Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for 2003

Exhibit 99.1

ForImmediateRelease

January 21, 2004

CONTACT
Tricia Linderman, 214.932.6798
tricia.linderman@texascapitalbank.com

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR 2003

Dallas, Texas — January 21, 2004 — Texas Capital Bancshares (Nasdaq: TCBI), the parent company of Texas Capital Bank, continued its strong growth in 2003 as compared to 2002.

• EPS increased 88%

• Net income increased 88%

• Loans grew 23%

• Deposits grew 21%

“2003 was a significant year for the Bank as we completed a successful IPO, celebrated our five year anniversary, reached $2.2 billion in assets, entered Houston, our fifth targeted market, and continued to deliver on our financial commitments,” said Jody Grant, Chairman and CEO. “It was also a great year for attracting talent, including a number of new Relationship Managers, which is critical to the Company’s future growth and profitability.”

FINANCIAL SUMMARY
(dollars in thousands)

	December 2003			December 2002			% Change
Total Assets	$	2,192,875		$	1,793,282			22	%
Total Deposits		1,445,030			1,196,535			21	%
Loans, Net		1,212,046			988,019			23	%
Loans, Held For Sale		80,780			116,106			(30	)%
Quarterly Net Income		3,614			1,872			93	%
Full Year Net Income		13,834			7,343			88	%
Quarterly Diluted EPS	$	.14		$	.08			75	%
Full Year Diluted EPS	$	.60		$	.32			88	%
Quarterly ROA		.68	%		.45	%		51	%
Full Year ROA		.70	%		.54	%		30	%
Quarterly ROE		8.55	%		6.07	%		41	%
Full Year ROE		9.71	%		6.27	%		55	%

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DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income of $3.6 million for the fourth quarter of 2003 compared to $1.9 million for the fourth quarter of 2002. On a fully diluted basis, earnings per share were $.14 for the three months ended December 31, 2003 compared to $.08 for the same period last year, representing an increase of 75 percent. Net income for the year ended December 31, 2003 was $13.8 million compared to $7.3 million for the same period in 2002. Earnings per share on a fully diluted basis for the year ended December 31, 2003 were $.60 versus $.32 for the same period in 2002, an increase of 88%.

Return on average equity was 8.55 percent and return on average assets was .68 percent for the fourth quarter of 2003 compared to 6.07 percent and .45 percent, respectively, for the fourth quarter of 2002. The increase in net income and continued improvement in returns on equity and assets in 2003 are attributed to growth in net interest income and improvement in non-interest income. Capital adequacy remained sound and was enhanced with proceeds of the IPO during the third quarter of 2003.

Net interest income was $15.4 million for the fourth quarter of 2003, compared to $11.8 million for the fourth quarter of 2002. The increase was due to an increase in average earning assets of $424.1 million as compared to the fourth quarter of 2002, with a 9 basis point increase in net interest margin. The increase in average earning assets included a $156.8 million increase in average net loans and a $272.8 million increase in average securities. Growth in our core loan portfolio (excluding loans held for sale) totaled $104 million during the fourth quarter.

Average interest bearing liabilities increased $335.8 million from the fourth quarter of 2002, which included a $201.6 million increase in interest bearing deposits and a $118.3 million increase in other borrowings. The increase in interest bearing deposits includes the purchase of deposit accounts from Bluebonnet Savings Bank, FSB in August 2003. The increase in average borrowings was primarily related to an increase in federal funds purchased and securities sold under repurchase agreements, and was used to supplement deposits in funding the purchase of securities and the growth in loans. The average cost of interest bearing liabilities decreased from 2.44 percent for the quarter ended December 31, 2002 to 1.80 percent for the same period of 2003, reflecting the reduction in market interest rates.

In management’s opinion, overall portfolio quality remained at an appropriate level at this stage of the economic cycle and in comparison to regional peers. The Company reported improvements in both the level

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of non-performing loans and net charge-offs from third quarter 2003 levels. In 2003, net charge-offs of $836,000 represented .07 percent of average loans, compared to net-charge-offs of $3.7 million, or .38% of average loans, in 2002. The provision for possible loan losses and the reserve reflect consistent application of the methodology for establishing management’s assessment of the risks in Texas Capital Bank’s loan portfolio.

Non-interest expense for the fourth quarter of 2003 increased $1.6 million or 16 percent, to $11.6 million in the fourth quarter of 2003 from $10.0 million in the fourth quarter of 2002, which included $1.2 million in IPO expenses. The increase is primarily related to a $2.3 million increase in salaries and employee benefits to $6.6 million from $4.3 million. This increase was offset in part by the $1.2 million in IPO costs incurred in 2002. The increase in salaries and employee benefits resulted from an increase in the total number of employees. The increase related to general continued growth, staffing for the new Houston office and the start-up of the residential mortgage origination group.

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During the fourth quarter, management modestly increased asset sensitivity, positioning the Company to benefit from an improving economy and rising interest rates. The interest sensitivity is largely due to the concentration of assets in variable rate loans.

EARNINGS CALL

These results will be discussed today at 4:30 p.m. EST. The earnings call is being webcast to both institutional and individual investors. Institutional investors can access the call via CCBN’s password-protected event management site at www.streetevents.com. Individual investors can participate in the call through CCBN’s individual investor center at www.fulldisclosure.com.

The conference call only portion may be accessed through the following numbers:

Domestic Dial-in 800.901.5241
International Dial-in 617.786.2963
Passcode            TCBI

A replay of the conference call will be available from January 22 through January 28 and can be accessed at the following numbers:

Domestic Dial-in 888.286.8010
International Dial-in 617.801.6888
Passcode 93708527

ABOUT TEXAS CAPITAL BANK

Texas Capital Bancshares (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, Plano, 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 registration statement on Form S-3, as amended, relating to the initial public offering 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
(Dollars in thousands except per share data)

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2003			2003			2003			2003			2002
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	22,998		$	20,977		$	21,363		$	20,146		$	20,067
Interest expense		7,600			7,626			8,699			8,404			8,303
Net interest income		15,398			13,351			12,664			11,742			11,764
Provision for loan losses		700			475			1,600			1,250			1,270
Net interest income after provision for loan losses		14,698			12,876			11,064			10,492			10,494
Non-interest income		2,255			2,512			2,473			2,986			2,106
Gain on sale of securities		(20	)		—			345			341			—
Non-interest expense		11,618			10,483			16,901			9,378			10,027
Income (loss) before income taxes		5,315			4,905			(3,019	)		4,441			2,573
Income tax expense (benefit)		1,701			1,573			(6,876	)		1,410			701
Net income	$	3,614		$	3,332		$	3,857		$	3,031		$	1,872
Diluted EPS	$	.14		$	.14		$	.18		$	.14		$	.08
Adjusted income(1)	$	3,614		$	3,332		$	2,320		$	3,031		$	2,645
Adjusted diluted EPS(1)	$	.14		$	.14		$	.11		$	.14		$	.14
Diluted shares		25,808,258			23,670,626			21,509,249			21,433,360			19,352,458
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	2,192,875		$	2,151,128		$	2,003,818		$	1,948,487		$	1,793,282
Loans, net		1,212,046			1,108,552			1,073,392			1,037,121			988,019
Loans held for sale		80,780			91,686			157,176			122,950			116,106
Securities		775,338			811,968			649,522			620,769			553,169
Deposits		1,445,030			1,427,107			1,340,322			1,296,146			1,196,535
Other borrowings		545,754			527,613			502,967			504,142			449,460
Long-term debt		20,620			20,620			20,620			10,310			10,000
Stockholders’ equity		171,756			165,080			132,168			127,762			124,976
SELECTED FINANCIAL RATIOS
Net interest margin		3.07	%		2.76	%		2.78	%		2.83	%		2.98	%
Return on average assets(1)		.68	%		.64	%		.80	%		.67	%		.45	%
Return on average equity(1)		8.55	%		9.05	%		12.03	%		9.68	%		6.07	%
Efficiency ratio (excludes securities gains)(1)		65.89	%		66.08	%		111.65	%		63.67	%		72.29	%
Tier 1 capital ratio		12.03	%		12.35	%		10.27	%		9.69	%		10.16	%
Total capital ratio		13.17	%		13.53	%		11.50	%		10.88	%		11.32	%
Tier 1 leverage ratio		8.83	%		8.81	%		7.43	%		7.15	%		7.66	%
ASSET QUALITY SUMMARY
Non-performing loans	$	10,224		$	12,121		$	12,690		$	3,807		$	2,911
Net charge-offs		249			473			219			(105	)		576
Net charge-offs to average loans		.08	%		.15	%		.07	%		(.04	%)		.21	%
Allowance for loan losses to total loans		1.35	%		1.41	%		1.38	%		1.35	%		1.30	%
Allowance for loan losses to non-performing loans		173.39	%		142.53	%		136.12	%		417.47	%		499.42	%
Non-performing loans to total loans		.78	%		.99	%		1.01	%		.32	%		.26	%

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(1) During the quarter ended June 30, 2003, net income included the impact of reversing our deferred tax asset valuation allowance of $5.9 million, $6.3 million in penalties related to unwinding repurchase agreements prior to maturity and approximately $250,000 in separation expense related to the resignation of a senior officer. For the quarter ended June 30, 2003, adjusted income, or income per share excluding the impact of reversing the valuation allowance, unwinding penalties and separation expense would have been $0.11, on a diluted basis. During the quarter ended December 31, 2002, net income included $1.2 million in IPO expenses recognized as our offering was postponed. For the quarter ended December 31, 2002, adjusted income, or income per share excluding these IPO expenses would have been $0.14 on a diluted basis. Adjusted income per share, or income per share excluding the impact of reversing the valuation allowance, unwinding penalties and separation expense for the quarter ended June 30, 2003 and adjusted income per share, or income per share excluding IPO expenses for the quarter ended December 31, 2002 are non-GAAP financial measures. As disclosed in our final prospectus filed August 13, 2003 and our second quarter Form 10Q, management believes that these non-GAAP financial measures are useful to investors and to management because they provide additional information that more closely reflects our intrinsic operating performance and growth. Reversal of the entire valuation allowance was based on our assessment of our ability to generate earnings to allow the deferred tax assets to be realized which is supported by our current earnings trends. We unwound certain repurchase agreements, incurring the unwinding penalties, in order to take advantage of historical lows in interest rates, which had decreased on similar repurchase agreements by approximately 1.4% since the time we entered into the original repurchase agreements. Although we have experienced employee separations in the past, this was the first separation with an executive who had entered into an employee agreement with us. We currently have only four other employees with employment agreements. Since we have not had any reversals of valuation allowances, unwinding penalties or separation expenses related to employees who have employment agreements in our operating history, and because expenses related to the initial public offering will not recur now that the offering is completed, we believe that these non-GAAP financial measures are useful to investors and to management to understand the development of our income per share results, efficiency ratio and ratio of non-interest expense to average assets since our founding and to help in comparing our intrinsic operating performance in different periods. Management also uses these measures internally to evaluate our performance and manage our operations. These measurements should not be regarded as a replacement for corresponding GAAP measures.

The following table reconciles each of the non-GAAP financial measures described above to the most directly comparable financial measure presented in accordance with GAAP.

(Dollars in thousands except		4th Quarter		3rd Quarter		2nd Quarter			1st Quarter		4th Quarter
per share data)		2003		2003		2003			2003		2002
Net income before adjustments		$	3,614	$	3,332	$	3,857		$	3,031	$	1,872
Adjustments (net of tax):
	Repurchase agreement unwinding penalties		—		—		4,223			—		—
	Impact of reversing deferred tax asset valuation allowance		—		—		(5,929	)		—		—
	IPO expenses and other		—		—		169			—		773
Adjusted income		$	3,614	$	3,332	$	2,320		$	3,031	$	2,645
Adjusted diluted EPS		$	.14	$	.14	$	.11		$	.14	$	.14

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SELECTED FINANCIAL RATIOS
Return on average assets	.68	%	.64	%	.80	%	.67	%	.45	%
Adjusted return on average assets	.68	%	.64	%	.48	%	.67	%	.63	%
Return on average equity	8.55	%	9.05	%	12.03	%	9.68	%	6.07	%
Adjusted return on average equity	8.55	%	9.05	%	7.23	%	9.68	%	8.57	%
Efficiency ratio (excludes securities gains)	65.89	%	66.08	%	111.65	%	63.67	%	72.29	%
Adjusted efficiency ratio (excludes securities gains)	65.89	%	66.08	%	68.63	%	63.67	%	63.71	%

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

			December 31,		December 31,		%
			2003		2002		Change
Assets
Cash and due from banks			$	69,551	$	88,744		(21.6	)%
Securities, available-for-sale				775,338		553,169		40.2	%
Loans, net				1,212,046		988,019		22.7	%
Loans held for sale				80,780		116,106		(30.4	)%
Premises and equipment, net				4,672		3,829		22.0	%
Accrued interest receivable and other assets				48,992		41,919		16.9	%
Goodwill, net				1,496		1,496		—
Total assets			$	2,192,875	$	1,793,282		22.3	%
Liabilities and Stockholders’ Equity
Liabilities:
	Deposits:
		Non-interest bearing	$	301,886	$	238,873		26.4	%
		Interest bearing		1,143,144		957,662		19.4	%
	Total deposits			1,445,030		1,196,535		20.8	%
	Accrued interest payable			3,468		3,826		(9.4	)%
	Other liabilities			6,247		8,485		(26.4	)%
	Federal funds purchased			78,961		83,629		(5.6	)%
	Repurchase agreements			432,255		302,083		43.1	%
	Other borrowings			34,538		63,748		(45.8	)%
	Long-term debt			20,620		10,000		106.2	%
Total liabilities				2,021,119		1,668,306		21.1	%

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Stockholders’ equity:
	Series A convertible preferred stock, $.01 par value, 6%:
		Authorized shares - 10,000,000 Issued shares - 1,057,142 at December 31, 2002		—			11		100.0	%
	Common stock, $.01 par value:
		Authorized shares - 100,000,000 Issued shares - 24,715,607 and 18,500,812 at December 31, 2003 and 2002, respectively		247			185		33.5	%
	Series A-1 non-voting common stock, $.01 par value:
		Issued shares - 293,918 and 695,516 at December 31, 2003 and 2002, respectively		3			7		(57.1	)%
	Additional paid-in capital			167,751			131,881		27.2	%
	Accumulated deficit			487			(13,347	)	103.6	%
	Treasury stock (shares at cost: 84,274 and 97,246 at December 31, 2003 and 2002, respectively)			(573	)		(668	)	(14.2	)%
	Deferred compensation			573			573		—
	Accumulated other comprehensive income			3,268			6,334		(48.4	)%
Total stockholders’ equity				171,756			124,976		37.4	%
Total liabilities and stockholders’ equity			$	2,192,875		$	1,793,282		22.3	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)

	Three Months Ended
	December 31						Year Ended December 31
	2003			2002			2003			2002
Interest income
Interest and fees on loans	$	15,660		$	14,842		$	62,451		$	54,387
Securities		7,319			5,164			22,853			15,484
Federal funds sold		16			39			166			243
Deposits in other banks		3			22			14			28
Total interest income		22,998			20,067			85,484			70,142
Interest expense
Deposits		4,911			5,573			20,931			21,223
Federal funds purchased		293			395			1,550			1,540
Other borrowings		2,138			2,270			8,943			5,068
Long-term debt		258			65			905			65
Total interest expense		7,600			8,303			32,329			27,896
Net interest income		15,398			11,764			53,155			42,246
Provision for loan losses		700			1,270			4,025			5,629
Net interest income after provision for loan losses		14,698			10,494			49,130			36,617
Non-interest income
Service charges on deposit accounts		850			717			3,446			2,772
Trust fee income		376			260			1,313			987
Gain (loss) on sale of securities		(20	)		—			666			1,375
Cash processing fees		—			—			973			993
Bank owned life insurance (BOLI) income		326			591			1,619			735
Mortgage warehouse fees		276			250			1,524			693
Other		427			288			1,351			1,070
Total non-interest income		2,235			2,106			10,892			8,625
Non-interest expense
Salaries and employee benefits		6,614			4,265			23,604			16,757
Net occupancy expense		1,336			1,234			4,987			5,001
Advertising and affinity payments		214			226			819			1,236
Legal and professional		614			863			2,867			3,038
Communications and data processing		819			722			3,042			2,839
Franchise taxes		13			27			124			108
Repurchase agreement penalties		—			—			6,262			—
IPO expenses		—			1,190			—			1,190
Other		2,008			1,500			6,675			5,201
Total non-interest expense		11,618			10,027			48,380			35,370
Income before income taxes		5,315			2,573			11,642			9,872
Income tax expense (benefit)		1,701			701			(2,192	)		2,529
Net income		3,614			1,872			13,834			7,343
Preferred stock dividends		—			(280	)		(699	)		(1,097	)
Income available to common stockholders	$	3,614		$	1,592		$	13,135		$	6,246
Earnings per share:
Basic	$	.14		$	.08		$	.62		$	.33
Diluted	$	.14		$	.08		$	.60		$	.32
Average shares:
Basic		24,931,273			19,160,239			21,332,746			19,145,255
Diluted		25,808,258			19,352,458			23,118,804			19,344,874

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

		4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
		2003			2003			2003			2003			2002
Beginning balance		$	17,276		$	17,274		$	15,893		$	14,538		$	13,844
Loans charged-off:
	Commercial		—			33			17			—			11
	Real estate		200			200			2			—			—
	Consumer		5			—			—			—			5
	Leases		107			261			237			13			698
Total			312			494			256			13			714
Recoveries:
	Commercial		—			—			—			78			31
	Consumer		—			—			—			—			—
	Leases		63			21			37			40			107
Total recoveries			63			21			37			118			138
Net charge-offs (recoveries)			249			473			219			(105	)		576
Provision for loan losses			700			475			1,600			1,250			1,270
Ending balance		$	17,727		$	17,276		$	17,274		$	15,893		$	14,538
Reserve for loan losses to loans outstanding at end of period			1.35	%		1.41	%		1.38	%		1.35	%		1.30	%
Net charge-offs to average loans(1)			.08	%		.15	%		.07	%		(.04	%)		.21	%
Provision for loan losses to average loans(1)			.22	%		.15	%		.53	%		.45	%		.47	%
Recoveries to gross charge-offs			20.19	%		4.25	%		14.45	%		907.69	%		19.33	%
Reserve as a multiple of net charge-offs			71.19x			36.5x			78.9x			—			25.2x
Non-performing loans:
	Loans past due (90 days)	$	7		$	1,095		$	1,145		$	38		$	135
	Non-accrual		10,217			11,026			11,545			3,769			2,776
Total		$	10,224		$	12,121		$	12,690		$	3,807		$	2,911
Reserve as a percent of non-performing loans			173.39	%		142.53	%		136.12	%		417.47	%		499.42	%

(1) Interim period ratios are annualized.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands)

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2003			2003			2003			2003			2002
Interest income
Interest and fees on loans	$	15,660		$	16,114		$	15,981		$	14,696		$	14,842
Securities		7,319			4,839			5,335			5,360			5,164
Federal funds sold		16			20			43			87			39
Deposits in other banks		3			4			4			3			22
Total interest income		22,998			20,977			21,363			20,146			20,067
Interest expense
Deposits		4,911			5,041			5,597			5,382			5,573
Federal funds purchased		293			348			469			440			395
Other borrowings		2,138			1,980			2,380			2,445			2,270
Long-term debt		258			257			253			137			65
Total interest expense		7,600			7,626			8,699			8,404			8,303
Net interest income		15,398			13,351			12,664			11,742			11,764
Provision for loan losses		700			475			1,600			1,250			1,270
Net interest income after provision for loan losses		14,698			12,876			11,064			10,492			10,494
Non-interest income
Service charges on deposit accounts		850			856			897			843			717
Trust fee income		376			350			306			281			260
Gain on sale of securities		(20	)		—			345			341			—
Cash processing fees		—			—			73			900			—
Bank owned life insurance (BOLI) income		326			451			428			414			591
Mortgage warehouse fees		276			545			424			279			250
Other		427			310			345			269			288
Total non-interest income		2,235			2,512			2,818			3,327			2,106
Non-interest expense
Salaries and employee benefits		6,614			5,754			5,857			5,379			4,265
Net occupancy expense		1,336			1,265			1,199			1,187			1,234
Advertising and affinity payments		214			213			199			193			226
Legal and professional		614			744			930			579			863
Communications and data processing		819			767			736			720			722
Franchise taxes		13			37			37			37			27
Repurchase agreement penalties		—			—			6,262			—			—
IPO expenses		—			—			—			—			1,190
Other		2,008			1,703			1,681			1,283			1,500
Total non-interest expense		11,618			10,483			16,901			9,378			10,027
Income (loss) before income taxes		5,315			4,905			(3,019	)		4,441			2,573
Income tax expense (benefit)		1,701			1,573			(6,876	)		1,410			701
Net income		3,614			3,332			3,857			3,031			1,872
Preferred stock dividends		—			(149	)		(276	)		(274	)		(280	)
Income available to common stockholders	$	3,614		$	3,183		$	3,581		$	2,757		$	1,592

11

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

	4th Quarter 2003							3rd Quarter 2003							2nd Quarter 2003							1st Quarter 2003
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense (1)		Rate			Balance		Expense (1)		Rate			Balance		Expense (1)		Rate			Balance		Expense (1)		Rate
Assets
Taxable securities	$	758,629	$	7,319		3.83	%	$	652,082	$	4,839		2.94	%	$	620,239	$	5,335		3.45	%	$	546,120	$	5,360		3.98	%
Federal funds sold		6,746		16		0.94	%		8,090		20		0.98	%		13,220		43		1.30	%		29,394		87		1.20	%
Deposits in other banks		1,081		3		1.10	%		1,118		4		1.42	%		923		4		1.74	%		979		3		1.24	%
Loans held for sale		71,413		1,159		6.44	%		171,971		2,227		5.14	%		141,375		1,944		5.52	%		100,177		1,460		5.91	%
Loans		1,171,395		14,501		4.91	%		1,103,340		13,887		4.99	%		1,066,440		14,037		5.28	%		1,019,507		13,236		5.27	%
Less reserve for loan losses		17,394		—		—			17,573		—		—			16,100		—		—			14,944		—		—
Loans, net of reserve		1,225,414		15,660		5.07	%		1,257,738		16,114		5.08	%		1,191,715		15,981		5.38	%		1,104,740		14,696		5.39	%
Total earning assets		1,991,870		22,998		4.58	%		1,919,028		20,977		4.34	%		1,826,097		21,363		4.69	%		1,681,233		20,146		4.86	%
Cash and other assets		129,068							144,385							120,977							144,205
Total assets	$	2,120,938						$	2,063,413						$	1,947,074						$	1,825,438
Liabilities and Stockholders’ Equity
Transaction deposits	$	75,723	$	116		0.61	%	$	64,137	$	102		0.63	%	$	62,476	$	121		0.78	%	$	59,584	$	112		0.76	%
Savings deposits		504,839		1,505		1.18	%		477,158		1,466		1.22	%		407,081		1,629		1.61	%		381,587		1,640		1.74	%
Time deposits		544,190		3,290		2.40	%		548,288		3,473		2.51	%		575,325		3,847		2.68	%		524,622		3,630		2.81	%
Total interest bearing deposits		1,124,752		4,911		1.73	%		1,089,583		5,041		1.84	%		1,044,882		5,597		2.15	%		965,793		5,382		2.26	%
Other borrowings		531,402		2,431		1.81	%		527,658		2,328		1.75	%		495,511		2,849		2.31	%		496,617		2,885		2.36	%
Long-term debt		20,620		258		4.96	%		20,620		257		4.94	%		19,600		253		5.18	%		10,310		137		5.39	%
Total interest bearing liabilities		1,676,774		7,600		1.80	%		1,637,861		7,626		1.85	%		1,559,993		8,699		2.24	%		1,472,720		8,404		2.31	%
Demand deposits		267,614							269,891							246,822							213,991
Other liabilities		8,914							9,592							11,619							11,784					��
Stockholders’ equity		167,636							146,069							128,640							126,943
Total liabilities and stockholders’ equity	$	2,120,938						$	2,063,413						$	1,947,074						$	1,825,438
Net interest income			$	15,398						$	13,351						$	12,664						$	11,742
Net interest income to earning assets						3.07	%						2.76	%						2.78	%						2.83	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

	4th Quarter 2002
	Average		Revenue/		Yield/
	Balance		Expense (1)		Rate
Assets
Taxable securities	$	485,869	$	5,164		4.22	%
Federal funds sold		12,087		39		1.28	%
Deposits in other banks		1,276		22		6.84	%
Loans held for sale		93,771		1,448		6.13	%
Loans		989,004		13,394		5.37	%
Less reserve for loan losses		14,187		—		—
Loans, net of reserve		1,068,588		14,842		5.51	%
Total earning assets		1,567,820		20,067		5.08	%
Cash and other assets		100,015
Total assets	$	1,667,835
Liabilities and Stockholders’ Equity
Transaction deposits	$	58,024	$	125		0.85	%
Savings deposits		374,120		1,690		1.79	%
Time deposits		491,056		3,758		3.04	%
Total interest bearing deposits		923,200		5,573		2.39	%
Other borrowings		413,064		2,665		2.56	%
Long-term debt		4,674		65		5.52	%
Total interest bearing liabilities		1,340,938		8,303		2.46	%
Demand deposits		194,371
Other liabilities		10,077
Stockholders’ equity		122,449
Total liabilities and stockholders’ equity	$	1,667,835
Net interest income			$	11,764
Net interest income to earning assets						2.98	%

12