Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for Q3 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE
October 20, 2010

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q3 2010

DALLAS — October 20, 2010 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the third quarter of 2010.

• Net income increased 17% on a linked quarter basis and increased 78% from Q3 2009

• EPS increased 14% on a linked quarter basis and increased 67% for the third quarter of 2010 as compared to the same quarter of 2009

• Demand deposits grew 7% and total deposits increased 10% on a linked quarter basis and grew 49% and 38%, respectively, from Q3 2009

• Loans held for investment remained consistent on a linked quarter basis and total loans increased 8% on a linked quarter basis; grew 4% and 22%, respectively, from Q3 2009

“We are pleased to report another good quarter demonstrating strong growth in net revenue, earnings, loans and deposits,” said George Jones, CEO. “Net income of $9.5 million for the quarter is a record for Texas Capital, and achieving that result in a most-challenging economic environment for the banking industry is especially gratifying. The ability to produce good results under difficult conditions affirms our belief that our business model can produce the right combination of growth and returns for our shareholders.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

	Q3 2010			Q3 2009			% Change
QUARTERLY OPERATING RESULTS(1)
Net Income	$	9,531		$	5,353			78	%
Diluted EPS	$	.25		$	.15			67	%
ROA		.62	%		.40	%
ROE		7.23	%		4.46	%
Diluted Shares		37,445			36,304
BALANCE SHEET(1)
Total Assets	$	6,344,916		$	5,320,401			19	%
Demand Deposits		1,195,093			802,692			49	%
Total Deposits		5,407,033			3,916,568			38	%
Loans Held for Investment		4,483,204			4,290,453			4	%
Total Loans		5,882,412			4,840,240			22	%
Stockholders’ Equity		515,618			474,044			9	%

(1) Operating results, assets and loans are reporting from continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $9.5 million for the quarter ended September 30, 2010, compared to $5.4 million for the third quarter of 2009. On a fully diluted basis, earnings per common share from continuing operations were $.25 for the three months ended September 30, 2010 compared to $.15 for the same period last year. The discussion below relates only to continuing operations.

Return on average equity was 7.23 percent and return on average assets was .62 percent for the third quarter of 2010, compared to 4.46 percent and .40 percent, respectively, for the third quarter of 2009.

The net interest margin in the third quarter of 2010 was 4.27 percent, a 21 basis point increase from the third quarter of 2009 and a 5 basis point decrease from the second 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 4.32% to 4.27%, compared to the significant increases in margin that we reported in the first six months of 2010. Growth in earning assets, including loans held for sale and liquidity assets, produced net spreads for the third quarter of 2010 which were below the net interest margin for the second quarter, thereby reducing net interest margin without an adverse effect on net interest income. Due to changes in rates on mortgage loans, the yield on loans held for sale fell by 27 bps, but the reduction in rate was more than offset by the growth in balances. The decrease in net interest margin was also due to the reduction in the use of borrowed funds at costs which would have been lower than rates paid on increased balances of customer deposits. Additionally, the level of our nonaccrual loans has negatively affected both our margin and net interest income. Net interest income was $62.6 million for the third quarter of 2010, compared to $51.6 million for the third quarter of 2009. The increase was due to an increase in average earning assets of $772.2 million over levels reported in the third quarter of 2009. The increase in average earning assets included a $229.8 million increase in average loans held for investment and a $534.4 million increase in average loans held for sale, offset by a decrease of $80.4 million in average securities.

Average total deposits for the third quarter of 2010 increased by $1.2 billion from the third quarter of 2009 and increased by $427.6 million from the second quarter of 2010. For the same periods, the average balance of demand deposits increased by $378.2 million, or 49 percent, to $1.1 billion from $764.6 million during the third quarter of 2009 and increased $118.4 million, or 12 percent, from the second 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 third quarter of 2010. Provision for credit losses, valuation allowance and direct write-downs related to other real estate owned (“OREO”) totaled $17.2 million in third quarter of 2010 compared to $15.7 million in the third quarter of 2009 and $15.1 million in the second quarter of 2010. The Company recorded a $13.5 million provision for credit losses in the third quarter of 2010, compared to $13.5 million in the third quarter of 2009 and $14.5 million in the second quarter of 2010. The third quarter provision resulted in an increase in the combined reserve to 1.75 percent of loans held for investment as compared to 1.59 percent at September 30, 2009, and 1.73 percent at the end of the second 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 third quarter of 2010, net charge-offs were $12.1 million, compared to net charge-offs of $2.0 million in the third quarter of 2009 and net charge-offs of $12.6 million in the second quarter of 2010. Non-accrual loans were $127.1 million, or 2.83 percent, of loans at the end of the third quarter of 2010, compared to $85.3 million, or 1.99 percent of loans at the end of the third quarter of 2009, and $138.2 million, or 3.10 percent of loans at the end of the second quarter of 2010. At September 30, 2010, total OREO was $38.6 million compared to $34.7 million at the end of the third quarter of 2009, and $42.1 million at the end of the second quarter of 2010. The balance of $38.6 million at September 30, 2010 is stated net of a $12.5 million valuation allowance, for which we incurred a non-interest expense of $3.7 million during the third quarter of 2010.

2

Non-interest income increased $968,000 during the third quarter of 2010, or 14%, compared to the same period of 2009 primarily related to a $1.2 million increase in brokered loan fees. Offsetting this increase was a $499,000 decrease equipment rental income related to a decline in the leased equipment portfolio.

Non-interest expense for the third quarter of 2010 increased $5.5 million, or 15 percent, to $42.6 million from $37.1 million in the third quarter of 2009. The increase is primarily related to a $2.3 million increase in salaries and employee benefits to $21.9 million from $19.6 million, which was primarily due to general business growth. Allowance and other carrying costs for OREO expense increased $1.7 million to $4.1 million related to deteriorating values of assets held in OREO. Of the $4.1 million expense, $3.7 million was related to an increase in the valuation allowance.

Stockholders’ equity increased by 9 percent from $474.0 million at September 30, 2009 to $515.6 million at September 30, 2010. Contributing to the increase was retained net income and proceeds of sales of common stock. During the third quarter of 2010, we sold approximately 2,600 shares of common stock with net proceeds of $45,000 under the discretionary equity issuance program announced in January 2010. The Bank is well capitalized under regulatory guidelines and at September 30, 2010, the Company’s ratio of tangible common equity to total tangible assets was 7.9 percent.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and 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)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2010			2010			2010			2009			2009
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	72,600		$	67,472		$	64,306		$	65,137		$	62,197
Interest expense		9,994			9,587			9,078			10,031			10,631
Net interest income		62,606			57,885			55,228			55,106			51,566
Provision for credit losses		13,500			14,500			13,500			10,500			13,500
Net interest income after provision for credit losses		49,106			43,385			41,728			44,606			38,066
Non-interest income		8,101			8,036			6,948			7,811			7,133
Non-interest expense		42,602			39,118			37,186			42,796			37,067
Income from continuing operations before income taxes		14,605			12,303			11,490			9,621			8,132
Income tax expense		5,074			4,187			3,890			3,194			2,779
Income from continuing operations		9,531			8,116			7,600			6,427			5,353
Loss from discontinued operations (after-tax)		(5	)		(54	)		(55	)		(55	)		(41	)
Net income		9,526			8,062			7,545			6,372			5,312
Preferred stock dividends		—			—			—			—			—
Net income available to common shareholders	$	9,526		$	8,062		$	7,545		$	6,372		$	5,312
Diluted EPS from continuing operations	$	.25		$	.22		$	.21		$	.18		$	.15
Diluted EPS	$	.25		$	.22		$	.21		$	.18		$	.15
Diluted shares		37,444,516			37,486,785			36,783,719			36,311,306			36,303,975
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	6,344,916		$	5,961,472		$	5,499,599		$	5,698,318		$	5,320,401
Loans held for investment		4,483,204			4,462,830			4,443,456			4,457,293			4,290,453
Loans held for sale		1,399,208			997,150			592,436			693,504			549,787
Securities		202,177			227,029			246,209			266,128			285,869
Demand deposits		1,195,093			1,120,664			994,096			899,492			802,692
Total deposits		5,407,033			4,926,069			4,409,819			4,120,725			3,916,568
Other borrowings		270,628			376,646			452,061			957,029			790,192
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		515,618			514,078			499,996			481,360			474,044
End of period shares outstanding		36,792,030			36,776,836			36,524,313			35,919,524			35,802,068
Book value (excluding securities gains/losses)	$	13.84		$	13.79		$	13.52		$	13.23		$	13.05
Tangible book value (excluding securities gains/losses)	$	13.58		$	13.53		$	13.25		$	12.96		$	12.84
SELECTED FINANCIAL RATIOS
From continuing operations:
Net interest margin		4.27	%		4.32	%		4.43	%		4.21	%		4.06	%
Return on average assets		.62	%		.58	%		.57	%		.47	%		.40	%
Return on average equity		7.23	%		6.33	%		6.21	%		5.26	%		4.46	%
Non-interest income to earning assets		.55	%		.60	%		.55	%		.59	%		.56	%
Efficiency ratio		60.3	%		59.3	%		59.8	%		68.0	%		63.1	%
Efficiency ratio (excluding ORE valuation/write-down)		55.1	%		58.5	%		56.7	%		59.1	%		59.4	%
Non-interest expense to earning assets		2.90	%		2.91	%		2.97	%		3.26	%		2.91	%
From consolidated:
Net interest margin		4.27	%		4.32	%		4.43	%		4.21	%		4.06	%
Return on average assets		.62	%		.57	%		.57	%		.46	%		.40	%
Return on average equity		7.23	%		6.29	%		6.17	%		5.21	%		4.43	%
Tangible common equity to total tangible assets		7.9	%		8.4	%		8.8	%		8.2	%		8.7	%
Tier 1 capital ratio		10.7	%		11.0	%		11.3	%		10.7	%		11.2	%
Total capital ratio		11.9	%		12.3	%		12.5	%		12.0	%		12.5	%
Tier 1 leverage ratio		10.0	%		10.7	%		11.0	%		10.5	%		10.8	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)

	September 30,			September 30,			%
	2010			2009			Change
Assets
Cash and due from banks	$	90,354		$	60,365			50	%
Federal funds sold		13,710			240			N/M
Securities, available-for-sale		202,177			285,869			(29	)%
Loans held for sale		1,399,208			549,787			155	%
Loans held for sale from discontinued operations		580			589			(2	)%
Loans held for investment (net of unearned income)		4,483,204			4,290,453			4	%
Less: Allowance for loan losses		75,655			65,818			16	%
Loans held for investment, net		4,407,549			4,224,635			4	%
Premises and equipment, net		12,461			11,473			9	%
Accrued interest receivable and other assets		209,893			180,465			16	%
Goodwill and intangibles, net		9,564			7,567			26	%
Total assets	$	6,345,496		$	5,320,990			19	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	1,195,093		$	802,692			49	%
Interest bearing		3,761,450			2,720,011			38	%
Interest bearing in foreign branches		450,490			393,865			14	%
Total deposits		5,407,033			3,916,568			38	%
Accrued interest payable		2,830			2,516			12	%
Other liabilities		35,981			24,264			48	%
Federal funds purchased		249,463			616,029			(60	)%
Repurchase agreements		18,171			65,422			(72	)%
Other borrowings		2,994			108,741			(97	)%
Trust preferred subordinated debentures		113,406			113,406			—
Total liabilities		5,829,878			4,846,946			20	%
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 — 36,792,447 and 35,802,485 at September 30, 2010 and 2009, respectively		368			358			3	%
Additional paid-in capital		335,057			324,724			3	%
Retained earnings		173,753			142,248			22	%
Treasury stock (shares at cost: 417 at September 30, 2010 and 2009)		(8	)		(8	)		—
Accumulated other comprehensive income, net of taxes		6,448			6,722			(4	)%
Total stockholders’ equity		515,618			474,044			9	%
Total liabilities and stockholders’ equity	$	6,345,496		$	5,320,990			19	%

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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
	2010			2009			2010			2009
Interest income
Interest and fees on loans	$	70,293		$	58,959		$	196,797		$	167,326
Securities		2,246			3,226			7,463			10,621
Federal funds sold		50			5			92			29
Deposits in other banks		11			7			26			40
Total interest income		72,600			62,197			204,378			178,016
Interest expense
Deposits		8,760			8,916			24,938			29,264
Federal funds purchased		259			586			868			1,944
Repurchase agreements		3			14			9			42
Other borrowings		—			125			48			1,873
Trust preferred subordinated debentures		972			990			2,796			3,308
Total interest expense		9,994			10,631			28,659			36,431
Net interest income		62,606			51,566			175,719			141,585
Provision for credit losses		13,500			13,500			41,500			33,000
Net interest income after provision for credit losses		49,106			38,066			134,219			108,585
Non-interest income
Service charges on deposit accounts		1,662			1,658			4,684			4,797
Trust fee income		1,013			1,000			2,947			2,836
Bank owned life insurance (BOLI) income		455			418			1,407			1,115
Brokered loan fees		3,272			2,120			7,397			6,822
Equipment rental income		792			1,291			3,332			4,200
Other		907			646			3,318			1,679
Total non-interest income		8,101			7,133			23,085			21,449
Non-interest expense
Salaries and employee benefits		21,872			19,569			63,334			53,788
Net occupancy expense		3,128			3,164			9,174			9,305
Leased equipment depreciation		580			1,050			2,674			3,288
Marketing		1,333			705			3,221			1,915
Legal and professional		2,705			3,274			7,953			8,816
Communications and data processing		1,142			935			3,069			2,750
FDIC insurance assessment		2,482			1,452			6,591			6,492
Allowance and other carrying costs for OREO		4,071			2,390			7,171			3,968
Other		5,289			4,528			15,719			12,424
Total non-interest expense		42,602			37,067			118,906			102,746
Income from continuing operations before income taxes		14,605			8,132			38,398			27,288
Income tax expense		5,074			2,779			13,151			9,328
Income from continuing operations		9,531			5,353			25,247			17,960
Loss from discontinued operations (after-tax)		(5	)		(41	)		(114	)		(180	)
Net income		9,526			5,312			25,133			17,780
Preferred dividends		—						—			5,383
Net income available to common stockholders	$	9,526		$	5,312		$	25,133		$	12,397
Basic earnings per common share:
Income from continuing operations	$	.26		$	.15		$	.69		$	.38
Net income	$	.26		$	.15		$	.69		$	.37
Diluted earnings per common share:
Income from continuing operations	$	.25		$	.15		$	.68		$	.37
Net income	$	.25		$	.15		$	.67		$	.37

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2010			2010			2010			2009			2009
Reserve for loan losses:
Beginning balance	$	74,881		$	71,705		$	67,931		$	65,818		$	54,286
Loans charged-off:
Commercial		2,384			6,653			7,551			2,098			115
Real estate — construction		6,229			5,789			420			4,051			576
Real estate — term		3,000			—			766			1,971			1,239
Consumer		—			—			—			3			80
Leases		595			218			594			—			72
Total		12,208			12,660			9,331			8,123			2,082
Recoveries:
Commercial		76			30			23			34			21
Real estate — construction		1			—			—			6			—
Real estate — term		7			22			8			53			—
Consumer		2			—			—			7			16
Leases		8			55			20			34			20
Total recoveries		94			107			51			134			57
Net charge-offs		12,114			12,553			9,280			7,989			2,025
Provision for loan losses		12,888			15,729			13,054			10,102			13,557
Ending balance	$	75,655		$	74,881		$	71,705		$	67,931		$	65,818
Reserve for off-balance sheet credit losses:
Beginning balance	$	2,165		$	3,394		$	2,948		$	2,550		$	2,607
Provision (benefit) for off-balance sheet credit losses		612			(1,229	)		446			398			(57	)
Ending balance	$	2,777		$	2,165		$	3,394		$	2,948		$	2,550
Total reserves for credit losses	$	78,432		$	77,046		$	75,099		$	70,879		$	68,368
Total provision for credit losses	$	13,500		$	14,500		$	13,500		$	10,500		$	13,500
Reserve to loans held for investment(2)		1.69	%		1.68	%		1.61	%		1.52	%		1.53	%
Reserve to average loans held for investment(2)		1.68	%		1.68	%		1.63	%		1.55	%		1.54	%
Net charge-offs to average loans(1)(2)		1.07	%		1.13	%		.85	%		.72	%		.19	%
Net charge-offs to average loans for last twelve months(1)(2)		.95	%		.73	%		.61	%		.46	%		.41	%
Total provision for credit losses to average loans(1)(2)		1.19	%		1.30	%		1.24	%		.95	%		1.26	%
Combined reserves for credit losses to loans held for investment(2)		1.75	%		1.73	%		1.69	%		1.59	%		1.59	%
Non-performing assets (NPAs): (4)
Non-accrual loans	$	127,054		$	138,236		$	115,926		$	95,625		$	85,270
Other real estate owned (OREO) (5)		38,646			42,077			28,865			27,264			34,671
Total	$	165,700		$	180,313		$	144,791		$	122,889		$	119,941
Non-accrual loans to loans(2)		2.83	%		3.10	%		2.61	%		2.15	%		1.99	%
Total NPAs to loans plus OREO(2)		3.66	%		4.00	%		3.24	%		2.74	%		2.77	%
Reserve for loan losses to non-accrual loans		.6	x		.5	x		.6	x		.7	x		.8	x
Restructured loans(6)	$	—		$	—		$	10,700		$	—		$	—
Loans past due 90 days and still accruing(3)	$	2,428		$	13,962		$	2,390		$	6,081		$	7,569
Loans past due 90 days to loans(2)		.05	%		.31	%		.05	%		.14	%		.18	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At September 30, 2010, loans past due 90 days and still accruing includes premium finance loans of $1.6 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, 2010, non-performing assets include $1.6 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 September 30, 2010, OREO balance is net of $12.5 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)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2010			2010			2010			2009			2009
Interest income
Interest and fees on loans	$	70,293		$	64,935		$	61,569		$	62,174		$	58,959
Securities		2,246			2,491			2,726			2,957			3,226
Federal funds sold		50			40			2			2			5
Deposits in other banks		11			6			9			4			7
Total interest income		72,600			67,472			64,306			65,137			62,197
Interest expense
Deposits		8,760			8,420			7,758			8,560			8,916
Federal funds purchased		259			244			365			460			586
Repurchase agreements		3			2			4			11			14
Other borrowings		—			1			47			76			125
Trust preferred subordinated debentures		972			920			904			924			990
Total interest expense		9,994			9,587			9,078			10,031			10,631
Net interest income		62,606			57,885			55,228			55,106			51,566
Provision for credit losses		13,500			14,500			13,500			10,500			13,500
Net interest income after provision for credit losses		49,106			43,385			41,728			44,606			38,066
Non-interest income
Service charges on deposit accounts		1,662			1,539			1,483			1,490			1,658
Trust fee income		1,013			980			954			979			1,000
Bank owned life insurance (BOLI) income		455			481			471			464			418
Brokered loan fees		3,272			2,221			1,904			2,221			2,120
Equipment rental income		792			1,196			1,344			1,357			1,291
Other		907			1,619			792			1,300			646
Total non-interest income		8,101			8,036			6,948			7,811			7,133
Non-interest expense
Salaries and employee benefits		21,872			21,393			20,069			19,631			19,569
Net occupancy expense		3,128			3,032			3,014			2,986			3,164
Leased equipment depreciation		580			1,035			1,059			1,031			1,050
Marketing		1,333			1,101			787			1,119			705
Legal and professional		2,705			3,298			1,950			3,030			3,274
Communications and data processing		1,142			911			1,016			993			935
FDIC insurance assessment		2,482			2,241			1,868			1,972			1,452
Allowance and other carrying costs for OREO		4,071			808			2,292			6,377			2,390
Other		5,289			5,299			5,131			5,657			4,528
Total non-interest expense		42,602			39,118			37,186			42,796			37,067
Income from continuing operations before income taxes		14,605			12,303			11,490			9,621			8,132
Income tax expense		5,074			4,187			3,890			3,194			2,779
Income from continuing operations		9,531			8,116			7,600			6,427			5,353
Loss from discontinued operations (after-tax)		(5	)		(54	)		(55	)		(55	)		(41	)
Net income		9,526			8,062			7,545			6,372			5,312
Preferred stock dividends		—			—			—			—			—
Net income available to common stockholders	$	9,526		$	8,062		$	7,545		$	6,372		$	5,312

8

TEXAS CAPITAL BANCSHARES, INC.

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

	3rd Quarter 2010							2nd Quarter 2010							1st Quarter 2010							4th Quarter 2009							3rd Quarter 2009
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Average			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Expense(1)		Balance			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate
Assets
Securities — Taxable	$	173,835	$	1,890		4.31	%	$	193,542	$	2,126		4.41	%	$	211,618	$	2,341		4.49	%	$	230,686	$	2,560		4.40	%	$	247,936	$	2,813		4.50	%
Securities — Non-taxable(2)		38,357		548		5.67	%		39,635		562		5.69	%		41,654		592		5.76	%		42,932		611		5.65	%		44,642		635		5.64	%
Federal funds sold		107,404		50		0.18	%		91,564		40		0.18	%		7,471		2		0.11	%		5,550		2		0.14	%		6,782		5		0.29	%
Deposits in other banks		18,766		11		0.23	%		12,449		6		0.19	%		12,457		9		0.29	%		12,916		4		0.12	%		12,649		7		0.22	%
Loans held for sale		1,074,309		12,760		4.71	%		664,474		8,244		4.98	%		457,459		5,490		4.87	%		601,793		7,286		4.80	%		539,889		6,836		5.02	%
Loans held for investment		4,493,998		57,533		5.08	%		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	%
Less reserve for loan losses		74,810		—		—			71,536		—		—			66,726		—		—			68,177		—		—			56,429		—		—
Loans, net of reserve		5,493,497		70,293		5.08	%		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	%
Total earning assets		5,831,859		72,792		4.95	%		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	%
Cash and other assets		267,923							261,668							311,128							243,823							245,564
Total assets	$	6,099,782						$	5,651,586						$	5,389,021						$	5,454,215						$	5,305,235
Liabilities and Stockholders’ Equity
Transaction deposits	$	465,370	$	189		0.16	%	$	484,900	$	389		0.32	%	$	365,205	$	264		0.29	%	$	180,767	$	85		0.19	%	$	144,944	$	58		0.16	%
Savings deposits		2,222,431		4,228		0.75	%		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	%
Time deposits		955,703		3,044		1.26	%		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	%
Deposits in foreign branches		418,112		1,299		1.23	%		380,361		1,176		1.24	%		353,803		1,183		1.36	%		401,661		1,452		1.43	%		404,545		1,523		1.49	%
Total interest bearing deposits		4,061,616		8,760		0.86	%		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	%
Other borrowings		230,043		262		0.45	%		222,427		247		0.45	%		461,477		416		0.37	%		607,731		547		0.36	%		724,127		725		0.40	%
Trust preferred subordinated debentures		113,406		972		3.40	%		113,406		920		3.25	%		113,406		904		3.23	%		113,406		924		3.23	%		113,406		990		3.46	%
Total interest bearing liabilities		4,405,065		9,994		0.90	%		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	%
Demand deposits		1,142,735							1,024,292							956,359							914,266							764,557
Other liabilities		28,997							24,693							28,643							18,787							15,617
Stockholders’ equity		522,985							514,335							496,107							485,039							476,107
Total liabilities and stockholders’ equity	$	6,099,782						$	5,651,586						$	5,389,021						$	5,454,215						$	5,305,235
Net interest income			$	62,798						$	58,082						$	55,435						$	55,320						$	51,788
Net interest margin						4.27	%						4.32	%						4.43	%						4.21	%						4.06	%

(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