Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for Q2 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE
July 21, 2010

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q2 2010

DALLAS — July 21, 2010 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the second quarter of 2010.

• Net income increased 7% on a linked quarter basis and increased 25% from Q2 2009

• EPS increased 5% on a linked quarter basis and increased 267% for the second quarter of 2010 as compared to the same quarter of 2009

• Demand deposits grew 13% and total deposits increased 12% on a linked quarter basis and grew 54% and 35%, respectively, from Q2 2009

• Loans held for investment remained consistent on a linked quarter basis and total loans increased 8% on a linked quarter basis; grew 6% and 15%, respectively, from Q2 2009

“We are pleased to report another quarter of solid core earnings and exceptional deposit growth. We have positioned ourselves to produce strong results in a challenging time for our industry,” said George Jones, CEO. “Although the entire industry continues to face credit and other challenges from the national economic conditions, we believe that those issues are manageable for Texas Capital.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

	Q2 2010			Q2 2009			% Change
QUARTERLY OPERATING RESULTS
Net Income(1)	$	8,116		$	6,482			25	%
Net Income Available to Common Shareholders(1)	$	8,116		$	2,029			300	%
Diluted EPS(1)	$	.22		$	.06			267	%
ROA(1)		.58	%		.49	%
ROE(1)		6.33	%		5.45	%
Diluted Shares		37,487			33,866
BALANCE SHEET
Total Assets(1)	$	5,961,472		$	5,306,407			12	%
Demand Deposits		1,120,664			730,034			54	%
Total Deposits		4,926,069			3,643,582			35	%
Loans Held for Investment		4,462,830			4,211,304			6	%
Total Loans(1)		5,459,980			4,755,956			15	%
Stockholders’ Equity		514,078			464,026			11	%

(1) From continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $8.1 million for the quarter ended June 30, 2010, compared to $6.5 million for the second quarter of 2009. Net income available to common shareholders from continuing operations was $8.1 million for the quarter ended June 30, 2010, compared to $2.0 million for the second quarter of 2009. On a fully diluted basis, earnings per common share from continuing operations were $.22 for the three months ended June 30, 2010 compared to $.06 for the same period last year. The effect of the TARP preferred stock dividends net of income earned on the TARP proceeds reduced earnings per share by $.13 for the three months ended June 30, 2009. The discussion below relates only to continuing operations.

Return on average equity was 6.33 percent and return on average assets was .58 percent for the second quarter of 2010, compared to 5.45 percent and .49 percent, respectively, for the second quarter of 2009.

The net interest margin in the second quarter of 2010 was 4.32 percent, a 44 basis point increase from the second quarter of 2009 and an 11 basis point decrease from the first quarter of 2010. The year over year increase is due to the significant reduction in funding costs and our ability to maintain and improve spreads on our loans. On a linked quarter basis, we reported a slight decrease in margin from 4.43% to 4.32%, compared to the significant increases in margin that we have reported since the first part of 2009. This decrease was due to increased liquidity created by our deposit growth being invested in lower yielding assets and the reduction in the use of borrowed funds at lower costs. Additionally, our nonaccrual loans have continued to increase and have negatively affected both our margin and net interest income. Net interest income was $57.9 million for the second quarter of 2010, compared to $48.8 million for the second quarter of 2009. The increase was due to an increase in average earning assets of $315.9 million over levels reported in the second quarter of 2009. The increase in average earning assets included a $334.9 million increase in average loans held for investment and an $8.0 million increase in average loans held for sale, offset by a decrease of $93.1 million in average securities.

Average total deposits for the second quarter of 2010 increased by $1.5 billion from the second quarter of 2009 and increased by $487.3 million from the first quarter of 2010. For the same periods, the average balance of demand deposits increased by $299.8 million, or 41 percent, to $1.0 billion from $724.5 million during the second quarter of 2009 and increased $67.9 million, or 7 percent, from the first quarter of 2010.

As a result of the overall economic downturn, we have continued to experience increases in levels of non-performing assets and exposure to credit losses during the second quarter of 2010. Provision for credit losses, valuation allowance and direct write-downs related to other real estate owned (“OREO”) totaled $15.1 million in second quarter of 2010 compared to $11.0 million in the second quarter of 2009 and $15.4 million in the first quarter of 2010. The Company recorded a $14.5 million provision for credit losses in the second quarter of 2010, compared to $11.0 million in the second quarter of 2009 and $13.5 million in the first quarter of 2010. The second quarter provision resulted in an increase in the combined reserve to 1.73 percent of loans held for investment as compared to 1.35 percent at June 30, 2009, and 1.69 percent at the end of the first quarter of 2010. 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 second quarter of 2010, net charge-offs were $12.6 million, compared to net charge-offs of $6.8 million in the second quarter of 2009 and net charge-offs of $9.3 million in the first quarter of 2010. Non-accrual loans were $138.2 million, or 3.10 percent, of loans at the end of the second quarter of 2010, compared to $49.6 million, or 1.18 percent of loans at the end of the second quarter of 2009, and $115.9 million, or 2.61 percent of loans at the end of the first quarter of 2010. At June 30, 2010, total OREO was $42.1 million compared to $31.4 million at the end of the second quarter of 2009, and $28.9 million at the end of the first quarter of 2010. The balance of $42.1 million at June 30, 2010 is stated net of an $8.9 million valuation allowance, for which we incurred a non-interest expense of $557,000 during the second quarter of 2010.

Non-interest income increased $620,000 during the second quarter of 2010, or 8%, compared to the same period of 2009 primarily related to a $1.3 million increase in other non-interest income due to gains on sale of leased equipment. Offsetting this increase was a $449,000 decrease in brokered loan fees related to a

2

decline in volume, and a $257,000 decrease in equipment rental income related to a decline in the leased equipment portfolio.

Non-interest expense for the second quarter of 2010 increased $3.7 million, or 10 percent, to $39.1 million from $35.4 million in the second quarter of 2009. The increase is primarily related to a $3.4 million increase in salaries and employee benefits to $21.4 million from $18.0 million, which was primarily due to general business growth. Allowance and other carrying costs for OREO expense increased $430,000 to $808,000 related to deteriorating values of assets held in OREO. Of the $808,000 expense, $557,000 was related to increasing the valuation allowance.

Stockholders’ equity increased by 11 percent from $464.0 million at June 30, 2009 to $514.1 million at June 30, 2010. Contributing to the increase was retained net income and proceeds of sales of common stock. During the second quarter of 2010, we sold approximately 185,000 shares of common stock with net proceeds of $3.5 million under the discretionary equity issuance program announced in January 2010. The Bank is well capitalized under regulatory guidelines and at June 30, 2010, the Company’s ratio of tangible common equity to total tangible assets was 8.4 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 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. 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.

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TEXAS CAPITAL BANCSHARES, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)

	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2010			2010			2009			2009			2009
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	67,472		$	64,306		$	65,137		$	62,197		$	60,013
Interest expense		9,587			9,078			10,031			10,631			11,211
Net interest income		57,885			55,228			55,106			51,566			48,802
Provision for credit losses		14,500			13,500			10,500			13,500			11,000
Net interest income after provision for credit losses		43,385			41,728			44,606			38,066			37,802
Non-interest income		8,036			6,948			7,811			7,133			7,416
Non-interest expense		39,118			37,186			42,796			37,067			35,373
Income from continuing operations before income taxes		12,303			11,490			9,621			8,132			9,845
Income tax expense		4,187			3,890			3,194			2,779			3,363
Income from continuing operations		8,116			7,600			6,427			5,353			6,482
Loss from discontinued operations (after-tax)		(54	)		(55	)		(55	)		(41	)		(44	)
Net income		8,062			7,545			6,372			5,312			6,438
Preferred stock dividends		—			—			—			—			4,453
Net income available to common shareholders	$	8,062		$	7,545		$	6,372		$	5,312		$	1,985
Diluted EPS from continuing operations	$	.22		$	.21		$	.18		$	.15		$	.06
Diluted EPS	$	.22		$	.21		$	.18		$	.15		$	.06
Diluted shares		37,486,785			36,783,719			36,311,306			36,303,975			33,866,237
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	5,961,472		$	5,499,599		$	5,698,318		$	5,320,401		$	5,306,407
Loans held for investment		4,462,830			4,443,456			4,457,293			4,290,453			4,211,304
Loans held for sale		997,150			592,436			693,504			549,787			544,652
Securities		227,029			246,209			266,128			285,869			308,187
Demand deposits		1,120,664			994,096			899,492			802,692			730,034
Total deposits		4,926,069			4,409,819			4,120,725			3,916,568			3,643,582
Other borrowings		376,646			452,061			957,029			790,192			1,059,572
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		514,078			499,996			481,360			474,044			464,026
End of period shares outstanding		36,776,836			36,524,313			35,919,524			35,802,068			35,688,244
Book value (excluding securities gains/losses)	$	13.79		$	13.52		$	13.23		$	13.05		$	12.87
Tangible book value (excluding securities gains/losses)	$	13.53		$	13.25		$	12.96		$	12.84		$	12.66
SELECTED FINANCIAL RATIOS
From continuing operations:
Net interest margin		4.32	%		4.43	%		4.21	%		4.06	%		3.88	%
Return on average assets		.58	%		.57	%		.47	%		.40	%		.49	%
Return on average equity		6.33	%		6.21	%		5.26	%		4.46	%		5.45	%
Non-interest income to earning assets		.60	%		.55	%		.59	%		.56	%		.59	%
Efficiency ratio		59.3	%		59.8	%		68.0	%		63.1	%		62.9	%
Efficiency ratio (excluding ORE valuation/write-down)		58.5	%		56.7	%		59.1	%		59.4	%		62.9	%
Non-interest expense to earning assets		2.91	%		2.97	%		3.26	%		2.91	%		2.80	%
From consolidated:
Net interest margin		4.32	%		4.43	%		4.21	%		4.06	%		3.88	%
Return on average assets		.57	%		.57	%		.46	%		.40	%		.48	%
Return on average equity		6.29	%		6.17	%		5.21	%		4.43	%		5.41	%
Tangible common equity to total tangible assets		8.4	%		8.8	%		8.2	%		8.7	%		8.6	%
Tier 1 capital ratio		11.0	%		11.3	%		10.7	%		11.2	%		11.2	%
Total capital ratio		12.3	%		12.5	%		12.0	%		12.5	%		12.3	%
Tier 1 leverage ratio		10.7	%		11.0	%		10.5	%		10.8	%		10.6	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)

	June 30,			June 30,			%
	2010			2009			Change
Assets
Cash and due from banks	$	93,159		$	74,478			25	%
Federal funds sold		27,990			6,000			N/M
Securities, available-for-sale		227,029			308,187			(26	)%
Loans held for sale		997,150			544,652			83	%
Loans held for sale from discontinued operations		582			578			1	%
Loans held for investment (net of unearned income)		4,462,830			4,211,304			6	%
Less: Allowance for loan losses		74,881			54,286			38	%
Loans held for investment, net		4,387,949			4,157,018			6	%
Premises and equipment, net		11,065			11,088			(0	)%
Accrued interest receivable and other assets		207,486			197,376			5	%
Goodwill and intangibles, net		9,644			7,608			27	%
Total assets	$	5,962,054		$	5,306,985			12	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	1,120,664		$	730,034			54	%
Interest bearing		3,394,648			2,530,562			34	%
Interest bearing in foreign branches		410,757			382,986			7	%
Total deposits		4,926,069			3,643,582			35	%
Accrued interest payable		2,503			2,900			(14	)%
Other liabilities		29,352			23,499			25	%
Federal funds purchased		309,722			632,945			(51	)%
Repurchase agreements		13,812			61,816			(78	)%
Other borrowings		53,112			364,811			(85	)%
Trust preferred subordinated debentures		113,406			113,406			—
Total liabilities		5,447,976			4,842,959			12	%
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares — 10,000,000
Issued shares		—			—
Common stock, $.01 par value:
Authorized shares — 100,000,000
Issued shares — 36,777,253 and 35,688,661 at June 30, 2010 and 2009, respectively		368			357			3	%
Additional paid-in capital		342,724			321,987			6	%
Retained earnings		164,227			136,936			20	%
Treasury stock (shares at cost: 417 at June 30, 2010 and 2009)		(8	)		(8	)		—
Accumulated other comprehensive income, net of taxes		6,767			4,754			42	%
Total stockholders’ equity		514,078			464,026			11	%
Total liabilities and stockholders’ equity	$	5,962,054		$	5,306,985			12	%

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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
	2010			2009			2010			2009
Interest income
Interest and fees on loans	$	64,935		$	56,455		$	126,504		$	108,367
Securities		2,491			3,544			5,217			7,395
Federal funds sold		40			9			42			24
Deposits in other banks		6			5			15			33
Total interest income		67,472			60,013			131,778			115,819
Interest expense
Deposits		8,420			8,769			16,178			20,348
Federal funds purchased		244			740			609			1,358
Repurchase agreements		2			14			6			28
Other borrowings		1			570			48			1,748
Trust preferred subordinated debentures		920			1,118			1,824			2,318
Total interest expense		9,587			11,211			18,665			25,800
Net interest income		57,885			48,802			113,113			90,019
Provision for credit losses		14,500			11,000			28,000			19,500
Net interest income after provision for credit losses		43,385			37,802			85,113			70,519
Non-interest income
Service charges on deposit accounts		1,539			1,614			3,022			3,139
Trust fee income		980			952			1,934			1,836
Bank owned life insurance (BOLI) income		481			423			952			697
Brokered loan fees		2,221			2,670			4,125			4,702
Equipment rental income		1,196			1,453			2,540			2,909
Other		1,619			304			2,411			1,033
Total non-interest income		8,036			7,416			14,984			14,316
Non-interest expense
Salaries and employee benefits		21,393			18,000			41,462			34,219
Net occupancy expense		3,032			3,387			6,046			6,141
Leased equipment depreciation		1,035			1,115			2,094			2,238
Marketing		1,101			655			1,888			1,210
Legal and professional		3,298			3,291			5,248			5,542
Communications and data processing		911			979			1,927			1,815
FDIC insurance assessment		2,241			3,493			4,109			5,040
Allowance and other carrying costs for OREO		808			378			3,100			1,578
Other		5,299			4,075			10,430			7,896
Total non-interest expense		39,118			35,373			76,304			65,679
Income from continuing operations before income taxes		12,303			9,845			23,793			19,156
Income tax expense		4,187			3,363			8,077			6,549
Income from continuing operations		8,116			6,482			15,716			12,607
Loss from discontinued operations (after-tax)		(54	)		(44	)		(109	)		(139	)
Net income		8,062			6,438			15,607			12,468
Preferred dividends		—			4,453			—			5,383
	$	8,062		$	1,985		$	15,607		$	7,085
Basic earnings per common share:
Income from continuing operations	$	.22		$	.06		$	.43		$	.22
Net income	$	.22		$	.06		$	.43		$	.22
Diluted earnings per common share:
Income from continuing operations	$	.22		$	.06		$	.42		$	.22
Net income	$	.22		$	.06		$	.42		$	.22

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2010			2010			2009			2009			2009
Reserve for loan losses:
Beginning balance	$	71,705		$	67,931		$	65,818		$	54,286		$	50,145
Loans charged-off:
Commercial		6,653			7,551			2,098			115			92
Real estate — construction		5,789			420			4,051			576			1,821
Real estate — term		—			766			1,971			1,239			1,250
Consumer		—			—			3			80			—
Leases		218			594			—			72			3,724
Total		12,660			9,331			8,123			2,082			6,887
Recoveries:
Commercial		46			18			34			21			48
Real estate — construction		—			—			6			—			—
Real estate — term		6			8			53			—			—
Consumer		—			—			7			16			5
Leases		55			25			34			20			—
Total recoveries		107			51			134			57			53
Net charge-offs		12,553			9,280			7,989			2,025			6,834
Provision for loan losses		15,729			13,054			10,102			13,557			10,975
Ending balance	$	74,881		$	71,705		$	67,931		$	65,818		$	54,286
Reserve for off-balance sheet credit losses:
Beginning balance	$	3,394		$	2,948		$	2,550		$	2,607		$	2,582
Provision (benefit) for off-balance sheet credit losses		(1,229	)		446			398			(57	)		25
Ending balance	$	2,165		$	3,394		$	2,948		$	2,550		$	2,607
Total reserves for credit losses	$	77,046		$	75,099		$	70,879		$	68,368		$	56,893
Total provision for credit losses	$	14,500		$	13,500		$	10,500		$	13,500		$	11,000
Reserve to loans held for investment(2)		1.68	%		1.61	%		1.52	%		1.53	%		1.29	%
Reserve to average loans held for investment(2)		1.68	%		1.63	%		1.55	%		1.54	%		1.32	%
Net charge-offs to average loans(1)(2)		1.13	%		.85	%		.72	%		.19	%		.66	%
Net charge-offs to average loans for last twelve months(1)(2)		.73	%		.61	%		.46	%		.41	%		.41	%
Total provision for credit losses to average loans(1)(2)		1.30	%		1.24	%		.95	%		1.26	%		1.07	%
Combined reserves for credit losses to loans held for investment(2)		1.73	%		1.69	%		1.59	%		1.59	%		1.35	%
Non-performing assets (NPAs): (4)
Non-accrual loans	$	138,236		$	115,926		$	95,625		$	85,270		$	49,592
Other real estate owned (OREO) (5)		42,077			28,865			27,264			34,671			31,404
Total	$	180,313		$	144,791		$	122,889		$	119,941		$	80,996
Non-accrual loans to loans(2)		3.10	%		2.61	%		2.15	%		1.99	%		1.18	%
Total NPAs to loans plus OREO(2)		4.00	%		3.24	%		2.74	%		2.77	%		1.91	%
Reserve for loan losses to non-accrual loans		.5x			.6x			.7x			.8x			1.1x
Restructured loans(6)	$	—		$	10,700		$	—		$	—		$	—
Loans past due 90 days and still accruing(3)	$	13,962		$	2,390		$	6,081		$	7,569		$	3,539
Loans past due 90 days to loans(2)		.31	%		.05	%		.14	%		.18	%		.08	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At June 30, 2010, loans past due 90 days and still accruing includes premium finance loans of $1.7 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, 2010, non-performing assets include $1.5 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 June 30, 2010, OREO balance is net of $8.9 million valuation allowance.
(6)	Loan was restructured in Q1-10 and was still accruing. During Q2-10, conditions related to this credit deteriorated and it is now included in nonaccruals.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollars in thousands)

	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
	2010			2010			2009			2009			2009
Interest income
Interest and fees on loans	$	64,935		$	61,569		$	62,174		$	58,959		$	56,455
Securities		2,491			2,726			2,957			3,226			3,544
Federal funds sold		40			2			2			5			9
Deposits in other banks		6			9			4			7			5
Total interest income		67,472			64,306			65,137			62,197			60,013
Interest expense
Deposits		8,420			7,758			8,560			8,916			8,769
Federal funds purchased		244			365			460			586			740
Repurchase agreements		2			4			11			14			14
Other borrowings		1			47			76			125			570
Trust preferred subordinated debentures		920			904			924			990			1,118
Total interest expense		9,587			9,078			10,031			10,631			11,211
Net interest income		57,885			55,228			55,106			51,566			48,802
Provision for credit losses		14,500			13,500			10,500			13,500			11,000
Net interest income after provision for credit losses		43,385			41,728			44,606			38,066			37,802
Non-interest income
Service charges on deposit accounts		1,539			1,483			1,490			1,658			1,614
Trust fee income		980			954			979			1,000			952
Bank owned life insurance (BOLI) income		481			471			464			418			423
Brokered loan fees		2,221			1,904			2,221			2,120			2,670
Equipment rental income		1,196			1,344			1,357			1,291			1,453
Other		1,619			792			1,300			646			304
Total non-interest income		8,036			6,948			7,811			7,133			7,416
Non-interest expense
Salaries and employee benefits		21,393			20,069			19,631			19,569			18,000
Net occupancy expense		3,032			3,014			2,986			3,164			3,387
Leased equipment depreciation		1,035			1,059			1,031			1,050			1,115
Marketing		1,101			787			1,119			705			655
Legal and professional		3,298			1,950			3,030			3,274			3,291
Communications and data processing		911			1,016			993			935			979
FDIC insurance assessment		2,241			1,868			1,972			1,452			3,493
Allowance and other carrying costs for OREO		808			2,292			6,377			2,390			378
Other		5,299			5,131			5,657			4,528			4,075
Total non-interest expense		39,118			37,186			42,796			37,067			35,373
Income from continuing operations before income taxes		12,303			11,490			9,621			8,132			9,845
Income tax expense		4,187			3,890			3,194			2,779			3,363
Income from continuing operations		8,116			7,600			6,427			5,353			6,482
Loss from discontinued operations (after-tax)		(54	)		(55	)		(55	)		(41	)		(44	)
Net income		8,062			7,545			6,372			5,312			6,438
Preferred stock dividends		—			—			—			—			4,453
Net income available to common stockholders	$	8,062		$	7,545		$	6,372		$	5,312		$	1,985

8

TEXAS CAPITAL BANCSHARES, INC.

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

	2nd Quarter 2010							1st Quarter 2010							4th Quarter 2009							3rd Quarter 2009							2nd Quarter 2009
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Average		Average			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Balance		Balance			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate
Assets
Securities — Taxable	$	193,542	$	2,126		4.41	%	$	211,618	$	2,341		4.49	%	$	230,686	$	2,560		4.40	%	$	247,936	$	2,813		4.50	%	$	280,372	$	3,124		4.47	%
Securities — Non-taxable(2)		39,635		562		5.69	%		41,654		592		5.76	%		42,932		611		5.65	%		44,642		635		5.64	%		45,901		646		5.64	%
Federal funds sold		91,564		40		0.18	%		7,471		2		0.11	%		5,550		2		0.14	%		6,782		5		0.29	%		5,649		9		0.64	%
Deposits in other banks		12,449		6		0.19	%		12,457		9		0.29	%		12,916		4		0.12	%		12,649		7		0.22	%		12,268		5		0.16	%
Loans held for sale		664,474		8,244		4.98	%		457,459		5,490		4.87	%		601,793		7,286		4.80	%		539,889		6,836		5.02	%		656,462		7,727		4.72	%
Loans held for investment		4,459,790		56,691		5.10	%		4,413,960		56,079		5.15	%		4,384,692		54,888		4.97	%		4,264,202		52,123		4.85	%		4,124,937		48,728		4.74	%
Less reserve for loan losses		71,536		—		—			66,726		—		—			68,177		—		—			56,429		—		—			51,601		—		—
Loans, net of reserve		5,052,728		64,935		5.15	%		4,804,693		61,569		5.20	%		4,918,308		62,174		5.02	%		4,747,662		58,959		4.92	%		4,729,798		56,455		4.79	%
Total earning assets		5,389,918		67,669		5.04	%		5,077,893		64,513		5.15	%		5,210,392		65,351		4.98	%		5,059,671		62,419		4.89	%		5,073,988		60,239		4.76	%
Cash and other assets		261,668							311,128							243,823							245,564							251,960
Total assets	$	5,651,586						$	5,389,021						$	5,454,215						$	5,305,235						$	5,325,948
Liabilities and Stockholders’ Equity
Transaction deposits	$	484,900	$	389		0.32	%	$	365,205	$	264		0.29	%	$	180,767	$	85		0.19	%	$	144,944	$	58		0.16	%	$	135,756	$	55		0.16	%
Savings deposits		2,054,199		4,047		0.79	%		1,773,201		3,524		0.81	%		1,620,659		3,569		0.87	%		1,377,712		3,090		0.89	%		974,275		2,003		0.82	%
Time deposits		832,973		2,808		1.35	%		840,820		2,787		1.34	%		1,111,899		3,454		1.23	%		1,284,220		4,245		1.31	%		1,082,691		5,105		1.89	%
Deposits in foreign branches		380,361		1,176		1.24	%		353,803		1,183		1.36	%		401,661		1,452		1.43	%		404,545		1,523		1.49	%		394,251		1,606		1.63	%
Total interest bearing deposits		3,752,433		8,420		0.90	%		3,333,029		7,758		0.94	%		3,314,986		8,560		1.02	%		3,211,421		8,916		1.10	%		2,586,973		8,769		1.36	%
Other borrowings		222,427		247		0.45	%		461,477		416		0.37	%		607,731		547		0.36	%		724,127		725		0.40	%		1,404,881		1,324		0.38	%
Trust preferred subordinated debentures		113,406		920		3.25	%		113,406		904		3.23	%		113,406		924		3.23	%		113,406		990		3.46	%		113,406		1,118		3.95	%
Total interest bearing liabilities		4,088,266		9,587		0.94	%		3,907,912		9,078		0.94	%		4,036,123		10,031		0.99	%		4,048,954		10,631		1.04	%		4,105,260		11,211		1.10	%
Demand deposits		1,024,292							956,359							914,266							764,557							724,487
Other liabilities		24,693							28,643							18,787							15,617							18,899
Stockholders’ equity		514,335							496,107							485,039							476,107							477,302
Total liabilities and stockholders’ equity	$	5,651,586						$	5,389,021						$	5,454,215						$	5,305,235						$	5,325,948
Net interest income			$	58,082						$	55,435						$	55,320						$	51,788						$	49,028
Net interest margin						4.32	%						4.43	%						4.21	%						4.06	%						3.88	%

(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