Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces $40 Million Discretionary Equity Issuance Program

Exhibit 99.2

FOR IMMEDIATE RELEASE
January 27, 2010

INVESTOR CONTACT
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR 2009

DALLAS – January 27, 2010 – Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the fourth quarter and full year of 2009.

• Loans held for investment increased 4% and total loans increased 6% on a linked quarter basis and grew 11% and 14%, respectively, from Q4 2008

• Demand deposits grew 12% and total deposits increased 5% on a linked quarter basis and grew 53% and 24%, respectively, from Q4 2008

• Net income before preferred dividends decreased 2% for the year, increased 84% for the quarter and increased 20% on a linked quarter basis

• Higher average shares outstanding, the impact of the preferred dividend for 2009 and a 2% decrease in net income before preferred dividends contributed to a decrease of 38% in EPS for 2009 compared to 2008

• EPS increased 64% for the fourth quarter of 2009 as compared to the same quarter of 2008 and 20% on a linked quarter basis

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

FINANCIAL SUMMARY

(dollars and shares in thousands)	2009			2008			%Change
ANNUAL OPERATING RESULTS
Net Income(1)	$	24,387		$	24,882			(2	)%
Net Income Available to Common Shareholders(1)	$	19,004		$	24,882			(24	)%
Diluted EPS(1)	$	.55		$	.89			(38	)%
ROA(1)		.46	%		.55	%
ROE(1)		5.15	%		7.46	%
Diluted Shares		34,410			28,049

	Q4 2009			Q4 2008			%Change
QUARTERLY OPERATING RESULTS
Net Income(1)	$	6,427		$	3,487			84	%
Diluted EPS(1)	$	.18		$	.11			64	%
ROA(1)		.47	%		.29	%
ROE(1)		5.26	%		3.61	%
Diluted Shares		36,311			31,038
BALANCE SHEET
Total Assets(1)	$	5,698,318		$	5,141,034			11	%
Demand Deposits		899,492			587,161			53	%
Total Deposits		4,120,725			3,333,187			24	%
Loans Held for Investment		4,457,293			4,027,871			11	%
Total Loans(1)		5,150,797			4,524,222			14	%
Stockholders’ Equity		481,360			387,073			24	%

(1) From continuing operations

DETAILED FINANCIALS

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

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

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

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

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

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

2

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

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

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, acommercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. Anumber 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.

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TEXAS CAPITAL BANCSHARES, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
(Dollars in thousands except per share data)	2009			2009			2009			2009			2008
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	65,137		$	62,197		$	60,013		$	55,806		$	58,873
Interest expense		10,031			10,631			11,211			14,589			20,161
Net interest income		55,106			51,566			48,802			41,217			38,712
Provision for loan losses		10,500			13,500			11,000			8,500			11,000
Net interest income after provision for loan losses		44,606			38,066			37,802			32,717			27,712
Non-interest income		7,811			7,133			7,416			6,900			5,950
Non-interest expense		42,796			37,067			35,373			30,306			28,443
Income from continuing operations before income taxes		9,621			8,132			9,845			9,311			5,219
Income tax expense		3,194			2,779			3,363			3,186			1,732
Income from continuing operations		6,427			5,353			6,482			6,125			3,487
Loss from discontinued operations (after-tax)		(55	)		(41	)		(44	)		(95	)		(100	)
Net income		6,372			5,312			6,438			6,030			3,387
Preferred stock dividends		–			–			4,453			930			–
Net income available to common shareholders	$	6,372		$	5,312		$	1,985		$	5,100		$	3,387
Diluted EPS from continuing operations	$	.18		$	.15		$	.06		$	.17		$	.11
Diluted EPS	$	.18		$	.15		$	.06		$	.16		$	.11
Diluted shares		36,311,306			36,303,975			33,866,237			31,072,444			31,037,610
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	5,698,318		$	5,320,401		$	5,306,407		$	5,012,513		$	5,141,034
Loans held for investment		4,457,293			4,290,453			4,211,304			4,019,247			4,027,871
Loans held for sale		693,504			549,787			544,652			426,982			496,351
Securities		266,128			285,869			308,187			361,898			378,752
Demand deposits		899,492			802,692			730,034			608,939			587,161
Total deposits		4,120,725			3,916,568			3,643,582			3,010,960			3,333,187
Other borrowings		957,029			790,192			1,059,572			1,386,783			1,280,607
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		481,360			474,044			464,026			471,990			387,073
End of period shares		35,919,941			35,802,485			35,688,661			31,014,575			30,971,189
Book value (excluding securities gains/losses)	$	13.23		$	13.05		$	12.87		$	12.64		$	12.44
Tangible book value (excluding securities gains/losses)	$	12.96		$	12.84		$	12.66		$	12.39		$	12.19
SELECTED FINANCIAL RATIOS
From continuing operations:
Net interest margin		4.21	%		4.06	%		3.88	%		3.39	%		3.41	%
Return on average assets		.47	%		.40	%		.49	%		.48	%		.29	%
Return on average equity		5.26	%		4.46	%		5.45	%		5.44	%		3.61	%
Non-interest income to earning assets		.59	%		.56	%		.59	%		.56	%		.52	%
Efficiency ratio		68.0	%		63.1	%		62.9	%		63.0	%		63.7	%
Efficiency ratio (excluding ORE valuation/write-down)		59.1	%		59.4	%		62.9	%		63.0	%		63.7	%
Non-interest expense to earning assets		3.26	%		2.91	%		2.80	%		2.48	%		2.49	%
From consolidated:
Net interest margin		4.21	%		4.06	%		3.88	%		3.39	%		3.41	%
Return on average assets		.46	%		.40	%		.48	%		.47	%		.28	%
Return on average equity		5.21	%		4.43	%		5.41	%		5.36	%		3.50	%
Tangible common equity to total tangible assets		8.2	%		8.7	%		8.6	%		7.8	%		7.4	%
Tier 1 capital ratio		10.7	%		11.2	%		11.2	%		11.9	%		10.0	%
Total capital ratio		12.0	%		12.5	%		12.3	%		13.0	%		10.9	%
Tier 1 leverage ratio		10.5	%		10.8	%		10.6	%		11.0	%		10.2	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	December 31,			December 31,			%
(Dollars in thousands)	2009			2008			Change
Assets
Cash and due from banks	$	80,459		$	77,887			3	%
Federal funds sold		44,980			4,140			N/M
Securities, available-for-sale		266,128			378,752			(30	)%
Loans held for sale		693,504			496,351			40	%
Loans held for sale from discontinued operations		586			648			(10	)%
Loans held for investment (net of unearned income)		4,457,293			4,027,871			11	%
Less: Allowance for loan losses		67,931			45,365			50	%
Loans held for investment, net		4,389,362			3,982,506			10	%
Premises and equipment, net		11,189			9,467			18	%
Accrued interest receivable and other assets		202,890			184,242			10	%
Goodwill and intangibles, net		9,806			7,689			28	%
Total assets	$	5,698,904		$	5,141,682			11	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	899,492		$	587,161			53	%
Interest bearing		2,837,163			2,245,991			26	%
Interest bearing in foreign branches		384,070			500,035			(23	)%
Total deposits		4,120,725			3,333,187			24	%
Accrued interest payable		2,468			6,421			(62	)%
Other liabilities		23,916			20,988			14	%
Federal funds purchased		580,519			350,155			66	%
Repurchase agreements		25,070			77,732			(68	)%
Other short-term borrowings		351,440			812,720			(57	)%
Long-term borrowings		—			40,000			(100	)%
Trust preferred subordinated debentures		113,406			113,406			—
Total liabilities		5,217,544			4,754,609			10	%
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 35,919,941 and 30,971,189 at December 31, 2009 and 2008, respectively		359			310			16	%
Additional paid-in capital		326,224			255,051			28	%
Retained earnings		148,620			129,851			14	%
Treasury stock (shares at cost: 417 at December 31, 2009 and 84,691 at December 31, 2008)		(8	)		(581	)		(99	)%
Deferred compensation		—			573			(100	)%
Accumulated other comprehensive income, net of taxes		6,165			1,869			N/M
Total stockholders’ equity		481,360			387,073			24	%
Total liabilities and stockholders’ equity	$	5,698,904		$	5,141,682			11	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended						Twelve Months Ended
	December 31						December 31
(Dollars in thousands except per share data)	2009			2008			2009			2008
Interest income
Interest and fees on loans	$	62,174		$	54,814		$	229,500		$	231,009
Securities		2,957			4,031			13,578			17,722
Federal funds sold		2			27			31			168
Deposits in other banks		4			1			44			31
Total interest income		65,137			58,873			243,153			248,930
Interest expense
Deposits		8,560			16,075			37,824			72,852
Federal funds purchased		460			1,046			2,404			8,232
Repurchase agreements		11			79			53			541
Other borrowings		76			1,353			1,949			9,123
Trust preferred subordinated debentures		924			1,608			4,232			6,445
Total interest expense		10,031			20,161			46,462			97,193
Net interest income		55,106			38,712			196,691			151,737
Provision for loan losses		10,500			11,000			43,500			26,750
Net interest income after provision for loan losses		44,606			27,712			153,191			124,987
Non-interest income
Service charges on deposit accounts		1,490			1,133			6,287			4,699
Trust fee income		979			1,036			3,815			4,692
Bank owned life insurance (BOLI) income		464			315			1,579			1,240
Brokered loan fees		2,221			1,074			9,043			3,242
Equipment rental income		1,357			1,482			5,557			5,995
Other		1,300			910			2,979			2,602
Total non-interest income		7,811			5,950			29,260			22,470
Non-interest expense
Salaries and employee benefits		19,631			14,688			73,419			61,438
Net occupancy expense		2,986			2,534			12,291			9,631
Leased equipment depreciation		1,031			1,142			4,319			4,667
Marketing		1,119			882			3,034			2,729
Legal and professional		3,030			2,793			11,846			9,622
Communications and data processing		993			832			3,743			3,314
FDIC insurance assessment		1,972			643			8,464			1,797
Allowance and other carrying costs for OREO		6,377			873			10,345			1,541
Other		5,657			4,056			18,081			14,912
Total non-interest expense		42,796			28,443			145,542			109,651
Income from continuing operations before income taxes		9,621			5,219			36,909			37,806
Income tax expense		3,194			1,732			12,522			12,924
Income from continuing operations		6,427			3,487			24,387			24,882
Loss from discontinued operations (after-tax)		(55	)		(100	)		(235	)		(616	)
Net income		6,372			3,387			24,152			24,266
Preferred stock dividends		—			—			5,383			—
Net income available to common stockholders	$	6,372		$	3,387		$	18,769		$	24,266
Basic earnings per common share:
Income from continuing operations	$	.18		$	.11		$	.56		$	.89
Net income	$	.18		$	.11		$	.55		$	.87
Diluted earnings per common share:
Income from continuing operations	$	.18		$	.11		$	.55		$	.89
Net income	$	.18		$	.11		$	.55		$	.87

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
(Dollars in thousands)	2009			2009			2009			2009			2008
Reserve for loan losses:
Beginning balance	$	65,818		$	54,286		$	50,145		$	45,365		$	39,511
Loans charged-off:
Commercial		2,098			115			92			1,695			535
Real estate – construction		4,051			576			1,821			60			1,195
Real estate – term		1,971			1,239			1,250			236			3,432
Consumer		3			80			—			419			64
Leases		—			72			3,724			226			—
Total		8,123			2,082			6,887			2,636			5,226
Recoveries:
Commercial		34			21			48			21			43
Real estate – construction		6			—			—			7			—
Real estate – term		53			—			—			—			20
Consumer		7			16			5			—			—
Leases		34			20			—			—			—
Total recoveries		134			57			53			28			63
Net charge-offs		7,989			2,025			6,834			2,608			5,163
Provision for loan losses		10,102			13,557			10,975			7,388			11,017
Ending balance	$	67,931		$	65,818		$	54,286		$	50,145		$	45,365
Reserve for off-balance sheet credit losses:
Beginning balance	$	2,550		$	2,607		$	2,582		$	1,470		$	1,487
Provision for off-balance sheet credit losses		398			(57	)		25			1,112			(17	)
Ending balance	$	2,948		$	2,550		$	2,607		$	2,582		$	1,470
Total provision for credit losses	$	10,500		$	13,500		$	11,000		$	8,500		$	11,000
Reserve to loans held for investment(2)		1.52	%		1.53	%		1.29	%		1.25	%		1.13	%
Reserve to average loans held for investment(2)		1.55	%		1.54	%		1.32	%		1.25	%		1.17	%
Net charge-offs to average loans(1)(2)		.72	%		.19	%		.66	%		.26	%		.53	%
Net charge-offs to average loans for last twelve months(1)(2)		.46	%		.41	%		.41	%		.34	%		.35	%
Total provision for credit losses to average loans(1)(2)		.95	%		1.26	%		1.07	%		.76	%		1.13	%
Combined reserves for credit losses to loans held for investment(2)		1.59	%		1.59	%		1.35	%		1.31	%		1.16	%
Non-performing assets (NPAs): (4)
Non-accrual loans	$	95,625		$	85,270		$	49,592		$	50,683		$	47,499
Other real estate owned (OREO) (5)		27,264			34,671			31,404			27,501			25,904
Total	$	122,889		$	119,941		$	80,996		$	78,184		$	73,403
Non-accrual loans to loans(2)		2.15	%		1.99	%		1.18	%		1.26	%		1.18	%
Total NPAs to loans plus OREO(2)		2.74	%		2.77	%		1.91	%		1.93	%		1.81	%
Reserve for loan losses to non-accrual loans		.7x			.8x			1.1x			1.0x			1.0x
Loans past due 90 days and still accruing(3)	$	6,081		$	7,569		$	3,539		$	4,637		$	4,115
Loans past due 90 days to loans(2)		.14	%		.18	%		.08	%		.12	%		.10	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At December 31, 2009, loans past due 90 days and still accruing includes premium finance loans of $2.4 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
(4)	At December 31, 2009, non-performing assets include $2.6 million of mortgage warehouse loans, which were transferred to the loans held for investment portfolio at lower of cost or market, and some were subsequently moved to OREO.
(5)	At December 31, 2009, OREO balance is net of $6.6 million valuation allowance.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
(Dollars in thousands)	2009			2009			2009			2009			2008
Interest income
Interest and fees on loans	$	62,174		$	58,959		$	56,455		$	51,912		$	54,814
Securities		2,957			3,226			3,544			3,851			4,031
Federal funds sold		2			5			9			15			27
Deposits in other banks		4			7			5			28			1
Total interest income		65,137			62,197			60,013			55,806			58,873
Interest expense
Deposits		8,560			8,916			8,769			11,579			16,075
Federal funds purchased		460			586			740			618			1,046
Repurchase agreements		11			14			14			14			79
Other borrowings		76			125			570			1,178			1,353
Trust preferred subordinated debentures		924			990			1,118			1,200			1,608
Total interest expense		10,031			10,631			11,211			14,589			20,161
Net interest income		55,106			51,566			48,802			41,217			38,712
Provision for loan losses		10,500			13,500			11,000			8,500			11,000
Net interest income after provision for loan losses		44,606			38,066			37,802			32,717			27,712
Non-interest income
Service charges on deposit accounts		1,490			1,658			1,614			1,525			1,133
Trust fee income		979			1,000			952			884			1,036
Bank owned life insurance (BOLI) income		464			418			423			274			315
Brokered loan fees		2,221			2,120			2,670			2,032			1,074
Equipment rental income		1,357			1,291			1,453			1,456			1,482
Other		1,300			646			304			729			910
Total non-interest income		7,811			7,133			7,416			6,900			5,950
Non-interest expense
Salaries and employee benefits		19,631			19,569			18,000			16,219			14,688
Net occupancy expense		2,986			3,164			3,387			2,754			2,534
Leased equipment depreciation		1,031			1,050			1,115			1,123			1,142
Marketing		1,119			705			655			555			882
Legal and professional		3,030			3,274			3,291			2,251			2,793
Communications and data processing		993			935			979			836			832
FDIC insurance assessment		1,972			1,452			3,493			1,547			643
Allowance and other carrying costs for OREO		6,377			2,390			378			1,200			873
Other		5,657			4,528			4,075			3,821			4,056
Total non-interest expense		42,796			37,067			35,373			30,306			28,443
Income from continuing operations before income taxes		9,621			8,132			9,845			9,311			5,219
Income tax expense		3,194			2,779			3,363			3,186			1,732
Income from continuing operations		6,427			5,353			6,482			6,125			3,487
Loss from discontinued operations (after-tax)		(55	)		(41	)		(44	)		(95	)		(100	)
Net income		6,372			5,312			6,438			6,030			3,387
Preferred stock dividends		—			—			4,453			930			—
Net income available to common stockholders	$	6,372		$	5,312		$	1,985		$	5,100		$	3,387

8

TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY — UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations

	4th Quarter 2009							3rd Quarter 2009							2nd Quarter 2009							1st Quarter 2009							4th Quarter 2008
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Average		Average			Average		Revenue/		Yield/			Average		Revenue/		Yield/
(Dollars in thousands)	Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Balance		Balance			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate
Assets
Securities — Taxable	$	230,686	$	2,560		4.40	%	$	247,936	$	2,813		4.50	%	$	280,372	$	3,124		4.47	%	$	321,802	$	3,431		4.32	%	$	313,992	$	3,610		4.57	%
Securities — Non-taxable(2)		42,932		611		5.65	%		44,642		635		5.64	%		45,901		646		5.64	%		46,055		646		5.69	%		46,272		648		5.57	%
Federal funds sold		5,550		2		0.14	%		6,782		5		0.29	%		5,649		9		0.64	%		14,923		15		0.41	%		23,050		27		0.47	%
Deposits in other banks		12,916		4		0.12	%		12,649		7		0.22	%		12,268		5		0.16	%		11,207		28		1.01	%		5,761		1		0.07	%
Loans held for sale		601,793		7,286		4.80	%		539,889		6,836		5.02	%		656,462		7,727		4.72	%		587,401		6,487		4.48	%		316,409		4,441		5.58	%
Loans held for investment		4,384,692		54,888		4.97	%		4,264,202		52,123		4.85	%		4,124,937		48,728		4.74	%		4,022,180		45,425		4.58	%		3,875,586		50,373		5.17	%
Less reserve for loan losses		68,177		—		—			56,429		—		—			51,601		—		—			46,686		—		—			38,145		—		—
Loans, net of reserve		4,918,308		62,174		5.02	%		4,747,662		58,959		4.92	%		4,729,798		56,455		4.78	%		4,562,895		51,912		4.61	%		4,153,850		54,814		5.25	%
Total earning assets		5,210,392		65,351		4.98	%		5,059,671		62,419		4.89	%		5,073,988		60,239		4.76	%		4,956,882		56,032		4.58	%		4,542,925		59,100		5.18	%
Cash and other assets		243,823							245,564							251,960							238,723							218,335
Total assets	$	5,454,215						$	5,305,235						$	5,325,948						$	5,195,605						$	4,761,260
Liabilities and Stockholders’ Equity
Transaction deposits	$	180,767	$	85		0.19	%	$	144,944	$	58		0.16	%	$	135,756	$	55		0.16	%	$	129,850	$	44		0.14	%	$	103,111	$	67		0.26	%
Savings deposits		1,620,659		3,569		0.87	%		1,377,712		3,090		0.89	%		974,275		2,003		0.82	%		745,355		1,420		0.77	%		729,337		2,350		1.28	%
Time deposits		1,111,899		3,454		1.23	%		1,284,220		4,245		1.31	%		1,082,691		5,105		1.89	%		1,277,824		8,066		2.56	%		1,405,426		10,603		3.00	%
Deposits in foreign branches		401,661		1,452		1.43	%		404,545		1,523		1.49	%		394,251		1,606		1.63	%		444,549		2,049		1.87	%		555,573		3,055		2.19	%
Total interest bearing deposits		3,314,986		8,560		1.02	%		3,211,421		8,916		1.10	%		2,586,973		8,769		1.36	%		2,597,578		11,579		1.81	%		2,793,447		16,075		2.29	%
Other borrowings		607,731		547		0.36	%		724,127		725		0.40	%		1,404,881		1,324		0.38	%		1,367,691		1,810		0.54	%		881,868		2,478		1.12	%
Trust preferred subordinated debentures		113,406		924		3.23	%		113,406		990		3.46	%		113,406		1,118		3.95	%		113,406		1,200		4.29	%		113,406		1,608		5.64	%
Total interest bearing liabilities		4,036,123		10,031		0.99	%		4,048,954		10,631		1.04	%		4,105,260		11,211		1.10	%		4,078,675		14,589		1.45	%		3,788,721		20,161		2.12	%
Demand deposits		914,266							764,557							724,487							636,704							566,513
Other liabilities		18,787							15,617							18,899							23,619							21,323
Stockholders’ equity		485,039							476,107							477,302							456,607							384,703
Total liabilities and stockholders’ equity	$	5,454,215						$	5,305,235						$	5,325,948						$	5,195,605						$	4,761,260
Net interest income			$	55,320						$	51,788						$	49,028						$	41,443						$	38,939
Net interest margin						4.21	%						4.06	%						3.88	%						3.39	%						3.41	%

(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.

9