,000     $7,000     $2,000     $4,500     $3,000
credit losses
                                                                
Reserve to loans held    1.04%      1.06%      1.08%      1.10%      1.13%
for investment^(2)
Reserve to average loans 1.09%      1.11%      1.10%      1.12%      1.16%
held for investment^(2)
Net charge-offs to       .00%       .13%       .07%       .21%       .08%
average loans^(1)(2)
Net charge-offs to
average loans for last   .10%       .12%       .10%       .10%       .10%
twelve months^(1)(2)
Total provision for
credit losses to average 0.26%      .39%       .12%       .27%       .19%
loans^(1)(2)
Combined reserves for
credit losses to loans   1.10%      1.11%      1.14%      1.15%      1.18%
held for investment^(2)
                                                                
Non-performing assets                                            
(NPAs):
Non-accrual loans        $35,737    $38,450    $43,424    $55,833    $57,275
Other real estate owned  12,805     13,053     14,426     15,991     19,079
(OREO) ^ (4)
Total                    $48,542    $51,503    $57,850    $71,824    $76,354
                                                                
Non-accrual loans to     .44%       .51%       .63%       .82%       .87%
loans^(2)
Total NPAs to loans plus .60%       .68%       .83%       1.06%      1.16%
OREO^(2)
Total NPAs to earning    .47%       .49%       .60%       .71%       0.81%
assets
Reserve for loan losses  2.4x       2.1x       1.7x       1.3x       1.3x
to non-accrual loans
                                                                
Restructured loans       $4,691     $4,765     $11,755    $10,407    $9,145
Loans past due 90 days   $7,510     $7,633     $12,614    $3,674     $3,622
and still accruing^(3)
                                                                
Loans past due 90 days   .09%       .10%       .18%       .05%       .06%
to loans^(2)
                                                                
                                                                
(1) Interim period ratios are annualized.
(2) Excludes loans held for sale.
(3) At September 30, 2013, loans past due 90 days and still accruing includes
premium finance loans of $3.1 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 September 30, 2013, OREO balance is net of $4.6 million valuation
allowance.


TEXAS CAPITAL BANCSHARES, INC.
                                                                 
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)
                                                                 
                                 3^rd     2^nd     1^st     4^th     3^rd
                                  Quarter  Quarter  Quarter  Quarter  Quarter
                                 2013     2013     2013     2012     2012
Interest income                                                   
Interest and fees on loans        $114,453 $106,418 $103,182 $106,653 $100,830
Securities                        682      773      939      1,053    1,125
Federal funds sold                22       13       6        6        2
Deposits in other banks           60       60       52       57       54
Total interest income             115,217  107,264  104,179  107,769  102,011
Interest expense                                                  
Deposits                          3,699    3,228    3,245    3,312    3,378
Federal funds purchased           152      206      212      190      268
Repurchase agreements             4        5        4        3        3
Other borrowings                  119      143      213      615      607
Subordinated notes                1,829    1,829    1,829    1,829    208
Trust preferred subordinated      638      633      634      665      692
debentures
Total interest expense            6,441    6,044    6,137    6,614    5,156
Net interest income               108,776  101,220  98,042   101,155  96,855
Provision for credit losses       5,000    7,000    2,000    4,500    3,000
Net interest income after         103,776  94,220   96,042   96,655   93,855
provision for credit losses
Non-interest income                                               
Service charges on deposit        1,659    1,749    1,701    1,693    1,684
accounts
Trust fee income                  1,263    1,269    1,241    1,260    1,216
Bank owned life insurance (BOLI)  423      463      498      510      549
income
Brokered loan fees                4,078    4,778    4,744    4,978    4,839
Swap fees                         983      981      1,652    2,093    1,397
Other                             2,025    1,888    1,445    2,302    867
Total non-interest income         10,431   11,128   11,281   12,836   10,552
Non-interest expense                                              
Salaries and employee benefits    36,012   45,191   33,541   31,198   31,009
Net occupancy expense             4,342    4,135    3,857    3,916    3,653
Marketing                         3,974    4,074    3,972    3,980    3,472
Legal and professional            3,937    4,707    3,940    5,320    4,916
Communications and technology     3,696    3,347    3,122    3,070    2,885
Allowance and other carrying      267      482      430      1,369    552
costs for OREO
FDIC insurance assessment         4,357    699      1,078    1,071    1,332
Litigation settlement expense     (908)    –        –        4,000    –
Other                             6,332    6,099    5,760    6,150    5,702
Total non-interest expense        62,009   68,734   55,700   60,074   53,521
Income from continuing operations 52,198   36,614   51,623   49,417   50,886
before income taxes
Income tax expense                18,724   12,542   18,479   17,982   18,316
Income from continuing operations 33,474   24,072   33,144   31,435   32,570
Income (loss) from discontinued   2        1        (1)      (6)      (34)
operations (after-tax)
Net income                        33,476   24,073   33,143   31,429   32,536
Preferred stock dividends         2,437    2,438    81       –        –
Net income available to common    $31,039  $21,635  $33,062  $31,429  $32,536
shareholders


TEXAS CAPITAL BANCSHARES, INC.
                                                                                                                                   
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)
                                                                                                                                   
               3^rd Quarter 2013           2^nd Quarter 2013           1^st Quarter 2013          4^th Quarter 2012          3^rd 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 –    $54,838     $522     3.78%  $60,063     $594     3.97%  $71,220    $729     4.15%  $78,182    $811     4.13%  $84,583    $881     4.14%
Taxable
Securities –    16,879      246      5.78%  18,843      275      5.85%  22,174     323      5.91%  25,301     372      5.85%  25,717     376      5.82%
Non-taxable^(2)
Federal funds
sold and
securities      78,896     22       0.11%  54,448     13       0.10%  24,785    6        0.10%  21,617    6        0.11%  9,360     2        0.09%
purchased under
resale
agreements
Deposits in     88,717      60       0.27%  91,177      60       0.26%  78,718     52       0.27%  69,886     57       0.32%  64,859     54       0.33%
other banks
Loans held for  2,362,118   22,547   3.79%  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%
sale
Loans held for  7,731,901   91,906   4.72%  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%
investment
Less reserve    79,551      –        –      75,006      –        –      74,442     –        –      73,912     –        –      72,373     –        –
for loan losses
Loans, net of   10,014,468  114,453  4.53%  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%
reserve
Total earning   10,253,798  115,303  4.46%  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%
assets
Cash and other  383,968                   402,898                   401,692                  427,299                  399,428            
assets
Total assets    $10,637,766               $10,110,992               $9,729,559               $9,869,282               $9,256,864         
                                                                                                                                   
Liabilities and
Stockholders'                                                                                                                       
Equity
Transaction     $794,630    $102     0.05%  $1,051,199  $233     0.09%  $1,003,735 $253     0.10%  $941,947   $244     0.10%  $803,776   $247     0.12%
deposits
Savings         4,057,792   2,863    0.28%  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%
deposits
Time deposits   402,920     414      0.41%  397,868     407      0.41%  403,113    414      0.42%  423,685    448      0.42%  491,783    576      0.47%
Deposits in
foreign         357,532     320      0.36%  340,713     296      0.35%  335,265    281      0.34%  362,580    321      0.35%  431,412    370      0.34%
branches
Total interest
bearing         5,612,874   3,699    0.26%  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%
deposits
Other           539,767     275      0.20%  727,158     354      0.20%  1,041,573  429      0.17%  1,725,129  808      0.19%  1,639,953  878      0.21%
borrowings
Subordinated    111,000     1,829    6.54%  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     638      2.23%  113,406     633      2.24%  113,406    634      2.27%  113,406    665      2.33%  113,406    692      2.43%
debentures
Total interest
bearing         6,377,047   6,441    0.40%  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%
liabilities
Demand deposits 3,124,602                 2,914,341                 2,529,927                2,356,758                2,010,694          
Other           89,640                    91,608                    90,538                   86,308                   80,810             
liabilities
Stockholders'   1,046,477                 1,023,279                 854,327                  814,565                  750,113            
equity
Total
liabilities and $10,637,766               $10,110,992               $9,729,559               $9,869,282               $9,256,864         
stockholders'
equity
                                                                                                                                   
Net interest               $108,862                  $101,316                 $98,155                  $101,285                 $96,987  
income
Net interest                       4.21%                     4.19%                    4.27%                    4.27%                    4.36%
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.
 
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