Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for Q1 2008

Exhibit 99.1

For immediate release
April 16, 2008

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2008

DALLAS — April 16, 2008 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2008.

• EPS increased 3% for the quarter

• Net income increased 6%

• Loans held for investment grew 21%

• Total deposits grew 2%

“We are pleased to begin 2008 with a good, solid first quarter,” said Jody Grant, Chairman and CEO. “In light of the current pressures in the economy, it is particularly gratifying to report the decline in our non-performing loans. We are focused on taking those steps necessary to position us to have another good year.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

	Q1 2008			Q1 2007			% Change
QUARTERLY OPERATING RESULTS
Net Income(1)	$	8,030		$	7,586			6	%
Diluted EPS(1)	$	.30		$	.29			3	%
ROA(1)		.76	%		.84	%
ROE(1)		10.64	%		12.12	%
Diluted Shares		26,528			26,441
BALANCE SHEET
Total Assets(1)	$	4,351,514		$	3,807,232			14	%
Demand Deposits		503,554			507,686			(1	)%
Total Deposits		3,155,313			3,086,737			2	%
Loans Held for Investment		3,493,631			2,885,963			21	%
Total Loans(1)		3,733,491			3,094,037			21	%
Stockholders’ Equity		312,016			263,616			18	%

(1) From continuing operations

1

DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income from continuing operations of $8.0 million for the first quarter of 2008 compared to $7.6 million for the first quarter of 2007. On a fully diluted basis, earnings per share from continuing operations were $.30 for the three months ended March 31, 2008, compared to $.29 for the same quarter last year. Results of discontinued operations were net loss of $148,000 and net income of $36,000 for the first quarter 2008 and 2007, respectively. The discussion below relates only to continuing operations.

Return on average equity was 10.64 percent and return on average assets was .76 percent for the first quarter of 2008, compared to 12.12 and .84 percent, respectively, for the first quarter of 2007.

Net interest income was $36.6 million for the first quarter of 2008, compared to $31.5 million for the first quarter of 2007. The increase was due to an increase in average earning assets of $646.3 million over levels reported in the first quarter of 2007. The increase in average earning assets included a $716.0 million increase in average loans held for investment and an increase of $15.3 million in average loans held for sale, offset by a decrease of $77.0 million in average securities. The net interest margin in the first quarter of 2008 was 3.65 percent, a 13 basis point decrease from the first quarter of 2007 and a 20 basis point decrease from the fourth quarter of 2007.

Average total deposits increased by $1.0 million from the first quarter of 2007 and decreased by $65.1 million from the fourth quarter of 2007. For the same periods, the average balance of demand deposits increased by 6.9 percent to $469.3 million from $439.1 million and decreased $15.9 million, or 3.3 percent, from the fourth quarter of 2007. Of the increase in average interest bearing liabilities, total borrowings grew due to combined effects of maturities of transaction-specific deposits and growth in loans during the first quarter of 2008.

Key measures of credit quality remained good. In the first quarter of 2008, net charge-offs were $2.6 million, compared to net recoveries of $386,000 in the first quarter of 2007 and net charge-offs of $2.5 million in the fourth quarter of 2007. Non-accrual loans were $13.6 million, or         .39 percent of loans at the end of the first quarter of 2008, compared to $8.8 million, or .31 percent of loans at the end of first quarter of 2007, and $21.4 million, or .62 percent of loans at the end of the fourth quarter of 2007. Loans 90 days past due and still accruing were $5.2 million at the end of the first quarter of 2008 compared to $4.8 million at the end of the first quarter of 2007. At March 31, 2008, the $5.2 million of past due loans included $1.3 million in premium finance loans. The Company recorded a $3.8 million provision for loan losses in the first quarter of 2008, compared to $1.2 million in the first quarter of 2007 and $9.3 million in the fourth quarter of 2007. The increase in the first quarter provision resulted in an increase in the reserve to .97 percent of loans held for investment as compared to .78 percent at March 31, 2007. 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.

Non-interest income for the first quarter of 2008 increased $400,000, or 8 percent, to $5.7 million from $5.3 million in the first quarter of 2007. The increase is primarily related to a $224,000 increase in service charges on deposit accounts from $893,000 to $1.1 million. Trust fee income increased $139,000 due to continued growth of trust assets.

2

Non-interest expense for the first quarter of 2008 increased $2.2 million, or 9 percent, to $26.3 million from $24.1 million in the first quarter of 2007. The increase is primarily related to a $785,000 increase in salaries and employee benefits to $15.3 million from $14.6 million, which was primarily due to general business growth.

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)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2008			2007			2007			2007			2007
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	66,809		$	74,018		$	76,140		$	72,118		$	67,016
Interest expense		30,210			36,487			39,609			37,948			35,496
Net interest income		36,599			37,531			36,531			34,170			31,520
Provision for loan losses		3,750			9,300			2,000			1,500			1,200
Net interest income after provision for loan losses		32,849			28,231			34,531			32,670			30,320
Non-interest income		5,683			4,880			4,875			5,589			5,283
Non-interest expense		26,277			23,206			25,894			25,411			24,095
Income from continuing operations before income taxes		12,255			9,905			13,512			12,848			11,508
Income tax expense		4,225			3,367			4,668			4,463			3,922
Net income from continuing operations		8,030			6,538			8,844			8,385			7,586
Income (loss) from discontinued operations (after-tax)		(148	)		(1,185	)		(602	)		(180	)		36
Net income	$	7,882		$	5,353		$	8,242		$	8,205		$	7,622
Diluted EPS from continuing operations	$	.30		$	.24		$	.33		$	.31		$	.29
Diluted EPS	$	.30		$	.20		$	.31		$	.31		$	.29
Diluted shares		26,527,904			26,790,685			26,766,788			26,711,437			26,440,556
CONSOLIDATED BALANCE SHEET DATA(1)
Total assets	$	4,351,514		$	4,286,718		$	4,077,290		$	3,943,518		$	3,807,232
Loans held for investment		3,493,631			3,462,608			3,296,039			3,091,657			2,885,963
Loans held for sale		239,860			174,166			118,221			176,022			208,074
Securities		425,513			440,119			461,064			470,946			498,372
Demand deposits		503,554			529,334			471,109			495,010			507,686
Total deposits		3,155,313			3,066,377			3,295,707			3,112,560			3,086,737
Other borrowings		751,482			783,851			358,510			421,668			331,118
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		312,016			295,138			284,209			270,097			263,616
End of period shares		26,631,763			26,389,548			26,243,149			26,189,562			26,101,994
Book value (excluding securities gains/losses)	$	11.55		$	11.22		$	11.00		$	10.64		$	10.27
Tangible book value	$	11.42		$	10.89		$	10.53		$	10.01		$	9.79
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin		3.65	%		3.85	%		3.85	%		3.81	%		3.78	%
Return on average assets		.76	%		.63	%		.88	%		.88	%		.84	%
Return on average equity		10.64	%		8.88	%		12.73	%		12.59	%		12.12	%
Non-interest income to earning assets		.56	%		.50	%		.51	%		.62	%		.63	%
Efficiency ratio		62.1	%		54.7	%		62.5	%		63.9	%		65.5	%
Non-interest expense to earning assets		2.61	%		2.37	%		2.71	%		2.82	%		2.87	%
From consolidated
Net interest margin		3.65	%		3.85	%		3.85	%		3.82	%		3.77	%
Return on average assets		.74	%		.52	%		.82	%		.86	%		.84	%
Return on average equity		10.45	%		7.27	%		11.86	%		12.32	%		12.18	%
Tier 1 capital ratio		9.7	%		9.4	%		9.6	%		9.8	%		9.8	%
Total capital ratio		10.8	%		10.6	%		10.7	%		10.9	%		11.1	%
Tier 1 leverage ratio		9.4	%		9.4	%		9.4	%		9.4	%		9.5	%

(1) From continuing operations

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)

	March 31,			March 31,			%
	2008			2007			Change
Assets
Cash and due from banks	$	78,975		$	106,653			(26	)%
Federal funds sold		—			20			100	%
Securities, available-for-sale		425,513			498,372			(15	)%
Loans held for sale		239,860			208,074			15	%
Loans held for sale from discontinued operations		730			12,525			(94	)%
Loans held for investment (net of unearned income)		3,493,631			2,885,963			21	%
Less: Allowance for loan losses		34,021			22,589			51	%
Loans held for investment, net		3,459,610			2,863,374			21	%
Premises and equipment, net		29,526			34,350			(14	)%
Accrued interest receivable and other assets		110,220			88,416			25	%
Goodwill and intangibles, net		7,810			7,973			(2	)%
Total assets	$	4,352,244		$	3,819,757			14	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	503,554		$	507,686			(1	)%
Interest bearing		1,718,339			1,621,299			6	%
Interest bearing in foreign branches		933,420			957,752			(3	)%
Total deposits		3,155,313			3,086,737			2	%
Accrued interest payable		5,742			7,895			(27	)%
Other liabilities		14,285			16,985			(16	)%
Federal funds purchased		312,212			288,640			8	%
Repurchase agreements		8,964			42,478			(79	)%
Other borrowings		430,306			—			100	%
Trust preferred subordinated debentures		113,406			113,406			N/M
Total liabilities		4,040,228			3,556,141			14	%
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares — 100,000,000
Issued shares — 26,631,763 and 26,101,994 at March 31, 2008 and 2007, respectively		266			261
Additional paid-in capital		193,917			184,038
Retained earnings		113,467			83,785
Treasury stock (shares at cost: 84,691 and 84,691 at March 31, 2008 and 2007, respectively)		(581	)		(581	)
Deferred compensation		573			573
Accumulated other comprehensive income (loss)		4,374			(4,460	)
Total stockholders’ equity		312,016			263,616			18	%
Total liabilities and stockholders’ equity	$	4,352,244		$	3,819,757			14	%

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TEXAS CAPITAL BANCSHARES, INC.

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

	Three Months Ended
	March 31
	2008			2007
Interest income
Interest and fees on loans	$	61,897		$	61,174
Securities		4,860			5,822
Federal funds sold		40			5
Deposits in other banks		12			15
Total interest income		66,809			67,016
Interest expense
Deposits		21,724			30,890
Federal funds purchased		2,950			2,153
Repurchase agreements		322			394
Other borrowings		3,327			12
Trust preferred subordinated debentures		1,887			2,047
Total interest expense		30,210			35,496
Net interest income		36,599			31,520
Provision for loan losses		3,750			1,200
Net interest income after provision for loan losses		32,849			30,320
Non-interest income
Service charges on deposit accounts		1,117			893
Trust fee income		1,216			1,077
Bank owned life insurance (BOLI) income		311			298
Brokered loan fees		473			479
Equipment rental income		1,516			1,459
Other		1,050			1,077
Total non-interest income		5,683			5,283
Non-interest expense
Salaries and employee benefits		15,342			14,557
Net occupancy expense		2,365			2,020
Leased equipment depreciation		1,193			1,207
Marketing		677			757
Legal and professional		2,016			1,661
Communications and data processing		854			832
Other		3,830			3,061
Total non-interest expense		26,277			24,095
Income from continuing operations before income taxes		12,255			11,508
Income tax expense		4,225			3,922
Income from continuing operations		8,030			7,586
Income (loss) from discontinued operations (after-tax)		(148	)		36
Net income	$	7,882		$	7,622
Basic earnings per share:
Income from continuing operations	$	.30		$	.29
Net income	$	.30		$	.29
Diluted earnings per share:
Income from continuing operations	$	.30		$	.29
Net income	$	.30		$	.29

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2008			2007			2007			2007			2007
Beginning balance	$	32,821		$	26,003		$	24,062		$	22,589		$	21,003
Loans charged-off:
Commercial		3,086			2,189			100			93			146
Real estate — construction		—			313			—			—			—
Real estate — permanent		5			—			—			—			—
Consumer		—			—			45			3			—
Leases		29			13			10			58			—
Total		3,120			2,515			155			154			146
Recoveries:
Commercial		524			17			72			49			504
Consumer		—			1			1			—			13
Leases		46			15			23			78			15
Total recoveries		570			33			96			127			532
Net charge-offs (recoveries)		2,550			2,482			59			27			(386	)
Provision for loan losses		3,750			9,300			2,000			1,500			1,200
Ending balance	$	34,021		$	32,821		$	26,003		$	24,062		$	22,589
Reserve to loans held for investment(2)		.97	%		.95	%		.79	%		.78	%		.78	%
Reserve to average loans held for investment(2)		.98	%		.98	%		.81	%		.81	%		.82	%
Net charge-offs (recoveries) to average loans(1)(2)		.29	%		.30	%		.01	%		.00	%		(.06	)%
Net charge-offs (recoveries) to average loans for last twelve months(1) (2)		.16	%		.07	%		.02	%		.00	%		.06	%
Provision for loan losses to average loans(1)(2)		.43	%		1.11	%		.25	%		.20	%		.18	%
Non-performing loans:
Loans past due 90 days and still accruing(3)(4)	$	5,199		$	4,147		$	4,356		$	1,860		$	4,828
Non-accrual(4)		13,564			21,385			8,690			8,718			8,843
Total	$	18,763		$	25,532		$	13,046		$	10,578		$	13,671
Other real estate owned	$	3,126		$	2,671		$	501		$	89		$	89
Reserve to non-performing loans		1.8x			1.3x			2.0x			2.3x			1.7x
Reserve to non-accrual loans		2.5x			1.5x			3.0x			2.8x			2.6x
Reserve to non-performing assets		1.6x			1.2x			1.9x			2.3x			1.6x
Non-accrual loans to loans(2)		.39	%		.62	%		.26	%		.28	%		.31	%
Loans past due 90 days to loans(2)		.15	%		.12	%		.13	%		.06	%		.17	%
Non-performing loans to loans(2)		.54	%		.74	%		.40	%		.34	%		.47	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At March 31, 2008, loans past due 90 days and still accruing includes premium finance loans of $1.3 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)	Non-performing assets include $4.8 million of mortgage warehouse loans.

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TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2008			2007			2007			2007			2007
Interest income
Interest and fees on loans	$	61,897		$	68,752		$	70,719		$	66,526		$	61,174
Securities		4,860			5,191			5,395			5,567			5,822
Federal funds sold		40			65			12			10			5
Deposits in other banks		12			10			14			15			15
Total interest income		66,809			74,018			76,140			72,118			67,016
Interest expense
Deposits		21,724			27,934			32,690			29,731			30,890
Federal funds purchased		2,950			3,580			3,554			3,767			2,153
Repurchase agreements		322			76			175			270			394
Other borrowings		3,327			2,838			1,102			2,117			12
Trust preferred subordinated debentures		1,887			2,059			2,088			2,063			2,047
Total interest expense		30,210			36,487			39,609			37,948			35,496
Net interest income		36,599			37,531			36,531			34,170			31,520
Provision for loan losses		3,750			9,300			2,000			1,500			1,200
Net interest income after provision for loan losses		32,849			28,231			34,531			32,670			30,320
Non-interest income
Service charges on deposit accounts		1,117			1,156			1,089			953			893
Trust fee income		1,216			1,238			1,182			1,194			1,077
Bank owned life insurance (BOLI) income		311			311			288			301			298
Brokered loan fees		473			365			452			574			479
Equipment rental income		1,516			1,605			1,581			1,493			1,459
Other		1,050			205			283			1,074			1,077
Total non-interest income		5,683			4,880			4,875			5,589			5,283
Non-interest expense
Salaries and employee benefits		15,342			12,035			15,254			14,762			14,557
Net occupancy expense		2,365			2,161			2,194			2,055			2,020
Leased equipment depreciation		1,193			1,236			1,311			1,204			1,207
Marketing		677			850			669			728			757
Legal and professional		2,016			2,043			1,799			1,742			1,661
Communications and data processing		854			838			849			838			832
Other		3,830			4,043			3,818			4,082			3,061
Total non-interest expense		26,277			23,206			25,894			25,411			24,095
Income from continuing operations before income taxes		12,255			9,905			13,512			12,848			11,508
Income tax expense		4,225			3,367			4,668			4,463			3,922
Income from continuing operations (after-tax)		8,030			6,538			8,844			8,385			7,586
Income (loss) from discontinued operations (after-tax)		(148	)		(1,185	)		(602	)		(180	)		36
Net income	$	7,882		$	5,353		$	8,242		$	8,205		$	7,622

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TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter 2008							4th Quarter 2007							3rd Quarter 2007							2nd Quarter 2007							1st Quarter 2007
	Average		Revenue/		Yield/			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			Balance		Expense(1)		Rate
Assets
Securities — Taxable	$	380,257	$	4,424		4.68	%	$	402,240	$	4,755		4.69	%	$	416,092	$	4,959		4.73	%	$	435,543	$	5,134		4.73	%	$	456,809	$	5,388		4.78	%
Securities — Non-taxable(2)		48,144		671		5.61	%		48,158		671		5.53	%		48,173		671		5.53	%		48,291		666		5.53	%		48,549		668		5.58	%
Federal funds sold		4,714		40		3.41	%		5,495		65		4.69	%		885		12		5.38	%		768		10		5.22	%		418		5		4.85	%
Deposits in other banks		1,251		12		3.86	%		1,121		10		3.54	%		1,217		14		4.56	%		1,264		15		4.76	%		1,097		15		5.55	%
Loans held for sale		171,672		2,610		6.11	%		122,205		1,872		6.08	%		150,031		2,618		6.92	%		191,979		3,440		7.19	%		156,400		2,791		7.24	%
Loans held for investment		3,483,840		59,287		6.84	%		3,337,968		66,880		7.95	%		3,195,480		68,101		8.46	%		2,964,863		63,086		8.53	%		2,767,834		58,383		8.55	%
Less reserve for loan losses		33,519		—		—			25,958		—		—			24,065		—		—			22,633		—		—			21,001		—		—
Loans, net of reserve		3,621,993		61,897		6.87	%		3,434,215		68,752		7.94	%		3,321,446		70,719		8.45	%		3,134,209		66,526		8.51	%		2,903,233		61,174		8.55	%
Total earning assets		4,056,359		67,044		6.65	%		3,891,229		74,253		7.57	%		3,787,813		76,375		8.00	%		3,620,075		72,351		8.02	%		3,410,106		67,250		8.00	%
Cash and other assets		207,595							215,853							204,859							221,586							241,822
Total assets	$	4,263,954						$	4,107,082						$	3,992,672						$	3,841,661						$	3,651,928
Liabilities and Stockholders’ Equity
Transaction deposits	$	108,349	$	145		0.54	%	$	97,798	$	166		0.67	%	$	95,870	$	239		0.99	%	$	93,488	$	236		1.01	%	$	105,592	$	282		1.08	%
Savings deposits		790,185		5,118		2.61	%		859,914		8,127		3.75	%		848,760		9,393		4.39	%		794,668		8,792		4.44	%		821,526		9,175		4.53	%
Time deposits		727,494		7,875		4.35	%		624,509		7,734		4.91	%		760,511		9,877		5.15	%		655,440		8,416		5.15	%		769,485		9,756		5.14	%
Deposits in foreign branches		956,603		8,586		3.61	%		1,049,645		11,907		4.50	%		1,037,813		13,181		5.04	%		966,686		12,287		5.10	%		915,229		11,677		5.17	%
Total interest bearing deposits		2,582,631		21,724		3.38	%		2,631,866		27,934		4.21	%		2,742,954		32,690		4.73	%		2,510,282		29,731		4.75	%		2,611,832		30,890		4.80	%
Other borrowings		773,149		6,599		3.43	%		560,523		6,494		4.60	%		368,824		4,831		5.20	%		469,999		6,154		5.25	%		207,303		2,559		5.01	%
Trust preferred subordinated debentures		113,406		1,887		6.69	%		113,406		2,059		7.20	%		113,406		2,088		7.30	%		113,406		2,063		7.30	%		113,406		2,047		7.32	%
Total interest bearing liabilities		3,469,186		30,210		3.50	%		3,305,795		36,487		4.38	%		3,225,184		39,609		4.87	%		3,093,687		37,948		4.92	%		2,932,541		35,496		4.91	%
Demand deposits		469,299							485,211							469,610							458,096							439,071
Other liabilities		22,071							23,999							22,173							22,650							26,494
Stockholders’ equity		303,398							292,076							275,705							267,228							253,822
Total liabilities and stockholders’ equity	$	4,263,954						$	4,107,082						$	3,992,672						$	3,841,661						$	3,651,928
Net interest income			$	36,834						$	37,766						$	36,766						$	34,403						$	31,754
Net interest margin						3.65	%						3.85	%						3.85	%						3.81	%						3.78	%

(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.

Additional information from discontinued operations:
Loans held for sale	$	731					$	861					$	1,259					$	4,155					$	12,068
Borrowed funds		731						861						1,259						4,155						12,068
Net interest income			$	13					$	14					$	5					$	115					$	46
Net interest margin — consolidated					3.65	%					3.85	%					3.85	%					3.82	%					3.77	%

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