Texas Capital Bancshares 8K Announces Fourth Quarter Operating Results | TCBI 19 Jan 06

Exhibit 99.1

For immediate release
January 18, 2006

MEDIA CONTACT
Patty Sullivan, 214.932.6850
patty.sullivan@texascapitalbank.com

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

TEXAS CAPITAL BANCSHARES ANNOUNCES FOURTH QUARTER OPERATING RESULTS

DALLAS (January 18, 2006) — Texas Capital Bancshares (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the fourth quarter and full year of 2005.

On a comparative basis:

	•		Net income increased 29% for the quarter (39% full year)

	•		EPS increased 26% for the quarter (36% full year)

	•		Loans held for investment grew 33%

	•		Total loans grew 30%

	•		Demand deposits grew 29%

	•		Total deposits grew 39%

“We are pleased to report another strong quarter and year in terms of growth in loans, deposits and earnings,” said Jody Grant, Chairman and CEO. “All of this was accomplished with investment in our future at a record pace and substantially in excess of our original plan. Our confidence in sustaining these achievements is high as we enter 2006.”

FINANCIAL SUMMARY
(dollars and shares in thousands)


	Q4 2005			Q4 2004			% Change
QUARTERLY OPERATING RESULTS
Net Income	$	7,745		$	6,027			29	%
Diluted EPS	$	.29		$	.23			26	%
ROA		1.04	%		.94	%
ROE		14.53	%		12.50	%
Diluted Shares		26,737			26,457			1	%


	2005			2004			% Change
ANNUAL OPERATING RESULTS
Net Income	$	27,192		$	19,560			39	%
Diluted EPS	$	1.02		$	.75			36	%
ROA		.97	%		.82	%
ROE		13.29	%		10.74	%
Diluted Shares		26,645			26,235			2	%


	2005		2004		% Change
BALANCE SHEET
Loans Held for Investment	$	2,075,961	$	1,564,578		33	%
Total Loans		2,187,139		1,684,115		30	%
Total Assets		3,042,235		2,611,163		17	%
Demand Deposits		512,294		397,629		29	%
Total Deposits		2,495,179		1,789,887		39	%
Stockholders’ Equity		215,523		195,275		10	%

DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income of $7.7 million for the fourth quarter of 2005 compared to $6.0 million for the fourth quarter of 2004. Net income for the year ended 2005 was $27.2 million compared to $19.6 million for the year ended 2004. On a fully diluted basis, earnings per share were $.29 and $1.02, for the three- and twelve-month periods ended December 31, 2005, respectively. For 2004 the EPS comparisons for the three- and twelve-month periods were $.23 and $.75, respectively.

Return on average equity was 14.53 percent and return on average assets was 1.04 percent for the fourth quarter of 2005 compared to 12.50 percent and .94 percent, respectively, for the fourth quarter of 2004. Return on average equity was 13.29 percent and return on average assets was .97 percent for 2005 compared to 10.74 percent and .82 percent, respectively, for 2004. The increase in net income and improvement in return on assets and return on equity in 2005 as compared to 2004 results are attributed to growth in net interest income which came from continued earning asset growth, as well as an improvement in net interest margin.

Net interest income was $28.5 million for the fourth quarter of 2005, compared to $21.5 million for the fourth quarter of 2004. The increase was due to an increase in average earning assets of $346.5 million over levels reported in the fourth quarter of 2004 and a 55 basis point improvement in the net interest margin. The increase in average earning assets included a $489.5 million increase in average loans held for investment, an increase of $5.4 million in loans held for sale, offset by a decrease of $163.9 million in average securities. The net interest margin in the fourth quarter of 2005 was 4.13 percent, a 55 basis point increase from the fourth quarter of 2004 and a 16 basis point increase from the third quarter of 2005. The improvement in the net interest margin for the fourth quarter of 2005 as compared to the fourth quarter of 2004 resulted primarily from a 171 basis point increase in the yield on earning assets offset by a 146 basis point increase in the cost of interest-bearing liabilities.

Average interest bearing liabilities increased $246.4 million from the fourth quarter of 2004, which included a $532.5 million increase in interest bearing deposits, offset by a $310.2 million decrease in other borrowings. For the same periods, the average balance of demand deposits increased 36.6 percent to $458.7 million from $335.9 million.

Key measures of credit quality remained very favorable during the fourth quarter of 2005. For the year, the Company realized a $199,000 net recovery of loans previously charged off compared to net charge offs of $717,000 in 2004. Non-accrual loans were $5.7 million, or 0.27 percent of loans, at year-end 2005, compared to $5.9 million, or 0.37 percent of loans, at year-end 2004. Loans 90 days past due and still accruing were $2.8 million at year-end 2005 and included $2.5 million in premium finance loans, compared to $209,000 for 2004. The premium finance loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date. Due to the experience in loan recoveries and other factors considered in the methodology for assessing the adequacy of the allowance for possible loan losses, the Company did not record a provision for possible loan losses in any quarter of 2005. Reserve coverage of losses, non-performing assets and classified loans remains strong. In management’s opinion, the reserve is sufficient to cover all reasonably expected losses in the portfolio and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio.

Non-interest income for the fourth quarter of 2005 increased $2.3 million, or 62 percent, to $6.0 million from $3.7 million in the fourth quarter of 2004. The increase is primarily related to a $1.0 million increase in gains on sale of mortgage loans to $2.1 million from $1.1 million. Insurance commission income increased $532,000 due to increased focus on the insurance business.

Non-interest expense for the fourth quarter of 2005 increased $6.8 million or 43 percent, to $22.7 million from $15.9 million in the fourth quarter of 2004. The increase is primarily related

to a $4.1 million increase in salaries and employee benefits to $13.9 million from $9.8 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, additional staffing for the Houston office, addition of the premium finance business, the continued expansion of the residential mortgage lending division, increased focus on the insurance business and increased incentive compensation reflective of the Company’s performance.

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 and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

TEXAS CAPITAL BANCSHARES, INC.

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


	4^th Quarter			3^rd Quarter			2^nd Quarter			1^st Quarter			4^th Quarter
	2005			2005			2005			2005			2004
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	49,195		$	45,146		$	39,167		$	34,187		$	32,529
Interest expense		20,734			18,188			14,683			12,519			11,069

Net interest income		28,461			26,958			24,484			21,668			21,460
Provision for loan losses		—			—			—			—			200

Net interest income after provision for loan losses		28,461			26,958			24,484			21,668			21,260
Non-interest income		5,986			5,790			4,694			4,179			3,738
Non-interest expense		22,736			21,249			19,190			17,854			15,917

Income before income taxes		11,711			11,499			9,988			7,993			9,081
Income tax expense		3,966			3,915			3,401			2,717			3,054

Net income	$	7,745		$	7,584		$	6,587		$	5,276		$	6,027

Diluted EPS	$	.29		$	.28		$	.25		$	.20		$	.23
Diluted shares		26,736,858			26,676,335			26,543,191			26,622,813			26,457,466

CONSOLIDATED BALANCE SHEET DATA
Total assets	$	3,042,235		$	2,932,662		$	2,818,039		$	2,636,920		$	2,611,163
Loans held for investment		2,075,961			1,935,818			1,805,630			1,676,799			1,564,578
Loans held for sale		111,178			118,929			120,708			70,672			119,537
Securities		630,482			674,792			725,554			754,154			804,544
Demand deposits		512,294			457,333			475,516			405,162			397,629
Total deposits		2,495,179			2,312,345			1,971,005			1,981,701			1,789,887
Other borrowings		265,721			366,501			610,254			431,682			594,991
Long-term debt		46,404			20,620			20,620			20,620			20,620
Stockholders’ equity		215,523			212,318			205,880			194,511			195,275
End of period shares		25,771,718			25,672,369			25,616,829			25,557,896			25,461,602
Book value (excluding securities gains/losses)	$	8.68		$	8.36		$	8.06		$	7.79		$	7.57

SELECTED FINANCIAL RATIOS
Net interest margin		4.13	%		3.97	%		3.88	%		3.61	%		3.58	%
Return on average assets		1.04	%		1.04	%		.97	%		.82	%		.94	%
Return on average equity		14.53	%		14.41	%		13.14	%		10.89	%		12.50	%
Non-interest expense to earning assets		3.28	%		3.10	%		3.01	%		2.94	%		2.63	%
Efficiency ratio		66.0	%		64.9	%		65.8	%		69.1	%		63.2	%
Tier 1 capital ratio		10.1	%		9.5	%		9.9	%		10.4	%		10.7	%
Total capital ratio		10.8	%		10.3	%		10.7	%		11.3	%		11.7	%
Tier 1 leverage ratio		8.7	%		7.8	%		8.1	%		8.3	%		8.3	%

ASSET QUALITY SUMMARY
Net charge-offs (recoveries)	$	11		$	(134	)	$	(59	)	$	(17	)	$	233
Net charge-offs (recoveries) to average loans⁽¹⁾		.00	%		(.03	)%		(.01	)%		(.00	)%		.06	%
Non-accrual loans	$	5,657		$	1,353		$	5,718		$	6,047		$	5,850
Loans past due (90 days)	$	2,795		$	941		$	—		$	18		$	209
Non-accrual loans to loans⁽¹⁾		.27	%		.07	%		.32	%		.36	%		.37	%
Loans past due 90 days to loans⁽¹⁾		.13	%		.05	%		.00	%		.00	%		.01	%
Non-performing loans to loans⁽¹⁾		.41	%		.12	%		.32	%		.36	%		.39	%
Reserve to loans⁽¹⁾		.91	%		.98	%		1.04	%		1.12	%		1.20	%


(1)		Excludes loans held for sale.

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)


	December 31,			December 31,			%
	2005			2004			Change
Assets
Cash and due from banks	$	137,840		$	78,490			76	%
Securities, available-for-sale		630,482			804,544			(22	)%
Loans held for sale		111,178			119,537			(7	)%
Loans held for investment (net of unearned income of $8,869 and $3,799 at December 31, 2005 and 2004, respectively)		2,075,961			1,564,578			33	%
Less: Allowance for loan losses		18,897			18,698			1	%

Loans held for investment, net		2,057,064			1,545,880			33	%
Premises and equipment, net		21,632			4,518			379	%
Accrued interest receivable and other assets		71,527			56,698			26	%
Goodwill and intangibles, net		12,512			1,496			736	%

Total assets	$	3,042,235		$	2,611,163			17	%


Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	512,294		$	397,629			29	%
Interest bearing		1,436,111			1,234,283			16	%
Interest bearing in foreign branches		546,774			157,975			246	%

Total deposits		2,495,179			1,789,887			39	%

Accrued interest payable		4,778			3,511			36	%
Other liabilities		14,630			6,879			113	%
Federal funds purchased		103,497			113,478			(9	)%
Repurchase agreements		108,357			478,204			(77	)%
Other borrowings		53,867			3,309			1528	%
Long-term debt		46,404			20,620			125	%

Total liabilities		2,826,712			2,415,888			17	%

Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares — 100,000,000 Issued shares — 25,771,718 and 25,461,602 at December 31, 2005 and 2004, respectively		258			255
Additional paid-in capital		176,131			172,380
Retained earnings		47,239			20,047
Treasury stock (shares at cost: 84,274 at December 31, 2005 and 2004)		(573	)		(573	)
Deferred compensation		573			573
Accumulated other comprehensive income (loss), net		(8,105	)		2,593

Total stockholders’ equity		215,523			195,275			10	%

Total liabilities and stockholders’ equity	$	3,042,235		$	2,611,163			17	%

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share data)


	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2005		2004		2005		2004
Interest income
Interest and fees on loans	$	41,915	$	23,941	$	136,225	$	78,600
Securities		7,087		8,567		30,712		32,200
Federal funds sold		183		17		611		65
Deposits in other banks		10		4		147		13

Total interest income		49,195		32,529		167,695		110,878
Interest expense
Deposits		16,991		7,315		50,028		23,237
Federal funds purchased		1,159		740		4,383		1,791
Repurchase agreements		1,727		2,631		8,978		9,538
Other borrowings		68		80		877		474
Long-term debt		789		303		1,858		1,096

Total interest expense		20,734		11,069		66,124		36,136

Net interest income		28,461		21,460		101,571		74,742
Provision for loan losses		—		200		—		1,688

Net interest income after provision for loan losses		28,461		21,260		101,571		73,054
Non-interest income
Service charges on deposit accounts		833		797		3,223		3,370
Trust fee income		760		559		2,739		1,932
Cash processing fees		—		—		—		587
Bank owned life insurance (BOLI) income		290		292		1,136		1,288
Brokered loan fees		178		243		1,759		996
Gain on sale of mortgage loans		2,118		1,145		7,992		3,420
Insurance commissions		648		116		1,047		444
Other		1,159		586		2,753		1,595

Total non-interest income		5,986		3,738		20,649		13,632
Non-interest expense
Salaries and employee benefits		13,874		9,786		50,726		34,794
Net occupancy expense		2,025		1,577		7,520		5,695
Marketing		894		837		3,336		2,609
Legal and professional		1,783		814		5,166		3,141
Communications and data processing		673		540		2,900		3,158
Franchise taxes		134		41		273		246
Other		3,353		2,322		11,108		7,697

Total non-interest expense		22,736		15,917		81,029		57,340

Income before income taxes		11,711		9,081		41,191		29,346
Income tax expense		3,966		3,054		13,999		9,786

Net income	$	7,745	$	6,027	$	27,192	$	19,560

Earnings per share:
Basic	$	.30	$	.24	$	1.06	$	.77
Diluted	$	.29	$	.23	$	1.02	$	.75

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)


	4^th Quarter			3^rd Quarter			2^nd Quarter			1^st Quarter			4^th Quarter
	2005			2005			2005			2005			2004
Beginning balance	$	18,908		$	18,774		$	18,715		$	18,698		$	18,731
Loans charged-off:													��
Commercial		60			14			70			266			258
Real estate		—			—			28			—			—
Consumer		8			32			52			1			16
Leases		6			—			2			58			115

Total		74			46			152			325			389
Recoveries:
Commercial		3			115			171			282			6
Leases		60			65			40			60			150

Total recoveries		63			180			211			342			156

Net charge-offs (recoveries)		11			(134	)		(59	)		(17	)		233
Provision for loan losses		—			—			—			—			200

Ending balance	$	18,897		$	18,908		$	18,774		$	18,715		$	18,698


Reserve to loans held for investment⁽²⁾		.91	%		.98	%		1.04	%		1.12	%		1.20	%
Reserve to average loans held for investment⁽²⁾		.94	%		1.00	%		1.07	%		1.18	%		1.23	%
Net charge-offs (recoveries) to average loans⁽¹⁾⁽²⁾		.00	%		(.03	)%		(.01	)%		(.00	)%		.06	%
Provision for loan losses to average loans⁽¹⁾⁽²⁾		—			—			—			—			.05	%
Recoveries to gross charge-offs		85.14	%		391.3	%		138.8	%		105.2	%		40.1	%
Reserve as a multiple of net charge-offs		1,717.9	x		N/M			N/M			N/M			80.2	x

Non-performing loans:
Loans past due (90 days)⁽³⁾	$	2,795		$	941		$	—		$	18		$	209
Non-accrual		5,657			1,353			5,718			6,047			5,850

Total	$	8,452		$	2,294		$	5,718		$	6,065		$	6,059


Reserve as a percent of non-performing loans		2.2x			8.2x			3.3x			3.1x			3.1x
Reserve as a percent of non-accrual loans		3.3x			14.0x			3.3x			3.1x			3.2x


(1)		Interim period ratios are annualized.

(2)		Excludes loans held for sale.

(3)		At December 31, 2005, loans past due 90 days and still accruing includes premium finance loans of $2.528 million (90.4% of total). These loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date.

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Dollars in thousands)


	4^th Quarter		3^rd Quarter		2^nd Quarter		1^st Quarter		4^th Quarter
	2005		2005		2005		2005		2004
Interest income
Interest and fees on loans	$	41,915	$	37,363	$	31,255	$	25,692	$	23,941
Securities		7,087		7,442		7,887		8,296		8,567
Federal funds sold		183		334		14		80		17
Deposits in other banks		10		7		11		119		4

Total interest income		49,195		45,146		39,167		34,187		32,529
Interest expense
Deposits		16,991		13,658		10,446		8,933		7,315
Federal funds purchased		1,159		989		1,374		861		740
Repurchase agreements		1,727		2,706		2,151		2,394		2,631
Other borrowings		68		451		354		4		80
Long-term debt		789		384		358		327		303

Total interest expense		20,734		18,188		14,683		12,519		11,069

Net interest income		28,461		26,958		24,484		21,668		21,460
Provision for loan losses		—		—		—		—		200

Net interest income after provision for loan losses		28,461		26,958		24,484		21,668		21,260
Non-interest income
Service charges on deposit accounts		833		816		793		781		797
Trust fee income		760		778		615		586		559
Bank owned life insurance (BOLI) income		290		267		291		288		292
Brokered loan fees		178		962		400		219		243
Gain on sale of mortgage loans		2,118		2,198		1,911		1,765		1,145
Insurance commissions		648		114		172		113		116
Other		1,159		655		512		427		586

Total non-interest income		5,986		5,790		4,694		4,179		3,738
Non-interest expense
Salaries and employee benefits		13,874		13,465		11,858		11,529		9,786
Net occupancy expense		2,025		1,937		1,875		1,683		1,577
Marketing		894		821		922		699		837
Legal and professional		1,783		1,183		1,103		1,097		814
Communications and data processing		673		658		914		655		540
Franchise taxes		134		49		45		45		41
Other		3,353		3,136		2,473		2,146		2,322

Total non-interest expense		22,736		21,249		19,190		17,854		15,917

Income before income taxes		11,711		11,499		9,988		7,993		9,081
Income tax expense		3,966		3,915		3,401		2,717		3,054

Net income	$	7,745	$	7,584	$	6,587	$	5,276	$	6,027

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


	4^th Quarter 2005							3^rd Quarter 2005							2^nd Quarter 2005							1^st Quarter 2005							4^th Quarter 2004
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Average		Average			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense⁽¹⁾⁽²⁾		Rate			Balance		Expense⁽¹⁾⁽²⁾		Rate			Balance		Balance		Balance			Balance		Expense⁽¹⁾⁽²⁾		Rate			Balance		Expense⁽¹⁾⁽²⁾		Rate
Assets
Securities — Taxable	$	598,280	$	6,653		4.41	%	$	643,319	$	7,007		4.32	%	$	685,058	$	7,451		4.36	%	$	729,907	$	7,861		4.37	%	$	765,943	$	8,168		4.24	%
Securities — Non-taxable		48,655		668		5.45	%		48,675		669		5.45	%		48,694		671		5.53	%		48,715		669		5.57	%		44,907		614		5.44	%
Federal funds sold		18,553		183		3.91	%		37,532		334		3.53	%		1,980		14		2.84	%		12,377		80		2.62	%		3,159		17		2.14	%
Deposits in other banks		980		10		4.05	%		895		7		3.10	%		1,736		11		2.54	%		17,858		119		2.70	%		773		4		2.06	%
Loans held for sale⁽³⁾		99,882		3,521		13.99	%		121,181		3,650		11.95	%		84,497		2,897		13.75	%		81,956		2,281		11.29	%		94,510		2,191		9.22	%
Loans held for investment		2,006,132		38,394		7.59	%		1,884,161		33,713		7.10	%		1,755,311		28,358		6.48	%		1,590,207		23,411		5.97	%		1,516,672		21,750		5.71	%
Less reserve for loan losses		18,924		—		—			18,882		—		—			18,753		—		—			18,930		—		—			18,870		—		—

Loans, net of reserve		2,087,090		41,915		7.97	%		1,986,460		37,363		7.46	%		1,821,055		31,255		6.88	%		1,653,233		25,692		6.30	%		1,592,312		23,941		5.98	%

Total earning assets		2,753,558		49,429		7.12	%		2,716,881		45,380		6.63	%		2,558,523		39,402		6.18	%		2,462,090		34,421		5.67	%		2,407,094		32,744		5.41	%
Cash and other assets		188,998							175,986							162,835							148,557							137,702

Total assets	$	2,942,556						$	2,892,867						$	2,721,358						$	2,610,647						$	2,544,796

Liabilities and Stockholders’ Equity
Transaction deposits	$	108,245	$	282		1.03	%	$	107,398	$	271		1.00	%	$	111,029	$	272		0.98	%	$	107,162	$	255		0.97	%	$	104,621	$	230		0.87	%
Savings deposits		691,575		5,800		3.33	%		628,019		4,442		2.81	%		654,519		3,906		2.39	%		613,391		3,147		2.08	%		587,020		2,548		1.73	%
Time deposits		1,082,721		10,909		4.00	%		987,731		8,945		3.59	%		782,643		6,268		3.21	%		765,497		5,531		2.93	%		658,447		4,537		2.74	%

Total interest bearing deposits		1,882,541		16,991		3.58	%		1,723,148		13,658		3.14	%		1,548,191		10,446		2.71	%		1,486,050		8,933		2.44	%		1,350,088		7,315		2.16	%
Other borrowings		325,350		2,954		3.60	%		504,700		4,146		3.26	%		545,896		3,879		2.85	%		534,773		3,259		2.47	%		635,552		3,451		2.16	%
Long-term debt		44,722		789		7.00	%		20,620		384		7.39	%		20,620		358		6.96	%		20,620		327		6.43	%		20,620		303		5.85	%

Total interest bearing liabilities		2,252,613		20,734		3.65	%		2,248,468		18,188		3.21	%		2,114,707		14,683		2.78	%		2,041,443		12,519		2.49	%		2,006,260		11,069		2.19	%
Demand deposits		458,743							420,288							397,266							363,398							335,914
Other liabilities		19,702							15,265							8,370							9,241							10,732
Stockholders’ equity		211,498							208,846							201,015							196,565							191,890

Total liabilities and stockholders’ equity	$	2,942,556						$	2,892,867						$	2,721,358						$	2,610,647						$	2,544,796

Net interest income			$	28,695						$	27,192						$	24,719						$	21,902						$	21,675
Net interest margin						4.13	%						3.97	%						3.88	%						3.61	%						3.58	%


(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.

(3)		Revenue includes origination fees and other loan fees for our residential mortgage loans that are earned when the loan is sold. This increases our overall yield on these loans since most of the mortgage loans are on our books for less than 30 days.

Texas Capital Bancshares (TCBI) 8-KTexas Capital Bancshares Announces Fourth Quarter Operating Results